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