To buy my dream house

I just went to see a model unit in my dream city last week. Die Broke: A Radical Four-Part Financial Plan recommends buying your second home first, so I chose the 3-bedroom unit. When I saw the payment scheme… we’ve got a LOOOOONG WAYS TO GO.

We’d probably get a mortgage. How exactly, I don’t know yet. Same as with credit cards, personal loan requirements would require business owners to show financial statements showing profits for 2-3 years. We start operations in 2008 – so the soonest I can get my house is in 2011?

The Aston at Two Serendra, The Fort Global City

In the meantime, I have to save for a downpayment of $70,000 in 4 or 5 years time, net of inflation. I’ve already cut my expenses to the bare essentials and my level of savings right now isn’t enough to hit that target so my topline has to be adjusted. I have to earn extra and from that incremental, invest 1/3 back into the business, 1/3 in a high-yield investment with a horizon of 5 years, and 1/3 in balanced funds.

If I make an extra $2,000 per month and invest 2/3 or $1,333.33 at 12% p.a., compounded every quarter for 8 years – I manage to get my $70,000 downpayment – but come on, 8 years!!! H01y$(*#$(!!! There must be something wrong with my arithmetic. But I just followed the FV equation in Excel… sigh. Our business better pick up soon.

I’ll be joining a foreclosed properties meetup this Saturday, January 19, 3-5pm at Gloria Jean’s Coffee in Robinson’s Galleria. Maybe that’ll get me some extra moolah.

If you’re interested in viewing the model units and getting your own, you can contact Jean Azucena, Property Consultant at (+63) 927 860 3414

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