Why Lofts Can Be A Great Rental Property
Almost everyone today loves to earn a little extra. But with a full-time day job, where can you find the time to have a bit more profit coming in? This is where the magic of passive income comes in. Passive income refers to the influx of added income into your account without you having to take active steps to earn a profit. Even as you sleep, you have income flowing in.
One of the most attractive ways to earn a passive income is through rental properties. Check out this great rental property calculator so you can be more convinced of the earning potential of rental properties, particularly lofts. With the numerous property types you can choose from, you might get lost in a sea of options. Hence, here’s a little help from expert investors, focusing on why lofts can be a great option:
1. It Gives The Impression Of Having A Bigger Space
For tenants who are looking to rent an apartment, a condominium unit, or a loft, many would suggest that choosing a loft is the better option. Among these three small-spaced units, it is only a loft that can give you the illusion of having a bigger space. Some of these tenants have to choose a smaller space because it is what they can afford for now, but with a loft, you can give them a better layout compared to that of an apartment.
Remember the basic layout of lofts, such as:
- Lofts have high ceilings
- Lofts have an open layout type of living
- Lofts have picture windows that make the room much airier
These design factors are enough to make your tenants feel like they are in a much bigger space than what is actually the case. Your tenants can even create secret spaces in their loft to maximize their living area even more.
2. It Gives Tenants An Option To Downsize
For many tenants, particularly young professionals or the older population who no longer have young children with them, they are looking to downsize their properties. Instead of continuously living in a large family home, they now prefer a smaller space for the following reasons:
- It is easier to move around
- It is smaller and cheaper to maintain
- It is easier to repair
Young people and the elderly alike are least concerned about house maintenance. They prefer to use their extra time to go on a holiday or to relax without having to worry about the big house that they are leaving behind. Hence, with lofts, you are allowing these tenants to downsize their homes without them actually feeling cramped in a tiny space.
3. It Is A More Stylish Option
For the younger population, the style of their homes do matter. Living in a condo unit or an apartment may leave very little room for them to make your house look hip, funky, and stylish. Although they can play with the interior, they are limited to a square layout. With lofts, however, the design itself is already modern and stylish. Hence, they do not have to do much more for their living space to look amazing. Even with minimal decoration and furniture, it would already feel like they are living straight out of an architectural catalog.
As lofts are already inherently stylish, there is very little need left for tenants to spend on more decor, which gives them the best value for their investment. Whether they have paid in cash or through a loan, they would naturally want to make the most out of the amount that they spent. Read through this great StGeorge guide on LVR for you to be guided about your property’s loan-to-value ratio.
4. It Is Usually Found In Amazing Locations
Most residents of lofts belong to the younger demographic. Aside from the fresh and stylish vibe that it offers, most lofts are also located in buildings that have prime locations. Hence, when they go down their unit, they are immediately in the center of everything. Lofts are located in the central business district where there are restaurants, nightclubs, schools, shopping malls, hospitals, and offices. Plus, the picture windows give amazing views of the city. With this, many young professionals will be drawn towards renting your unit.
As a bonus, you can have your loft rented out to those looking to have a holiday in the city through sites and apps such as Airbnb. Hence, you can flip your loft to become a vacation home. Many visitors also look for lofts because of the geographical location that it has, which lessens the need for tourists to commute to see the city. If they happen to need anything, they have it right within a manageable distance. Additionally, lofts are great for families, too.
Buying a piece of property that you are going to convert into an income-generating machine is a huge investment. It isn’t like buying a shirt, wherein you can easily replace it if you no longer want it. As it entails quite a considerable sum of money, you also have to make sure that you are purchasing a rental property that isn’t going to turn lemon later on. One of the best options is to buy is a loft, and these reasons should be more than enough to convince you.