In investing, thinking long-term is a good idea. I have always believed that time is your greatest asset.

Here are a few points as to why long-term thinking is a must in investing and why you should stick to a long-term mindset:

1) It determines your investment objective

People invest in various investment instruments depending on their objectives. Some want to grow their money to pay for an upcoming wedding while others want to start accumulating wealth for retirement. As a long-term investor, you have different objectives.

You may be investing to have enough money to build a home or save for retirement.

It’s important to have a long-term mindset when it comes to investing because it allows you to filter out unnecessary concerns.

As a long-term investor, the market reversals or downtrends should not cause you sleepless nights.

If you have a long-term horizon (above 10 years) you can wait the market out and recoup your temporary losses or better yet, continue to grow your investments. Long-term investing in the market determines your financial objectives in such a way that you know what purpose your profits will play. As a long-term investor, you can let your money sit in your investments instead of withdrawing them (at a loss) out of panic.

*The chart below shows you how the Philippine Stock Market performed over 10 years proving that it really pays to think long-term.

2) It guides your investment directions

In relation to the above, having a long-term mindset guides your investment direction and decisions. As a long-term investor, you’ll put your money in investments different from those of the short-term investor. Short-term investors will put their money in, say, money market funds or bonds. You, as a long-term investor, may put your money in stocks instead. Knowing that you are a long-term investor gives you direction regarding where to invest and how long to stay invested in the market.

3) It keeps your emotions in check

Listening to emotions—it’s one of the most common mistakes people make when it comes to investing.

For those who weren’t in the market during the 1997 Asian financial crisis, the 2008 financial crisis, market corrections or downtrends may seem hopeless to new investors.

However, if you look at the historical performance of the Philippine Stock Exchange index (PSEi) from 1986 to 2018, the PSEi follows an up and down cycle, where the next ‘high’ is always higher than the previous ‘high.’

This is where your long-term investing mindset comes into play.

Being in the market for the long term (for a minimum of 10 years) allows you more than enough time to weather bear markets.

Historically, bear markets since the 1930s have an average duration of 18 months. If you’re investing for the long term, you have more than enough time to hold on to your investments until the downtrend reverses into an uptrend, signaling the end of a bear market.

In relation to letting your emotions get the best of you, if you have a long-term investing mindset, short-term fluctuations and volatilities should not bother you. Do not sell out of fear and panic. Keep your emotions in check. Remember that you have time on your side.

The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. – Proverbs 21:5, ESV

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If you are a Filipino in the UAE, catch me and my friends Marvin Germo, Tony Herbosa, Salve Duplito and Carl Dy at the Money Talks UAE 2018 Conference. Details HERE

After the very successful Money Talks 2015, 2016 & 2107 in Dubai, we are once more gearing up for an even bigger and better Money Talks 2018 this March 9, 2018.

The annual conference gathers 400 OFWs in the UAE with the goal of making them financially enabled. Money Talks has become the most impressive financial event program geared for the OFWs in the UAE and is highly anticipated because of its very good reviews.

Joining me this year are my friends and co-advocates in the financial education:

Marvin Germo is one of the country’s most recognized stock market and investment advocates. He is the best-selling author of several books on investing and the stock market and an international speaker. He is the most visible and in demand speaker on the subject matter and has built a following of many thousands.

Salve Duplito is a veteran business and finance media personality, having been involved in the print and TV media for over 2 decades. She is the lead anchor of the country’s leading personal finance program, ANC’s On The Money and is a multi-awarded host and journalist. Salve is an advocate of financial planning, debt management and personal finance.

Tony Herbosa is best known as the person behind one of today’s most passionate group of investment enthusiast called Traders Apprentice Philippines or TAP. Having been in the investment industry for over 3 decades, he has been influential in getting people to invest and build their wealth from an institutional platform and now from an advocacy platform. He is one of the country’s most recognized thought-leaders in the investment sphere.

EVENT: Money Talks UAE Conference 2018
DATE: March 9, 2018, Friday
TIME: 1pm – 6pm
VENUE: Emirates Aviation Auditorium, Deira, Dubai
LEARNING FEE: 250 AED
EARLY BIRD PROMO: 180 AED (payment before Jan 15, 2018)

To register, click HERE

Every great investment starts with a great deal. Investors looking to start their real estate portfolio or even a bachelor planning to buy his first condominium unit must learn how to spot a great deal to make sure that their hard-earned money will turn into a valuable investment.

Here are some tips to remember if you want to spot a good real estate deal.

It’s a numbers game.

According to real estate blogger Brandon Turner, property hunters have to understand that snapping up good deals is largely a numbers game. You have to check out tons of listings in a specific area and narrow the leads down according to your preference.

For instance, if you are looking for a good deal in Mandaluyong, try to determine your own pre-qualifications. Should the property be near major throughways? Should it be below PHP 2 million? Should you consider foreclosed properties?

Once you have narrowed your choices, you have to analyze the value of the properties. Which among them do you think would appreciate in a reasonable amount of time and for what reasons?

Location, location, location!

Getting a good real estate deal all boils down to the location of the property. This does not necessarily mean that it should be at the heart of a business district or even along its peripheries. After all, location is also about connectivity and accessibility.

The key is to identify areas where it is easy to travel to and from major places of interest. For example, if you want a property that is accessible from Metro Manila, then you should consider scouring nearby provinces where costs are lower and there are plenty of options.

Always check out deals in these lower-priced markets as they possess potential returns especially when space demands in city centers become too saturated, pushing home seekers to look for alternative locations.

Why it’s wise to invest in foreclosed properties

Great deals may sometimes come in unexpected forms—in this case, in foreclosed properties. According to MyProperty.ph, a foreclosed property is a good money-saving option for its below-market-value price. The reason foreclosed properties have relatively low selling price is that banks are often swift in disposing these assets. You can expect them, therefore, to offer surprising discounts.

There are a few things you need to consider, however, as not all foreclosures are worth the money. First, inspect the condition of the property. Does it need a lot of repairs? Where is it located? Can you flip the property to make it marketable again? Additionally, you also have to know the terms in which the bank would sell the said property.

Try searching social media for leads.

Most people are now on Facebook, so it is easier to connect to potential property buyers. Indeed, some of the greatest deals can already be found via social media. You may not land the perfect deal at first try, but posts by individuals looking to sell their properties or marketing campaigns of real estate listing services would definitely give you an idea where to look further.

Consult listing sites.

There are a lot of listing sites out there that let sellers connect easily to potential property buyers. MyProperty.ph and Lamudi.ph are some of these listing sites that provide property owners with a platform where they can reach their prospective buyers.

Since these listing sites have their own gatekeeping system, the deals posted on the platform are all legitimate. It is a matter now of analyzing the merits and risks of acquiring a particular property viewed on the platform.

Should properties be at their prime condition?

It was already mentioned that when looking for foreclosed properties, the quality of the asset must be checked. In some cases, you might find diamonds in the rough that just need a little bit of flipping to turn into a true gem.

However, there are still considerations to ponder on such as location, accessibility, and price tag. If the slightly debilitated property is in a major city, check if it has an attractive neighborhood. You should also make an effort to see if the location is easily accessible. Regarding the price tag, you would have to discuss with the seller and bargain if you must.

Early birds get the best deals.

If you spot a listing you believe has potential, you better grab it quickly before the demand swells together with the selling price. More often than not, the one who calls and locks in the property first gets the ideal price.

In times when the seller already entertains multiple buyers, you should still act fast. Your offer must meet or even exceed the seller’s expectation of the value of the property for you to emerge victorious.

Do your research.

To land a great deal, it pays to do your assignment. Before looking through listing sites, you have to do your part and get to know the market in general. Learn as much as you can about the current trends and make yourself well-versed with the concepts that surround the market.

Finding a great deal is not a talent—it is just a combination of the knowledge you have of the market, the practical mindset, and the creativity and ability to see things in another perspective.