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There’s no doubt that property is a promising venture. A piece of land only appreciates in value over time. As a tangible asset, it’s less risky than others. More importantly, there’s so much you can do with real estate.
Despite this, it’s a well-known fact that the most successful property investors are the ones who dare to think outside the box and do things differently. One simply has to look at the multi-million dollar industries of live-work-play townships, eco-friendly condominiums, and home-sharing services for proof. The challenge for aspiring investors today is to break away from the traditional and find opportunities in the innovative.
Leading the innovation game in property investment is this ‘triple treat’ of a concept: condormitel (condo-dormitory-hotel). The basic idea behind it is you own a condo, rent it out as a dorm unit, and have it managed like a hotel. Here’s why you should consider pouring your hard-earned money in this asset:
Its Location Is Strategic, Always
A good location is a must when it comes to property ventures. At the most basic level, it has to be accessible and near key establishments. In the case of condormitels, this is always part of the package. Given that it caters to both professionals and students, buildings are often close to business districts, universities, and even many of the city’s review centers. With such a convenient location, young professionals who choose this as their residence will achieve work-life balance, and students make the most of their university life.
A prime example of this is the soon-to-rise UHome (University Home) in Recto. It’s situated in San Sebastian St., Quiapo, Manila, easily accessible to students from the university belt. It’s near San Sebastian College, University of the East, National Teachers College, Philippine School of Business Administration, FEU Institute of Technology, and Far Eastern University. The LRT 2 Legarda Station is also within walking distance, along with San Beda University, Centro Escolar University, College of the Holy Spirit Manila, and Les Consolacion College Manila. By extension, UHome is near restaurants, boutique stores, hospitals, and places of worship. Talk about strategic location, right?
Filling a Vacancy Is Never a Problem
As mentioned, condormitels have a particular set of tenants who are ready to move in: young professionals and students looking to be near school and workplaces. But aside from this, high vacancy rates are unlikely because of the facilities and services offered in the building.
UHome’s units, for instance, are equipped with everything a student would need, from a private bed space, working table, closet, bathroom, sink, small pantry, down to provision for refrigerator and microwave for those who want to dine in and do some late-night snacking. Students can also use wi-fi services, telephones, and televisions with cable connection. Outside the individual rooms, there are community spaces, such as a gym, swimming pool, game room, and chapel, allowing students to take a break from studying their notes and letting young professionals unwind after a hard day’s work.
On top of this, the biggest come-on for tenants is the security UHome provides. The building is equipped with CCTV cameras and RFID access security system. In terms of personnel, they would have guards patrolling the building, alert for any suspicious activities. With these facilities and services, it’s easy to fill vacancies. In fact, there may never be at all.
Income Is Stable
A rental venture already generates a pretty good passive income flow in itself. But with condormitels, this benefit takes on a whole new level. Listing the factors down, you’ll get a good location, low vacancy rate, plus a paying market.
In UHome, the added benefit is you’re able to get your earnings without a hassle. The management takes care of the nitty-gritty of the business, from promoting your units to finding and screening tenants, collecting rental fees, and maintaining the property. You simply have to pay for the unit, and then sit back and wait for the remittance of your income every month.
Based on the rental rates in 2015, you can get approximately P23,000 on the initial year. The rates are expected to increase over time. The rental yield is estimated at nine percent, a huge difference from the bank interest rate of 0.25% per annum.
Time and time again, real estate has proven that they’re worthy of Filipinos’ hard-earned cash, given their positive returns. But the best of these returns belong to the ones who are brave enough to go out of their comfort zone and try new ventures. Maybe it’s time to go beyond apartment rentals: consider owning a condo, renting it out as a dorm, and having it managed like a hotel. Explore condormitels.