Investing in the stock market and real estate are currently a trend among young and old professionals in the Philippines today. This has began right after the best-selling author, preacher, and entrepreneur, Bo Sanchez, introduced the importance of financial management for everyone, especially to those who are desiring to retire early or aiming to earn as much as they can. And, it was heightened when his book, “8 Secrets of the Truly Rich” came out.
It became so popular that the lesson, all the ideas contained in the book has reached the hearts and minds of all the readers. In it, he emphasized the importance of financial literacy and the beauty and wonders of investing. Later on, he founded the Truly Rich Club to specifically cater to a group of audience who wants to invest in the stock market.
But, as he always say, it is better to invest in many and earn rather than focus on one. And so, many people have considered the other types of investments in which stocks and real estate has topped the list.
Now, if you are planning to go for these two as well or perhaps, improve your current portfolio, here are a few tips to guide you.
When it comes to stock investing.....
· Don’t just go where everyone goes. Some of us may decide based on what others are doing, may it be our group of friends or perhaps, family. Since you see them investing in this and that, you also do the same and think that it will surely give you more money. Have you forgotten what Warren Buffet said? “Be fearful when others are greedy, and be greedy when others are fearful.”\
· Avoid timing the market. Consider that no one in the whole wide world has ever done this successfully. You might have heard someone earning big and saying it was possible because he bought and sold the stock based on his prediction. You know what? That person may just be lucky because in reality, no one has ever consistently done that. In other words, there is no real proof yet about timing the market. It is myth. And, more investors have lost money because of it.
· Don’t just invest without a systematic plan. Just like in any other forms of investment, you have to be very specific and clear where to invest or where to buy shares. You don’t just buy a share because it’s a trend or what. You have to check the company’s background first and foremost. Most likely, you will earn more if you invest in established companies. And, whenever the share seems slow in growth, be patient. Just stick to your plan. Maintain a disciplined approach at all times.
· Avoid inconsistent monitoring. Instead, make it a rule to monitor your stocks or shares regularly. Even if you are using a long term technique in stock investing, constant monitoring is a must. If you don’t have enough time for it, then you can assign this task to an expert stock manager.
· Don’t just invest without caring about the latest in the stock market and updating your knowledge. Stocks are a volatile investment, the reason it requires thorough study and monitoring. If you are unaware of the current economic state on the major market, for instance, you might loss all your investment in an instant. So always stay updated of the happenings locally and internationally. Make it a daily habit to read economic news, especially relating to stocks.
On the other hand, when it comes to real estate.....
· Always think of the property’s ability to generate more income in the future. Don’t just base your decision on what you currently see. Learn to take a deeper look and visualize 3 to 5 years after. For instance, the building might be in a non-commercialized or industrialized area right now, but a couple of years after, it will become a hot commercial spot. When that happens, you can expect to earn more than the property’s original value. But how do you come up with a good vision? Well, it’s very simple. Research extensively about the property. Ask about its current progress and the authorities’ plans for improvement. The government officials might be planning for a major development in the area that will benefit your property real soon.
· Invest on aesthetics and functionality. This is not to say that you focus more on beautifying the place. But, this is an encouragement concerning the awesome wonders of a beautiful look. Remember that humans are highly visual. This means to say that we directly associate beauty with usability, functionality or comfort. And so, after considering the building’s neighbourhood or community, do the aesthetic aspect. You really don’t need to spend too much on improving the place. Just take advantage of practical yet attractive adornments.
· While you wait for the property’s value to appreciate, take advantage of short term leasing or renting. But of course, adjust the period of renting to the number of months or years of possible waiting. Residential condo units as well as house and lot are perfect for this. You won’t have a hard time advertising the property or maintaining it. There are many people looking for a condo unit for a short period including investors, travellers, students, entrepreneurs, and more. For house and lot, there are many families who are in search for a vacation rental, especially if you invest in a real estate in Baguio City and other popular destinations and premier place for investment in the Philippines.
· If your property is quite expensive, you can offer it as a rent to own one. This way, you’ll give your possible clients an alternative that is beneficial to both of you. You get a consistent earning while the property’s ownership is not yet transferred to the occupant.
Overall, growing your money is not just a one-time investment. You should always devout time and effort in order to earn more. And, apply the tips and guides you learned.
How to Start Investing in Stock Market and Real Estate?
For new investors, earning money through stock market and real estate may sound complicated or perhaps, a bit intimidating, but in truth and in fact, they’re not. These two types of investment are actually easy to learn and most of all, easy to apply.
Here’s how you begin and become a certified stockholder and real estate investor in the Philippines.
How to Invest in Stock Market
1) Find a stockbroker and open an account.
A stockbroker is the agent who will do the actual buying and selling of stocks to another investor for you for a minimal fee or commission. Today, we already have online stockbrokers such as COL Financial, BPI Trade, and Philstocks. Through them, you can already do away with the traditional way -- calling a broker so you can place an order. Unlike the traditional brokers, the modern or online brokers allow you to trade the stock yourself. So you will have all the freedom as to whether or not to buy or to sell shares or stocks now or later. Using online brokers, in other words, is very convenient on your part especially if you are already well aware of the stock market.
2) Fund your online stock trading account.
Once your application for an account opening has been granted and ready for use, go ahead and put funds to it so you can start trading stocks. You will be provided an account number by your online stockbroker to be used when paying through banks such as BDO, BPI, and Metrobank. You can either pay manually or online through your preferred bank. Most of the online stock trading companies in the Philippines will not require you to fund your account every month but if you want to invest and earn more, then better to deposit regularly.
3) Decide on the investment strategy that you will use.
Will you be investing for a long or short term goal? Depending on the stock that you will buy, a long term goal is perfect for those who are aiming for a happy and comfortable retirement life. But, if you are just looking to buy a house, a car, or something else that you can achieve within a few years of trading stocks, then a short term goal is appropriate.
4) Choose the stocks you want to buy.
Typically, you have around 200 stocks to buy from online stockbrokers. It is highly recommended to invest in Ayala Land, Jollibee, Universal Robina Corp., SM Investments, PLDT, and SM Prime Holding. These are the best and biggest companies in the Philippines wherein you can be sure that your investment will really grow in the period expected.
5) Sell stocks at the right time.
Of course, once you bought stocks and keep it for a certain period, you need to sell it when their value has increased enough. For instance, you bought a share worth 36 pesos and then a week after, the value rose to 40 pesos.
How to Invest in Real Estate
1) Decide on the real estate type you are going to invest. Will it be for commercial, residential, industrial or agricultural purpose?
2) Prepare your capital for investment for the purchase and/or renovation of the property.
3) Find a real estate agent or broker. They can guide you about the best types of property to choose from considering the location, architectural design, neighbourhood, and more.
4) Start selecting the most practical property to buy. If you are looking for a residential property, you can go for a house and lot or condo unit. Try to check out premier real estate investments in Baguio City.
5) Buy the property and make improvements if necessary.
6) Sell it or have it rented for a profit.
So you see, it’s just as simple as that. Anyone can become a stockholder and real estate investor like you. Begin the process now
How Can You Earn from Investing in Real Estate and Stock Market?
Are you currently employed and in search for the best ways to grow your money for future use or perhaps, retirement? So that you know, when you retire, you have more than enough and you can fully enjoy the moment, free from work, solely for relaxation and leisure, making the best out of your remaining years, spending more time with your loved ones, and so on. How about buying the latest version of your favorite brand of gadget, car, or even a newly furnished house and lot in a prime location like that of Baguio City? Without doubt, all of these can be very fulfilling.
As you know, real estate and stock market are actually the highly recommended type of investments these days considering how people are giving value to real properties and how readily available stock market trading is, online. That said, I will be elaborating on how exactly you can earn from these two.
But before you proceed, make sure to read our previous article, giving a brief background about the benefits.
Let us first tackle real estate investment very briefly as this is somewhat very understandable or familiar to many of us.
If you will be investing in real estate as an individual starter, buying a property, and then renting or leasing it out will work best for you. This allows you to learn more about it while earning at the same time. So you can have people occupy your building, whether families or entrepreneurs and then earn monthly from their rent or lease. Although you still retain ownership of the property, you have to be very cautious about the maintenance aspect.
If you have the means of buying a property, make improvements on it, and then sell it for a higher price, then go for it. But this is highly recommended for those who have first hand experience of the real estate sector. For instance, you have once rented out a property so you proceed with this option.
Like to search for a property to invest now? Why don’t you check these out:
● house and lot for sale in Baguio City
● condominium for sale in Baguio City
● apartment for sale in Baguio City
And of course, for your broker, consider the multi-awarded real estate agents or brokers from Passion Realty.
Simply, this refers to piles of interest or return of investment on top of each other. It is that strategy of deriving a profit by way of reinvesting. So when you successfully earn, you will be using that amount again to invest so you will get a much higher return. Simple as that. As time goes on, the amount that you invest grows together with your earnings.
This pertains to the increase in value of what you originally invested based on the current market stand. For instance, you bought a stock for 100 pesos now and then a year after, its market value doubled that it’s already at 200 pesos.
The dividend is what you get from the company’s excess earning. And the sharing is based on how many stocks or shares you own.
Want to know more about stock market investing? Secure a free eBook from the internationally acclaimed motivational speaker and author, Bo Sanchez.
Why Invest in Stock Market and Real Estate?
If you are currently thinking of the best investments now, it is highly recommended that you go for stock market and real estate. With these two, you will earn big, retire early, and live comfortably with your family as a millionaire and even more.
Investing in the stock market, you’ll get the following benefits:
● A higher Return on Investment (ROI) every year. As a matter of fact, many stock investors have gained more than a hundred percent ROI. Just think about selling a share that’s worth 1000 pesos now, which was originally bought at 400 pesos.
● Beat the annual inflation rate. With a hundred percent or more return, you can definitely fight against the 4% inflation rate per year.
● Receive a share from the corporation’s profit. Since you become a stockholder, you are entitled to receive a percentage of whatever profit the company can make.
● Super easy to sell when you need to. Stocks are liquid assets. This means they can be converted to cash fast. And so, buyers of these are everywhere.
● Earn in two ways, by way of dividend and capital gain. Dividend is your share from the company’s earning while the excess is the capital gain.
● Free from corporate liability that may arise. A stockholder is a passive investor so when legal disputes happen, you are not included.
● Efficient when it comes to taxation. Your capital gain will be offset by your capital loss, which brings down the total earning that’s subjected to tax.
● Easy membership to trade online through COL Financial, which brother Bo Sanchez supports. He actually advocates financial literacy for everyone including high school students and even kids through his free eBook.
Investing in real estate, on the other hand, gives you the following rewards:
● Ownership of the property. When buying, of course, you have full ownership of it unless you sell it to earn profit. Anyways, you have the option to retain your ownership and just rent it out.
● Increasing market value. Especially when the property is in one of the premier locations for real estate investment like Baguio City, you’ll even enjoy a double or triple increase from its original value.
● Flexible investment. You can choose to go for residential buildings such as house and lot for sale in Baguio City, condominium, or apartment for sale. Also, you can choose commercial properties. It’s up to you.
● Licensed and professional real estate agents are always ready to help. For example, if you are up for a condominium for sale in Baguio City, the brokers from Passion Realty are multi-awarded.
So what are you waiting for? It’s that financial freedom you are dreaming of. Invest now!
Looking for House and Lot in Baguio? Live Within a Subdivision
For anyone who is planning to buy a house and lot for sale in Baguio City, it is highly recommended to go for one in gated communities or subdivisions. Why? Well, living within a subdivision gives you complete safety and security as well as privacy or exclusivity.
Basically though, what is a subdivision? It is a small or large gated community in a residential area that usually employs security officers to guard the entrance and exit.
Being secure is one of the top reasons why subdivisions are highly recommended when looking for a residential property to invest in Baguio for your family, especially for starting couples. The guarded high gates keep the criminals away. With the roads and pathways going to and inside of the subdivision being private, the residents live with no traffic. And, if there’s no traffic, it means less or no danger at all for your kids. This makes it ideal for jogging or just mere strolling too. You feel safe while you run or walk around the neighbourhood. And, there’s no air or noise pollution to think of.
Another advantage of living in a subdivision is the convenience of keeping the neighbourhood or surrounding clean. In addition, no one can just get in without the approval of the subdivision especially when it comes to solicitors, vendors, and carollers during Christmas. Moreover, the homeowners can use the amenities of the subdivision, such as the swimming pool, viewing deck, basketball court, fitness center and others exclusively, making sure that overcrowding never happens.
For real estate investors in Baguio City, a house and lot in subdivisions or gated communities is usually of reasonable price compared to neighbouring houses and lot for sale considering the amenities, benefits, and perks. Since Baguio is in demand all throughout the year, both to local and foreign tourists, you can always find a good buyer whenever you decide to sell the property for profit.
One more advantage of a house and lot in subdivisions is that the occupants or the community has more control concerning internal rules relating to environmental care like waste disposal, independent delivery of social services, and more.
Other people regard subdivisions or gated communities as a status symbol. If you can afford it, then you have the money or that you belong in the upper class families in the society. They take great pride to be living in an exclusive and secured residential area complete with amenities.
Find a real estate agent in Baguio City now!
You can trust the licensed, professional, and multi-awarded brokers of Passion Realty with all your real estate needs including:
· condominium for sale in Baguio City; and
· apartment for sale in Baguio City