If you already own a home for yourself, congratulations for owning an investment that will only appreciate or grow in value as time goes on. While a house is a proper investment in itself that “grows” your money, it is still a passive method of increasing your net worth. If you take a more active approach into making more money, you can get a real estate loan, otherwise known as a land title loan, and use your land title as collateral to get capital for a new business opportunity.
This might be the most basic but also the most rewarding. You can use your capital to start your own farm or invest your money on farmers. By starting your own farm, all the profit that comes with farming will be yours but so will labor, materials, and of course, loses. You can invest your money on farmers who can use your money to grow crops and then give you back the money after harvest season but with profit interest.
A regular Filipino thinking up of an opportunity to start a business will find himself coming up with ideas such as a restaurant, a clothing brand, shoe redistribution, cakes and pastries, and other popular commercial businesses. However, niche industries in the Philippines, even though unpopular, are necessary and almost always on demand. These are industries that we need but don’t realize to get into because they are less fashionable than their commercial counterparts like automotive repair and spare parts, waste disposal and processing, pest control, truck hire services and more. You can safely use your real estate loan to invest in a niche business because the need for these unsung industries will never wane.
Life Commodities: Rental Spaces
The best way to secured finances is to offer security as well and one such business that does that well is rental homes. The sheer volume of people relocating from one place to another in the Philippines is only growing by the day. People search for rental homes or apartment spaces for work convenience, to move out of their parent’s house, for safety, as temporary long term recluse—the reasons only go on. You can use your real estate loan to buy land and develop apartments or townhouses. Aside from the occasional maintenance, most of the work you need to do involves collecting rent. It’s one of the best passive incomes that you can generate for as long as you are discerning of who you choose to rent.
There are a lot of opportunities out there to grow your money so don’t think that you need to get stumped thinking about how to design your restaurant differently and make your food Instagramable. Retail, food, and other commercial business are good concepts for budding business in the Philippines but if you think outside the box, you might find yourself more inspired on how to grow the capital you will get from a real estate loan or avail business loan.