Most of the new graduates who started work in their early 20’s primarily focused on getting more experience rather than getting a promotion, a raise or both. The same can be said for me at that time. It was all work, work, work for me and then spending the money for myself because I felt that I deserved it! Eventually, it took 7 years for me to realize that having a job is not the ultimate source of income.
The Book that Lured Me to Invest
Enter the book: Rich Dad Poor Dad™. To this day, I still consider it to be the most valuable book I have ever bought and read about investing. I was so amazed by the first book that I collected its series as they were very easy to understand, and they get right to the heart of the matter. Although the setting is US-based, some of the knowledge or perceptions about money and investing are still adaptable regardless of location. Its author, Robert Kiyosaki, has passionately expressed his beliefs in real estate and how investing in it became his greatest source of passive income.
What is Passive Income?
Passive income is any money earned in a manner that does not require much effort. It means, receiving extra income for something that does not require your full attention while doing other things – like earning while you’re sleeping. I realized however, that money begets money, no matter how small the amount is. This realization made me review my financials and find the answers to my biggest WHYs before truly jumping into the real estate investment bandwagon.
My First and Biggest Expense a.k.a. My Property
Working in the Philippines requires monthly contributions to the various government institutions like Pag-ibig, SSS, PhilHealth, etc. Pag-ibig is the Philippine government’s housing agency and as a regular member, a loan under Pag-ibig helped me to acquire a property. It didn’t take long for me to look for that perfect house and lot. I have also read that a strategic location is the key to finding the right real estate and that it should be accessible to one’s frequented locations for easier management. I have acquired my very first townhouse in Jan 2010 in Cavite via a Pag-ibig loan and never looked back.
Was it Worth-It?
Short answer, yes! Why? My property has more than doubled its market value to date, and still allows me to earn passive income from a long-term tenant. These extra earnings help greatly in offsetting some of my family’s monthly expenses which paved the way for more savings and investments. Good thing I grabbed the opportunity to purchase the property before the surrounding area was filled with popular shopping malls! If I were to purchase a property there now, I would say it won’t be as cheap as before and the choices will be limited due to the current space in that vicinity. Start looking in areas that are still being developed and make a plan to kick-start your property investment. It’s never too late to start.
An Exhilarating Experience
Buying real estate for the first time was one of the riskiest and scariest decisions I have ever made, but THE BEST experience, nevertheless. It has taught me the value of money and being responsible for it in the process. I have also learned that doing things out of my comfort zone has its own rewards. Being able to constantly apply this learning truly helped me with my personal growth, self-esteem and independence. Would I do it again? With detailed study and planning, yes of course!