How to Earn More When Investing in Stocks and Real Estate?

real estate and stock market investment

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.