Advantages on Property Investment for Passionate Entrepreneurs

 

Investing for a prime property in Iloilo Business Park can be your best bet to succeed in the real estate business[/caption]

Being a real estate investor isn’t always glamorous but it is one of the best ways to build wealth over the long-haul, especially for the entrepreneurial-minded. Here are six reasons why you should consider investing in rental properties.

Cash flow
Many people invest in rental properties simply because of the cash flow - the extra money that is left after all the bills have been paid. The cash flow can provide ongoing, monthly income that is mostly passive, allowing you to spend your time building a business, traveling or reinvesting in more real estate.
Cash flow from real estate is stable and far more predictable than most other businesses. That's great for entrepreneurs enduring the ups and downs of start-up life. The cash flow can help float you though the bad times and live well during the good times.

Tax benefits

If an entrepreneur earns P100,000 at your own business and I earn P100,000 through rental properties, who get’s to keep more?
That’s right: I do. Because the government rewards rental property owners.
Not only is the cash flow received from your rentals not subject to self-employment tax, the government offers tax benefits including depreciation and significantly lower tax-rates for long-term profits.

The loan pay down
When you buy a rental property using a mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month. Because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money each month.
Today you might owe P200,000 on a rental property, but next year you might only owe P195,000 because the tenant is making the payment for you, making you P5,000 richer. Thirty years down the road, or whatever the term of your loan, it's paid down to zero. You own a significant asset that you can sell or continue renting, all thanks to your tenant paying the mortgage.

Appreciation
While the loan is being paid down the value of real estate, generally, goes up. Values do go up and down. People buy at the wrong time of the market.
However... Over time, values do climb higher and higher. That's why most businessmen are not in real estate game just for a year or even a decade. They are in this for life. Value of properties will continue to climb so that 30 years from now, everything will be worth far more than it actually cost compared today.

A hedge against inflation
Inflation is the process by which prices increase due to the value of money decreasing.
While most people fear inflation, as a rental property owner, you will look forward to it!
When the price of a gallon of milk hits ten bucks a gallon, guess what else is going to shoot through the roof? Everything, including rents and property values! The one thing that won’t increase, however, is the fixed-rate mortgage payment. As inflation pushes the cost of living higher and higher, your cash flow will only increase. This is why real estate is often called “a hedge against inflation." When inflation hits - I'm ready.

Control
A good real estate property owner choose to invest most of his income in real estate, knowing that he is the one who is responsible for his success or failure.
If he wants a better deal, he needs to hustle to find it.
If the rental market gets more competitive, he can compensate by increasing his advertising.
If values drop, he can choose to wait it out or improve the property to drive the value back up.
In other words, property owners get to control the situation, and his financial future, with his two hands.
Don’t think that just by owning some rentals you are instantly going to begin building wealth. Real estate is powerful - but only if you work it right.
You must learn how to find great deals, how to evaluate a real estate investment, and how to finance any properties you want to buy. Additionally, you must treat it like a business and nurture it as it matures. It's likely not going to be totally passive up front, but as millions of individuals throughout history have discovered, the payoff is well worth the journey.

 

Present Site Update of Iloilo Business Park[/caption]

For investors and entrepreneur looking to invest for a property that boost up their investment wisely, Iloilo Business Park, the 72-hectare commercial and lifestyle township in Mandurriao District developed by Megaworld, is selling prime commercial property as part of its upscale 9.2-hectare Boutique Hotel and Commercial District. There are a total of 60 available lots and almost 80% are already sold out to local entrepreneurs and financial institutions.

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Iloilo Business Park's 9.2 hectare Boutique Hotel and Commercial District present site update[/caption]

This bustling commercial area is seen to be the biggest future Central Business District (DBD) in the Visayas, where businesses and opportunities will thrive and elevate over the course of time. Investors and lot owners can venture to establish their own choice of business. They can even have their property rented by tenants which allowed them to earn passive income. In a bigger perspective, the area is a part of the progressively-vibrant township that caters to a wide range of businesses, investments, leisure and opportunities, where dreams and success are possible, a pathway that Iloilo Business Park is leading the way for future entrepreneurs and investors.
To know more about investing for the right reasons and finding the best location in the township, call (033) 330-3464 or visit Iloilo Business Park Sales and Information Center.