Generate Side Income Off Your Purchase
Thinking about purchasing a property? Real estate has produced many of the world’s wealthiest people, so there are plenty of reasons to think that it is a sound investment. However, experts agree, as with any investment in a property, it’s better to be well-versed before diving in with hundreds of thousands of dollars. Making money outside your day job can give your net worth a boost—not to mention it can also give you some extra peace of mind. Maybe you’ve also heard about passive income – renting out a property is a popular way to do it.
But before you jump in feet first, there are a few things you need to know when it comes to property rental as a source of passive income. Let’s go deep and uncover this journey.
Now, there are lots of ways to invest in rental properties, but let’s take a closer look in particular at owning rental properties and why it’s such a popular way to earn a passive income. Rental properties can be a great source of passive income once you get a rental up and running. We mention this is because it’ll take some effort at the start. It can provide a monthly income flow without you having to participate in any kind of daily work.
When comes to deciding on what to buy, you need to decide what you want to get out of the rental. Do you want an apartment with regular renters and money coming in for a longer period? Or do you want a house that you plan to sell for a profit within a few years? Buying foreclosures can be a good way to get a good deal on a property if you’re thinking about selling pretty soon after buying and renovating. However, you generally want to avoid money pits and fixer-uppers when you’re planning to rent a place. You want something attractive and almost move-in-ready—not a huge project to take on during the front end of the deal. If you don’t plan to manage the property yourself, a property agent will handle almost everything for you—from collecting the rent to dealing with repairs and complaints and even evictions. You’ll pay a commission to the agent, but it takes the stress off you if you’re too busy to deal with these issues. Always talk to a property agent about how much rent you should charge so you’re not expecting too much. Be sure the rent coming in each month adequately covers expenses like maintenance fees and homeowner’s insurance.
Otherwise, you won’t make any money!
Vacation rentals can present a lucrative path to profits in the property marketplace. Not only can you make some side income from vacation rentals, but you could potentially make a significant amount of money and build up a substantial passive income stream if you’re in a highly-trafficked tourist locale. Places like Bukit Bintang, Sri Hartamas, Kota Damansara, and other tourist hotbeds are well known for having a high demand for these short-term rentals.
You don’t even need to own the property to make money. Some of the world’s most successful property management companies that specialize in vacation rentals don’t own the homes but do provide a high-end consumer experience. All you have to do is leveraging existing relationships with owners in your area. Network with others, build bonds, create systems, ensure the utmost satisfaction. Go above and beyond for anyone staying at the homes you manage, and see how you can help to take some of the time and stress off of the present owners’ existing rental businesses. If you have a property, list it on a site like Airbnb before managing vacation rentals for other owners.
Lease options can be a great way to get involved without having to put up a significant amount of capital or even have great credit at the outset. You’re leasing with an option to buy. This tends to work well when the property market is climbing because you’re creating a pre-set price at which you can later purchase the property. For instance, the property market climbs substantially, you can buy that property at a discount. You could also potentially turn around and sell your rights for that purchase to someone else. The clear bet here is on the bull market in real estate. As long as this is an option you can exercise and not something set in stone that says you have to purchase at the end of the lease regardless, then you could very well turn a profit.
Talk to us for more information! We’re more than happy to help.