We have practically covered all the steps in achieving Financial Freedom from our previous blogs.
But let me expound a bit more on the topic of accumulating Long Term Assets.
Firstly, just a matter of review, I subscribe to the definition of Robert Kiyosaki on what is an Asset vs Liability. Robert defined Asset as something that you buy that puts money into your pocket. I added, anything that increases your value.
This is very important in making sure that indeed what we accumulate across time are assets which we will be able to use to generate our passive income.
One very relevant question to ask ourselves today is: Is buying a house and lot a good investment ? Is it really accumulating wealth when we buy a house and lot?
Other than the aforementioned consideration or definition of what is an asset, we must ensure that the house and lot we buy are free from flooding.
It will be a big mistake to invest on a house and lot that has a history of flooding as you wont expect said property to increase in value over time. Thus, it will not guarantee you returns from your investment.
I'm sure nobody will be interested to buy a property that has history of flooding.
It will also be difficult to find tenants if you rent out your house if people know it has history of flooding.
Of course, there are more to consider as well.... for now, I just want to emphasize on flooding as this is the most relevant today in view of the destruction brought by Typhoon Ondoy.
God bless!
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