Your Rental Property: Balancing Practicality with Enjoyment

The younger generation of professionals is entering into the world of rental properties with a truly massive presence. If you desire independence without sacrificing comfort, there are several factors that you need to take into account. Not only should practical issues such as budgeting, location and transportation be addressed, but you also have to remember your peace of mind and relaxation. So, let’s take a look at some areas to highlight during your hunt.

rental property

Budgeting

Many financial experts agree that no more than 35 per cent of your monthly budget should be allocated towards rent. However, this may not always be realistic should you choose to live in an expensive city in the Philippines, such as Makati, Taguig or Muntinlupa. You will need to plan your expenses accordingly ahead of time, so as not to be stretched too thin. Always take into account other necessary expenses such as water, gas, electricity and community fees.

Rental Considerations Within Metropolitan Areas

“Generation Rent” is now a large demographic. So, you can expect a good deal of competition when hunting for a property within any metro area. Always compare at least three or four different offers before deciding upon a single one. You never want to discover that you are paying thousands of pesos more than you would have for a property of a similar value and location!

As many young people are choosing to live in metropolitan areas to pursue their careers and dreams, it is important to realize that rental prices can vary widely depending upon the region. Real estate marketplaces in the Philippines like Zipmatch offer condos, houses and apartments for rent, and provide different pricing schemes that young professionals can take advantage of. Normally, residential properties in subdivisions cost more than apartments. However, this could also vary depending on the location, nearby amenities and the structure of the property.

Before finalizing your move, consider the average rental prices in your chosen location. For instance, the average rental prices in the Metro Manila area can vary from P5, 000 to P10, 000 monthly. This is quite a lot to handle for young professionals, especially if they are just starting out in the career ladder.

Making it Legal

ALWAYS insist that your rental contract is legally binding on both ends. Make sure that your deposit is protected and that all appliances included in the property are in good order before signing. It is also wise to try them out before finalizing your lease.

Relaxation is Key

You will need to balance these practical concerns with relaxation and peace of mind. Is the apartment in a safe area? How close are you to transportation services, such as buses and metros? Will the distance make getting to and from work a hassle?

These are just a few of the most fundamental concerns that you should keep in mind. Paying attention to such details is a great way to find the apartment of your dreams in no time.

Image Credits:
Pixabay.com

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Passive Income with Rental Properties

Contrary to what people think, investing is not only for retirement. Most middle-aged people or even the younger ones are beginning to invest and strive to have passive income to enjoy a higher standard of living. That is why despite of the global crisis, financial institutions became highly leveraged. Investing doesn’t necessarily mean thousands or millions of dollars. It doesn’t matter if a person will start with $100 or $10,000 as a capital. What is important is to make the money multiply as much as it could through passive income.

Passive income is basically what you earn even without actively participating in the earning process. There are many ways to earn through passive income such as stock market, mutual funds, time deposits, etc. But a great way to generate passive income is through real estate as real estate has countless opportunities for making big gains most especially in rental properties. For bigger gains, an investor may find a property that will pay for itself or even makes him a little money each month. The demands in rental properties increase while the rents tend to go up each year yet the mortgage on the investment property remains fixed.

There’s no doubt that rental property investment can provide a steady source of income for almost a lifetime most especially in later years after the mortgages are paid off. However, as with any investment idea, investing in rental properties is not risk proof and requires a lot of patience. A rental property investor must understand the responsibilities involved and he must be knowledgeable in things like fair market rent, landlord and tenant laws, etc. If a person want to own a rental property, but don’t want the obligation of being a landlord, Jackson Real Estate may be the solution for him. It is but wise to outsource the management of properties to a trusted real estate management group like Jackson Real Estate most especially if a person owns more than three rental properties. The real estate management group usually handle all dealings with tenants, from finding and screening tenants to collecting rent to maintenance thus saving the investor from the hassles of maintenance and some work while earning.

 

 

 

 

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