With its 7,107 islands, the Philippines is truly a haven for tourist attractions. From pristine white beaches to green mountains, this country has it all. That’s why it’s no wonder, that in this day and age of #travelgoals and taking pictures to post them on social media, that both locals and tourists book flights and hotel reservations just to take a peek of the best of what the Philippines has to offer.
The surge of tourism did not only help the Philippine economy; it also helped the real estate industry. Suddenly, everyone wants to buy property in some of the best regions in the country. The sudden need for vacation spots also helped the world of real estate to be more creative, to come up with new fresh ideas that will take the industry to a new level.
The newest craze that of the local real estate industry is the buy-to-let scheme. Buy to let is a scheme that allows buyers to purchase property with the intention of renting it to other people for a short term. The goal is to give buyers a chance to have added income while they’re not yet moving in the property that they bought.
Buy-to-let scheme first made waves in the United Kingdom. In 2014, 1.61 million Britons managed became amateur landlords through the help of this scheme. The popularity of the scheme finally made it to the shores of the Philippines. Just last year, Roxaco Land Corporation introduced the scheme to their new development, the Anya Resort & Residences in Tagaytay.
In this program of the Roxaco Land Corporation, the owner of the unit will own the title of what he purchased. Of course the owner and his guests will also have privilege to the hotels amenities. But during the days in which the owner is not occupying the unit, the unit becomes part of the hotel, allowing them to rent the unit out. Both the room rental is going to be split between the owner and the hotel by 45-55.
The buy-to-let scheme works well in the country like the Philippines, where people have properties in cities and provinces.
ADVANTAGES OF BUY-TO-LET SCHEME
- There is a current demand in rental properties in the Philippines. Take advantage of it while the economy is still booming.
- This scheme allows you to have extra income. Some even leave their day jobs and become full on landlords of different properties that they own.
- It’s the best of both worlds. You can always travel to your property and use it for own pleasure when you’re too tired of the city.
- You no longer have to worry about your unit’s maintenance when you enter an agreement with a hotel or a townhouse. Since they also have a share with the income, the hotel can be the one who will make sure that the property can retain its value.
TIPS FOR THOSE WHO ARE INTRIGUED
1. Choose the perfect location: Of course, you would want the cash flowing endlessly when you enter this agreement. Make sure that you choose a location where tourists come and go. Laguna are some of the best places to start a buy to let.
2. Target tenant: Niche market is always important. Are you planning on targeting students? Then why don’t you fill up your rooms with bunk beds and turn it to a bed space? Tourists who want a simple weekend getaway? Then turn your place into a mini bed and breakfast that everyone will find delightful.
3. Have other jobs: Don’t fully depend your income to this scheme. Sometimes the economy is in bad shape that tourists and locals won’t be able to come over to vacation. Let this become your mini project, another hobby that can occupy your mind and fill up your wallet.
4. How hands on you are: If you’re really busy, then it would be better if you opt for but to let schemes in hotels and townhouses. Or better yet, choose an agent who can help you manage the property.
Expect this scheme form the UK to swept over the Philippines. We are excited on what it has to offer to our local industry and to homeowners who simply want to make extra income.
Image source: http://www.persquare.com.ph/for-sale/condominium-ncr-metro-manila-makati/condominium-unit-for-sale-at-fraser-place-makati-city_1720a0851ac697d875304c3d14b90dfc58d7fa7 – Home Discovery
