real estate

All posts tagged real estate

Save What You Earn and Grow What You Save

Published May 19, 2009 by starvillanueva
 

 I woke up this morning having the thought of buying another property, I’ve really wanted my savings to be put in a good investment where it will appreciate or earned more but I want it to scattered, If you ‘ve been following my blog, I hope you already know what I mean-Scattered. In my opinion, it’s better to have house & lot, Savings/Checks/ ATM Account, Time deposit, a job & owned business Star Bliss Salon & Spa – The more the merrier! =)

  

I believed each of those mentioned above are good to have and with different purpose. Because, if you own a house it’s not necessarily mean you have to live there. You may have it rented or sell it when the value increased then inherit it to your children.

  

It’s also good to have lot property because someday you may use the space to/ build apartments. Yes, That is one of my future plans to have my own building of studio type apartments it doesn’t have to be luxurious or high-rise but just a decent place to rented out.  I know someone who earns 80,000 pesos a month for just 12 doors of small but studious apartment in QC and they have family business as well. Wow! “Money be gets in money”. huh!

 

Time Deposit is also essential for emergency fund and for business purposes ATM, everybody knows where it’s for. Credit cards, I used it for online purchase and for international shopping so that Idon’t have to buy different currencies again and again.

 

While, Checking account! Is a must! I have Checking account since I was 12 and I can say it’s really useful for transactions! Plus you don’t need to withdraw and bring big amount. When I was a kid, I used to sign my mom’s checks and play with them! Up to this day, I can still forge her signature and she knew that! Hahaha!

Is a Condominium a Good Investment?

Published May 16, 2009 by starvillanueva

                         
Browsing some articles because I have this question on my mind if Condominiums are really worth investing for? I 19ve read this article that Mr. Colayco a financial advisor has wrote and I find it useful as it answers my question.

Two Similar Emails on Condominiums:

Question #1: 1csir, thanks for all your financial guides…i just want to ask questions about investing in condo…a lot of condo projects are coming up, their selling point is "good investment". may i ask, is buying or "investing" in this type of project is really an investment? what are promises or good possibilities of having this kind of investment? at the current situation in phils, is it really wise to invest in pre-selling condos? 1d

Question #2: 1cMoving towards financial stability that I learned from your books, I’m thinking of purchasing a condominium unit, because not only it’s much cheaper compared to a regular house and lot (here in Metro Manila), it also allows you to choose one that’s near your work.

However, I have these questions that make me skeptical. Is it a good investment? I mean, will the unit value appreciate over time? Will it be the same with the other unit of the same size or will it differ base on the location. Is it the higher the floor the better, or vice versa?

I know that you have a title and all, but is it also true that it will be demolished after 50 years? If so, what happens to your property?

My impression is like this; the floor you’re stepping is the roof of another people. Just like the wall you have, you’re sharing it with someone else. It’s like the ownership is really not established. What happens in case of fire and the building (God forbid) turns to dust? Do you still own anything? I’ve asked these questions to real estate agents but they can’t give me any straight answers. 1d

REPLY:

If you are buying real estate to establish your home, your parameters should be more focused on what is most convenient for yourself and your family. As a home, it should not be looked at as a financial investment. Rather, it should be considered as a life goal. However, if you just want to invest, please make sure that you have carefully analyzed a real estate investment versus other investment options based on your personal financial plan.

If you definitely want to just invest in real estate, choosing between a condominium and a house and lot would use the same parameters in analyzing its financial viability. Here are some of them.

1. location which includes convenience and attractiveness of neighborhood and security.

2. reputation for quality of development of the builder (this is particularly true for condominiums which are high-rise)

3. rules of the association governing the neighborhood and costs in relation to this association

4. your ability to maintain all amortization and maintenance (association, repair, taxes) payments.

If you intend to rent out your condominium, you need to project your income and costs and assume that there will be times when the unit will be vacant and will need repair. Rental rates normally over around 5% of the market value of the condo unit provided rental income is constant throughout the 12 months in a year. Vacancy rates therefore have a very strong impact on the effective return on the rental property. In considering buying a condo unit for rental purposes, you must assume at least a 20% vacancy rate over the life of the property.

The condominium requires you to live in closer proximity to others and that could be difficult. Atthe same time, it gives you better security because you can leave your unit and it will be more secure (if it is a good condominium, of course). It is all a matter of personal preference. There will always be a group that will prefer an individual house and a group that will prefer a condominium.

Many who have cash to invest like to buy condominiums that they will have their children inherit eventually. In the meantime, they believe that the condominium will bring them some income in the meantime plus even increase in value. However, as children grow older, more and newer condominiums will be built. Your choice may not be your children 19s choice.

As a financial investment, condominiums do not generally perform well over the long term compared to stock mutual funds or even balanced mutual funds and other types of securities. Except for a few notable offerings, the costs of owning condominium units drag down the resale value. Physical depreciation of units, monthly membership and maintenance dues plus real estate taxes imposed on condominium owners can be quite substantial over the economic life of the unit. There is also the issue of capital gains tax and the VAT applicable when the unit is sold. All these taxes have to be paid before you can transfer the ownership registration of the condominium unit to the buyer. If you include all these ownership costs and the reduced rental earnings due to the 20% vacancy rate, the percentage net return per year when you sell the unit (assuming you can find a buyer) can be very disappointing. Simply put, the cost of acquiring a condo unit is not your only cost. The cost of ownership and the cost of selling are real costs to the owner. And these generally make condo units marginal investments.

* Source

Real Estate Investing for Newbies

Published April 20, 2009 by starvillanueva

 
Lesson One: Avoid the hype

Thinking about investing in real estate? If you’ve got the cash or exceptionally good credit now is the right time. Even for beginners. But aside from money there is one other very critical factor to real estate investing. That is education. The more you learn, the less chance you’ll be swindled. The less chance you’ll avoid other mistakes that could cause a huge financial loss.

The internet can be overwhelming for real estate beginners. So my suggestion is that you start out by going to your local library. Go to the reference section and tell the librarian you’re looking for the most current resources for learning how to invest in real estate. The librarian will likely access the library’s online database and point you to a list of magazines, newspapers, and of course books. But be on the look out for DVDs, audio books, and pod casts. Also ask if the library hosts any real estate buying classes, many do.

Another option is attending real estate investment seminars. I’ve gotten offers to attend these in the mail. My advice: choose carefully. Stay away from those that charge. Also go with a firm plan not to buy anything. This way you’ll be able to avoid sales pitches without feeling uncomfortable. By all means be prepared to take notes. If you bring a tape recorder you’ll be able to capture everything from the speaker, as well as questions from the audience.

Know someone in real estate? Invite them to discuss investing tools and tips with you over coffee. Make sure they know that at this time you’re only interested in gathering information, that way you get solid information instead of a sales pitch.

Where to Invest Money

Published March 31, 2009 by starvillanueva

   

Choosing where to invest money is not an easy task for any investor. There are, however, a few basic principles that can be applied to ensure the maximum Return On Investment, or ROI. Using these principles as a guide will help build a pathway to financial independence.

Diversification is an indispensable risk-management practice. By investing in a variety of different financial products, one investment falling through will not ruin an entire portfolio. The old adage says not to put all of one’s eggs in a single basket. Without adequate diversification, a portfolio is at greater risk. An example a diverse portfolio is one that is invested in stocks, mutual funds, bonds and commodities.

Liquidity is another key strategy. Choose investments that can be liquidated with a minimum hassle. A savvy investor doesn’t want to turn down an ideal opportunity because all of their assets are tied up in other, not as lucrative, ventures. Furthermore, liquidity allows an investor quickly to sell off any investments that are in decline and negate any negative impact on a whole portfolio.

Lastly, consider the Speed Of Return, or SOR, on an investment. One way to build success in the marketplace is to choose investments that pay dividends quickly, then re-invest capital, profit, or both. The sooner a return on an investment is made, the sooner that money can be turned around into a larger investment that has the potential to yield an even larger result.

Follow these principles and you’ll be a savvy investor who knows exactly where to invest money effectively.

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A Fairy Tale: Dreams do come true…

Published February 21, 2009 by starvillanueva

Ever imagine yourself standing inside your dream house while you are actually stuck on the traffic? Then you know the power of visualization or better known as daydreaming! This mind-body tool let us preview a better life, which gives us the focus to help make it happen. I know you’re all wondering why I am writing this way. Positive thinking matters.

My mom like everyone else always dream of a house, she successfully owned a house but still dreams of a bigger house with swimming pool. She used to say “maybe not now but sooner or later, I know that dream house will come – in God’s will.” After years of hard work & investments here’s the result!

OUR NEW HOME in an exclusive subdivision in the heart of Quezon City! with Swimming pool, 2 Jacuzzi, 5 Bedrooms with maid’s room, 3 spacious balcony, Attic on 3rd floor, grand staircase & unobstructed view of the neighborhood! Worth $230 US Dollar paid in cash and yet she doesn’t want to sell our other house for a very sentimental reason and because it’s where it all started. In short, it’s a lucky house.

Looking at those advertisements about Homes for Sale inspires me a lot that someday I will be owning one of the fabulous house. Every one dream as I do. Who doesn’t want a house on their own? Of course no one wants to stick in just renting a house or company provided apartments. But in the process of living we will start at a low level. It’s not quiet that easy. It might not happen overnight, but if you stay focused and have a strong faith to God, what you want should eventually come your way in his will.

I’ll post the interior of the house soon after they finish some renovations, repainting, when it already has furnishings inside and the pool has water already! Also watch out for the Grand House Blessings! Inshaalah!

**FOR MORE PICTURES OF THE HOUSE CLICK HERE**

My 1st Real Estate Investment

Published September 16, 2008 by starvillanueva


Last February 2007 I handed 12 post dated cheques to my mom because she’ll give it to the Real Estate Agent for my first property investment. I had mixed feelings doing that because during that time I haven’t seen the location yet. The property is located in Amadeo, Metro Tagaytay (5-10mins) from Taal Vista Hote and Casino Filipinol. This was a pre-sell. This means the property is still under development and should be finished anytime soon. I decided to go after it because the terms were pretty good and because my mom also bought lot there for my younger brother & little sis.


It supposed to be 2 years to pay. Fortunately, I was able to lump sum the amount needed to complete it in less than a year. I felt like I need to finish paying it before I bought Condo sooner or later. (Still looking around) Anyway, if the area in La Excelsa Country Homes develops further and it becomes a prime spot, I might rent it out later. Alternatively, I could sell it later to get some potential income.

 * See my 2nd Real Estate Investment: A Condo Unit in Mckinley Hill – The Fort