Whether you’re fascinated about real estate’s investment possibilities, or you’re tired of YouTube videos promising little-known ways to “benefit from your property.” It’s essential to learn how real estate generates money FOR REAL. Since we are only discussing “top tips,” the focus of this blog will be on property value appreciation and rental revenue.
- Property Value Appreciation
The term “value appreciation” simply refers to a growth in the value of a property.
- Inflation alone can cause real estate to grow in value. Property values rise over time, and property owners can gain from inflation. In general, when inflation increases, housing and other real estate asset prices rise with it.
- Residential and commercial real estate can rise in value in various ways, including location, development, and renovations. Assume a prominent developer constructed malls and other business facilities in your neighborhood. As a result, you can expect your property’s value to rise. Consider how Tagaytay has grown and how the property’s value has increased over time. So, if you’re good at detecting sites that will be developed in the future, you’ll be ahead of the game. This has the potential to provide you with a huge profit. This trend can, of course, act in the opposite direction, with property values declining as a neighborhood deteriorates. Discovering a fault line near your home, for example, can substantially reduce the value of your home.
- Home upgrades can also increase the value of your home if you own one. A property owner may try to raise the value of a home by adding an extra bathroom, garage, or updating a kitchen with state-of-the-art appliances.
There are a variety of ways that real estate appreciates in value but remember that the only way to realize it is to SELL it.
- Income
- One example is that if you own raw land, firms may pay you royalties, for example, for any mineral or oil finds. However, in the Philippines, raw land is typically used for agricultural production and harvesting.
- If you prefer monthly cash flow, rents for residential and commercial buildings can also be used to generate revenue. Leveraging long-term buy-and-hold residential rentals for residential property is one of the most prevalent ways to make money in real estate. People will always need a place to live, therefore investing in rental houses is a good idea. To source your property, you must conduct thorough due diligence while keeping three criteria in mind: location, location, location.
- This is also true of rental income from commercial properties. Many commercial renters will pay rent to use your property and do business there.
There are various ways to make money in real estate that has been proven to work. Although appreciation, inflation, and income are all essential considerations, there are a variety of alternative real estate investments to think about. It is up to you to understand your investments, risks, and if the entire process is worthwhile. Remember, always do your research!
If you are planning to start, I suggest getting access to the largest and fastest network of real estate operations and start looking for the best property deals!