Wednesday, August 22, 2007

Stop renting, start investing

A few months back, I read an article about buying your second home first. The idea was that, it is not advisable to invest all your savings, or borrow unthinkable amounts of money, just to buy or build your dream house immediately.

It is more advisable to invest in a reasonably priced “second home” first which you may amortize using the money you are now spending monthly for rent. Of course, there are lots of low-cost housing subdivision around, but one option you may want to consider is Eastwood Residences in Rodriguez (formerly Montalban), a municipality which is just beside Quezon City.

Eastwood Residences is a development project of Verdantpoint Development Corporation and is only 30 to 40 minute-ride away from the Quezon Memorial Circle. I have been there several times and I can assure you, that 30 to 40 minutes is not an exaggeration.

The project offers a full-set of amenities like a multi-purpose hall, basketball court, landscaped playground, a nearby swimming pool, 24-hour security, provision for commercial areas, among others.

There are various house models available but for starters, you may consider Bianca with a floor area of 25 sqm, lot area of 63 sqm, provision for 2 bedrooms, 1 toilet and bathroom, living room, dining room, kitchen and carpark.

With Pag-ibig Fund financing, initial cash outlay for Bianca will just be around P4,300 a month for 7 months, and the succeeding amortization only around P3,600 per month. Very affordable even to government employees like me.

Another option is Tifanny, with a floor area of 44 sqm (two storey) and lot area of 36 sqm. It has provision for 3 bedrooms, 1 toilet and bathroom, living room, dining room and kitchen. With Pag-ibig Fund financing, initial cash outlay will be around P7,700 for 6 months and succeeding amortization at only around P6,300 per month.

Open house and free tripping on Sundays. For further inquiries, please email me at or call/text me at 09189387793. I will be very glad to help you get your own home!

2 comments: said...

I think the reason why not too many people look into a 2nd home right away as the opportunity to have money to build a house is very rare that one would want to build their dream home right away.

Gibo said...

hi ms. janet. i agree with you, people rarely have money to build a home. that's why, when they do get the money, they'd rather build their dream house.

too bad, because if they end borrowing to complete it, they'd be incurring huge interest expense for a house they will not be willing to sell.

with a smaller home, you get manageable interest, and you don't get too cozy with it enough to stop you from reselling it at a profit.

i believe that's the wisdom of "buying" the second home first.