If you get this kind of opportunity how will you grow your money?

[miksha]

If you get an opportunity to get a loan from a bank 5M with an interest rate of 2-4% per annum here are my questions:
1. Would you grab the opportunity?
2. If yes, where would you invest it? how will you make your money grow?

A lot of people kase usually answer - business or house. Pero you ask them, may business plan ka na ba? as in now na pwede mo na simulan? or may gusto ka na bang house? as in now na puntahan na natin at bilhin na natin, and they say "ay hindi ko pa alam na business, basta siguro sa food or rental property..." or "ah basta gusto ko house ganito hitsura ska location..." kumbaga as in wala pang definitive so they say "madali na lang yon basta may pera, ilalagay ko muna sa SA or TD para at least may interest kahit papaano habang naghahanap ako ang importante andyan na [textspeak!] cash".  The thing is, para sa akin naman even if andyan na the cash if it is not earning a higher income compared to your loan interest e lugi ka right? And big money on SA or TD.. well they seem to have a tendency to "disappear"....

So what is your take in this sisters?

[mommycute46]

Sabi nga nila, it is very dangerous when you have the money as compared to limited funds lang. Pag nanjan na kasi marami kang pang "experiment" and usually resulting to losses. In short para sa akin, before ka magloan dapat may pupuntahan ang bawat piso ng loan na yan. Dapat planado na lahat.

For me, I will not loan that amount for personal home but I will definitely loan that kung ang ipapatayo ko eh apartment for rent in a location na alam kung patok at kikita ako . And of course before ko kunin yan dapat tapos ko na ang feasibility/business plan para alam ko kung saan mapupunta ang pera at kelan ang payback period niya.

[aquacharly]

No.

Definitely, not to spend on a house.

Definitely, not to park in a bank facility.  Loan rates will never go lower nor as low as interest rates on savings & other forms  of deposits. 

We are  loan averse.
Our life strategy has been to accumulate earning assets & operating funds..   Put that in a business, and roll-back all earnings. 
So far, good.
We have businesses with solid assets, and own personal assets that are all mortgage/loan free.

[AnJelatine]

Sabi nga nila, it is very dangerous when you have the money as compared to limited funds lang. Pag nanjan na kasi marami kang pang "experiment" and usually resulting to losses. In short para sa akin, before ka magloan dapat may pupuntahan ang bawat piso ng loan na yan. Dapat planado na lahat.

For me, I will not loan that amount for personal home but I will definitely loan that kung ang ipapatayo ko eh apartment for rent in a location na alam kung patok at kikita ako . And of course before ko kunin yan dapat tapos ko na ang feasibility/business plan para alam ko kung saan mapupunta ang pera at kelan ang payback period niya.

I definitely agree, 300%!

[Tea97]

1 - yes only if there is a feasible plan that can be put into action that earns more than the loan int rate.
2 - growing the money depends on your 'existing reality' that is, adaptable sa lifestyle and current station in life mo (eg. sahm with kids going to school can easily shift to 'work' mode vs sahm with infants that need constant attention)

In my case, sahm with very young kids and no yaya (overseas), i cant afford to spend so much time on my rackets, so sa rental kami nagfocus - it has a low rate of return pero still better than savings rate. We made sure that the amort we pay would be less than the cashflow we would receive. It takes very long to grow the money, pero the risks are minimal, on account that you have assets to fall back on. I also do some day trading sa stocks - pero kapag inutang mo lang ang pondo, nakakatakot kasi you want to make sure you are winning all the time (or at least mag net ka ng 6%, 1% tubo, otherwise not enough incentive to trade)- which is not always the case with stocks.

Puede ka rin mag invest sa retail bonds that give more than 5%, I think PH gov issued ones at 7% in the past -- yun nga lang 2% lang tubo.

Don't let this discourage you though - at least meron nang nagextend ng loan sa iyo, you just need to act on this opportunity. Sayang din if you don't do anything. I read from Aquacharly's post in the past to invest in 'working' assets - those that earn income for you - you can buy plenty of properties at a discount (since you're paying cash -- make sure that you get discounts) that can be rented out -- puedeng parking lots na foreclosed (say P400k) and rent it out for P2500 pm, that's a gross yield of 7.5%. God bless!

[Noylabmay]

Sis Twice nako nag loan with low interest and bought a rental properties ok nman siya
Nung ni loan ko sha nag pahanap agad ako ng haus na rush binebenta  nakadiscount ako ng mejo malaki
kase the seller really needs money and dahil I have a cold cash ayun binigay talaga sa magandang presyo. Yung second Properties naman super Mura halos 50 percent na mas mababa sa current Market value niya dahil kakilala naming yung seller.

[chichi143]

^^ hhmm maganda idea yun sis a. salamat! ok yun kasi rush nila binebenta so malamang mas mababang
price ang ibibigay nila sayo lalu na at cold cash ang ibabayad mo.

ganitong path rin kasi ang gusto kong puntahan.
magloan sa pagibig then invest in working assets. may nakita kasi si mama somewhere in blumentritt na property for sale
pwede naming gawing rent to own / room for rent for students kasi maganda location.


good luck sa TS! suggest ko sayo basahin mo yung book ni larry gamboa, 'Think Rick Pinoy' kasi this book
talked a lot about real estate investments, dito ko nakuha yung idea! all i need is to work on it nalang

[ikaela]

Yes, I would grab that opportunity because using OPM (Other People's Money) is how you get big returns when you're still small fry. Provided you're disciplined ha. Debt/leveraging is a great equalizer.

I would definitely use it to buy property to generate income. Another percentage, I would put in stocks during a bull market. Even if you just let it sit in a top managed fund, it could already gain you 15% p.a. minimum average on a good year. That's 11-13% easy, after paying back the 2-4% interest. That's 550-650K, an amount that can be considered as annual income for middle class Filipinos.

[aquacharly]

MIKSHA: 

Mas mataas interest sa PSSLAI, vs AFPSLAI.  ang maganda sa AFPSLAI:  interest/dividends given out every quarter.  PSSLAI: every 6 months

You know the technicalities of building up the Capital Contribution account di ba?
EVERY QTR -  only P30thou for AFPSLAI -- so park mo pa yung iba mong funds sa Savings Acct
Sa PSSLAI:  P50thou.
So it will take you years  to build up to the max limit for the CapCon account.

[miksha]

naku  matagal ko na wish yan aquacharly sa PNP yan right? wala kami relative e

[aquacharly]

^Yes, PNP.  we have accounts in both.
AFPSLAI kasi existed for so many years, then  nagka PSSLAI.  maluwag ang acceptance of accounts noon, at the start. But well, kelangan may clout yung relative mo to get you all accounts. 

[mameejhy]

If you get an opportunity to get a loan from a bank 5M with an interest rate of 2-4% per annum here are my questions:
1. Would you grab the opportunity?
2. If yes, where would you invest it? how will you make your money grow?


So what is your take in this sisters?

1. Yes
2. According to my 'existing reality' - construct rental apartments to my existing vacant lots which are in the province.

[missreese]

dyan po ba sa AFPSLAI.. if may relative ka pwede di ba? paano po yun dapat sa kanya ipapangalan? parang maglalagay kami ng fund sa AFPSLAI via dun sa relative namen? ganun po ba?

[Tea97]

So - I'm just wondering happened to the original poster? Did you take the loan and invested? And how do you think your investmetns are doing?