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Rentvesting: Investors’ New Take On Real Estate Investing
Planning to invest in real estate but not sure what strategy to go for? Keep reading ‘cause there’s a new investment trend you might want to explore.
The real estate market always has new trends that investors can adapt to in stepping up their game. Watching out for these shifts is helpful in keeping up with the demands and being able to make a profit out of it.
If you want to establish a passive income-generating business out of the real estate, then rentvesting might just be the best option to choose. Rentvesting is the most recent trend in the real estate industry that has shown positive returns for investors like you.
If you’re intrigued, here is what you need to know about rentvesting and how you can effectively join the trend.
Rentvesting an Investment Property
What is Rentvesting in Real Estate?
Rentvesting is the idea of investing money in rental properties. The idea of rent vesting has been around for years but it was only recently that it became popular in countries like Australia. So well-known that people in the industry have come up with a term for the act.
In rentvesting, investors have two uses for the properties that they decide to buy. They can either purchase a condominium for sale for business purposes only or for personal living as well. Meaning, they can choose to live in the property that they’re renting out for other potential residents. Investors who “rentvest” may or may not be tenants of the property they have purchased but they are most definitely the landlords.
Rentvesting is an efficient way to get on top of the market without the risk of spending too much and wasting your money on waiting for one-time big-time sure buyers. To demonstrate, rentvestors have the ability to buy an affordable pre-selling lot for sale and turn it into an apartment complex based on their budget. They can then put the rooms for lease while also living in the complex themselves. What this does is create an avenue for passive income to generate while also securing a home for the investors. They can hit two birds (purchasing a home and having a business), with one stone (rentvesting) if they can find the right balance.
What’s the difference between a rental property and an investment property?
Now, for those who haven’t heard of rentvesting before, they might find a rental property and investment property as confusing terms. To clarify, a rental property is an estate that is purchased by investors for the purpose of renting the place out and generating income.
Similarly, investment property is a property that is bought also for the purpose of profit. Investors have the option to rent it out or they can just hold onto it while waiting for a rise in property value before selling it to interested buyers.
Furthermore, rental property has a standard form meant to satisfy their clients or residents. Investment properties on the other hand are more flexible. They can be modified, altered, or turned into something new that can separate them from a typical rental.
In other words, all investment properties can be rental properties but not all rentals are flexible enough to be investment properties. One can say that all yachts are technically boats but not every boat can be considered a yacht.
Best Returns on Investment Property
Now that you have an idea of what rentvesting is, finding out its advantages is the next step.
Why consider getting an investment property?
At first, paying a mortgage while renting might not be the most sensible idea out there. It’s easier to settle with just buying the house. But for those who want to maximize their investment properties, rentvesting makes sense. It will all depend on what budget you have and the lifestyle that you’re aiming for.
As an example, if you really want to enter the real estate market as a homeowner but your budget can’t afford the house you want yet, you can use the money to start a rental first. You can also choose to live in it or have it completely rented out by tenants. The money generated from the rental will keep coming. Meanwhile, if you were able to purchase a cheap house and lot properties for sale, their value can increase as your tenants pay rent and boost the property’s value.
This gives you ample time to save up for the ultimate home you want by letting your money grow through rentvesting. Rentvesting truly allows rentvestors to get the best out of two different worlds.
You can buy house and lot properties on sale in Alabang, rent them out, and acquire money to pay for other daily costs like living in a condominium in Sta Rosa Laguna.
If you only choose to rent or live in your current home, you won’t get the chance to explore the real estate market and expand your sources of income. Rentvesting lets you live wherever you desire while benefiting from the real estate industry.
How to start your investment property venture?
Rentvesting has its ins and outs. It can get quite complicated for first-time investors. If you’re planning to get an investment property and try rentvesting for yourself, here are five steps to follow to get you started.
1. Research and study your local real estate market.
Before anything else, gathering data is important if you want to increase the success rate of your investment. Find areas that can promise growth of value in the long run.
2. Compare findings on rental value and pick the highest income rate.
Unless your budget allows you, you must only choose the best area for your venture instead of investing in all of the options.
3. Save up for a deposit and apply for a loan in that area.
Consider the price range of the property and prepare a deposit for the loan.
4. Purchase the estate and hire a professional property manager.
Once you’ve bought the property, have some expert to help you manage it so things don’t get too overwhelming and out of hand.
5. Have it ready for occupancy and let the business run until you reach your goal.
Maximize the investment property by moving in or selling it once you’ve reached a goal.
Where to get the best property deals?
There are tons of house and lot properties for sale in the market but getting the best deal takes careful consideration. Whether you want to begin investing in vacation rental properties or getting a pre-selling lot for sale, you have to be a wise investor.
If you’re looking for one of the most beautiful houses in the Philippines, Brittany Corporation has something to offer. Being a Vista leasing company, they have several properties that are perfect for your rentvest journey. Brittany is a reputable developer. Discover their condominium for sale in Sta Rosa Laguna or potential rental properties in Alabang. There are plenty of luxury and high-quality estates to invest in.
Putting a luxury house and lot for rent or a condominium for sale won’t be easy. But if you embrace the inner workings of rentvesting, you will surely benefit more than not trying at all.
Don’t forget to check out Brittany Corporation’s offers and reach the future you want through rentvesting. You sure will not regret checking on their quality properties that will be good for your investment.
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