For the beginner investor, there are several options that may yield good returns. One of them is real estate. This can be a rewarding investment due to the many ways investors can maximize their assets and diversify their portfolio.

Here are some of the ways you can maximize your ROI on real estate that can help you reduce the risk of loss, and gain benefits in the long run.

Have Your Spaces Rented

Condominiums and apartments are great residences due to their locations close to prime establishments and commercial and industrial centers. However, owning condominiums and apartments can also open more opportunities for further investments.

You can have your condominiums and apartments rented by those looking for cheaper homes or lodgings close to work, schools, or prime go-to places in the area.

When you rent out your spaces, especially if they are in booming areas such as Las Pinas, not only do you earn additional passive income, but you also provide more affordable and comfortable housing for those looking to live in a highly-urbanized area.

Invest in Real Estate Investment Trusts (REIT)

Trusts are also another way you can maximize your investments in real estate. REIT (Real Estate Investment Trusts) is a public listed stock corporation that allows the public to invest in finished real estate properties that are already earning income. Through REITs, you can purchase, lease, resell, or manage office units, hotels, residential properties, and even warehouses.

Investing in REIT is ideal for those who are new to the real estate market, and for those who don’t have the leisure of time to deal with the tedious process of doing the paperwork, due diligence, and maintaining the property. OFWs are some of the people who can gain benefits from utilizing REIT.

REIT also entails low risks in investment since the money being pooled goes to the REIT company. Prices still vary, depending on the supply and the demand of the real estate market. REIT is expected to boom this 2020 in the Philippines after amendments to the REIT Law, so it’s the best time to add REITs to your investments.

Invest in Existing Developments

long with REITs, there are tons of real estate investment options that you can venture into. From residential to commercial spaces, you can earn a portion of the income and maximize your real estate investments.

Here are some of the ideal properties that you can invest in.

• Co-Living Spaces

The demand for co-living spaces has increased in the past years because of the presence of more options that have top-quality amenities, comfortable units, and enviable locations close to prime business districts and lifestyle centers. For instance, co-living spaces in Makati and BGC allow residents to live a zero-commute lifestyle, and houses in Las Pinas offer convenience.

In co-living spaces, you share a home with people who share your interests and values, and enjoy the urban life without being alone in the big city.

With co-living spaces, tenants can enjoy living close to many shopping centers, IT-related industries, restaurants, coffee and milk tea shops, museums, pocket parks, and recreational facilities.

• Tiny Houses

While tiny homes are mainly popular in the United States, they are slowly becoming popular in the Philippines due to their affordability and space-efficiency. Maintenance is hassle-free because homeowners don’t need to spend too much on keeping their tiny house clean and in tip-top shape.

Investing in tiny homes can be an ideal source of passive income. You can lease it if you don’t see it as your primary residence. Students and young professionals seeking an affordable and space-efficient home can take advantage of tiny homes.

• Warehouses

Warehouses are also ideal properties to be leased to start-ups and e-commerce brands. The benefits of renting out your warehouses include a steady cash-flow from tenants needing a wide space to keep their inventory and to avoid any interruptions or delays. Likewise, tenants are less likely to relocate too soon, which means longer-term leases.

If you have vacant lots that you want to profit from, converting it to warehouses is a good idea. Purchase lots located along major roads, highways, and seaports to help tenants ensure hassle-free operations and logistics.

With the widening selection of opportunities and ways you can maximize your investments in real estate, purchasing houses and other developments is a great way to stretch your ROI and enjoy the long-term benefits that come with it.

Published: 2020-02-21 18:18:49