how to become millionaire

How to Become Millionaire in Real Estate

1. Know the economic stability of the place . :

The political cycle is said to impact the economic cycle. The relatively peaceful and decisive national elections last May bodes well for sustaining the country’s robust economic growth. Although President Rodrigo Duterte wrested the support of the voters from the current ruling party, there was a smooth transition of power. Political realignment at the national and local levels has been observed in recent weeks, laying the ground for a fresh presidency with a strong mandate from the electorate.Likewise, the state of the economy has impact on the real estate market. One major economic phenomenon in the Philippines is the sustained growth of the business process outsourcing (BPO) industry. Revenue-wise, BPO industry leaders are projecting that the industry will overtake the dollar remittance from overseas Filipinos.What is more relevant is the intertwining of political policies with the economy. With the enactment of Republic Act No. 10844 creating the Department of Information and Communications Technology, more departmental focus may be given to the industry and sector drivers like the BPO industry. Another political intervention that may sustain growth is the commitment of the incoming Finance Secretary Carlos Dominguez to revisit the REIT Law and its implementing rules and regulations based on an interview by the Manila Times published on June 12, 2016.Since the current political climate has a positive impact on the economy, it is also instructive to evaluate the macroeconomic indicators to understand and project the growth of the real estate market in the months and years to come.

2.Choose the right developer and the right location

Buying a property is one of the most vital decisions when you decide to invest in the real estate industry. So when you are planning to purchase a property you should check the previous projects of the builders. This will assist you in choosing the right developer.

3.Choose your target market

1) What is a Target Market? Your “target market” is simply the people you want to sell to. “Everyone” is not a good answer. In fact, I challenge you to sell your services to everyone. Go ahead and see if a 9-year old girl will pay your investment. Will a college freshman have the resources to invest in an office building? Both situations are very unlikely. Sorry, you can’t sell to everyone.

2) Who is my Target Market? This depends on what kind of business you want to run. Hopefully, you’ve already chosen a specialty. If not, get to deciding!

3) Where is my Target Market? Most agents choose to target only the people in their immediate area. Meaning they’ll advertise to people within a 1-5 mile radius of their office’s location. This significantly cuts down on drive time and travel expenses. If that market is tapped out (someone else already has that strategy) then you may want to focus on an area you like. Whether you focus on lakeside views, downtown, a particular master planned community, or even general areas like “Southwest,” a regional specialty will provide the best return on your advertising investment.

4) Why should I stick with my Target Market? Ideally, your target market is who you want to work with, so why would you stray? However, just because you’re advertising to a certain market it doesn’t mean you should turn down customers outside of your target. Make money where you can, but advertise to the people you want to work with.

5) You can search properties around you and gather lists of tenants and property owners in your area. This is valuable information! Now you know who to sell to, where they are located, and you can now contact these people. Directly through Amazing Mail, you can send these contacts a postcard or send them a form letter with your corporate brochure.

4.Save from Government Tax

Several provisions in the Income Tax Act, enable you to reduce or avoid paying tax on the gains accrued from the sale of a house

When you make a gain on the sale of a house, you have to pay a tax on your gains. If three years have passed, between the date of purchase and sale of an asset, then, your gain from the sale will be classified as a long-term capital gain. If three years have not elapsed, your gain will be treated as a short-term capital gain. Long-term capital gain is taxed at the rate of 20%, while short-term capital gain is taxed at your marginal tax rate.

5.Hire a professional real estate Brokers that will help you to decide the right property to invest with and help you sell the property faster.

You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost roughly the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.