In my earlier post I talked about how I made profit out of a housing loan I took from the state-run Pag-IBIG Fund. It was not planned. I bought the house with no intentions of selling it for profit in the future. But things worked to my advantage and I was inspired to duplicate the feat or even top it.
Venturing into a build-and-sell affair gave me mixed emotions. I was excited, enthusiastic, nervous, and uncertain at the same time. The one question that really bothered me was: what if I wouldn’t find takers or renters for the house, will I be able to afford the monthly amortization?
With only my monthly salary certain and that money I made from the sale of my first house, I singly proceeded with the plan in July 2000. I took a P500,000.00 house and lot package from a subdivision, paid the 20% down payment and signed a contract to sell that said I have to pay the remaining balance for five years at 16% per annum diminishing interest.
The house I got was a 45 sq. m. complete one-storey house in a 170 sq. m. corner lot. It had two bedrooms, tiled floors, a toilet, and a kitchen. During its construction, I would visit every other day after work to make sure that the workers use the right materials and to also infuse my inputs. It took four months for the house to finish and I participated in choosing the materials, height and design of the ceiling, what colors of paint to use, and tile texture and design.
When the house was finished and the keys were turned-over to me, I began with the improvements. It took another two months for the 15 sq.m. kitchen extension, perimeter fence, gate, and other ground improvements to finish. I have to admit, the house grew on me. The reason could be that I have spent a lot of time and effort overseeing its construction. There was a point that I wanted to move in there and forget about the build-and-sell thing.
Finally, I overcame myself and began to open it for rent. Fortunately and very quickly, I got a renter for my house. I had it rented for P4,000.00 a month, which covered almost 50% of my monthly amortization to the subdivision. After a year and six months, the renter wanted to buy the house from me at the price of P800,000.00 using his membership with Pag-IBIG. Of course, I readily agreed.
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