Have you ever thought of buying the first property you can use as a residential place? Do you want to buy a house as your first investment? A lot of you may be considering this. It’s common to think of a property as your first investment, especially if you know you can afford to buy one right now. But you should ask yourself first if it’s the right place for your money. If you have been saving to buy a residential property, think again if that’s where you want to invest your money. In this blog, I am going to share with you why you should consider other alternatives than buying a house as your first investment.
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Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
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Why should you start a business first? First and foremost, you need a stable stream of income. You can’t buy a house without an income source, especially if you are planning to get it by installment. Some of the houses and properties being sold today can be bought even with just a downpayment. However, down payments can strain your pockets too. P100,000 – P500,000 is not a small budget. If you are buying a home on a budget, how could you save enough for your monthly amortization? This is the reason why you need a solid income stream first.
Small businesses become stable even after months of running it. If you are good with time and financial management and if you have experience in running a business, operating your own won’t be a problem. Instead of buying a residential property, you should invest your downpayment in a stable business first. Think of a type of business you want to start. It can be anything—food, clothing, accessories, cosmetics, shoes, etc.
After starting your own business, when can you buy your residential property? Well, the answer is simple. You need to wait for your business to profit. You need to recover your capital first before you can finally buy your home. When your business is profiting, that’s the time you can rest assured that it is getting stable. Although there are instances that you have to wait for years before you can recover, it’s all going to be worth it at the end. You should trust the process.