Real Estate Investment: Three Excellent Reasons Why Your First Home Should be an Investment Property

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“I will forever believe that buying a home is a great investment. Why? Because you cannot live in a stock certificate. You cannot live in a mutual fund.” –Oprah Winfrey

Owning a home has been considered as a keystone of wealth and stability—so much so that finally purchasing your own place to live and renovate as you place has been universally recognized as a milestone. If you are on the market for your first home and are relatively young, it might be wise and more financially prudent to consider turning your first home into an investment property. While most prospective homeowners do not think of investing in real estate until they have acquired and purchased their second or third home, it is actually more financially sound if you started much sooner. Sure, in light of the recent economic climate of the Philippines, one might be skeptical of the profitability in real estate investments and might be a little hesitant in this endeavor—especially considering that this is the first home you buy.

However, to allay your fears of being unable to defray the cost of your first home, know that renting it out is an excellent option for paying it. By transforming your home into an investment property, you can effectively leverage your subpar credit and turn your responsibility into an investment. It requires a bit of shrewdness, good business acumen and a whole lot of patience. So, whether your first property is a condo unit in Verdana or elsewhere, here are excellent reasons why your first home should be an investment property:

1.) You are young

Independence can be quite the fickle thing. Sure, you feel nothing but euphoria once you have realized that you are now finally on your own and to top all that, you are still young and able. Living on your own set of rules, living wherever you want and buying whatever you want might seem like a tempting way to spend your early twenties, but it is not exactly financially sound. If you have other goals in mind, living the life can get old pretty quick—especially when you are living in a downtrodden apartment unit when you know you could do better (you just cannot afford it as you are frivolously spending your money). Cut costs and save money so that you can build credit as you will need this to qualify for a mortgage loan. When you are much older, you will have more significant obligations that would not allow you to cut costs as often as you can do so now.

2.) You will have another source of income

You might think that your salary is enough, but the extra money is always welcome right? By purchasing property that you intend on renting out, you are effectively creating another source of funds. With time and good marketing strategy, you would then be able to profit from your investments the moment you find tenants. You can then use the cash you earn in defraying other debts and bills or reinvest it in your property. Indeed, renting out your property creates positive cash flow for you, and it would always serve as a contingency whenever you do need extra funds or would lose your job.

3.) Having tenants is not so bad

Most prospective homeowners balk at the idea of turning their properties into investment ones as they are under the misguided notion that having tenants in your property would equate to stress and disarray. This is not always the case—after all, one isolated case of a nightmare tenant should not cause you to lump them all together as bad renters. You might be surprised how awesome living with a tenant can be most especially if you start establishing a friendship with them. In these cases, tenants are more likely to treat their units with better care and would even help with the maintenance and look after it whenever you are not around.

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Home Buying: What Kind of Homebuyer are You?

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“If I were asked to name the benefit of the house, I should say the house shelters daydreaming, the house protects the dreamer, and the house allows one to dream in peace.”-Gaston Bachelard

Just as there are different types of houses, so is there a diverse set of homebuyers one would encounter in their lives—especially when you are in the real estate industry wherein you deal with these sorts of clients every single day. However, determining what kind of home buyer you are, should not be the job of your real estate agent but yours as well. After all, identifying the type of home buyer you are would significantly narrow down your options when it comes to choosing homes and would make the entire process a lot easier, simpler, more streamlined and straightforward. Furthermore, having an awareness of the sort of buyer you are would enable you to find out not only what you need and suits you, but what befits your budget as well.

So, before you zero in on a Makati Condo for sale, try to assess what kind of buyer you are first. In any case, below is a list of descriptions about homebuyers out there. Take a gander at them and see if any of them best describe you before you take that plunge in buying real estate:

1.) Move-in Ready

At a moment’s notice, you can move in. As a consequence, it is only natural for you to wish to move in as soon as possible. You are dead set on an immediate move-in—so much so that you do not really have the luxury of time to wait. In fact, you would much rather look for a home that is already built than wait several months to have it erected and built from the ground. If you find yourself relating to this kind of buyer, check full-furnished properties where all you would really need to do is move-in sans the shopping (or shipping) of furniture. Before deciding to move out, prepare a list of what you must have in your home so that have an idea where you will commence your search.

2.) Fixer-upper lover

You are the type of homeowner who has an ardent proclivity for making dilapidated properties look fresh and new again. In fact, you are never deterred by any renovation, reconstruction, and maintenance work. If anything, they challenge and motivate you to try out some new ideas. If you have a penchant for home improvement projects and find that kind of work ensnaring, then you would most likely fall for a fixer-upper kind of house. If you can relate to these, scour your location for some foreclosed properties that might appeal to you. However, do not forget to create a grand master plan to aid you in creating the final look for your home.

3.) Tiny House Hunter

You love adopting a minimalist lifestyle that you are hardly bothered by houses of diminutive size. In fact, you find them subtly charming and a lot easier to decorate and style. You do not wish to spend so much money on extra space you probably will never need and merely make do with what available space you can. Moreover, you love redecorating now and then and you find it easier to do when you are living in a tiny home. If you are this type of homebuyer, perhaps finding a studio-type condo would be your best choice. After all, you have everything you need just in a single room.

4.) Life-time Buyer

Starter homes are a thing of the past, and you no longer feel like it is something you should be investing in—especially since you are starting to grow out your family. You want a home that would last you—not only for years but until your retirement and when your hair eventually turns grey. If you are this kind of buyer, check for properties that are strategically situated near business districts, entertainment hubs and schools as well to ensure the optimal growth and development of your family.

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Home Living: Four Reasons You Need Homeowners Insurance

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“It is a privilege to wake up in this house that existed before us, and will exist after us.”-Tim Cuppett (homeowner)

Without a doubt, our homes are bastions against outward elements—a place we can call our sanctuary, if you may. It is universally considered as a protective shelter and more often than not, it is symbolic of all the years of hard work we have done in order to erect such a place. Moreover, it also happens to be one of the most significant investments we would probably make in our lives. In this regard, it would only make sense to protect it adequately and ensure that should anything untoward occur, you and your family would not be left without a roof over your head. And the best way to sufficiently protect your homes is to have it insured with homeowner’s insurance.

Yes, you might have thought that this is another recurring expense on top of the exorbitant amount you have already paid for the home itself. But the truth of the matter is, if you cannot afford home insurance then you cannot afford a home. You could never tell what might happen, and if a fire razes your homes, you would be left without a shelter and without your belongings which are a scenario rendering you close to destitute. Your home is precious, and for that reason alone you should protect it. Any damage done could leave lasting financial and emotional consequences—let home insurance mitigate it. In any case, if you have been hoping to buy a condo in Avida Towers Centera or elsewhere, it is best to review the reasons why you should insure your home:

1.) Natural disasters are a dangerous reality

Just four years ago, Typhoon Haiyan devastated the Philippines, particularly in the Visayas area. The aftermath of the hurricane left many Filipinos homeless, and as such, most of them were not able to rebuild their homes until much later. We would never know when a natural disaster could occur—whether that may be an earthquake, fire, typhoon or anything similar. Should this be the case, we should ensure that our homes are protected so as not to leave ourselves and our families homeless.

2.) Man-made risks can cause a lot of damage

Much like natural disasters, manmade risks are fortuitous events. Although you may have armed your homes to the teeth with security cameras, surveillance systems and the like, manmade risks such as thefts, terrorism, riots, arson, etc. still pose a threat to the security and protection of your home. Home insurance, albeit only some of them, provides you with the assurance that reparation would be provided should any of manmade untoward events occur. However, should your insurer not provide this benefit, you can always add an additional fee for this benefit.

3.) Everything has value

Depending on your insurer, home insurance usually provides coverage for two things: the construction of the home itself and the contents within. Unfortunately, some items might not fall into the category of essential items that would need to be insured. Many of us would have items that have sentimental value, jewelry or maybe even some art installations and paintings that might have had cost us a fortune. To ensure you have everything you wish covered, read your policy and coverage and opt for a rider or two.

4.) It gives you peace of mind

Last, but certainly not the least having insurance gives you peace of mind. In this regard, you would be able to sleep well at night knowing that should any unforeseen circumstance occur that might cause you to lose your home, you and your family will be able to ride the tide with insurance. Remember, peace of mind is priceless, and so is your home. You should regard it as more than a structure of four walls and selected paint—it is a sanctuary that cultivates relationships and offers its inhabitants utmost protection.

 

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Three Things You Wish You Knew Before Getting Your Own Rental Apartment

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“Being able to own yourself is a blessing. When dependent on other beings for survival your chances to breathe slims, own yourself.”-Author Unknown

If you have lived by yourself for a significant amount of time, there are lessons and realizations you will inevitably develop. More often than not, it is these very same insights that would make you a little warier the next time you choose a rental apartment. From predicaments with your bills to unreasonable landlords and neighbors, living in a rental unit by itself is already a host for a myriad of problems that can potentially catch you unaware. However, while there is no certain way for you to be prepared for every possible dilemma that might arise, there are a few things you might wish to know before signing your very first rental or lease contract.

Although the prospect of living by yourself for the very first time—away from family and friends can be incredibly thrilling, this rush of euphoria would not last very long—especially when you become overwhelmed by obligations and responsibilities. As the last vestiges of newfound ecstasy fade, you would soon come to heavy burden that is entailed with living alone. However, this is not to deter you—but rather to prepare you of what life is like when you are on your own. So, whether you are looking forward to being billeted in a swanky address such as Avida Asten or elsewhere, as long as you are going to be living alone here are some things you should keep in mind:

1.) You cannot pick your landlord

Regardless of what anyone says, when it comes to rental units, the most important relationship you develop is the one with your landlord. This means that you can get into a really tight snag if you have a landlord that is quite difficult to deal with. Unfortunately for you, while you might be able to select the apartment you wish to rent, the same cannot be said for the owner who is renting it to you. Should you decide to move in, you will inevitably have to deal with them. Choose wisely and carefully. Know that whatever apartment you choose, the landlord comes with it too.

2.) You cannot pick your neighbors

Much like you cannot pick your landlord, it is virtually impossible for you to be selective with your neighbors either. Regardless of whether you scout the place thoroughly and select an apartment based on the neighbors you are going to be rubbing shoulders with, you can never be meticulous enough with who they are. After all, it is not up to you who rents out the apartment but the landlord. So, if you only have a wall separating you from your neighbor, you will inevitably be subjected to the caprices of your neighbors—and the noise would be the least of your worries.

3.) Pretend you are buying a home

Apartment renters often overlook even the most significant stuff in a rental unit in their jubilation of finally finding one that caters to their need. Unfortunately, this creates a myriad of problems that the renter could have prevented just by asking in the first place. A majority of apartment renters do not even think of asking whether the water heater was replaced in the last 6-8 years if there any mold problems or when the building was re-roofed and the like. Although this queries sound like they are best asked by potential home buyers, it would not hurt to ask these things—especially if you intend on renting for a significant amount of time. If you want a unit that is in good condition, it is best if you asked questions.

 

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Home Living: How to Split Finances with Your Significant Other

Couples follow a pattern of living. They look for the cheapest house and lot for sale in Philippines, save for the expensive and luxurious buys and plan out their family.

However, discussing finance or expenses can be taboo. It often causes arguments and disagreements between the partners. Unfortunately, failing to plan or discuss finances of the household can provide damages in the long run.

If you and your significant other are not open to the idea of tackling your income, you can talk about your spending and expenses as a household. Here are some tips on how to split you and your s.o. can divide your monthly bills.

Money rules for couples

Communicate money matters

Having a partner means being comfortable to share everything, even the most embarrassing moments of your life. It also means you have to share what how much goes in and out of your wallet. Finance can be a sensitive topic, but if you don’t trust your partner with information regarding your spending habits and financial status then splitting the bills won’t work.

When talking about financial matters, you don’t have to break down what you spend each day. Giving your partner an idea of how you delegate funds each payday will help him or her get a sense of how responsible you are. At the same time, it gives your significant other an idea how to work with your existing funds and habits to reach your long-term goals as a couple.

Schedule dates

There are lots of advantages to plotting dates on the calendar. First, it allows you to make plans considering the budget you set for the day. You also get to see the pattern of your dates if they are monotonous or not. Next, it makes you look forward to the moment.

Steady couples often focus too much on their careers and forget to go out and treat each other to a day out or a fancy dinner. If you are part of the population that has the same experience, a scheduled date will undoubtedly improve your relationship with your s.o.

Scheduled dates also allow you to assign who pays for it. You can take turns on who shells out for the current rendezvous. The other can spend for the next date. Moreover, pre-planned night outs and brunches will give you a chance to have unexpected dates because you both saved extra cash.

Use the 50/50 rule

Most couples the payments for dues and expenses by half. Most of the time, live-in partners are the ones who follow this rule. The total amount of utility bills and living costs are equally divided to two. That way, both parties are liable for the expenses.

However, the 50/50 rule may not be ideal for a couple who have a discrepancy in income. At the same time, there are cases when a partner contributes a larger portion of the expenses than the other. If that is the case, they may try using percentages to compute their share of payment.

The person with a greater net income may have a higher percentage share, but if the same person consumes fewer resources at home, there needs to be a compromise.

Have separate savings

Just because you are open to each other doesn’t mean you don’t save some for yourself. Financially speaking, it’s best for each to have separate funds when saving for personal wants and needs then have a mutual savings account for the future.

Saving is a continuous process. You should not only save money to attain pricey material things, but you should also save for rainy days. Emergencies are unexpected and often cost a lot of money. Thus, having spare money for such instances is important. You can use the stored money in the mutual savings account when the incident occurs.

Avoid IOUs

No matter how smooth sailing your relationship is, some people still have boundaries. The line more often than not is drawn when it comes to financing.

Some partners are not flexible when it comes to money. They expect you to be a responsible adult, the same way they do. Thus, borrowing money to purchase useless things is a no-no. It can be the spark that strains your relationship. Refrain from borrowing money especially if you are unable to pay it back on time.

If you need extra cash, you can use the balance of your savings to withdraw.

Open communication is the best solution for tackling money matters. Starting the habit on the dating stage until co-habitation will make splitting expenses easier.

Home Selling 101: Four Ways to Sell a Home Sans The Drama

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“I still think buying a home is the best investment any individual can make.”-John Paulson

Without a doubt, one of the most stressful endeavors one can undertake is selling a home. The logistics itself are complicated—couple that with the frustration of many unsuccessful attempts in finding a buyer and you would inevitably feel worn out and infuriated. Unfortunately, this is very much a reality that can possibly occur when you are trying to sell a home. After all, experiencing an emotional roller coaster is just one of the many consequences you will deal with in your attempt in making a sale. At best, selling a home would make you feel accomplished, proud and relieved when it finally sells at the asking price you wanted. However, at worse it can leave you disappointed at the low ball offers made—that is if any offers are made at all. Regardless of whether the property for sale is located in Bonifacio Global City or is a Makati condo, selling a home is always associated with some kind of drama. But that does not mean that this drama should always occur. Here are ways to sell your home minus the drama:

1.) Figure out and be clear on the reasons why you are selling

There are a lot of reasons that would compel you to sell your home. However, this myriad of reasons may not necessarily resonate with yours. Are you selling because you need to move to a bigger residence? Or do you need to downsize? Are you selling for profit or something else entirely? Figuring out why you are selling your home in the first place would enable you to have a stress-free navigation through the unpredictable seas of the market. Furthermore, it would get you through the days of rather disappointingly low offers. Knowing and focusing on your why are two simple tasks—all it needs from you is a conscious effort to form your own personal vision and values.

2.) Give it the right price

Before putting your house up on the market, it is imperative that you do a thorough check as this is paramount to giving it the right price. In pricing your home, it is important to remember that you look at it from an objective point of view. With this in mind, old sentiments and nostalgic feelings should not be factored in. You may think that your home is worth more than it actually is—only to have the market tell you otherwise. Do not list it too high or your house will stay far longer than necessary on the market.

3.) Be on the lookout for qualified buyers on the web

If you want your home to sell faster, then you need to permeate every single avenue for listing advertisings. This means you should not limit showing your ads only to traditional and typical mediums such as newspapers and the like. Instead, broaden your scope and include websites as a listing opportunity—from social media platforms to house market listings. Take note: the online community is rife with individuals looking for a good deal on houses, and there is a likely chance you would find a potential buyer there.

4.) Be flexible and creative as regards structuring a deal

As said before, it is important to know why you want or need to sell your home. Apart from that, you also need to have a rough idea on how you should go about the process of selling it. However, this is no way means that you should rigidly stick to the process you set your mind on. If you want buyers to consider your offer, you might need to be flexible and open to alternative ways in selling your home. Remember, you get more prospective buyers knocking on your door if you are flexible.

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10 Quotes on a Twenty-Somethings’ Journey to Finding Home

Home can mean different things. It can be a Lerato for rent condo, a suite in Holiday Inn, or a villa in Quezon City.

Whatever it is, different things make us feel that we are homeSometimes, we feel that home is where we spent our childhood. It can also be where we found our partner or where we forged friendships. But because of time and the winds of change, we are forced to leave the place we love and a new one.

If you’ve been away from home for some time and you don’t know where it is anymore, here are some quotes that describe how it feels to leave home in your twenties and come back again.

 

  1. The moment you left your humble home for a rental.

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“After you leave home, you may find yourself feeling homesick, even if you have a new home that has nicer wallpaper and a more efficient dishwasher than the home in which you grew up.” 

– Lemony Snicket

 

 

  1. When you’re denying you aren’t lonely but deep down want to come back.

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“Home is not where you live but where they understand you.” 

– Christian Morgenstern

 

  1. The inner-battle of self-sacrifice and freedom.

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“I used to dream about escaping my ordinary life, but my life was never ordinary. I had simply failed to notice how extraordinary it was. Likewise, I never imagined that home might be something I would miss.”

― Ransom Riggs, Miss Peregrine’s Home for Peculiar Children

 

  1. When you decided to not return to the place where you don’t have to pay rent and mortgage because you found “home” in your significant other’s arms.

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“Home wasn’t a set house, or a single town on a map. It was wherever the people who loved you were, whenever you were together. Not a place, but a moment, and then another, building on each other like bricks to create a solid shelter that you take with you for your entire life, wherever you may go.”

― Sarah Dessen, What Happened to Goodbye

 

  1. But your relationship didn’t last long, and going home feels like the only way to ease your heartache.

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“The desire to go home is the desire to be whole, to know where you are, to be the point of intersection of all the lines drawn through all the stars, to be the constellation-maker and the center of the world, that center called love. To awaken from sleep, to rest from awakening, to tame the animal, to let the soul go wild, to shelter in darkness and blaze with light, to cease to speak and be perfectly understood.”

― Rebecca Solnit, Storming the Gates of Paradise: Landscapes for Politics

 

  1. Fortunately, it’s perfectly fine to come back.

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“The ache for home lives in all of us. The safe place where we can go as we are and not be questioned.”

― Maya Angelou, All God’s Children Need Traveling Shoes

 

  1. Besides the hardships of being a twenty-something from career, dating to finances, don’t lose hope.

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“Home isn’t a place, it’s a feeling.”

― Cecelia Ahern, Love, Rosie

 

  1. You still have your parents, relatives and supportive friends. Chin up and live in the moment. You still have a lot of time ahead of you.

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“Well, sometimes home is a person.”

― Beth Revis, A Million Suns

 

  1. The right person will come to sweep you off your feet and accept you for who you are. This person will make a home out of nothing and will make it seem that every place, as long as you are together, is home.

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“Home is the nicest word there is.”

― Laura Ingalls Wilder

 

  1. He or she will tame your rebel heart and make you see you and your family’s worth in your life. It will make you understand what home really is.

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“I don’t care if we have our house, or a cliff ledge, or a cardboard box. Home is wherever we all are, together,”

― James Patterson