A house purchase is an asset that you own. It consumes money to maintain and power. Even when you pay your house in full, you still have to pay to live in it. However, it easily becomes a liability when you don’t live in it or make use of it.
For your home to become an investment, you can either live or not live in it and make a profit at the same time. This way, the house pays for itself over time. This can be achieved easily by renting a specific area or your whole house.
Many Pinoys are actually doing this in their own homes or extra houses to earn profit. But before turning your home into an investment, here are the pros and cons.
Pros:
Great rental opportunities
Be it a condominium unit, house-and-lot, room, or bed-spacer, a lot of Pinoys are now opting to rent. This gives you leverage as a homeowner to rent your home. Especially if your house is located in strategic areas, you have a great opportunity to turn it into an investment.
The rising value of properties
When you purchase a property, it’s almost always a guarantee that it will increase over time. Even if some factors may slow down its increase, it will always bounce back. Over time, this also means you can increase your rental fee based on the value of the property.
It has low risk but high returns
As mentioned, the value of a property is always on an upward trend. Naturally, this makes a house a low-risk yet high-return investment. Of course, there are external factors to consider like a calamity or a pandemic, but the market always remains competitive.
Cons
Maintenance of your home
As the landlord, you have to coordinate with your renters about the maintenance of the house. Even if you may not live in it permanently, it’s still your property and responsibility to take care of. Plus, it keeps your home in tiptop shape, attracting more prospective renters.
Problems with renters
It’s nice if you as the landlord and the renters have a decent relationship. However, this isn’t always the case. You may encounter bad renters that don’t value the property as much as you do. It can get stressful, so be prepared for possible arguments, just in case.
Late rental payments
Probably one of the biggest problems that you can encounter as a landlord is late payments. You have to be understanding but also firm on your payment extensions at the same time. When the renters don’t pay their dues, your home becomes a liability, not an investment anymore.
Whether you intend to live in your property full-time or lease it in the long run, it’s always a great buy with Elanvital Enclaves! Aside from house-and-lots in strategic locations in Cavite and Laguna, they’re also developing condominium units in prince locations in Imus and Biñan.
For more information, visit Elanvital Enclaves or contact its sales at +63 9271440196.
