Buying your first home? Here are 7 things to consider

MANILA - We all dream of owning a home someday. And why not? A home means stability and permanence, where one’s family can grow roots, seek refuge and build a life together. At the same time, it is always a valuable asset and an investment in itself.

Have you thought about buying your own home but don’t know where to start? Have you ever wondered if you can even afford it? If you can, do you have an idea of what your money can buy? Whether you’re thinking of getting a tiny studio unit or a sprawling house with a large yard, you will need to put considerable thought into your plan.


Owning a home calls for responsibility and commitment. It calls for a lot of thought and a careful evaluation of your lifestyle, finances, as well as your present and future needs. Here are 7 factors to consider in deciding if you are ready to own your first home.

1. Are you ready for this investment?

Do you have enough funds to buy your dream home? Do you have a regular source of income? Are you getting a big inheritance soon? A house is usually a considerable investment, and you need to have enough money to be able to purchase one. If you plan to take out a loan for your home, you still need to have the financial capacity in order to qualify for financing schemes offered by both banks and developers.

2. Consider your present and future plans.

A house is not exactly easy to dispose, considering the sums involved as well as the paperwork and taxes that it entails. This is why you have to know your reasons for buying a house, and think how this fits with your life plans. For instance, are you planning to move out of the country anytime soon? If so, having a house makes you less mobile. Are you planning to have children soon? If so, you might want to think about getting something bigger than a tiny studio in order to accommodate your growing brood.

3. Location, location, location.

This is one of the most important considerations you have to think about when getting a house. Location almost always dictates price, which means while you may be able to afford a townhouse outside Metro Manila, you may have to shell out more for a similar unit in the city. At the same time, its location will affect your life – the amount of time you need to go to work, or the places you will most likely frequent. You need to think of a location that is best suited for your needs.

4. Let's talk financing.

Even if you do not have cash to pay upfront for a house, you may actually qualify for financing. Banks offer loans, as well as developers. Loans could stretch for as long as 25 years, depending on your age. Gauge your capacity to do regular amortizations, and check how it would impact your cash flow. Most financial experts recommend that payments on homes should constitute no more than 1/3 of your regular expenses. Also look at interest rates.

5. Look to the future and appreciation potential.

When buying a house, you should also consider how its value is likely to increase in the future. Look at developments that could possibly lead to an increase in the property’s value – new roads, malls or other commercial developments usually push property values higher. This means that you can actually sell your property later on and stand to earn from the transaction.

6. Remember the warning "Buyer Beware."

When buying property, you need to make sure that everything about the transaction is above board – the title should be free from liens and encumbrances, taxes should have been paid, and association dues settled. You also want an assurance that your house was built well and in keeping with building standards. This is why it is important to know the background of the seller. Some developers have a solid track record, but even then, make sure to do your research about the seller.

7. Ask yourself: To build or to buy?

Do you prefer to build your own house instead of buying one? This allows you to design everything according to your own wishes. However, it is also a more time-consuming process since you have to deal with an architect and contractor, while checking regularly on the work. You also need to find people that you can trust to build your home.

Owning your first home is a major decision, so make sure to think through the process before making any decision. Ask questions, do your research, and think about your life plans before you make the decision.

source: news.abs-cbn.com

Free Online Learning: Time To Invest in Yourself!

One of the most important investments you can and should make is in your continued education. Technological advancements are changing the world, so much so that some skills are becoming obsolete, just as new ones are being sought. This is why it is imperative that you continuously upgrade your skills and ensure that they stay relevant.

Among the reasons why most people do not upgrade their skills is because of the time it will take and the costs involved. Fees for enrollment in a single course can set you back anywhere from P10,000 to P30,000, not to mention having to take time off from work, or giving up your weekends or committing after work hours to attend these sessions.

Thankfully, you can now upgrade your skills, from the comfort of your home or office, using the wealth of resources available online. Many of these free courses have been developed by prestigious organizations, including the world’s top universities. You can also dictate your own pace of learning and choose when to access the courses, allowing you to arrange your schedule in such a way that it does not interfere with your work or other responsibilities.

Best of all, many of these are free. If you want a certificate of completion, some may require a fee plus you will need to verify your identity so they know you are the one doing the assignments and taking the exams. Compared with having to physically attend training sessions, this still comes out more convenient and more affordable.

The lessons are usually taught through a series of videos, and are accompanied by discussion boards where you can see students raising their questions. If you’re decided, all you need will be an internet connection, a curious mind, and the willingness to augment your knowledge.

The internet is filled with aggregators that list free online courses on a wide variety of topics. Here’s a guide to help you navigate the online resources available out there to help you expand your knowledge.

1. Want to become tech-savvy? No shame in admitting you need an upgrade! There are online courses on a wide range of subjects and how they are leveraging on technology, from agriculture, to automotive, to tourism. Instead of laboratories or workshops that brick-and-mortar schools offer, these courses make extensive use of videos and graphics to demonstrate the lessons.

2. Broaden your general knowledge. If you want college or academic courses, there are courses with affiliations with leading global universities. These universities provide the material used for these courses. Some of these offer massive open online courses, as well as a structured classroom-style environments utilizing discussion boards, and quizzes. These courses cover math, science and engineering, economics and finance, computing, and arts and history.

3. Reboot for engineering courses. The online world offers many courses for those who want to learn the latest updates in engineering, where technological advances mean the introduction of new subject matter. These courses are very well suited for the online environment, especially since they involve the use of new software and programs. Complementing these, you can expect lectures, lecture notes, homework assignments, sample tests and other innovative materials.

4. Educators need to sharpen their tools too. If you want to sharpen your skills as an educator, online courses will help you become a more engaging teacher using technology. You can learn how to use video and audio learning as well. The courses can also help you deepen your knowledge on specific topics and show you new ways to interact with your students.

5. New media for writers and communicators. Learn how to use your skills for the new platforms that are emerging, such as the web, social media, and others. You can also learn how to do lay-outs and edit photos. New languages are also learned well in an online environment. You can also learn new languages such as French, Italian, Spanish, Japanese, and a long list of others with the help of online tutors.

There are many more websites offering free courses to suit your need. Explore what’s out there so that your skills do not get outdated.

If you are not yet employed, studying online is the best use of your time as it would contribute to a more impressive resume. If you are already working, it’s still the additional learning is still an asset as it allows you to acquire skills and knowledge that will expand your career options and possibly even help you get that promotion.

source: news.abs-cbn.com

7 Valentine's Day gifts that last

MANILA - Valentine’s Day is just a heartbeat away. Are you planning on giving chocolates and flowers again to your special one?

Although romantic tokens are always popular, why not consider gifts that will last beyond Valentine’s Day and make a lasting impact on your significant other’s life? These gifts reflect long-term thinking and express your deep concern.

Unlike presents that you can just pick up from a store, these gifts entail a bit of research or “digging” on your part, which show that you are willing to give the gift of time and security to your loved one.

 Here are seven gifts that will clearly show you are "investing" in your relationship.

1. Art.

Artwork by the masters is always valuable, but if you can’t afford one, there are plenty of other equally promising pieces. An art piece, especially by an up and coming artist, is a gift whose value can grow over time. This is not limited to paintings, but also to sculpture and other art forms.

The best part? Works of art come in different price points, so you can acquire one within your budget, Spend time in galleries and check out art exhibits to get a feel of what’s out there. Make sure to do your research before you buy anything. Make sure that you get a piece according to your partner’s taste.

2. Jewelry.

The best thing about jewelry is that they are not only very romantic when given as a gift, they also appreciate in value. Gold prices, for instance, have been rising over the past few years, so you can pick up a ring, necklace, or earrings that your loved one will like. Diamonds and precious stones can likewise appreciate over time. Before buying jewelry, check out an appraiser so you know you’re getting something of value that will appreciate over time.

3. Expensive time pieces.

If your loved one likes time pieces, get a top-end watch. Usually, these are mechanical, handcrafted pieces that are laden with precious stones. Unlike new models, these pieces can last through generations while keeping their value. Do some research to know what these pieces and brands are.

4. Mutual funds.

Mutual funds may not exactly sound romantic, but when you give this to a loved one, you are showing long-term concern. The nice thing about mutual funds is that you can put in an amount that you are comfortable with. Later on, you can continue to top up this amount or you can leave it to your loved one to continue doing so.

Mutual funds can be invested in a variety of instruments with different risks that suit the recipient’s profile. You can get these at any financial institution, whose experts can readily answer your questions.

5. Home improvement.

Show your love by investing in a home improvement program, which will not only help improve the atmosphere that contributes to your loved one’s well-being, but can also improve the value of your home. Don’t just focus on beautification. You can also find ways to make full use of your land and invest in disaster-proofing your home, which are steps that can definitely add to its value.

6. Skills enhancement.

Enroll your loved one in a program that can enhance or upgrade his or her skills, possibly in new fields. Learning is a lifelong process, and the benefits of joining this program is sure to last for a long time. There are many options available to suit different inclinations and learning priorities. You can check out online courses, as well as face-to-face workshops offered by universities and other skills training providers.

7. Wellness programs.

Your loved one’s physical, mental, and emotional well-being is important to his/her happiness. It also ensures good health and freedom from costly medications. For Valentine’s, why not enroll your loved one in a gym or a fitness program? Alternatively, yoga classes or a visit to the spa for alternative treatments are also good for physical, mental, and emotional well-being.

For this coming Valentine’s Day, give a gift whose positive effect will last for more than a day. This is a sign of true love and a real gesture of a lifetime.

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Grow Your Money is an editorial partnership between news.abs-cbn.com and Citi Philippines to promote financial education and provide helpful information to Filipinos on how to better manage their personal finances.

Visit www.citibank.com.ph for more information.

source: news.abs-cbn.com

7 budget-friendly ways to usher in holiday cheer

MANILA - December is here and it's officially the start of endless rounds of parties and reunions. While it’s definitely a great time for bonding, the holiday season is also hard on the pocket.

 Here are seven budget friendly ideas for a December reunion with family and friends that are also meaningful and fun.
 
1. Have a merienda party.

Who says that parties always have to be held at dinner or lunch? Hold your get-together during merienda instead, and you’ll be spared from huge costs. Serve up a noodle dish to feed as many as possible, add some barbecue or spring rolls, then throw in a few sweets like the popular puto or rice cake, and you’re good. What’s more, logistics for merienda are much simpler. You can get by without having to get additional tables and chairs, since people can just walk around with the goodies in their plate. If you’re at the office, you can just find a space where you can have your Christmas spread, and enjoy the friendly banter with everyone.

2. Go potluck.

If you really want to have a traditional lunch or dinner, then go potluck this holiday season. There’s nothing embarrassing about asking people to bring their contributions to your yearly get together. It’s also a great way to get people to showcase their cooking, and lets them bring their own favorites to share with everybody else. If you’re the organizer, try to know what guests are bringing so that you won’t have duplications, and so that you can have a wide selection of goodies to share with everyone.

3. Hold a leftovers party.

Or instead of having your get-together before Christmas, have it after the holidays instead for less stress. Invite everyone to bring in their leftovers – the endless hams, salads and desserts that pile up in many people’s homes. Not only is this a great way to bring down costs, it also lets everyone empty their refrigerators of excess food that could spoil. It’s also one way to let everyone taste family favorites. At the rate that Pinoys stack up on food during the holidays, you can be sure you’ll have a great spread of Christmas goodies to share.

4. Go bowling.

Instead of focusing on food, get everyone involved in an activity like bowling. Major malls will let you play for an hour or two, and their rates include bowling shoes and in some cases, food. Everyone can enjoy the game and have a friendly competition, encouraging interaction while leaving enough time for bonding with friends and colleagues. Everyone can partake of the snacks for added fuel as well. Since bowling alleys are located in malls, you also offer guests the convenience of being able to do some Christmas shopping or to meet a few friends before or after your bowling party.

5. Go caroling.

Unleash your musical genius and organize your friends to go caroling--something that you can do just once a year. This is another fun activity that lets you bond with your fellow carolers, while being able to visit family and friends at the same time. What’s more, you don’t even have to spend on food, as most of the homes you’ll visit will prepare a spread for you to partake of. You can even collect funds from this endeavor, which you can donate to a good cause or give to a favorite charity, as agreed upon with your friends.

6. Have some karaoke fun.

If you and your loved ones love music, then you may also enjoy karaoke nights or afternoons this Christmas. Hold your singing spree after lunch or dinner. All you need is a karaoke, a place where everyone can get together, and some light snacks and drinks that won’t interfere with your singing. No need for an expansive food spread, for as long as you have a long list of songs that can get everyone to sing their favorites. Another short cut is to bring everyone to a karaoke bar, where for a few hours, you can enjoy non-stop singing while staying within budget for food and drinks.

7. Hold an outreach program.

Christmas is all about sharing, so why not do away with your traditional party and instead visit one of the many charitable institutions in the city. Instead of spending on your party food, organize a simple merienda for orphans, the sick, the disabled, or the elderly. You can even leave them with some goodies. There’s nothing more fulfilling than to be able to do something for the marginalized sectors of society, and being able to do this with your friends and loved ones will definitely be more meaningful for everyone.

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Grow Your Money is an editorial partnership between news.abs-cbn.com and Citi Philippines to promote financial education and provide helpful information to Filipinos on how to better manage their personal finances.

Visit www.citibank.com.ph for more information.

source: news.abs-cbn.com

Searching for your first home: Rent or buy?

MANILA - Choosing your first home is likely to be one of the biggest financial decisions that you will make. As with all purchases, you can either feel you made the right choice, or regret the investment.

This is why some prefer to initially rent or lease, and then decide whether the neighborhood is right for them. But they could also miss out on the opportunity to buy when the price is more affordable.

So should you rent or buy your first home? The quick answer to this question is it depends. The decision to buy or rent depends on so many factors that varies per individual: your lifestyle, finances, future plans, and even the current real estate market.

What is right for one person may not be suitable for another. For instance, a newly married couple whose career plans include moving abroad would be in a totally different position from a large family with an entrenched business in a specific location.

There are pros and cons for each option. Here’s a run-down of the upsides and downside of buying and renting.

Buying a house means being able to hold on to a hard asset that almost always appreciates in value.

It also lets you and your family establish roots in the community.

Plus it allows you to plan out your life--where your kids will study, where you will work--for the long term.

But expect this to put a dent on your cash flow, since you will need to put in equity, which could go anywhere from 20-60% of the property value.

It also means paying real estate taxes and maintenance costs.

Should you need to dispose of it at some point, you will find this may not always be easy, and you could be at the mercy of market conditions.

Renting is easier on the pocket--you only need to worry about a downpayment and security deposit.

It also gives you a measure of flexibility. If you’re unhappy with the place or your landlord, you can simply end your contract.

 It also means not having to worry about taxes and maintenance costs, which are the landlord’s concerns.

However, property rentals rise, and it means you have to be ready to deal with increasing rental fees, depending on market conditions.

Rent is an outright monthly expense, and does not enhance your asset base.

You have to live with the terms set by the landlord. For instance, the landlord may prohibit you from keeping pets, or may not allow you to drill holes for your pictures on walls.

Still not decided? Look at each of these five factors for more help:

1. Your current life stage and lifestyle. How old are you? The younger you are, it’s more likely that your options are wide open. Career-wise, there’s a possibility of finding a new job, within or outside the city you are now in, which means renting might be better for you. Are you single or do you have a growing family that needs more space? If it’s the latter, consider how owning or renting a home affects their lifestyle.

2. Your future plans. Do you have any plans of moving abroad? If so, then you might be better off renting a starter home. Otherwise, you will have to deal with selling off your home when you leave the country. This may not come easy when you’re about to migrate, and this may not even be at a price acceptable to you. Don’t forget your significant other, if you have one. If you purchase that starter home, do you think your prospective spouse, whose parents live far away, would be happy to move there?

3. Your financial status. Can you afford to pay the down payment for the starter home that you want? If you are thinking of taking out a loan for this home, do you have enough income to support the monthly payments? Note that your expenses as a homeowner will not be limited to just the mortgage payments, but will also include maintenance costs, real estate taxes, and in some cases, condominium dues and homeowner’s fees.

4. The neighborhood where the property is located. It’s been said that there are three things to consider when you buy property, that’s location, location and location. Let’s say you have identified the neighborhood where you intend to stay for the medium term. Evaluate the neighborhood and determine if it has good potential to become a growth center. What are planned developments being undertaken by the government and other private companies in the area? If the area’s potentials look promising, and if your finances permit, then it may be worth purchasing your starter home here. On the other hand, if the neighborhood is riddled with problems such as flooding, security issues, and urban blight, you may wish to simply rent a place for the time being.

5. The current real estate market. Don’t forget to consider the current real estate market before deciding if you would purchase or just rent a property. It is always better to buy when it is a buyer’s market than a seller’s market. Plus, look at interest rates if you intend to take out a loan for this purpose. The lower the rates, the cheaper it is to buy a starter home.

source: www.abs-cbnnews.com

How you can grow your money in 2014

MANILA, Philippines - It’s the time of the year when new year’s resolutions are made. Often, these have to do with improving one’s health and wellness. When thinking of these, why not try to include resolutions that will make you money smarter?

After all, being of sound financial standing could contribute enormously to both your mental and emotional well-being.

Since sound financial health results from good planning and discipline, it pays to have a few resolutions that can guide your decision making process in the months ahead. But as with all start-of-the-year promises, remember that resolutions only work if you keep them. Here are some seven suggestions on what you can look at to improve your financial health in the year ahead.

1. Set money goals.

Now’s a good time to set short-term, medium-term, and long-term money goals for you and for your family. Short-term goals would cover anything you’d like to do in the next 3 to 12months —possibly a gadget you’d like to buy, or a vacation you’d like to take.

Medium term would cover those plans you intend to do in the next five years — maybe purchase a car, or perhaps go back to school. Long-term plans would include a much longer horizon — say a comfortable retirement, or a vacation home.

List these down, plus timing when you would like to achieve them and how much you think they’ll cost. Knowing what you want is the first thing you need to be able to plan well.

2. Keep money records.

Gather records pertaining to your finances — your bank accounts, investments, credit card bills, tax filings, pay slips, to name a few. This will give you a better idea about your financial standing, and may provide you additional insight on your income, cash flow, and investment needs. Keep a record of these important documents. Many find this to be tedious and leave it for later, but later can be now and start you on the road to a better understanding of your money.

3. Have a budget.

Come up with a realistic budget that you can stick to. In creating one, make sure you look at all aspects of your life that you spend on. You may also wish to think of how your typical work day unfolds to identify the moments when you have to spend. For instance, on your way to work, you need to pay for gasoline or transportation. Once you get to the office, you need to buy breakfast.

Your updated records would provide important information you need in coming up with a realistic budget. Note that this budget is not only a tool that would help you manage your expenses and project your cash needs, but it could also help you achieve your financial goals in the long run.

4. Cut expenses.

Based on your budget and your updated records, you may be able to identify what you are spending a lot of money on. Look at those areas where you can cut expenses.

Could you have spent so much on gasoline because you are using a gas guzzler? Have you spent so much on car repairs because your 20-year old car is constantly breaking down? Are you spending way too much on food because you are getting your snacks and groceries from the 24-hour convenience store?

Of course, you may also have to do some cuts if you discover that you have spent way too much on something. For instance, do you really need to visit the coffee shop two times a day? Do you buy dresses weekly only to hoard them in your closet? Take a hard look at your life to know where you can make the cuts.

5. Save.

Pay yourself first whenever you receive your salary or earn a bonus. Do this before you spend on your other necessities. This way, savings becomes a basic need as well.

Most people prefer to pay off all their bills and buy the things they “need” before setting aside money for a rainy day. More often than not, they find there is nothing left over. But if you start the discipline of setting aside for your savings fund before settling all other expenses, you’ll find you have better chances of increasing your savings pot.

6. Invest.

Once you’ve built up a healthy savings fund, time to consider investing to make your money work harder for you. Whether it is for capital preservation or to grow your wealth, there are various investment funds and vehicles that may be worth looking at, depending on your individual needs. Consult a financial professional to better understand what will be best for your needs.

7. Live within your means.

There is nothing wrong with occasionally splurging on the finer things in life. You do have to reward yourself every so often However, it is necessary to know how much you can afford to spend on non-essential items.

People’s definitions of non-essential items would vary but they could very well include all expenses that you do not necessarily need, but simply want. Try to keep non-essential purchases up to a certain percentage of your income. This way, you can enjoy some things you’ve always wanted without necessarily busting your budget.

source: www.abs-cbnnews.com