Plan Your Future Early

Plan Your Future Early

One of my primary goals on this blog (especially moving forward from here) will be to share a lot of the insights that I’ve learned over the years. As someone who has been a part of and experienced a number of market cycles, I feel like I’ve observed a lot of things over the last decade or so.

With that said, one thing that I certainly don’t regret now (and probably no one else ever does) was being cognizant of my financial situation earlier in life, and figuring out that I needed to take this aspect of my life more seriously. For myself personally, as readers may recall, I started aggressively buying up rental properties in my 20s, and that’s now paid many dividends (cash flow) over the intervening years.

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The gift that keeps on giving.

Now, when I look back, I’m grateful for taking the bull by the horns, and being able to benefit greatly from the surge we’ve seen in both property values and rents in recent memory.

I’m not going to say it was always an easy thing to do, being proactive, but when you can convince yourself that saving money (and accumulating assets) is not only a necessity in life, but also fun fun fun, the task at hand just becomes that much easier to deal with, especially early on when it’s a lot tougher to build up that momentum, trying to turn snowflakes into an unstoppable avalanche.

Certainly, Real Estate Investing isn’t for everyone, and it’s something that is very much a localized phenomenon because not every single area in the world is going to be worth buying into… However, if you’re fortunate to be able to locate an area that is up and coming, and one that you think will do exceptionally well in the future, this is something that young people should be trying to really make happen, especially if they’re in position to do so.

For example, here’s an inspiring story that I’ll share with you now — I have friends in Manila, and their family has been busy over the last few years fixated on buying up properties in the metro region, particularly in Bonifacio Global City (ya’ll know, my favorite metropolitan city in all of South East Asia). Just the other day, their early entry point paid off, as they took possession of a condo unit located in the following residential tower (which is just starting to turn over fresh units to owners).

For this family, it marks their second property in BGC, and although I don’t know the exact figure, I do know that they’ve got a few more units under their belt as well, scattered throughout the island of Luzon. Oh, and I should point out that this tag-team duo are still young bucks, with each of them still only in their mid-20s!

Since they are taking care of business at a very young age (I’m sure lots of “sacrifices” had to be made to make this all possible), they’re most likely NOT going to have to work so hard later in life… They’ll be able to kick back and enjoy the good life a lot earlier than many of their peers.

Work hard now, so you don’t have to later on in life…

And although I’m not yet back in BGC to help celebrate with them in person, I was ecstatic to see them posting new photos/videos of their new unit…

There was a massive sense of pride that they had in their accomplishment, one that even I could feel being ~7,000 miles away!

Now, nobody can ever predict what will happen in the future, but I would say the odds are quite good that this family won’t ever regret their decision to lock down 2x units in BGC, especially when these peeps were only in their 20s, still very very young.

In fact, with both of the units that they do own, they got in during pre-selling, and although I’m not quite sure exactly where prices were at when they originally got in at, I do know that real estate has been booming in BGC, so I wouldn’t be surprised if they’re up over 50% on their latest purchase and at least 2-3x on their first purchase from many years ago.

BGC has become a bustling city where people wanna be. Locals, foreigners, everybody…

Compared to my own situation early on via Bay Area properties, it’s not much too different; my friends in Manila are fixated on securing Class A properties located in the best neighborhoods. For myself, fast-forward to 6-7 years from when I bought my first few units (2012-2013), and neighborhood rents have climbed up ~$1,000/unit.

That’s why you gotta plan ahead!

To them I say “kudos” and keep on going! Also, as I like to point out, it’s important to to realize that the grass isn’t always greener on the other side. In other words, if you’ve got a good thing going, just keep at it! To be quite frank, my biggest Real Estate Investing mistake of all was trying to get too fancy (i.e., speculating out in blighted South Chicago), sacrificing quality of location for potential cash flow returns (on paper, that never actually materialized in reality).

When it comes to real estate, never sacrifice on QUALITY!

As it pertains to the good ol’ states, these days, I’m hearing more and more chatter about investing in Indianapolis, as that area has been booming of late, and prices have been climbing at a robust clip, as well.

https://learn.roofstock.com/blog/indianapolis-housing-market

So, congrats to any readers out there making outstanding returns in Indy!

Again, real estate is very local, what works splendidly well in one location may not someplace else… That’s just the way it is.

And further, real estate isn’t for everyone, and that’s perfectly fine as well; if that’s not your bag, you can try other things like index funds, ETFs, dividend stocks, etc.

In any event, plan your future early, and who cares what your friends/peers/co-workers/neighbors/etc. are all doing… Many years from now, they’ll wish they were in your shoes and will only begin thinking about doing the things that you will have then already accomplished.

 

Keep up the fight!

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Real estate is the best asset to own over the long term, if bought at the right price. Congratulations on your success and hopefully it continues in the future. Keep the updates coming.

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