4 Real Estate Properties to Consider as a Retirement Investment
Real estate remains a popular investment in the Philippines. It is a tangible asset that generates sustainable passive income as you go into retirement. However, before venturing on a real estate investment, you must take the time to study and plan everything out.
Research as much as you can about real estate investment. It’s also a smart move to connect with experienced investors so you can get some pointers and insights. In addition, you can attend property auctions to discover properties that aren’t available in online listings.
Once you’re ready to make the most out of your savings, here are some property types you can purchase and turn into an investment.
Home Rental in a Tourist Destination
Gaining profit is the primary goal of property investment, so having house units nearby popular tourist sites is a great idea. Some popular destinations among tourists include El Nido, Davao, Boracay, Siargao, and Cebu.
Renting out your place can be difficult, especially if there are newer, more popular resorts in the area. To compete, lower your nightly rate to help attract tourists who are looking for accommodation.
Condo Rental Near Workspaces
Many employees, especially young professionals, find comfort in living close to their workplaces. To take advantage of this, consider buying a condo located in business districts like BGC, Makati, and Ortigas. You’ll be helping a lot of employees save money on transportation (and hopefully lower their tardiness).
Before renting out your condo, make sure to prepare a competent contract. This document should contain the terms of payment, tenant’s responsibilities, and landlord’s responsibilities. Discuss all of these with your tenant to avoid confusion in the future. Also, don’t forget to acquire all the necessary tax requirements and permits prior to renting out your condo.
Apartments or Dormitories Near Schools
Students are always on the lookout for bed spaces, apartments, or dormitories before they begin their academic year. Target this segment of the market by investing in apartments or dormitories near popular schools and universities.
Look for properties near colleges and universities and do some research about your future investment. When was the property built? How many students rent the property on a yearly basis? Investing on a bigger property like this will help you generate more income and boost your financial portfolio exponentially.
Investing on Foreclosed Properties
If you’re looking for a more affordable property investment, consider buying a foreclosed land. Find the right foreclosed property by checking different sources like banks, lending institutions, and government financial institutions like the National Housing Authority (NHA), Social Security System (SSS), and Home Development Mutual Fund of Pag-IBIG.
Reminders Before Investing
Before buying a property, know that you will be charged some fees and taxes as a buyer. This includes a notarial fee, transfer tax, and a documentary stamp tax. If you are buying a townhouse or a condo unit, you are required to pay monthly association dues.
To financially support your investment, consider getting a loan. Brokers and real estate owners need to know your financial capability to purchase a property. An approved loan can give you a better chance of buying the property you want. After all, property sellers are attracted to sure buyers.
Real estate investment is a good way to balance your financial portfolio. It is a major purchase with huge financial risks, that’s why you need to be meticulous about choosing the right property. Every financial decision you make going forward will help you achieve your goal of a comfortable retirement, so make sure your every peso counts.
Ricky Publico is a content writer at Moneymax. Save money on car insurance, credit cards, and loans when you compare and apply at www.moneymax.ph! Visit their website to know more.