"HOW REAL ESTATE PROPERTY IN CEBU EARN"

FOUR BASIC TYPES OF PEOPLE WHO RUNS A BUSINESS :

1.) EMPLOYEE – PAYS UP TO 15-35% WITH HOLDING TAXES DEDUCTED FROM SALARIES . THIS ARE PEOPLE WHO WORK IN A PRIVATE OR IN A GOVERNMENT ESTABLISHMENT THAT EARN A MINIMUM OR ABOVE MINIMUM SALARY.

2.) SELF-EMPLOYED – PAYS FROM 10% TO 20% PORTFOLIO TAXES.THIS ARE PEOPLE WHO WORK ACCORDING TO THEIR PROFESSION. THEY ARE SALES AGENTS, DOCTORS, AND LAWYERS.

3.) BUSINESSMAN – MINIMAL TAXES THROUGH PASSIVE INCOME. THIS ARE THE TYPE PEOPLE WHO RUNS A  BUSINESS.

4.) INVESTOR – MINIMAL TAXES THROUGH PASSIVE INCOME. USUALLY, THIS ARE THE PEOPLE WHO CAME    FROM OTHER COUNTRIES. THEY COME TO THE PHILIPPINES JUST TO VENTURE AND PROVIDE JOBS FOR THE FILIPINOS.

IN SHORT, THOSE ARE INVESTORS AND BUSINESSMAN ARE EARNING A PASSIVE INCOME. AND GOOD THING ABOUT THEIR PASSIVE INCOME IS THAT THEY RECEIVED A REGULAR BASIC ON IT WITH A LITLE EFFORT. UNILIKE WHEN YOU ARE AN EMPLYOEE, YOU WILL JUST RECEIVE A LIMITED INCOME AND YOU ARE OBLIGE TO PAY 15% - 35% WITHOLDING TAX. SO, IF YOU GONNA EARN 250,000 IN ONE YEAR YOUR TAX WILL ALSO BE QUIET BIG, IT’S 37,500. AND THE QUESTION IS, WOULD YOU LIKE TO BECOME A PERSON WHO EARN A PASSIVE INCOME OR THE PERSON WHO IS REGULARLY DEDUCTED A WITH HOLDING TAX FROM HIS EARNINGS.

Some examples of passive income are:

1.) Rent from property;

2.) Royalties from publishing a book or from licensing a patent or other form of intellectual property;

3.) Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;

4.) Pensions.

WITH REGARDS TO “RENT FROM PROPERTY”, A GOOD EXAMPLE OF THIS, ARE THE REAL ESTATE PROPERTIES, LIKE LOTS ONLY, HOUSE AND LOT AND CONDOMINIUMS..

ABOUT SAVING MONEY IN THE BANK, I WOULD RATHER SUGGEST THAT MUCH BETTER IF YOU INVEST YOUR MONEY IN REAL ESTATE WHERE THE LOCATION IS EXCELLENT AND STRATEGIC. IN THE BANK, THIS IS WHAT HAPPENED TO YOUR SAVINGS,

MAXIMUM INTEREST -                 4%

AVERAGE INFLATION RATE-    4%- 12%, LETS JUST SAY 7%


FORMULA:
BANK INTEREST -  4%
INFLATION RATE - 7%
                            - 3%

 INFLATION RATE IS THE DEVALUATION OF CURRENCY. THE VALUE OF MONEY GOES DOWN AND AMOUNT OF COMMODITIES GOES HIGH. LIKE FOR EXAMPLE, 5 YEARS AGO, PANDISAL BREAD COST ONLY 1 PISO. BUT NOW, 1 PIECE OF PANDISAL BREAD IS ALREADY COST 5 PISO.


UNLIKE WHEN YOU INVEST IN REAL ESTATE TO AN EXCELLENT  OR IN A STRATEGIC LOCATION. "ANYWAY, YOU CAN ASK ME WHERE TO FIND THIS PLACE HERE IN CEBU".


REAL ESTATE PROPERY


APPRAISAL VALUE/CAPITAL GAIN EVERY YEAR    = 10%, IF YOUR PROPERTY WORTH 1M NOW,
 AFTER 1 YEAR, THAT CAN BE ABOUT WORTH 1.1M ALREADY.


NET RENTAL YIELD  EVERY YEAR                          = 8 %
TOTAL                                                                     = 18%   
 
FORMULA: 10% APPRAISAL VALUE + RENTAL YIELD 8% = 18% LESS INFLATION RATE 7% = 11% GROSS


AND GOOD THING ABOUT REAL ESTATE PROPERTY, IS THAT YOU CAN CONTROL THE RISK. WHEN A FIRE INCIDENT HAPPENED, A FIRE INSURANCE CAN BE A GREAT HELP TO RECOVER..


ABOUT THE DEMAND OF REAL ESTATE IN CEBU, WE CAN SAY THAT THERE IS A BIG DEMAND. LET ME SHOW YOU THIS ARTICLE WRITTEN BY A SUN STAR NEWS STAFF WRITER, http://cebufilipinohomes.wordpress.com/news-update/%E2%80%98bright-year-ahead-for-real-estate%E2%80%99/