You may be living in Australia now, but that doesn’t mean that you should be closing your doors to investments found outside the country.
Especially if you have long-term plans of returning to the Philippines and eventually retiring there, you have to find ways to secure your future by investing on things that could give you promising returns.
Here are some of the available investment options in the Philippines.
Sure, the stock market has been seeing a lot of reds in the past month or so. But instead of feeling discouraged, you should actually be excited. There is no better time to purchase stocks than now.
Remember the main rule in being successful in stocks – buy low, sell high. And because a lot of stocks are at an all-time low at the moment, this is the perfect to act on the first half of that concept.
Note however, that earning money in stocks does not happen overnight. You don’t shell out 20,000 pesos now and get 40,000 a week after. There is even a possibility of you not getting that back after six months.
Stocks are long-term investments. This means that you would probably wait for a really long time before you earn considerable returns.
You can also do this in two ways:
Handle your investments personally through an online account
Get a broker who can handle the trading for you.
For someone who wants to stay on top of things and would like to have regular access to the trading system, you can easily sign up for an online account for a minimum investment. Col Financial Philippines, for example, allows you to get a starter account for only 5,000 pesos.
If you’d rather have a stock broker do the grunt work for you, The Philippine Stock Exchange has a list of accredited brokers you can contact.
For those who have very little knowledge about stocks and other financials, you can also join different organizations that could widen your knowledge. The Truly Rich Club is one such example, giving you tips on what to buy and what to sell, and provides different material to widen your knowledge about everything financial.
Bonds are very similar to stocks in a way that the institution or organization issuing them are using your funds as additional capital for their business.
The huge difference, however, is that when it comes to stocks, the business or company that you are investing in is not really required to pay you any dividends even if they are profitable. This means that you would have to rely on buying and selling them to have sufficient returns on your investments.
Bonds, on the other hand, give guaranteed returns after a period of time.
Think of it as a loan. You are lending your money to a certain company so that they can use it as additional capital. Once the maturity date comes around, they give you back your money, plus interest.
Payments can be made quarterly, semi-annually, or annually.
If you’re not the type who would go through the pain of having to buy and sell stocks as the prices rise and fall, then bonds could be a good option for you. It is a whole lot safer, knowing that there is a guarantee of your money coming back.
However, you may also not be able to maximize the value of your money. After all, no matter how much the company earns, you only get a fixed amount, which is the amount that you have been promised. There are options to reinvest your money after your initial investment has matured.
However, if the interest rates are now lower than when you first invested, the lower interest rate would be applied, and not the original one.
Real estate proves to be one of the most promising investments in the Philippines today. Although buying and reselling properties could be out of the question because of your physical absence, you can enter a completely different area of real estate – property rentals.
Yes, rentals are huge at the moment mostly because of the thriving BPO industry in the country as well as the ever-growing tourism market.
There are just so many foreigners coming into the country, either for business or for pleasure. And one of the first things they look for? Accommodations.
Take the Sea Residences near the SM Mall of Asia in Pasay City, for example.
It’s a block away from one of the biggest shopping complexes in the world. It has the MOA Arena and the SMX Convention Centre in the vicinity as well. Not to mention the fact that there are dozens of BPO companies in the area, with the number growing month after month.
Because of this, a lot of people have invested in units in this condo development, most of them renting their units out on a daily, weekly, monthly, and even annual basis.
And wow, are their numbers off the charts. Because of the area, there is a huge demand for these properties not only during peak tourist seasons, but throughout the entire year.
That’s not all. This is not just happening in this specific area. As more industrial and tech zones are built within and around the country, the demand for accessible living areas is steadily rising.
Sure, the investment is pretty high. Not only would you have to invest in the property, but you would also have to work on furnishing it. That’s okay though, because with the right ads in place, you’ll find people booking your property in no time.
Your Own Business
Of course, you can’t forget the basics.
If you’re lucky enough to have family back home who can oversee operations and other tasks, then you can always start your own business.
You can start small and invest in a small sari-sari store, or if anybody back home cooks, you can consider starting a small carinderia especially if you have a great location.
For those who would like something a little bigger than that, there are so many franchising options. You can get franchises for convenience stores for example, like 7-11, Mini Stop, or Family Mart. Or you can go for popular fast food chains like Jollibee or McDonald’s.
If your budget is not as big, you can get food cart franchises for a smaller amount. The Filipino Dream, for example, offers franchises for Pinoy Pao, Burgeroo, Pizza Pinoy, and a number of other food carts for as low as 52,500 pesos. Those who would like to invest higher can get their own franchise of Kambal Pandesal.
Of course, you would have to make sure that you have someone you fully trust handling your business. After all, you wouldn’t want your hard-earned money to go to waste.
Plus, we all know that business squabbles within family or between friends can be more complicated than other business arrangements, so make sure you think this through before going for it.
With all the investment options in the Philippines, you can take your money farther than you’ve always dreamed of. Sure, there are risks. But the risks will always be there no matter what you decide to invest on.
Without braving those risks, you may find yourself working endlessly and never having the ability to retire out of worry about what happens after.
Once you start investing in all the right areas, you do not only provide for your family’s needs today. You also make sure you have more than enough to go around for the future.
Special thanks to rexfoto54 for the main image.