In 2010, my
brother has invited us to attend an event related to real estate investment for
condominiums. I was hesitant to come as I am not really convinced on
condominium investment, for me, I’d rather go for conventional real estate such
as house and lot or lot only. But I went with them anyway.
The presentation was
in a nice hotel and food and beverage is being provided. I enjoyed the
presentation made by DMCI Homes International and almost convince that I should
invest on it.
During the
question and answer portion, one guest commented that it was a good location,
near schools, hospitals and the LRT station. She said that her daughter is
renting an apartment at a certain price with her two friends and cost her Php10,000.00.
Me and my sister
is contemplating on this investment based on the testimony of the other guest
and from our family members. After some sales talks, we said yes to one of the
unit.
We paid the
reservation fee which is non-refundable.
I was happy with
this investment as its value has gone up during the time of pre-selling period and
after we made our payment. The agent told us that our investment is up and we
are “lucky” we availed it first than later.
When I was laid
off, it became hard for me to pay the monthly installments. My salary has been
decreased by 40 percent. When I studied my expenses, I can still survive with
my salary.
Honestly I didn’t
really make a thorough study on this investment. It just hits me on the day of
the turn-over. I wasn’t prepared for other expenses that I need to provide. Aside
from the down payment, I have to pay for Mortgage fee of the bank, MRI premium,
Condo dues (including but not limited to water & electricity deposit,
joining fee, CCTV, fire extinguisher, association dues and share in common
areas), notaries/ consularized documents upon turnover. I also have incurred
expenses for the courier charges, furnishing (for fully furnish condo) and
miscellaneous expenses for transportation/ fare etc.
I was unprepared
as I do not have any savings; I am just living within my means. Then this is
when I realized the importance of emergency fund. So to not to add to my debt,
I sell some of my stocks. And I was able to finance my unexpected expenses. But
I was sad that my investment has decreased instead of increased. I was also felt
regret because my stocks should have been earning more.
So now, this is
the mistake I am trying to fix. I will build my savings before making another
long term investment. I also plan on investing on short term investments.
Condominium is a
good investment for people who have extra money to pay for the monthly mortgage
and association dues. This investment requires large amount of money but will generate a good return as time goes by. The Condominium rent will be one of the passive incomes
that will create income streams in the future once it is fully paid. But one
should only be cautious of the unexpected expenses this investment demands.
If I will have extra money after saving for my emergency fund, I would like to buy another unit
as part of my retirement plan.
In conclusion,
for me, Condominium rental is a good investment; you just have to have extra
money and study the investment property properly (location, demand, market,
property management, real estate company etc.) before investing. Most of all,
any investment that you would like to enter, pray first to God to give you
wisdom and to guide you.
Happy investing J
“Plans fail for lack of counsel, but with many
advisers they succeed.” Proverbs 15:22
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