As a great option for students’ and young professionals’ residential arrangements, co-living spaces have been stealing the spotlight in recent years, turning the heads of property seekers looking for a source of passive income. Currently, despite the coronavirus situation, it remains to be popular, perhaps more so, as many businesses turn to this kind of set-up when housing their staff, making it easy for employees to go to work under community quarantine measures.
In a nutshell, with or without a crisis, co-living spaces, such as University Home (UHome) Recto, are a good source of passive income. Unpacking this, you’ll realize that there’s plenty of perks that you enjoy with this kind of asset. Here are the things you can expect from this real estate venture:
It Eases Financial Worries
There’s so much uncertainty when it comes to money. It’s here today, and it could be gone tomorrow. This is perhaps one of the realities that became all the more concrete when the coronavirus crisis struck. In the news, you see businesses laying off workers or arranging no-work, no-pay schemes.
What’s good about passive income sources is that they increase your cash flow, thus putting your financial worries to rest. Co-living spaces, for instance, provide a steady stream of cash through a monthly revenue. In the case of UHome Recto, around P23,000 gets credited to your account every month. As you know, year after year, the rate goes up. Rental yield is 9 percent, a higher return than the bank deposit interest of 0.5 percent.
Despite the crisis, co-living spaces continue to find new markets. As mentioned earlier, many businesses are turning to these residential arrangements to house their employees. UHome’s sister company University Pad (UPad) has been serving this kind of market, providing high-quality services to tenants since the quarantine was implemented in the metro. The modern amenities inside these communities, including the swimming pool, gym, and prayer area, provide respite for weary employees.
You can rely on the soon-to-be-finished UHome to accommodate this kind of market as well in the future. With this, you can let go of those financial worries even in the midst of a crisis.
It Gives You Personal Freedom
What makes passive income very attractive is it requires little to no effort to earn or maintain. Unlike a day job where you have to clock in at 9 AM until 6 PM, it’s more like a set-and-forget arrangement. This is especially true for UHome co-living spaces. While most rental property ventures require a lot of time-consuming hands-on work, say, finding and screening tenants, maintaining the actual units, collecting fees, and arranging legal paperwork, in UHome, it’s the property management that does all of these things, giving you the freedom to do whatever you want with your time.
You will have the freedom to spend your days on leisure activities, such as traveling and doing your favorite hobbies. You can focus more on parenting your young kids. Or, you can dedicate the free time to other income-generating activities. This is what most overseas Filipino workers (OFWs) do.
Since property managers are the ones taking care of rental assets, OFWs can focus on their work abroad and don’t need to come to the Philippines just to make sure that everything’s fine in their venture. The only effort they do is put their cash in and wait for the returns. At a time of crisis, when outdoor activities and personal interactions with people are restricted, you benefit from the set-and-forget approach of co-living business models wherever you are.
It Fuels Your Professional Growth
When you have more time in your hands and you don’t need to worry about finances, you’re able to focus on what’s more important: building your wealth portfolio. This is the natural progression of a property investor’s journey. They start with a high-yielding real estate asset, and after seeing the promising results, they go after other similar ventures, increasing wealth over time. This does not only help in improving financial security, but also in spurring professional growth.
When you start with co-living spaces, the excellent returns give you the confidence in navigating the cutthroat industry of the real estate market. Eventually, you pick up the necessary skills and knowledge along the way, which would be your leverage in pursuing high-risk ventures.
There’s no doubt that co-living spaces are good sources of passive income. They’re beneficial for your financial security, emotional well-being, and professional journey. With that, consider putting your hard-earned money in this valuable asset.