Earning From Property – Tips and Techniques

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Earning From Property – Tips and Techniques

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6 Steps to Securing Your Child’s Future Using Property

12 Sunday Oct 2014

Posted by carldy in Property Tips

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Condo, Property, SECURE CHILD CARL DY

6 Steps to Securing Your Child’s Future Using Property

In my experience, having children changes your perspective in life. I have three young daughters, Catie, my 6-year old, Jianna, my 5-year old and Chloe, my 9 month old. I look at my 2 elder daughters and I realize that it was not so long ago that both of them were just like our baby Chloe, who is still in diapers.

I feel that what used to be a 5-year long wait has ended so quickly. In 4 more years, my eldest daughter will be in 6th grade, a couple more years, she will be in high school then suddenly off to college. If you are a parent, I’m sure you can relate as to how the perception of time becomes much faster as you watch your children grow.

I did not come from a well off family. Both my parents survived us through sales of property, insurance, encyclopedias and whatever have you to survive 4 children. Yes, while our family is Chinese, but we did not have the same privileges as other Chinese families, who had family businesses that were easily assumed by the next generation. From where I stood, I knew that if I wanted financial independence, I’d have to find employment or start a business and hope to God that one day I could become successful.

When it comes to securing your child’s future, your primary home is your first and best property investment. The security a primary home provides, even when you are gone, will enable your child to grow and learn in a safe and stable environment. I encourage you to buy your primary home first before looking into property to lease out. If you have not saved up the full amount to buy your primary home, do explore bank loan facilities. The opportunity to lock in the current price and enjoy building your family values and memories in your own home far outweigh the interest costs.

Coping with daily expenses, as well as saving for your child’s future is indeed challenging. Payments for your children’s education, household and personal expenses have to be hurdled before you even start thinking of investing, but once you feel ready to put some money aside for your child’s future, here are a few tips on how to use property to help you get started.

Securing Your Childs Future with Real Estate

1. Have a clearly defined 40-year game plan.
I highly encourage all young parents to have a financial 40- year game plan. Do not mark your finish line after your kids graduate from College, instead factor in 20 more years, so you can retire comfortably. Securing your child’s future starts by securing ourselves during old age.

2. Increase your net monthly savings.
First things first, you have to increase your monthly savings in order to make your first investment. The perils of earning more money is the attraction of having the lifestyle that goes with it. As a parent, you want the best for your children, but your child doesn’t need every latest toy, or have that extravagant birthday party that breaks the bank. Don’t get caught in that trap of keeping up with the Joneses, forego activities that will get you spending more than you’re actually earning.

3. Invest in positive cash flow properties.
There are 3 types of properties. The first is the type you invest in for capital appreciation, these are long-term investments. The second type is cash flow properties, or properties that you can rent out which enables you to earn from the property you purchased. The third type is cash flow properties that also appreciate over time.

We cannot predict our earning capacity in 20-40 years, so investing in cash flow properties while we are young can help reduce our risk as we diversify into property investment.Properties that give recurring income without physical daily operations are lots for lease, apartments and condominiums, office units, warehouses and the like.

4. Use installment as forced savings to buy your property
As parents, we know that saving for our retirement and our kid’s future is very important, but more often than not, it is pushed to a later time for something more present, whether it is a necessary expense or not. For most of us, we go by the adage live for the day, and tomorrow will take care of itself. If you end up spending what you earn unnecessarily, you may want to develop forced savings through a property purchased on installment. It can be a strategic step to force you to save first before you spend. Just make sure you have calculated your income properly, and that you can afford the monthly payments.

5. No Dipping
When you’ve pooled enough funds, it is tempting to dip into your long- term savings account with the mindset that you have enough. By locking your payments into a property purchase, you psychologically commit yourself to preserving your property. It is also not as easy to spend versus a more liquid instrument such as bank instruments or stocks.

6. Involve your child.
At the appropriate age, depending on your child’s interest and capability, involve your child and ask for help to manage your property from keeping track of monthly payments to managing your tenant and the rent. Involving your kids early in your property business can teach them business concepts like income versus expense, collection and appreciation.

***

Catch Carl Dy this Saturday, Oct 18, 2014 , 9am at the SJCS Audio Visual Room as he shares his knowledge on property investment, what to consider when buying your first property and how to start building a property portfolio.

You will also learn about the Philippine economy today and how it can affect future property demand and prices, where the best property investments are to capture growth and rental demand.

Get to learn about passive versus active investing and the history of property prices as well as how you can capture the next upswing, also a brief look at estate planning for retirement and succession.

Steps To Renting Out Your Condo – #2 Dressing Up Your Unit

22 Wednesday Aug 2012

Posted by carldy in Career Advice, Property Tips, Steps to Renting out your condo

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Condo, design, Earning, Property, real-estate, Steps

In our previous article, I gave some tips on identifying the target market for your condo unit. Once this has been done, the next step is to furnish or renovate your unit. Should you fully furnish it or leave it bare? If you decide to furnish, what furniture and appliances do you include? Do you hire the services of an interior designer or just decorate it yourself?

Personally, I would advise on fully furnishing your unit. Although there are tenants who would be bringing their furniture with them, I believe the market requiring fully furnished units is still bigger.

Furnishing Your Unit

Normally, a tenant will avoid buying big appliances as these can be difficult to move, so it is best if the owner buy these items. These may include the following: air conditioner, washer/dryer, refrigerator, stove/oven/cooktop, microwave oven, bed & mattress, curtains, lighting fixtures, side tables, cabinets and drawer, and television set. If you would like to make your unit more irresistible, you may go as far as putting in a nice sound system, Ipod dock, wifi router, rice cooker, kitchen and dining utensils, lazy boy seats, king size bed, and others.

Interior Decorating

I would suggest that you hire an interior designer to help create your unit’s design. Good designers not only create attractive and tasteful designs, but know where to purchase the right furniture and accessories at the best price. It is also best that you sit down with your designer and agree on the design theme for the unit. This saves time on site inspections and helps prevent problems or misunderstandings.

DIY Designing

If you have design taste and time to spare, here are some tips to help you create your unit’s unique look:

1.       Decide on a theme – Will you go Asian, European, modern, funky, classical , or Oriental? it is important that you stick to one theme. Self designed units have a tendency to have too many elements. Have a central focus on your unit. This can be a beautiful painting or artwork that complements your unit’s design and adds unique flavor or character.

2.       Make it unique – In order for your unit to stand out and be a cut above your competitors, have at least one market differentiator in your unit. Some examples are: an expanded toilet, and a large LCD or LED TV with surround sound system for the male target market; or a walk-in closet and well-lighted dresser with glasstop drawer for your female market.

3.       Provide plenty of storage – A secret to keeping your tenants happy and staying in your unit is to provide plenty of storage for their personal belongings. Unless another unit will have similar storage space, it will not be easy for your tenant to transfer to another unit. Maximize space by creating cabinets under beds, shoe cabinets, and floor to ceiling cabinets in the toilet or closet.

4.       Think of tenant comfort – Always have your user in mind when you furnish your unit. Design your unit in a way that you will personally be happy living in it. As much as possible, avoid buying appliances or furniture based on low price alone. Consider durability, ease of use and whether it adds beauty to your unit. Give your tenant something to look forward to when they come home. How about an automatic washer/dryer? A nice cooktop, deep fryer, espresso machine, high thread count Egyptian bedsheets are just some suggestions for you to consider.

5.       Focus on quality and durability – When buying furniture and furnishing materials, give priority to products that will last. Having this is mind will help save you on future expenses. Good quality furnishing will also look better and add more value to your unit.

Furnishing a unit can take from as fast as one week (for quick renovations, where you just buy off-the-shelf furniture), to as long as 6-8 months if you obtain the services of an interior designer and a contractor to execute the drawings. Made to order furniture, ceiling works, repainting, and change of flooring can also add to the length of your renovation.

In my opinion, furnish your unit to the best that you can afford and to the quality that you personally will be happy to rent the unit. If you provide a well designed unit and make your tenant comfortable in their stay then rest assured that you will get tenants who will return the favor by taking good care of your unit and renew their lease contracts.

Carl Dy, is a property investor and Director for Sales at one of the Philippines leading developers. He has 10 years of experience in the property business, and is continually building up his property portfolio with an ultimate goal of living on passive income from property. He believes that property investment, just like business is not an automatic money generating product. One must have a passion for it, create and execute a strategy and give time and effort for the investment to flourish.  For tips and advice, feel free to contact him at earningfromproperty@gmail.com

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Carl Dy

Carl Dy, is a property investor and Director for Sales at one of the Philippines leading developers. He has 10 years of experience in the property business, and is continually building up his property portfolio with an ultimate goal of living on passive income from property.

He believes that property investment, just like business is not an automatic money generating product. One must have a passion for it, create and execute a strategy plus give time and effort for the investment to flourish.

For tips and advice, feel free to contact him at dycarl@gmail.com

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