OFWs are now considered modern-day heroes because of their hardships and their contributions to our country’s economy. They have many tribulations to go through and challenges to face. Everything our dear OFWs do is not easy — every adventure always comes with hardships and trials. But for the sake of their families, they continue to work hard. To help our modern-day heroes, this article will be OFWs guide on how to turn your house and lot into passive income.
Most Filipinos think that OFWs earn big money and live in luxury, but they don’t know the sacrifices they make for their family. Sometimes they do not earn enough for themselves and their family. They will prioritize their family’s needs instead of their own to give them a good life.
For OFWs, not only money is important to them, but also time. If only they can do more than one work at a time to earn enough or more. But there is a way to earn extra income without spending a lot of time. It is called passive income.
Passive income is money you earn without too much extensive effort. You can earn extra income while doing your primary job or you’re just in your room doing nothing. It is like making money while you sleep. In other words, passive income is one of the best-known ways to improve someone’s financial situation.
There are many ways to make passive income. First is know what type of investment is best for you. One of the best investments you could choose from could be real estate. Next is to know how to choose the right real estate property for you. Which could be investing in an affordable house and lot. OFWs can buy house and lot and earn passive income. While earning abroad, they’re also earning in the Philippines.
House and lot investing is not just an asset, but an investment too because it’s a safe place to put your money, and home values generally increase over time.
How to Turn Your House and Lot into Passive Income
1. Pre-selling and Reselling
Pre-selling and reselling are popular ways of earning passive income.
Pre-selling is selling the house and lot to buyers even before the construction and development of the entire subdivision starts. Since the subdivision is still under development, the house and lot’s price is lower compared to the finished house and lot.
On the other hand, reselling means the investor sells a property that he previously owned at a price that is larger than its original cost. With a few touch-ups, he can enlist his property at a higher price, since he is reselling a product that is an improved version of its former self.
2. Long-term rentals
Long-term rental is one the most effective way to earn passive and consistent income. A long-term rental rented out to a long-term tenant for a long time. Compared to short-term rental, a long-term rental provides a relatively steady and consistent rental income and is typically associated with less time and effort spent on maintenance. This can serve as one of OFWs guide into turning their house and lot into passive income.
Usually, property long term rentals does not include furniture, and the tenants will pay for the utilities. The owner also has no problem with the maintenance of the house because it is the responsibility of the tenants. Unlike in the short-term, the owner or helper has to clean the property or repair damaged equipment.
Buying a rental property depends on the location. It is a good idea to research a good area for your rental property because good tenants are usually looking for a house near to their employment, as well as high schools, universities, shopping malls, grocery stores, restaurants, and community parks.
Deciding on how to do long term rentals on your property, this 1% rule in real estate investing might be able to help you.
3. Short-term rentals
Short-term rentals or vacation rentals are often sought and rented by tourists or people on vacation. Stays might vary from a few nights to several weeks; some are leased for as long as a month.
Real estate property owners and investors who own property rentals for vacationists usually can earn more on a per-night basis than having a long-term tenant. However, managing vacation rentals sometimes take more effort as it requires systems and monitoring for constant scheduling, dealing with cancellations, maintaining housekeeping, and keeping up on slow seasons.
One example of short-term rental or vacation rental is Airbnb. Many people are looking for a house or unit that can be rented for a day or a week. Tourist destinations and popular business trips locations have a higher occupancy rate for Airbnb rentals.
Short-term rentals have gained some type of popularity among travelers in the recent years as they offer flexibility which allows travelers to rent from few days to a few months. The properties in these types of rentals are usually apartments, condos, or houses where the goal is to provide renters the comfort of feeling at home. Short-term rentals can be more appealing than hotels because of the prices, furnishings, and amount of space they can often provide.
OFWs abroad can use their real estate properties or house and lots for such short term rentals.
4. Real Estate Investment Trusts (REIT)
A real estate investment trust or REIT is a company that owns, operates, or finances income-producing real estate.
REIT allows anyone to own shares of real estate properties such as house and lot, rent to own homes, housing developments, and other big properties without actually having to go out and buy, manage or finance a property.
REIT is good for long-term investing. Most of the income goes back to investors. The company may likewise take time to grow because it has less money in acquiring new assets. Also, it can be an option for those who are looking to diversify their portfolio as it provides a way of exposure to the real estate industry. REITs are a good way to earn on a long-term basis as it provides recurring income.
OFWs can enter the real estate market with minimum capital. The promise or hope of a lucrative return of investment is still there despite the low barrier to entry, as some REITs offer regular dividend income aside from income by way of normal stock gains.
Flipping refers to purchasing an asset with a short holding period with the intent of selling it for a quick profit rather than holding on for long-term appreciation. In few months, you could offer up the unit for sale on the market and earn a profit. However, just like other investments, there is a chance that you could lose money if there are not enough buyers to your liking.
Another OFWs guide on turning their house and lot to passive income is the secret to earning more profit in house flipping. It is buying a unit that is below market value. If you cannot do this, chances are you would not even make a noticeable income.
Before immersing yourself in house flipping, make sure that you consult a real estate agent who is very knowledgeable about the potential of the houses that you seek to flip for profit.
Bria Home is truly the best choice to invest house and lot. It offers affordable yet high-quality houses for ordinary Filipinos- from OFWs to local workers. Bria takes pride in its affordable, high-quality houses and fast construction. All Bria communities are near major roads and highways. They are also within proximity of places- schools, churches, shopping malls, and hospitals. It is time to invest in a home for you and your family.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE, and WhatsApp, or call 0939-887-9637.
Written by Catherine Datiles