Filipino PesoAs Robert Kiyosaki states clearly in his books, always prioritize assets in place of liabilities when you have money… They will bring you wealth in place of costing you. So if you want a long term success, buy a house or generate income from your money in place of buying a car for example.

So you have some money to invest? Good, you have probably thought about starting or taking part in a business but if you read this, I suppose you’re looking for other solutions. Then you have three main choices in my opinion, putting your money in a bank, investing in stock market or finally in real estate.
I’ll show you why choosing the last is wise, mainly in Cagayan de Oro.

Bank or Stock Market Investment

Time Deposit in a bank is probably the safest way to invest your money but the returns are very small, have a look at this page if you like to see the rates proposed by our main banks, they’re quite low, ranging from 1.5 to 3.125% per year for a 1 year term deposit… I think you can find better use for your money, don’t you?

There is the stock market which is a good solution but it requires an understanding of the system that not everybody has. Furthermore if it can bring the highest ROI of all investment types, it’s also the riskiest of all, mainly if you’re not used to it.


Real Estate Investment

1. In Cagayan de Oro, properties are gaining value every years

Why real estate is a good investment for filipinosThanks to the steady and strong economic growth of these last years, the real estate market in Cagayan de Oro is going very well and the happy owners of land or properties see that the value of their assets does not stop growing.
I’ll give you a personal example to illustrate this it’ll achieve to convince you I’m sure:
I personally bought a lot in Gran Europa 3 years ago for around 430K and now the market price for it would be more than php800.000… Of course if I would like to sell it I could maybe not get that money and there are the taxes regarding the sale but I would still make a big benefit for sure.

2. Rental means income

When you have a built property, you can earn monthly passive income with the rental, the market is still at the advantage of the owners and there is more demand than offer, mainly for small to average rental costs.
A house for rent at a fair price – it’s objective, ask me what’s the fair price for yours is if you need – of below 20K monthly will generally find a tenant in a month, below 10k, it can take just one day. It’s good because it gives more power of negociation to owners and they can be “choosy” regarding their tenants. If they decline an offer, they’re still not afraid to stay with their property empty too long.

If you don’t need the income from the rental, re-invest it of course. :)

3. It’s easy to fund

Outside of 5-6 and other loaning schemes with prohibitive rates, housing loans are the less strict ones I know, I may be wrong but I think it’s probably the easiest kind of loan you can get.

4. No risk of real estate bubble in CDO for now

Cagayan de Oro is still a relatively small market and most buyers are investing in their first property, the one they’ll actually live in. It means the part of speculation is very low compared to more mature markets like Cebu or mainly Manila. The risk of a “bubble” is almost null for now then.


Diversify your investments

It’s the main rule I remember to have learned from Warren Buffet: Don’t put all your eggs in one basket!
In real estate, that could mean to buy two smaller properties in place of a bigger one, to choose them in different neighbourhoods and fitting different markets.
For example you could go for a condo in Primavera Residences (uptown) associated with a house in a subdivision downtown like Tuscania.

Tip for buyers:
If you have enough cash to buy a property without a loan, a good idea is to buy it for rental and to use the generated income to finance a loan for your own house, or a second one that you’ll also rent.

You can also choose to invest only part of your capital in real estate and to complete with Stock Market, Bank Investment or any other ways you know that generates income.

A successful Real Estate TransactionIf you need a professional broker for your future real estate investment, contact me and I’ll assist you. I’m specialized in this kind of transactions & OFW clients.

Junelsa Philippe, Licenced Real Estate Broker in Genuine CDO Properties Realty Co.
Globe: 0917 327 6589