Is Your Property An Asset Or Liability


Everyone thinks that their property is an Asset. That could be true if that property raises its value over time (say in the next 5 years).

But most of the time, our properties are considered a liability. Why?
Because you have to take care of maintenance, renovation, property taxes, association dues, manpower, etc.

Each of those expenses (not to mention the property value) can cost you a fortune.
Over the course of several years or decades, they can cost millions. True investments don’t require that kind of ongoing outlay of cash.
You can rationalize those expenses based on the fact that the house is providing you shelter. But that gets back to the original premise – a house is a shelter, and not really an investment.

I grew up in a family where they don’t mind that most of their properties are liabilities. Just like in the Monopoly game, they only give importance to the “Boardwalk and Park Place”. The rest is idle and left behind unattended.

Recently, I just discovered that through the years I had the knack of turning some of our properties from liabilities into assets.
They didn’t instruct or taught me to do it, it was just pure instinct.
I don’t know how I did it, but I guess I just don’t want to label our properties as “Idle”.

That impulse and motivation had carried with me through the years up to the point when I got my own properties.
Let’s begin by disclosing with property number 1…

Property No. 1 (Mango Farm)
=> My Grandma had a 15-hectare property surrounded with more than 100 mango trees. Every year during the month of March, we harvest loads of mangoes.
Typically, 20% of those goes to our immediate family for personal consumption and 80% goes to relatives & friends (which I think is too much generosity).
It goes without saying that the property is not earning a single dime.
So I went to my Grandma and ask permission if I can take care of the next season harvest. My Grandma said YES.
So I took care of everything from spraying, pest control, harvesting, manpower, and marketing.
As promised, I reserved 20% mangoes for our immediate family. Another 20% for our friends and relatives. And the rest went for profit.
We sold more than Php500,000 worth from a single season.

Property No. 2 (Airbnb condo unit)
=> Currently, I owned a condo unit where I rent our spare bedroom, particularly for transients. Not only it does take care of our association dues, upkeep, and utilities… but it is also a doorway for new acquaintances for me and my family.
We gained new friends from our vacant room. Friends that we treasure for a lifetime.
It’s is also perfect for my kids. Meeting and knowing a lot of people from different culture and race. It gives them a different kind of education that they are not getting from a traditional school.
Our circle of friends continues to grow by the numbers with our Property No. 2

Property No. 3 (Kamias dog breeding)
=> My Mother used to have a 400+ sqm property in Quezon City. That property has a large backyard and open space.
Since I love dogs so much and very much aware that dog breeding is a lucrative business, I then asked my Mom if I could breed some dogs.
At first, she was hesitant. Then later she began loving the dogs that circle around her property. These critters became an extension of our family.
We had lots of them from Labradors, Basset Hounds, MiniPins, Pitbulls, etc. Each breed serving its purpose.

Property No. 4 (Piggery)
=> I have a 1.5-hectare property in Batangas that used to have 600 pigs on it.
During the time when it still has a clear access road… Monterey Foods Corporation went to me and asked if I wanted to take care of their pigs.
All I have to do is grow them for 4 months and we then share the profit.
I earned good money during our heydays.

Property No. 5 (Siopao store from a Garage)
=> I used to live in Merville Park, Paranaque. It is a 300+ sqm property with two different car garage. I was using the other car garage to park my car but the other one was idle.
So I transformed that 2 car garage to a Siopao-Siomai joint.
That store turned into a phenomenon in our village since there is no dim sum in sight.
We were selling Php 2,000 - Php 3,000 a day (7 days a week) for a village of a population of 4,000.
Not bad for an abandoned old car garage.

The purpose of this article is to inform everybody, whether they are rich or poor, that they can turn their property from a liability into an asset.
All it takes is the right mindset and some positivity. You can basically do everything that you want. Let your creativity do the planning.

For the Rich => Don’t just buy and buy properties. Think twice before buying them.
Can these properties be income generating for you? Or are your children gonna use them in the future?
Your properties will have no bearing if all of your kids migrate to the United States. Always think that a property is not an investment just because it appreciates.
Before buying, think first… is there another property better than this.

For the Poor => Even if you don’t own a property, you can still do something from the place that you are staying. You might just be renting but don’t underestimate the value of it.
I have a friend from Batangas who is making a killing from selling Puto and Bibingka from her place. She doesn’t even have to go out, it’s her customer that comes to her.
Imagine that.

For the Middle Class => Don’t put the majority of your cash in a property that won’t generate cash flow.
Although it is nice to have a place of your own, you first need to diversify your hard earned money that will bring you the money to purchase the house that you wanted.
Rent if you must, and let your money grow through multiple channels.
When you have accumulated and raised your financial portfolio, then you can buy your dream home.

As of now, I am planning to add more properties that bring value not only in revenue but also that I could use for me and my family.
It could be a model figure for anybody to imitate and possibly apply it to their own designated place.

We live in a different world now. With the right mind-frame, everyone can get the property that they want. It’s not just buy and purchase.
You can rent to purchase the property or partner up with the landowner. Many things can happen especially if you have a brilliant idea in that particular place.

It is not just black and white now. There are lots of grey areas that you could use for your benefit.
I enumerated some of what I did to my properties for you to get started and maybe kickstart an idea or two.

The key word here is… “Asset”.
Just remember using that word to proper use. Good things will come your way if you did.

Written on May 10, 2019