rent versus rent-to-own

If you want to be a millionaire, every activity that involves money, no matter how little, is important.

The topic today is what most of us do want to avoid every end of the month - house rent!

Are you tired of paying your monthly rent?
Are you tired of feeling cheated out of thousands of PESOS each month?
Would you rather have that money for you rent to go into the monthly amortization of a place you can call your own, but you think you can not produce the required down payment for a house or condo OR you can not afford to wait for 2 years before you can live in that house or condo?

Well, I do.

See, I am paying P7,000 for house rent each month. That's P84,000 a year AND P840,000 in ten years! That's a lot of money considering that I want to be a millionaire. So what can a girl do?



Actually, there are two options and I will discuss here the advantages and disadvantages of each options.

1. Buy a house through Pag-ibig
   
2. Rent-to-own your current place

Buy a house through Pag-ibig
Advantages

• you get to choose where, what and how much to commit. Buying a house is not as difficult as before - the government has established support financial institutions for the average Filipino to be able to own a house. However, it is STILL a long term commitment. [I pay for my condo not until the next 15 years]
• when you retire, you have a rent-free house to use. Monthly house rent puts a considerable strain in a retiree's budget.
  

Disadvantages

• you might have come to love the place you are staying in now and hesitant to relocate.
• affordable houses are usually located somewhere out-of-center OR off the city which could mean additional transportation cost

Rent-to-own your current place
Advantages

• you'll be buying a house you have come to love
• no additional moving expenses
  

Disadvantages

• you're land lady/lord might NOT be willing to sell, hence give him/her an offer he can't refuse!

How does one go about Option # 2?

First, discuss with your bank your plan to buy the place you are currently renting.
Second, ask your bank how they can help you.
Third, show your offer to your land lady/lord

Banks often enter into transactions like this. The bank offers to buy the house for you, then asks you to make monthly payments until you pay off the debt. At that time, the bank will transfer the title of the house to your name.

However, if you'd rather buy a brand new house here are useful links:

1. ABGarcia Const.
2. Affordable houses
3. Rent to own
   

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[Image from www.daasgallery.com]

two months after my first real estate investment

Two days from now, it will be exactly two months after I signed the contract for Unit 2223. Wow! What an exhilarating period and what's more, I should expect for more of this!

Before the contract, I couldn't imagine myself saving a little more than $1,000 in just two months. But that is what I just did for the last two months. This real estate business is a great way for force savings for young professionals or yuppies.

Come on ladies and gentlemen! Let's go to our real estate brokers, and make some sacrifices and think investments, investments, wealth, wealth. If you don't have a broker yet, contact me at amgaspar20@yahoo.com and I'll introduce you to mine.

Maybe real estate is one way

So now that I know what I want - a million pesos. I should decide when I want that million pesos, and how shall I get it. ;-P

First, when? Well, how about a million on the eve of my 3oth birthday. I think that's a good date.

Second, what to do to get it?

Ok. So, here is one of the ways - the way (pardon the pun) I see it.

This Friday, yes, on my birthday I will become the proud owner of a condo unit. Unit #2223 of SM Berkeley. (to read more of this project go to http://www.smdevelopment.com/). This condominium is my biggest asset so far, and my BIGGEST DEBT. About P1.96 million! Yay!

Starting September 8 this year for the next two years, I will have to set aside about P14,500 for the monthly amortization, and afterwards for the the next 15 years or less, I will need about P17,400 for the bank loan amortization for the unit.

I know this is a lot of responsibility - I am afraid as a matter of fact. However, fear is an excellent motivation.

Maybe some people would also want to cross the bridge and do the same thing as I did, but afraid to do it OR don't know how to do it. So here I am. My agent is Ronald Pereira, if you are interested I can introduce you to him OR I can even walk you through my decision process for this project.

[Source of image: http://www.smdevelopment.com/]