Which Should Come First: Buying a House or Building a Business?

Dream Home or Business Startup: Setting Your Priorities Straight

Whether you’re starting a family or building your dream life, deciding what you should prioritize on your financial goals list can be overwhelming. Perhaps, you are torn between buying a home or starting your own business in the Philippines. If you’re in this situation, let us give you some practical tips on what to choose so that you can secure a stable future for you and your family.

Building a Business First

Some people may say that you should start a business first before buying your own property. Having a business can pave the way for financial independence and growth. If executed well, it can provide a steady income stream and the flexibility to balance work and family life.
Here are some advantages of starting a business before purchasing a home:

• Potential for increased income. A successful business can generate substantial profits, potentially surpassing the income from traditional employment. You may explore opportunities in sectors like e-commerce, food services, and digital marketing. But again, this is a risk you need to take so make sure     you understand what you can and cannot do to increase success rate.
      
• Improved financial stability. With an enhanced financial standing from a profitable business, you can buy a bigger and better home in the future. Business also continue to generate higher income for you in the long run, giving you the financial stability you want.
      
• Lower     initial investment. Depending on the type of business, starting one may require less initial capital compared to the down payment and closing costs associated with purchasing a home. For example, online businesses can be launched with minimal investment in inventory and infrastructure.

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Prioritizing Your Dream Home

Owning a home offers emotional and financial benefits, providing a sense of stability and a tangible asset for your family’s future. The following are the reasons why you should invest in a house and lot in the Philippines rather than a business:

• Property value increases over time. Experts advise to start with a small house or condo first. If     starting a business in the next coming years take off, you can surely afford a bigger and more comfortable home in Metro Manila and other strategic locations.
      
• Predictable expenses. Monthly housing costs remain stable with a fixed-rate mortgage. This helps in budget planning and more flexible financial management.
      
• Personal stability. Home ownership provides a stable environment for starting a family,     fostering a sense of community, and establishing long-term roots.
  
  
  

Final Thoughts

It’s important to acknowledge the risks involved in building a new business. Not all businesses succeed, and income can be unpredictable. Conduct thorough market research, develop a solid business plan, and ensure you have an emergency fund to navigate potential challenges. On the other hand, homeownership also comes with huge financial commitments, including maintenance costs and property taxes. Assess your financial readiness before making any big commitment, whether it’s starting a business or buying a modern house in PH as advertised in the REALS Corporation website.

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