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Financial freedom is a common goal for many people nowadays. While most of the time, earning enough money to save for the future is associated with hard work, passive income is another option that offers better opportunities to be financially secure. Those who value the advantages of passive income often resort to real estate investments and a popular option for this is to buy condotels in the Philippines.
In recent years, the demand for condominiums and condotels has been on the rise. Suddenly, the properties that were used as weekend homes became rental properties. Those who seek temporary residences have found a suitable place to live in. On the other hand, condotel owners have found passive income through their properties.
If you’re planning to buy a condotel in the Philippines and take advantage of its benefits, here are the things that you need to know to be assured of a rewarding journey.
How to Create Passive Income from Condotels in the Philippines
1. Do Not Limit Your Options Based Only on Location
Yes, it’s true that location matters when finding a profitable real estate investment opportunity. But with condotels, any location could be a good one. You have to keep in mind that preferences and circumstances vary. It’s also good to note that if you’re dealing with a trusted and reputable real estate developer, you’re actually getting the assurance that the condotel you’re eyeing is in a location that many would be interested in.
Of course, a condotel in a prime tourist destination or business district is an advantage. Because of high foot traffic, these locations usually benefit from continuous developments. You can also be confident that many people will be interested when you decide to rent out your property. Citi Global has real estate developments in Tagaytay and Palawan to offer you the perks of owning a property in a prime location.
See our developments in Tagaytay
2. Determine Your Target Market
When choosing a condotel, you should also identify your target market. Would you prefer the low to middle-income market or would you rather target the high-end market? Whichever, it will affect the choices you’ll make. There are condotels that are designed to suit the demands of those in the high-end market. The same way, there are also some condotels that meet the specifications of the average market. Most likely, differences are most evident in the amenities and cost of the property so you have to be keen on those details.
3. Know Your Timeframe
Just like any other products, there are high and low seasons when it comes to the demand for property rental. To make the most of your investment, your property should already be available by the time the demand for it peaks. Condotels that are ready for occupancy are a great choice. They ensure that you won’t miss opportunities even among tenants with urgent demands. If you have chosen a location near universities, you have to make your condotel unit available during breaks as this is the time when tenants are in search of properties to rent.
On the other hand, there are also advantages to choosing pre-selling condotels. Investing early or while the development is still ongoing is an option that you can capitalize on. Aside from being able to avail it at a lower introductory price and flexible payment terms, it can be a promising investment too. Usually, the market value of condotels increases once the development is finished.
4. Make Adjustments Accordingly
There are certain factors that affect the cost of a property in a specific area. You should keep yourself up-to-date with the current market trends.
For example, during a time of recession, there are tendencies for prices of condotel rentals to decline due to reduced demand. When this happens, you may need to adjust the price of your rental property rather than bear with long periods of vacancy. On the other hand, there are also opportunities for rental prices to soar higher because of new opportunities in the area like the opening of a multinational company or the expansion of a huge business.
Another example for this is the now famous San Vicente, Palawan. As a booming tourist destination, projects such as airport and infrastructure were built in support of tourism in the town.
5. Be Strict with Maintenance
Since you will be using your property to generate passive income, you also have to invest in its maintenance. See to it that your condotel will be properly kept and maintained regularly. Schedule property checks so you can have a first-hand look on its state. However, with reputable real estate developers in the Philippines who maintain condotels with the help of a world-class hotel management team, you have less to worry about when it comes to the upkeep of your unit.
ALSO READ: New Normal: 6 Benefits of Condotel Living During the COVID-19 Pandemic
Your quest for financial freedom is in your hands. There are lots of opportunities that you can grab to secure your future and your sources of income, too. With rental properties like condotels in the Philippines, you can take advantage of passive income. Just keep in mind the considerations mentioned above to make the most of your investment.
Let us help you take your step to a rewarding future. Learn about our real estate developments now.