Condominium or Single-detached House?

For the investor in you.

This is what I learned from my online financial adviser Robert Kiyosaki. Yes, the international financial guru who poked opened my financial intelligence with his book, Rich Dad Poor Dad. From him I learned that Real Estate is a business. Whether you are buying a condominium, a new home, a foreclosed building,or a cemetery lot, you are in real estate business. There is a transfer of money. Someone pays out, someone else gains.The challenge in this business is to make sure you gain much more than you pay out. Don't get me wrong, it all depends on the view you take. For instance, should you buy a condominium or a single-detached house?

When you buy either one, you are in residential homes business. The old real estate mantra is "location,location,location." But my adviser taught that to get the most out of this investment, think about these three things: cash flow, jobs, and financing.

Cash flow: Will this investment earn me money? A friend of mine bought a120sqm lot at one of the Pueblo de Oro developments. She bought the lot at a little more than P4000/sqm five years ago at no interest deferred payment. Now the lot sells for P5600/sqm! She may keep this property, build a house on it thru financing which may be leased for P20,ooo to 40,000 a month enabling her to receive positive cash flow even after amortization payment.

Jobs : Job means people. What is real estate without people? There'll be no business without people. Notice that people are flocking around Cagayan de Oro nowadays due to job opportunities. How many of them are asking for a house for rent? or a pad to stay in two weeks? or the best new home for their family?

Financing: Cash is best, yes? Now, what if financing is available which allows you to invest your cash in some assets from which income you can use to pay your monthly amortizations.

Yes, of course, like any game in life, this needs practice. Who would want to lose in the real financial game of life? For this, my adviser created a Cashflow 101 game board where you can lose without losing sleep.

Condominium or single-detached house? I say, it depends on cashflow, jobs and financing. Security and community are next. Live among people who can lift you up and make you a better person, investor or not.