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Four Ways to Earn Money from Real Estate

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With the booming demand for real estate investments, we have listed four ways on how you can make money from real estate:

1. Buy to Hold

This means buying a property, holding onto it, and reaping the benefits of capital growth, which is the asset’s price increase over time. For example, a condo in Makati CBD bought for Php4 million in 2005 are now selling for Php7–8 million. However, this appreciation depends on several factors, such as location, type, size, and the market’s stage at the property cycle.

2. Buy to Rent

If you plan to invest in a buy-to-rent condominium, you have to make sure that it will be attractive to would-be renters. The property should be ideally located and fully furnished. In addition, for the rental property to be cash-flow positive, make sure that monthly operational costs (mortgage repayment, maintenance, condo fees, etc.) do not exceed the rent.

3. Flipping

Condo flipping involves buying, renovating, and then selling the property for a good profit. Hence, time here is of the essence. A rule of thumb many successful house flippers follow is not to purchase a property that will take more than 30 days to refurbish, because every delay increases your risk.

4. Build and Sell

Perhaps the trickiest of the bunch, building and selling is potentially lucrative but should not be done on a whim. This involves thinking like a seasoned property developer and requires a good dose of dedication, strategy, and a good understanding of what homebuyers want. A successful build-and-sell businessman chooses his or her location wisely, hires professionals, analyzes the demand, and understands the need to bowl his future customers over.

Why invest with Vista Residences?

Vista Residences has been in the business since 2003 and continues to offers value-for-money condominiums which are strategically located near universities, central business districts, transportation hubs, commercial hubs, and top tourist destination in the Philippines.

You may contact us at rewards@vistaresidences.com for more information.

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