While the topic of money seems volatile due to the economic implications of COVID-19, some people grab this opportunity to venture into investing while stocks, bonds, and property prices are currently at their lowest.
To keep the source of income stable in the coming years, more and more individuals take the risks of investing in exchange for growth potential, which can be attributed to the power of compounding interest and risk return.
In particular, millennials that take up ⅓ of the country’s population are more likely to save for retirement, and 74% believe that making investments is an effective way to grow their money over time.
If you’re one of those people who wish to give investment a try, but you’re not sure where and how to start, here’s a simplified investment checklist to guide you through the process:
Set your goals
Before you venture into any type of investment, establish your goals on why you want to make this decision. Are you saving up for a short-term or a long-term goal? What are you trying to achieve in making this investment? Make sure you have answers to these questions, so you’ll know what type of investment matches your goal.
Consider the rational and economic factors of your investment
We’ve already established that investing comes with risks. With this, you must be knowledgeable enough about the ins and outs of your investment so you could assess potential risks and know whether you’re willing to go that far or halt to calculate. Moreover, there are favorable factors to consider to know whether your investment could thrive in an economy like the interest rate or the cost of borrowing, economic growth or changes in demand, etc.
Once all of these are sorted out, and you’re ready to take calculated risks, then it’s time to move on to the next step, which is to choose your investment partner.
Choose your investment partner
An investment partner does not necessarily imply an individual investor who will share the expenses and fees associated with your investment. It could be a business, a company, a developer, or an organization that will be responsible for the more critical aspects of your investment.
For property investment, for instance, you need to find a trusted developer who has been around for years and has already established a portfolio of successful and completed projects. Take Empire East, for example. Empire East has been in the real estate business for almost 27 years. For more than two decades, it has already built more than 100 towers and completed more than 15 projects in and beyond Metro Manila.
Knowing your investment partner’s strengths (in this case, a property developer) is crucial before making the big decision to ensure that your investment is in good hands. It would also be a big help to have a trusted developer and a real estate agent by your side who could assist you with the process of acquiring the property.
Evaluate the pros and cons of your investment
In the case of property investment, it’s paramount that you assess the pros and cons of the development before finally deciding to move further with your plans. If you’re investing for a potential income source, is the property in an ideal and strategic location? If you’re investing as an end-user, is the property accessible to everything that matters, like your workplace, lifestyle hubs, parks, etc.? List down the factors that could harm or benefit your investment, so you’ll know if you need to find options or stick with your initial plans.
Calculate your expenses
One of the most important factors to consider before investing is your financial situation. Are you secured enough to risk a portion of your hard-earned money? Have you saved at least a six-month worth of emergency fund in case things don’t work the way you planned them to? Before you invest your money, make sure that you don’t have existing debt, and you understand that you need to have enough money to pay for related expenses. Think five to ten years ahead and evaluate your financial situation before making the big move.
Organize your documents
To avoid hassle along the process, make sure your documents are prepared and ready for submission. It would be helpful if you research the necessary documents based on the investment of your choice.
And finally, make sure that you are willing and able to commit long-term (i.e., 5-10 years).
Investing is not an easy decision to make, so you must consider these factors very carefully before doing so.
In case you’re interested in property investment and the perks you can enjoy from it, feel free to drop your inquiries at firstname.lastname@example.org or send a message to our Facebook page. Make sure to follow @empireeast on social media for more updates and investment tips!