Saving Electricity on Air Condition Use

I saw this smart idea while watching Hanep Buhay episode - put your room aircondition on timer and set to 2-3 hours only. Then, turn your electric fan to spread out the remaining room temperature...

make sense.

Another recession on its way?

This month, so many things are happening in the global market -

 Looking for bailout for the countries of Spain and Portugal. Then, comes Italy which is so big for economic rescue.

August 2nd, Congress barely passed its measure to avoid debt default

Then on Friday August 5th, S&P downgraded U.S. to AA rating, Dow Jones plummeted to 530 points.

Monday, August 8th, again Dow Jones nose dived to 634 points.

What's next?
I am helplessly watching this trend since 60 percent of our retirement savings are diversified in stocks.

Lease Agreement in Tagalog

Below is a lease agreement my parents used to implement in their rental property. Although every detailed has been specified, Tagalog na nga. From time to time such agreements or contracts don't really materialized. Just recently na lang, my father mentioned to me a vacant room in his apartment which is only located one half km away from his residence. Natakbuhan daw po na naman siya. Thankful pa rin at wala naman daw damages o nawala sa nasabing apartment. Kaya no matter what you specified in the contracts, kahit ipa notarized mo pa, kelangan talaga bantayan mo pa rin kung hindi eh lalayasan ka!

KASUNDUAN SA PAGPAPAUPA NG APARTMENT

TALASTASIN NG SINUMAN:

Ang kasunduan na ito ay ginawa nina:

_____________________________, Pilipino, may sapat na gulang at naninirahan sa may patirahang sulat sa _______________________________. Dito ay nagpapakilala ang NAGPAPAUPA.

_____________________________, may sapat na gulang, naninirahan sa may patirahang sulat sa _____________________________, ito ay makikilala na NANGUNGUPAHAN.

Ang salitang apartment o pintong inuupahan o inuupahan ay iisa ang ibig sabihin.

AY SUMAKSI:

1. Na ang NAGPAPAUPA ay may-ari ng isang pinto ng apartment sa _______________ samantalang ang NANGUNGUPAHAN ay nag-alok na upahan niya ang nabanggit na pinto at ito namay tinanggap ng una batay sa sumusunod na kundisyon.
2. Na ang kasunduan ay tatagal ng isang taon simula sa araw ng buwan ng paglipat.
3. Na ang bayad sa napagkasunduang pinto ng inuupahang apartment ay ________.
4. Ang buwanang upa ay gagawin sa pintong inuupahan at magbabayad tuwing ika ______ ng buwanang susunod.
5. Na ang deposito sa paglipat ay halagang ___________.
6. Na kung hindi man makapagbayad sa nasabing araw ng bayaran ang NANGUNGUPAHAN ay puputulan ng tubig.
7. Na kung sakaling di magbayad ng upa ang NANGUNGUPAHAN sa takdang panahon ng kasunduan o di kaya ay lumabag sa kasunduan na ito, may karapatan ang NAGPAPAUPA na ipawalang saysay ang kasunduan na ito at hingin sa NANGUNGUPAHAN na lisanin o iwanan ang pintong inuupahan.
8. Na ang lahat ng pangkaraniwang reparasyon sa pintong inuupahan na ang tanging dahilan ay ang pang araw-araw na paggamit ng NANGUNGUPAHAN ay walang karapatang singilin sa NAGPAPAUPA.
9. Ang deposito ay di maaaring makuha kung sakaling di sila tatagal ng isang taon paninirahan sa nasabing paupahan.
10. Na ang bilang ng pamilyang NANGUNGUPAHAN ay hanggang _____ lamang.
11. NA ang NANGUNGUPAHAN ay pinagbabawalang gamitin itong apartment o alin mang bahagi na ito, ay di maaaring paupahan sa iba na walang nakasulat sa pahintulot ng NAGPAPAUPA.
12. Na ang lahat ng kagamitang kailangan ng NANGUNGUPAHAN sa kanyang apartment ay kanyang sariling pananagutan.
13. Na ang NANGUNGUPAHAN ay hindi maaaring mag-alaga ng anumang hayup gaya ng ibon, aso, pusa, atbp. sa loob at kapaligiran ng apartment.
14. Na ang NANGUNGUPAHAN ang siyang mananagot sa pagtupad ng mga regulasyong pinatutupad ng pamahalang local at nasyonal.
15. Na ang NANGUNGUPAHAN ay hindi pinapayagang gamitin ang deposito sa buwanang upa.
16. Na hindi pinapayagan ng NAGPAPAUPA na magkaroon ng bisita ang NANGUNGUPAHAN na hihigit sa 5 araw.
17. Na kung sakaling naisin lisanin ng NANGUNGUPAHAN ang pintong inuupahan ito ay magbibigay ng abiso o pasabing isang buwan.
18. Kung sakaling biglaan o sa hindi inaasahang pangyayari at kailangan lisanin ng NANGUNGUPAHAN ang pintong inuupahan, may isang taon man o wala pa ang NANGUNGUPAHAN, siya ay walang makukuhang anuman sa NAGPAPAUPA.
19. Na kung sakaling di makabayad, ang kasangkapan o anumang kagamitan ng NANGUNGUPAHAN ay magiging prenda sa NAGPAPAUPA.
20. Na ang NAGPAPAUPA ay may karapatang dalawin ang nasabing paupahan mula ikawalo ng umaga hanggang ika lima ng hapon.
21. Na kung sakaling pagkatapos ng isang taong pangungupahan ay mananatiling maayos ang relasyon ng NAGPAPAUPA at NANGUNGUPAHAN at ipagpatuloy ang pagupa sa nasabing pinto ang kasunduang ito ay babaguhin batay sa kasunduan ng dalawang panig.

Sa katunayan ng lahat ng ito, ang NAGPAPAUPA at NANGUNGUPAHAN ay lumagda ngayong ika _____ taon _____.

_____________________________                             ____________________________

NANGUNGUPAHAN                                                                        NAGPAPAUPA

SINASAKSIHAN NINA:

_____________________________                            _____________________________

PAGPAPATUNAY

REPUBLIKA NG PILIPINAS

LALAWIGAN NG CAVITE

BAYAN NG BACOOR

            Ngayong ika ____ ng _______________ taong kasalukuyan ay lumagda sa harap ng mga nabanggit na tao ay ipinaalam nila sa akin na iyon ay kusang loob nilang salaysay.

            Ang kasulatang ito ay dalawang pahina kasama na rin ditto ang kinalalagyang patunay at nilagdaang ng dalawang panig gayundin ang kanilang saksi sa lahat ng pahina.

            SINAKSIHAN NG AKING LAGDA AT SELYO NOTARYAL SA LUGAR AT PETSANG BINABANGGIT SA ITAAS.

PERSONAL NA IMPORMASYON

PANGALAN: _________________________________________

TIRAHAN: _________________________________________

TELEPONO: ____________________________

KAPANGANAKAN: __________________

PANGALAN NG AMA: ___________________________________

PANGALAN NG INA: ____________________________________

HANAPBUHAY: _____________________________________

LUGAR: _____________________________

TEL: ____________________________

PANGALAN NG MGA KASAMA/ ANAK NA TITIRA:

1) _______________________________________

2) _______________________________________

3) _______________________________________

KARADAGANG IMPORMASYON:

PANGALAN: ________________________________

TIRAHAN: __________________________________

TEL: ________________________

KAUGNAYAN: ______________________

Cash Flow - Pinoy Reality

This one’s just forwarded to my mail inbox. It’s an article which I think is really useful, and helpful, especially to those who are employed and how they handle their cash. I decided to post it here to give this article more exposure as to benefit anyone or everyone in the same state as targeted by the article… the email message ha the subject: CASH FLOW ( funny but true)

Here’s the article, sana makatulong sa inyo ito:

There are those who e-mailed me asking about the basics of cash flow. I’m really sorry that I assumed everybody already understands it. Anyway, by demand … here it goes…

May isang bata… joke lang.

The basic is. What pattern do you see if you will get a P100.00 bill and monitor where and how it is transferred from 1 possessor to the other? How does it flow? The pattern for a typical Pinoy is.

You earn from your work, you spend it on food, gadgets, clothing and other basic needs. Before you reach the next payday, paubos na yung pera mo. But that’s ok payday is just a few days ahead and it doesn’t matter if I run out of money, I am expecting money again any time soon.

This cycle goes on and on and you make some sidelines or create other ways to earn but it seems that money was never enough.  (I am tempted to explain further pero usapan… basics lang).

So you can’t leave the job that you have because a week without work would affect the cash flow you have to support your family and needs. As much as you wanted to accept another job, the gap would make you pay less for a couple of days, which makes you a slave to your boss.

At least, you have a job to support your needs.

So to illustrate.. .Cash is flowing inside your pocket.

Years have gone by doing your monotonous routine.

Question… what if you get fired? Or you were forced to retire because there are new and younger people ready to take your place. What would you do?

As an OFW, Makati Executive, Top Salesman, Engineer, Attorney, Teacher, etc…  What if it all ends? The sweet cash that enters your pocket every 15 th and 30th suddenly comes to a halt.

There are two things you can buy with your money…  An asset and a liability. To describe each… An asset brings money inside your pocket; a liability takes money out of your pocket. Another way to see, it is that an asset if you buy one, will bring the money you spent for it back to you 2 or 3 folds. A liability, when you buy it will not give your money back at all.

Sa madaling salita… kapag asset, maibabalik ang pera , pag liability, goodbye sa pera…

Ang problema kay JUAN DE LA CRUZ, habang may trabaho ipon ng ipon at bili ng bili ng liability!

I have seen OFWs get back to the country with gold chains at kung pwede lang limang shades ang isuot ng sabay-sabay gagawin nya eh… dvd, component, jackets, clothes, inuman, pulutan, party, pabango… hindi na makalakad sa dami ng bitbit…

At s’yempre mga empleyado natin dito sa bansa na lingo-lingo bago cell phone at mags ng kotse.. hindi na nga magkasya ang damit sa aparador, tapos pag umaga sasabihin… . wala na akong maisuot.

Well, konting isip… what you bought… will it bring money back to you? I know what you have in mind… you have to enjoy what you worked hard for. That’s right, but think of something that will last… think of your future.

I have seen the worst of people who were abogado de kampanilya, executive secretaries of top rank business men, people who worked for big companies, earned a fortune and got a big retirement pay by the millions… Now…. Wala na.

Why? Because of their cash flow… went in… went out.

I need not to mention basketball players, actors, singers, etc… Check what is their career path… next after acting, singing and playing… POLITICS. Kasi, ‘yung million na kinita nila, puro liability ang binili.

Going back… all the liability they bought, ibinenta ng mura! I’m wearing a gold chain now, which I got from a seaman… he bought it for P35,000 and sold it for 8,000 to me.  Hindi po asset ang alahas! Bakit? Totoo na tumataas ang value n’ya pero kapag gutom ka na, kahit palugi ibebenta mo! (wala bang aaray?) Cell phones… dvd players etc. pati bahay at kotse… that’s the cash flow of most OFWs…

The question is … " WHAT IF THE INCOME STOPS?"

Sa Pinoy, ganito: anak… mag-aral kang maigi, at pag tanda namin… ikaw na bahala sa amin ha….  Hindi po ba maling-mali. ..

You have to establish something today that will take care of your future.

Teka, teka… eh ano ang dapat gawin para hindi mangyari yan?

You must create a source of income that will continually make money flow inside your pocket. Start a business! While you are working as an executive or an OFW, or a professional. .. START A BUSINESS and MASTER that business till you get out of that company. Para kapag tumigil ang income mo sa kanila… may susuporta pa din sa iyo hanggang pag-tanda mo!

Now don’t tell me to invest my money on pensions and plans… NO WAY ! Narinig n’yo na siguro yung …. Naku ayaw ko na magbanggit.. .. ‘yung mga nagbayad at hindi nakapag-claim. .. sila pa ang dinimanda at nag-piyansa! !! HUWAG MO I-ASA ANG PAGTANDA MO SA IBA! GUMAWA KA NG SARILI MONG BALON NG PERA!  KAHIT MALIIT PA ‘YAN, SARILI MO AT HINDI KA AASA SA IBANG TAO…

Imagine yourself when you reach an older age… (aruy ko,,, baka yung iba sa inyo about that age… tabi tabi po…Ako po sa mga nagtatanong. .. I’m 37 years old. Naabutan ko pa si Michael Jackson at hinele po ako ng nanay ko sa mga kanta ng hagibis…). You have money that the company gave you as your retirement pay… what will you do?

You can consume the money till your old… eh kung hindi umabot?  Masamang damo ka pala… at hindi ka kaagad kinuha ni Lord. Eh pang age 65 lang yung naipon mo na budget.

Or maybe, you can start a business and use the money for capital… Kapatid… 9 out of 10 businesses, FAILED… yung isang magsa-succeed, gagayahin pa ng kapitbahay mo instead na mag-franchise sa ‘yo… think! At age 50, you are struggling trying to make a business work! What if it fails?!

Eh ano nga ba ang sagot?

The answer is, stop buying liabilities and instead buy assets now. I don’t care if it is a banana-Q store, balot, ice candy or a sari-sari store, etc… start now! Because, your experience here will teach you what to do in the future.  It’s so hard to struggle in business when you are 60 yrs old.

You have to create a source of income separated from the source of income from your work. That when the time comes that you have to stop working, you will have your own source of money! Create assets, start a business that will be there to support you and your family. I AM NOT TELLING YOU TO QUIT YOUR JOB! I’m telling you to start a business while you’re working and stop spending your money on liabilities and start putting them on assets!

Ang pera kapag pinambili mo ng LIABILITY… hindi na babalik… ang ASSET… BABALIK.

Teka… masama ba bumili ng mga magagandang gamit? Hindi! Siguraduhin mo lang na ang pambili mo nun ay galing sa asset mo. The business has to be prioritized! Mawalan ka man ng trabaho, may negosyo kang palalaguin.

If before, nabubuhay ka naman ng iisa sapatos mo, huwag mo baguhin ‘yun… dati, nagdyi-jeep ka lang… ‘wag ka na munang mag-FX…

Create assets and lessen liabilities. Invest and learn now… mag-negosyo!

Eh anong negosyo? Any, as long as you think it is work and doable! I am still looking for partners for my HOME MASSAGE SERVICE! SPA MAGIC! And my business CAR MAGIC is still franchising. .. (joke lang … baka sabihin nyo nag pro-promote lang ako eh…But I AM PROUD TO SAY THAT ALL MY BUSINESSES ARE ORIGINAL AND ALL ARE GRAND ASSETS!

I started all my businesses with a very small capital. If I used that money to buy a gadget, new shoes or any liability… baka wala lahat ng negosyo ko at wala na akong makain ngayon.

Again, I hope that this BASIC CASH FLOW article helps…. I wish all of us become financially free!

FROM AN UNKNOWN AUTHOR

PAKIPASA…
MAGANDANG EYE-OPENER ‘TO!!!

Sosyal di ba? May eye-opener na, noon can opener lang…

Sample Lease Contract

Below is a generic copy of lease contract. Feel free to modify (copy and paste) and print to suite your needs.

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of _____, this day of _______________, 20__, by and between:

        _____________________________, of legal age, single/married to (Name of spouse if any),   Filipino, and with residence and postal address at (Address), hereinafter referred to as the LESSOR.

-AND-

        _____________________________, Filipino and with residence and postal address at (Address), hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at ___________________________________;

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following: 

TERMS AND CONDITIONS

1. PURPOSES:   That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to cancel this contract without discrimination to its other rights under the law.

2. TERM:  This term of lease is for ONE (1) YEAR, from _____________ to __________ inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,  written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

3. RENTAL RATE:   The monthly rental rate for the leased premises shall be in PESOS: ________________________________________, (________.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

4. DEPOSIT:   That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to ONE (1) MONTH or the sum of  PESOS: _____________________________ (___________.00), Philippine Currency.  wherein the deposit shall be shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, Cable Tv, Telephone, or resulting from violation(s) of any of the provision of this contract.

5. DEFAULT PAYMENT:  In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.

6. SUB-LEASE:   The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES:   The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, and other public services and utilities during the duration of the lease.

8. FORCE MAJEURE:   If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY:   The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE:   At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent there from at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof.  The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

11. JUDICIAL RELIEF:   Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.

IN WITNESS WHEREOF, Parties herein affixed their signatures on the date and place above written.

(Name of Lessor)                               (Name of Lessee)

LESSOR                                                LESSEE

Signed in the presence of:

_____________________________                  ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

   Name                                 CTC Number             Date/Place Issued

      (Name of Lessor)                             10000000           February 24, 20__ / Cavite City

(Name of Lessee)                            10000000           January 07, 20__ / Makati

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of ____ page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.

                                                                    

                                                                                                    Notary Public

Doc. No.______;

Page No. ______;

Book No.______;

Series of 20___.

Three Things

Three things in life that, once gone, never com back:

Time
Words
Opportunity

Three things in life that are most valuable:

Love
Self-confidence
Friends

Three things in life that are never certain:

Dreams
Success
Fortune

Three things in life that make a man/woman:

Hard work
Sincerity
Commitment

Three things in life that can destroy a man/woman:

Alcohol
Pride
Anger

Three things in life that once lost, hard to build-up:

Respect
Trust
Friendship

P---pray
U---until
S---something
H---happen

Saving Money in the Shower

I am sure majority of us never thought that morning shower as another way to save money. But, there are a lot of little things we can do to reduce the cost of keeping clean and neat. Even if we’re still half asleep, that won’t mean we want money needlessly running down the drain. Here are a few ideas I found out on how we can save money in a shower:

Take shorter showers - It may feel good to stay in water, but it costs money (plus warm water dries our skin, anyway). Use a timer to control shower time.

Do a Navy shower - My husband used to say this. In a Navy shower, you just get yourself wet then turn off the water while you soap up and wash. You turn the water on again to rinse yourself.

Use a pail and dipper (tabo) - I’m getting used to this new habit of turning faucet’s both cold and warm to get to my right temperature and using the right amount of water.

Install low-flow shower heads - These reduce the amount of water that flows out and they’ve come a long way. They no longer condemn you to a trickle of water. Many offer a comfortable flow of water.

Shower less often - If you shower twice a day, can you get by with only once?

Shower, don’t bathe - Baths use far more water than showers. The occasional bath is a nice treat, but a bath every day is a big water waster.

Keep those razors in good condition - Avoid leaving razor in the shower. Blades that are constantly wet usually get rust and will not last as long as those that are stored in dry cabinets. Wipe it dry and put it away. If you use an electric razor, follow the care and cleaning instructions to make certain it lasts a long time.

Use towels/washcloths more than once - Unless you are really filthy, you can use your towels and cloths more than once. You can easily get by with changing them once or twice per week. Hang them up to dry when you’re done showering to keep them from mildewing or stinking. This will make them last longer and reduce your laundry bill.

Use less and fewer products - Try using less of your current soaps and shampoos. Instead of a big squirt, try a teaspoonful. Experiment to see if you can get the same results with less. Experiment with how often you use products, as well. Do you really have to shampoo your hair every day, or will every other day do? You can also try using fewer products in general. Do you need shaving cream, or can you get by with just water? Does your hair require conditioner or do you use it just because you think you’re supposed to? Do you need three different kinds of shampoo? See if you can do with fewer products. And don’t forget to use up all of your products. Turn bottles upside down to get the last bits out and mold left over soaps to the new bar so it all gets used up.

Recycle the water - Catch the grey water into a bucket, then use it to fill the toilet… I know it’s yak sometimes!

A shower doesn’t seem like much in the everyday scheme of your spending. However, a few small changes can add up to big money saved over time.

A Humor With A Message

Great humor not only tickle the funny bone, but also delivers a punch line that makes us think about our lives, our relationships and the way we interact.

Here’s humor that is a subtle dig on married life.

Knowing the parts for the school play were supposed to be posted today, a father asked his son if he got a part.

The son enthusiastically announced that he’d gotten one. ” I play a man who’s been married for 20 years.”

” That’s great, son. Keep up the good work, and before you know it, they’ll be giving you a speaking part soon.”

In business, sometimes, we have confilcts. While conflicts are inevitable, conflicts not properly managed can be among the biggest drain on motivation, and can result in wasted money and time. Before we spend another time to argue and fight, especially when it involves getting expensive lawyers, let us remember this joke:

Two farmers were fighting over a cow. while one was pulling the head and the other was pulling the tail, the lawyer was seen milking the cow…

Myths Of Owning Rental Property

Most of us think that having a rental property is one of the easiest businesses to make money. You found an income property by the commercial are, collect the rent every month, and enjoy the income. Most of us believed that once you buy a property and rent it out you are settled to it for years to come. This is what I thought before I bought a rental property.
Many people think that it is easy to become a landlord - you know, you buy a property, collect rent every month and enjoy the income. The popular belief is that once you buy a property and rent it out, you are all set for the next 5 years or so. At least that’s what I was told before I bought my rental property in Metro Manila.

When the real estate market was booming, many aspiring investors rushed to the suburban to look for properties that were believed to be undervalued. The rumor then was to buy a property before the real estate market prices skyrockets in that main city. I knew some of my parents’ friends had bought properties when the average single-family houses were in the hundred thousand ranges, and had double their initial investment in less than 5 years.

I also had several friends who participated in this real estate mania. One friend told me, “Buy the property now. Sit back and collect rent.” It turns out that many people I know had joined the real estate craze and bought a property. They all buy a house and rent it out. It seemed like a great opportunity for the people from the province who could not afford suburban real estate prices. I was one of those people. Thus, I traveled to Metro Manila and bought a property there.

At first, I was getting the good tenants. I collected rent every month on time. It was like a dream come true. The rent checks kept coming and I kept smiling. No complains from me. I almost thought I could just sit back and collect rent for the next 10 years.

Just when I thought it was easy to be a landlord, my luck struck out in 2010. I realized I had terrible tenants, who would not pay rent and would not want to leave. They also caused a lot of problems. I tried to evict them in court but they took exploited loop holes in the legal system to postpone court dates until I could no longer deal with them.

Owning a rental property is like owning a business. It requires time and energy. Even if you have good tenants, you need to be ready for any problems that may arise. Most of us do not start a business and think we can make money by doing nothing. Instead, we would expect that starting and running a business take time and hard work. The same mindset should go for owning a rental property.

Owning a rental property can be hard work and time consuming. Below are some myths about owning rental property.

Myth #1: I just need enough money for the down payment to buy a rental property
There are many costs associated with a rental property apart from the initial down payment. You would definitely need extra money for the rainy days. The house may be in need of sudden repairs and you would need to have some cash to back yourself up. Also, it’s no guarantee that you can always rent out the property. Some times it may take months before you can find a new tenant after the old one leaves. In events like that, you should have adequate savings to help you ride through tough periods for the time being.
In my situation with the bad tenant, I did not receive rent payment for 5 months. I had to dig into my personal savings and pay mortgages and other costs associated with the house. My cash flow was negative for many months. Therefore, I would suggest landlords to have approximately 12 months of rent money for backup.

Reality: Down payment is usually not enough for buying a rental property. You need about 12 months of rent money in addition to down payment and closing fees.

Myth #2: I can sit back and collect rental payment every month from my tenants
Many people think that once you buy the property, everything else goes on autopilot. You think that you would sit back, cash checks and get fat. More often than not, you would be busy dealing with tenants and making regular repairs to the rental unit. You can hire a real estate agent to take care of it for you, but it will cost you money. And even with an agent, you cannot just sit back and forget everything. Since it is your property and not your agent’s, your agent will not be too concern about your property if you don’t care much about it. Be prepared. Rental property owners should be hands-on with managing the property.
My friend had hired a real estate agent to look after her property. She told me that all they do was collect the rent checks, deduct the service fees and pay the difference to you. If there were problems with the house, the agents would not always react right away. Often they would call you for a decision. In which case, they would suggest calling a third party, recommended by the agent, to make repairs. My friend thought that her real estate agent was useless, because even after hiring the agent, my friend was on the phone several times a day whenever there was an issue in the house. She was doing the same amount of work regardless if she had an agent or not. She canceled the service and save on the monthly service fees.

Reality: A rental property requires your attention and prompts for your actions. You have to be proactive.

Myth #3: I will buy a rental property and get rich 
Many people think that buying a property will help make them rich soon. They may have seen other people get rich from buying property and is always the exceptionally good news that travels down everyone’s ears. For example, your friend tells you that he had purchased a house at some place and made a phenomenal return on his/her money. Hearing that story, you would definitely make as much as him/her and rushes to buy a house.
I confess that I was one of them when I bought my house in Metro Manila. I heard many people made 100% or more returns when they sold their properties. The rumor at that time was that the housing market in the area would increase significantly. The local economy was thought to be booming and the job market seemed to be doing well. My friend told me that real estate prices would most likely double in two years. I thought about it and it seemed like a good investment at the time.
Unfortunately, I got in the real estate market at near the peak. The prices had dropped since then. The current value of my property is probably 30% lower than what I had paid for it.
Now I am in debt with a mortgage that is probably worth more than my house. I also have other monthly expenses associated with the rental property, such as insurance, real estate tax, etc. I have not seen positive cash flow for a very long time.

Reality: Buying a rental property is not a guarantee that you will get rich.

Myth #4: The house will care for itself
People think that if they buy a property and successfully rent it out, then they are all set. It’s easy to forget that the house goes through wear-and-tear each year. The house needs maintenance every year or so. There are many things to be checked. For example, the walls need repainting for a new tenant. The water tank system and sewer system need to be checked regularly. It is in your best interest to detect problems early on. Usually finding out the problems and fixing them soon help save money for you.
For my property, I had repaired and replaced many things. To name a few things, replaced kitchen faucet and a shattered bedroom door, installed a new water pump. I had to shell out a lot of my money in my savings account. This is also where some extra money can help. The rent money alone was not enough.

Reality: The house will need to be checked regularly.

Myth #5: My contractor will fix everything
People rely heavily on their contractors to do the work for them. The contractors will tell you something to make you believe that they are better than you and they will do the job right. And if you do not know any better, you would believe them.
I doubt contractors have your house in their best interest. Most contractors try to get the job done as soon as possible without you bothering them. Often, the quality of the work is mediocre. This is especially true if you are far away from the property, like I am. I learned that it is best to inspect the job after it is done by the contractor. This gives you an opportunity to examine the quality of work that was done by the contractor. And if the work was not done correctly, you would have to tell the contractor. It is your house, so you have to place your high attention to it.

Reality: The contractor does not have your house in his/her best interest at heart. You need to inspect the work and follow up with the contractor.

In conclusion, the myths present owning a rental property seems easy, but in reality, there are many hours of work behind the scenes. As always, do your due diligence before investing in the real estate market. And if you are seriously interested in getting your foot in the real estate market but do not want to get your foot dirty, there is an alternative option - real estate investment trust (REIT). REITs are securities that you can trade in the stock market. You do not have to deal with tenant problems in REITs and you will often receive a nice dividend for holding REITs. REITs are the preferred investment choices for investors who want to participate in the real estate market and do not want to deal with the hassles.

Living Longer (In My Own Way)

Around this time of the year everyone starts thinking about getting a fresh start. The New Year comes around and we think this year, “I am going to be better! I am going to eat better, lose weight, stop smoking, start exercising, stop drinking as much, keep in touch with my friends, etc.” If you are thinking about that fresh start and being a little healthier, let’s take a look at things that make us live long and prosper!

No Tobacco use – I know you’re heard it all before, but quitting the use of tobacco products is the best change you can make to your lifestyle. Not only will it help save you from lung cancer and heart disease but it will also help save your finances and dreaded wrinkles. If you quit smoking you can add 5 to 10 years to your life. If you’re interested in quitting, you’re in luck, help is just around the corner.

Exercise – Regular exercise helps prevent cancer, diabetes, heart disease, and high blood pressure to name a few. Ok, so you’ve heard this too. But did you know according to one study you may be able to extend your life 2 seconds for every second that you exercise. That means that for every hour you exercise you extend your life by 2. So 1 year of exercise at 60 minutes a day can extend your 5 years. According to this study, I am going to live forever!!!

Eating Right – If you eat a well balanced diet you can also help prevent cardiovascular disease, certain cancers, diabetes, high blood pressure and others. Limiting the amount of calories you eat is also essential to maintaining a healthy weight and achieving your fitness goals. Did you also know that eating a well-balanced diet with plenty of fruits and vegetables, whole grains and a limited amount of saturated and trans-fats that you can boost your life span by 2 years!

Maintain your blood pressure – High b/p is something that you can’t see or feel. Have it checked regularly to make sure you’re below 120/80. Believe it or not this can lengthen your life by 3 years.

Maintain your cholesterol levels – You’ve probably heard it in my last posts about good and bad cholesterol. The good stuff (HDL) helps protect your heart when it’s higher than 55, and adds a year or so to your life. And if the bad stuff (LDL) is less than 160 you can add another year on.

Well fellows, these years are really adding up!! I’m sure at this point I haven’t telling you anything new, but the next few might surprise you.

Don’t be a loner – Believe it or not social interactions add years to your life. Research has shown that people that have spouses and significant friendships are healthier. People with strong social ties get sick less often and have a healthier immune system. Even people that have the pets may live longer. If you socially interact with others at least 3 times a month you may add 2 years to your life..

 Use brain power – You know the old saying if you don’t use it you’ll lose it? Well, if you don’t use your brain it atrophies just like a muscle. Engage you brain by reading, writing and constantly being a student to add gusto for life as well as a few more years.

And last but not least…..

Set some goals – Research shows that people that have a goal in life and strong feelings of something yet to accomplish will live longer. So use those goal sheets you’ve all written in your mind and live longer.

How long do you want to live? You have the tools to change and help that is free. It’s all about wanting to do to it. Make that change and you will be happier for it. Your family and friends will probably thank you for it too.

Good luck, best wishes and Enjoy Life!