Rentvesting: The Latest Trend in Real Estate Investing

The real estate industry is ripe with opportunities. If you're looking for employment, there are plenty of real estate careers waiting for you. If it's intended for an investment to grow your money or attain your dream house and lot in the Philippines, the real estate sector is one of the safest investment ventures you'll ever come across.

For investment property enthusiasts, there is a new trend that you must consider to diversify your portfolio: rentvesting. What is it and whether it's a worthwhile investment vehicle to ride on, so to speak, let's discuss them in detail in this article from Lumina Homes, a decade-old developer of affordable house and lot for sale nationwide.

What You Need to Know about Rentvesting

Rentvesting is the merging of renting and investing. In a broader sense, rentvesting is a form of real estate investment that encourages property buyers to acquire and invest in a property that is intentionally meant to be used for rental business rather than for personal residential purposes.

In addition to one's residential property in the city, for example, the owner can invest in a property located outside the capital region for passive real estate investments. That is to say, the purchasing of a property is intended for a rental business and, by extension, earning through rental income.

Rentvesters can benefit financially should they decide to pursue a long-term business in rental property investing. But still, before testing the waters of this type of active real estate investing, one's total commitment, patience, and adequate industry knowledge must be taken into account before deciding to go full-time as a landlord of rental properties.

Key Benefits of a Real Estate Rentvestment

Renting your investment properties to serious tenants can help you in a lot of ways, especially financially. Below are just some of the major advantages of rentvesting, which would be enough to catch your attention and make you highly consider engaging in this type of investment.

1. Rental Readiness

Rental units for rentvestments are ready for occupancy. Tenants can immediately move in without incurring additional expenses needed for renovation or maintenance. This makes this type of real estate investment attractive for aspiring property tenants. As the landlord, you can benefit from a number of buyers competing for your property for tenancy.

2. Income Sustainability

One of the proven perks of rentvesting is income sustainability and positive cash flow. With quality home features and convenient amenities, potential and serious tenants are expected to come and express willingness to occupy the units immediately to enjoy these worthwhile perks. This guarantees rental property owners a sustainable source of income through passive real estate investing.

To offer quality perks, properties don't necessarily have to be located in the capital region near prime business districts as well as in highly urbanized cities. These locations are, not needless to say, more expensive and only target fairly affluent buyers and foreigners looking for not only a great place to stay and live indefinitely but also to relax at. Having said that, rental properties can be found and enjoyed outside the bustling metropolis and still be considered worthwhile locations with excellent perks minus the expensive costs.

As a result, you will never worry about your rental units becoming vacant for a long time if the properties you wish to purchase are situated in excellent locations alongside premier lifestyle perks.

3. Property Affordability

Real estate properties are more affordable in provincial locations. As such, you can buy a property in excellent provincial regions such as Southern Luzon, which comprises the economically flourishing provinces of Cavite, Laguna, Batangas, Rizal, and Quezon. Having seen their accessibility and infrastructure boom, Lumina Homes has built housing projects in all these provinces near Metro Manila. This includes Tanza in Cavite, Calauan in Laguna, the cities of Lipa and Tanauan in Batangas, Binangonan and Baras in Rizal, and Sariaya and Tayabas in Quezon province, among others.

Despite their provincial locations, which first-time property buyers may think that these properties are poorly located, these housing communities are actually conveniently situated near universities and colleges, medical facilities, malls and supermarkets, and with convenient road access. On top of these, houses and lots in these locations are affordable, perfect for Filipino families looking for ways to save money while ensuring that the affordable house and lot of their choice are of adequate quality.

4. Capital Growth

Property value appreciates over time, and this one right here is just one of the benefits that you can later reap. If your property sells at, say, a million pesos, and then you decide to sell it later at the price of 1.5 million pesos, 500,000 is the capital growth. You can also rent it out at a justifiable price and earn a monthly rental income that can even help you with your own mortgage payments while also being able to allocate an amount for your savings account. What is more, you may enjoy tax benefits or tax deductions with rentvesting.

As mentioned, the property market is an ideal investment choice if you want to make money in real estate without necessarily taking a huge risk for a relatively huge investment. If you renvest, which means buying a property that you will rent out to future tenants to earn passive income, this is a surefire way to earn money through rental property investment. If the property you bought happens to be excellently located near universities, malls, and medical facilities, among others, setting up a tad higher price list than how you initially bought it with is only justifiable. Besides, your target buyers will not mind the cost so much as to decide renting a property in a poor, perks-less location.

Whether you're looking for an investment housing unit or a residential property, Lumina Homes could very well serve as the real estate brand for you to invest your hard-earned money. Our brand has been recognized by award-giving bodies such as Pag-IBIG Fund and Carousell Property Awards for our affordable housing provisions. This only goes to show that Lumina Homes is a trusted developer not only by real estate experts but also by property buyers who went on to invest and express satisfaction in our brand.

If you're starting to get more interested and thrilled to become a part of our ever-growing community of Lumina homeowners, do not hesitate to inquire about your investment concerns. A Lumina real estate agent shall be able to accommodate you in your home-buying journey. In the meantime, you can go on a virtual tour of available properties on our website or read through our blogs for sound advice on real estate, finances, and various trends in the Philippine setting.