If I only knew these things, I shouldn't have lost money.
I am planning to buy a condominium unit and add it to my passive income portfolio. My idea is to buy a condominium unit through amortization and post it for rent though Airbnb.
Sounds like a great plan, yeah?!
So after seeing a very nice condo unit, I immediately decided to give the reservation fee.
I'm so excited, after all I heard a lot of people earning significant amount of money renting their condominium unit through Airbnb.
Good thing I bragged about it to my Father, then, when he told me these things, they shock me!
If the Condominium unit is payable within 10 years, that means, the 10 years will start after finishing the down payment.
So, if it took you 2 years to pay the down payment plus 10 years, you have to pay for it for a total of 12 years.
And because of that, you have to imagine yourself within this 12 years.
How will you pay if you lose your job?
What will happen if you got sick?
You have to imagine the unforeseen.
My Contract Price is very high because of International Sale. I was not in my own country because I am working and living overseas.
If I am in my home country, I could get the price at 35% off.
At first I couldn't believe it, but when I checked the condo price on the internet, it was way expensive.
The reason? Of course, the sales agents are overseas too, and they have to cover their expenses.
If someone invites you for financial literacy and say that they want to help you achieve your goal or became rich, trust them, BUT verify!
The contract price of a condominium unit is just one-click away.
Search in Google.
Type the Building Name, the location and surprise, you'll see the difference.
Gone are those days that it's difficult to check and compare the prices.
Anywhere, using the internet, you can check and verify something.
Don't just look at the Contract Price. Compute the Monthly Installment. That's very important.
If the contract price is $120,000, don't stop there.
Check the total number of monthly installments and the amount.
So, example it is payable for 120 months (2 years) and the monthly installment is $1,200
The total amount you have to pay is $144,000 plus the down payment of $24,000,
The condominium unit will cost you $168,000.
And that $168,000 is not usually shown in the computation.
If you give the reservation fee already and maybe you start paying down payment, think twice, or thrice and decide if you could bear the payment for a long time.
If you discover these things while you already gave a large sum of money, sell it to somebody else, you might lose some part but at least you stop losing more money.
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I'm super busy - I don't really have a time to write. But, I'm doing this to document everything so, when I retire and one of my kids pursue a business, they can go back here and pick some advice.