A guest post by Tom Mallet

When looking to turn your earnings or profits into a larger income there are many options available to you. Rather than spend your income on flashy cars, it is wise to invest in property because it is both stable and reliable. Whilst other investments will give you greater short term returns, they have a greater element of risk involved which could end up costing you everything you invested.

The property market in Australia is relatively stable (just like in the Philippines – by Jay Castillo) and whilst it is seeing a current dip the trend has been upwards over the last 5 years. Given the rate at which the population is increasing in Australia and the amount of housing being built by the government and by businesses, the cost of property is set to increase for years to come making it a worthwhile investment.

This short guide will provide you with some reasons why buying an investment property will offer you large returns over the long term without the risk of stock trading.

1. Large investments

One of the biggest benefits to buying a house is the fact that you can almost always borrow money with which to do it. When trading on the stock market or investing in any kind of trade, you will not be able to do so. This means that you can make a much larger investment than you actually have the capital for.

When taking out a mortgage to buy a house you will be able to place a relatively small deposit and borrow the rest against the property you wish to purchase. This means that your risk can be limited to losing only a fraction of the actual investment that you make if you are unable to meet the mortgage repayments for any reason.

2. Off plan property

One method of investment which can see a high rate of return over a short period of time is buying investment property off the plan. What this means is that you are purchasing a building or apartment which has not yet been built.This practice is carried out because it benefits the developers who can secure funds with which to build before they start constructing anything, limiting their risk.

This practice also benefits a buyer who can purchase an apartment in a prime location for a reduced price. Once the building is complete you will have the choice of renting or of selling the property immediately to make a fast return on your investment.

3. Growing investment

By purchasing property for investment purposes you will be able to watch your investment grow over time. If you are renting the property to tenants then they will be paying the interest on the mortgage for you in effect. If you decide to live in the property then the monthly bills you pay will be going towards your ownership of the house, rather than into someone else’s pocket.

Investment of this kind enables you to accrue wealth in the form of bricks and mortar which are both safe and stable. You will always be in control of your investment and won’t be susceptible to large fluctuations in the market as you would with stock trading.

About the author: Tom Mallet is an Australian freelance writer and journalist. He writes extensively in Australia, Canada, Europe, and the US. He’s published more than 500 articles about various topics, including  investment property  and investment property off the plan.

A note from Jay Castillo

I can’t help but think that what they refer to in Australia as “off plan property“, is what we call here in the Philippines as pre-selling properties. For me, buying pre-selling properties is okay as long as they are from reputable developers who have a track record that they can deliver their projects on time, at agreed specifications. It also doesn’t hurt if the downpayment is spread up to the turn-over date at zero interest.

As for leverage and growth, these are definitely applicable in the Philippines as well.

Thanks again to Tom Mallet for his guest post.

If you want to get featured here through a guest post, and as long as you can provide valuable information to our readers and subscribers out there, just let me know through the comments section below so I can send you the draft guidelines which will be made public soon.

Yes, I am opening up this blog to guest posts soon!

~~~

To our success and financial freedom!

Jay Castillo

Real Estate Investor
PRC Real Estate Broker Registration No. 3194
Blog: http://www.foreclosurephilippines.com
Follow me in Twitter: http://twitter.com/jay_castillo
Find us in Facebook: Foreclosure Investing Philippines Facebook Page

Text by Jay Castillo and Cherry Castillo. Copyright © 2011 All rights reserved.

Full disclosure: Nothing to disclose.

P.S. I am helping a fellow real estate investor market a  Quezon City Townhouse for sale located in Kamuning. This is also available through a rent-to-own scheme.  Please call/txt 09157603090/5059259 for more details. A video of the townhouse can be seen below. Click here for more details.

Why Property is a Safe Investment is a post from: Foreclosure Investing Philippines

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While I have said in the past that it would be great to buy a house and treat it as an investment, I want to take it a step further. What if instead of buying a house outright, one would first buy an income generating asset that would generate positive cashflow and help take care of the monthly amortizations of the house that one would then buy afterwards?

Just this morning I mentioned this idea to my wife and I said “Wouldn’t it be a great idea to buy an investment property that would be able to pay for the monthly amortizations of the house that we intend to live in?”

Call it coincidence but while I was driving to work,  while I was listening to an audio book entitled “You can choose to be rich”, I heard the author, Robert Kiyosaki, mention that one big difference between the rich and the middle class is the rich buy assets first and then they use the income from these income generating assets to buy their liabilities. At least that was how I understood what he said.

Furthermore, the middle class buy liabilities first and then hope that someday they will have the chance to buy income generating assets. Believe me when I say that it really is difficult to buy assets once you have already bought liabilities that don’t generate any income as you already have a big burden which comes in the form of those big monthly amortizations. Furthermore, this makes it really difficult to raise the capital needed  for the downpayment for income generating assets.

In effect, the scenario of buying liabilities first produces a situation that traps a lot of people in the rat race. They have no choice but to work hard to keep up with the monthly payments and they lose the opportunity to buy income generating assets first. This sounds like the situation we were in a few years ago. I guess this time around, a little delayed gratification is needed.

Am I making sense? What do you think?

—

My vision – financial freedom for all!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter: http://twitter.com/jay_castillo
Become a Fan in Facebook: Foreclosure Philippines fan page

Text by Jay Castillo. Copyright © 2009 All rights reserved.

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

PPS. If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and get notified of new listings of bank foreclosed properties, public auction schedules, and real estate investing tips. If your inbox is getting full, you may subscribe through my RSS Feed instead.

Buy income generating assets first is a post from: Foreclosure Investing Philippines

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I recently received foreclosed homes listings from Bahay Financial Services (BFS) that includes Metro Manila and Luzon areas and I am posting them here for those who might be interested in buying foreclosed homes from BFS. These Metro Manila and Luzon foreclosed homes listings from BFS contains more than 3,000 foreclosed properties. If you are currently looking for an investment property or if you are simply looking for a property that fits your budget, buying foreclosed homes from these listings from BFS gives you a lot of choices due to the vast number of foreclosed properties and locations.

Foreclosed homes from BFS currently includes properties from the following areas and subdivisions:

Cavite Area

• Camella Homes Barcelona
• Camella Homes Springville
• Capitol Hlls Exec Subdivision
• City Homes-Dasmarinas
• City Homes-Resortville
• Ciudad Adelina Lakeshore Subdivision
• Golden City Subdivision-Dasmarinas
• Golden City Subdivision-Imus
• Heritage Homes Cavite
• Lakersfield Subdivision
• Mandarin Homes
• Molino Homes II
• Remedios Ville Subdivision
• San Marino City
• Solar Homes
• Southcrest Village
• Villa Luisa Homes Cavite
• Villa Remedios Subdivision
• Westwood Homes
• Wood Estate Village

Laguna Area

• Camella Homes Woodhills
• Golden City Subdivision-Sta. Rosa
• Maryland Homes III
• San Lorenzo South
• Southfairway Homes Classic

Metro Manila (NCR) Area

• Camella Homes Ridgeview, Muntinlupa
• Evergreen Executive Village, Kalookan
• Meritville Townhomes, Las Pinas
• Natividad Subdivision, Kalookan
• Palmera Homes-Novaliches North
• Palmera Homes-Springs, Kalookan,
• Tierra Nova, Kalookan
• Veraville Townhomes, Las Pinas
• Villa Luisa Homes, Kalookan

Bulacan Area

• Citation Homes
• Elysian Homes-Bulacan
• Humel Heritage Homes
• North Hills Subdivision
• Palmera Homes-La Poblacion
• Palmera Homes-Northridge Subdivision
• Palmera Homes-Northwinds City

Rizal Area

• Antipolo Hills Subdivision
• Duraville Homes
• Golden City Subdivision-Rizal
• Palmera Homes-Carissa East
• Palmera Homes-Ortigas
• Palmera Homes-Woodlands
• Tierra Monte

The list above is just a partial list as there are more areas and subdivisions on the complete listing below of Metro Manila and Luzon foreclosed homes from BFS Philippines.

Click here to download the BFS Metro Manila and Luzon foreclosed homes listings updated as of July 30, 2009. (Source: Miriam S. Ramires, BFS Sales Manager)

I noticed that some of the foreclosed homes on the list are still within the redemption period which means that the previous owners can still redeem the foreclosed homes anytime. If you are interested in buying foreclosed homes on the list, you will have to wait for the redemption period to expire. Please consider this as part of your due diligence tasks.

Call BFS now to get the best deals through the following:

• Direct Lines: 817-5184, 893-1613, 756-6303
• Trunk Lines: 750-3888, 892-6100, 756-6267
  • Locals: 479,546, 582, 835, 836, 839, 840, 841, 332, 338, 396, 409, 422, 433, 462, 516, 523, and 542

Or Visit their Property Operations and Sales Group

• Makati Office: 8th Floor, Banco de Oro Plaza Bldg., Paseo de Roxas, Makati City
• Alabang Office: 8/F Tower 2, Insular Life Corporate Center, Insular Life Drive, Filinvest Corporate City, Alabang, Muntinlupa
• Davao Office: Unit 301 Plaza de Luisa, 140 Ramon Magsaysay Avenue, Davao City w/ Tel. No. (082) 2210809

You may also visit their website: http://www.bfs.com.ph

Happy hunting!

—–

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Social Network: http://foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com

Text by Jay Castillo. Copyright © 2009 All rights reserved.

P.S. – If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines. Don’t forget to subscribe to e-mail alerts to get notified of new listings of bank foreclosed properties, public auction schedules, and Philippine real estate investing tips. If your inbox is getting full, you may subscribe instead to my RSS Feed.

BFS Foreclosed Homes Listings For Metro Manila and Luzon is a post from: Foreclosure Investing Philippines

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“Are you always sending BALIK BAYAN boxes every month or every payday, year after year?
Are you working your head off having 2-3 jobs to just earn enough for you and be able to send money home?

What if you can make your money work for you! Instead of getting 2-3 jobs, you teach how your relatives can earn money from rental properties? Wouldn’t this lighten the load.

Instead of BALIK BAYAN BOXES, why not a HOUSE and LOT, or an APARTMENT which you can rent out. It’s safe since your family can not sell it without your permission, not like a car, computer or any expensive appliances like TV.

You will be surprised to know that the amount you spend to fill up a BALIK BAYAN BOX can actually buy you a rental property that can earn you additional money.“

The quote above is the description for the now defunct “OFW earn Passive Income via Real Estate Rental Properties” Meetup group, which I was a member of.

Passive Income or doodads?

Although the Meetup group is gone for now, the message is still relevant. We often hear stories of OFW’s who send money and gifts(in balikbayan boxes) to their loved ones with the hope of coming back for good one day after amassing enough savings and/or so called “assets” like home theater systems, computers, PSP’s or other expensive gadgets/appliances, which are actually doodads since they don’t generate income and tend to depreciate quickly. After awhile they do come home and enjoy life but they then realize that their savings are already dwindling.

What’s worse is I also hear of stories of OFW’s who come home only to find out that all the money and gifts they have sent home are gone without a trace. With a heavy heart, they have no choice but to leave again to work abroad. The “rat-race” cycle continues. Of course there are those who are already enlightened and actually buy real “assets” that provide passive income but judging from the number of friends and friends of my friends who I know who are still working abroad, I would say these are quite few.

It’s really possible to be back home for good

Wouldn’t it be nice if there was a way for OFW’s to come back home for good, where they have a choice to stay with their loved ones or still go abroad in case they wanted to but not out of necessity?

In my opinion, buying foreclosed real estate fits the bill as it can provide the means to buy income generating properties that are real assets as described by Robert Kiyosaki in his book Rich Dad Poor Dad. If you haven’t read this book, I highly suggest you read it NOW!

Little downpayment needed for foreclosed property investing

Foreclosed property investing requires very little down payment which is comparable to the cost of the contents of balikbayan boxes that are sent home to loved ones. Imagine that, for the cost of a balik bayan box, one could have already acquired an investment property that can generate passive income for many years.

Passive Income and Positive Cashflow

If chosen correctly and managed well, foreclosed properties that are then rented out could generate enough income immediately that would cover the monthly amortizations along with an excess cashflow that would increase over time as the loan gets paid, and rents increase. This positive cashflow that would be coming in without depending on the amount of work put into it is passive income.

My Vision

Are you beginning to see my point? My vision would be to have OFW’s building enough passive income through rental properties which would then allow them to come back home and stay home for good, if they wanted to. While it’s true that OFW’s earn big money working abroad, I believe it would be better if they had the means to stay home and have the time to enjoy a meaningful life with family and loved ones here in the Philippines!

What to read next

The goal is financial freedom…

• Foreclosure Investing Is Not Really Just About The Money, It’s About Financial Freedom!
• Is It Really Possible To Gain Financial Freedom Through Real Estate Investing?

… But we also need financial literacy!

• Manage your finances to get ready for your first real estate deal!
• Manage your finances by becoming your own Chief Financial Officer
• How I track my expenses and manage my money

All About Foreclosed Real Estate Investing

• 9 Ways To Invest In Foreclosures And Earn Money
• 31 Questions You Need To Ask When Inquiring About A Foreclosed Property
• 4 Steps To Quickly Analyze And Short-list Foreclosed Properties
• How I Estimate Market Values Of Foreclosed Properties
• How To Easily Calculate The Return-On-Investment (ROI) For Rental Properties
• 4 Tips On How To Stop Foreclosure
• Real Estate Acronyms Every New Real Estate Investor Should Know
• What To Expect When Buying Foreclosed Properties
• Top 5 Things to Consider when Buying Foreclosures
• Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 1: Leverage)
• Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 2: Less Risks)
• Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 3: Control)

Lessons Learned

• Lessons learned from the Marikina Public Auction of Real Properties with Tax Delinquencies
• Pre-auction bids – Another Lesson Learned
• 9 Lessons Learned From The Real Property Tax Foreclosure Auction Sale In Quezon City
• I failed to grab my first real estate investment property… so what?!

To all OFW’s: Need To Earn Passive Income And Come Back Home For Good? Try Foreclosed Property Investing! is a post from: Foreclosure Investing Philippines

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