1) They say real estate can give me passive income.
What is passive income? Passive income means I earn without actively participating or working for it. In application, if I have bed space, room for rent, an apartment, a condominium unit, or even a lot for lease that is passive income in real estate. I earn from the monthly rent as I do my work, profession, or business. If I am studying for my post-graduate degree it would work the same way.
2) They say real estate properties increase in value over time.
How? As time goes by, development happens in our neighborhood. Some are initiated by the government like concreting, widening of roads, construction of bridges, flyovers, skyway, street lighting and beautification of parks, the building of public schools, hospitals, etc. Others are initiated by the business sectors such as commercial business districts, malls, banks, restaurants, and the like. These increase the value of our real estate properties because of the accessibility of our very own house to these services and workplaces.
3) Someone once said the best time to buy real estate is yesterday.
What did he mean? Like what I just said, the value of real estate increases because there is continuous development every day. Even in buying a pre-selling condominium unit or a lot/house and lot in a developing subdivision has the same concept. Imagine that in pre-selling, it starts from the ground. From nothing then development comes in like earthmoving, building the foundation, up to the construction of the whole condominium or the subdivision.
4) Can I afford Real Estate?
At this point, I will apply what I learned from a financial organization that I was once affiliated with. I was taught that INCOME-SAVINGS=EXPENSE is the formula for WEALTH. Not the other way around INCOME-EXPENSE=SAVINGS.
They even placed value to it: INCOME (100%)-SAVINGS (30%)=EXPENSES (70%).
We can apply our own figures here and you can find out if you can afford real estate. Looking at this, you can integrate the formula I gave you in my previous blog. Here it goes, to know if you qualify to avail of a real estate loan (housing, condominium, a lot) your monthly income should be 3.5x the monthly payments (amortization).
Now, all of us have different income levels, don't worry. Real estate has different products for all income segment but the principles of real estate are still the same. :)
If, after checking your finances you still find it challenging to get a real estate property don't worry. Here are a few tips:
1) You can get into business. Register your business so you can have the proper documentation the bank will need. Ideally, your business should be running for 2 to 3 years.
2) You can qualify with a joint income, (spouses, parent & child, siblings).
3) Maintain an active bank account.
To help you decide, if you should or you shouldn't, talk to a Licensed Real Estate Broker. Do due diligence and ask for the complete name and check with the Professional Regulation Commission (PRC) online. DEAL ONLY WITH LICENSED REAL ESTATE BROKERS for your protection.
#resa9646
#prc
#bantaycolorumtaskforce
No comments:
Post a Comment