Tips and Tricks from Cambodia

Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

December 3, 2015

About a year ago, in August 2014, I blogged that I had bought my own solo property in Kampong Speu province. It wasn't a brag. My only sole purpose is to inspire others and to share tactics to accumulate more wealth as I had been inspired by other successful people.

Today I blog about how I've bought a house (Just booked by now). So, this blog is more about my imagination and steps that I am going to take to accumulate this house.
Actually, I went to make the first deposit yesterday on December 02, 2015. The first deposit was $10,000, and I will still have to pay another $130,000 because the former owner agreed to sell for $140,000. It was reduced to this price after 2 weeks negotiation.

This post will explain to you what this house is and how I am going to get it, with the help of others.

Cost of the house:
It costs $140,000. It is not possible for me to buy this alone. So, it's me and my mum together we pay for this. It's $70,000 for me and $70,000 for her. I am not going to mention in the blog how she gets her part, but mine alone. So, basically, I will need to have $70,000. And this is how I am going to get it. (Not successful yet!)

My wealth by now:
- $23,000 (I expect to get this amount if I happen to sell the land I bought earlier in August 2014)
Link to article about the land
- $2,200 (Cost of half a hectare rice farm I bought last year, I do not know how much it costs now)
- $20,000 (I have this in my bank account as I got this from wedding gifts by guests on my wedding day)
- $8,000 (If I happen to get this from tong tin)
- $1,724 (Salary per month)
- $5,000 (Loan from Grandma from USA)

From the amount shown here, it clearly shows that it is impossible for me to rush to sell my property and get the $70,000 because by now I only have $20,000 in my bank account.

So, I approach a bank for the other $50,000. I have collateral for this loan. I got a special interest rate at Mega International Bank. I got this rate $58/month per $10,000. Thus, I'll have to pay $290 interest per month. The rate will decrease as time goes by and as borrowed capital decreases. I am going to repay this capital and interest in installment.

At the same time, I will start selling my properties but no rush. By the time I sell my land plot, I will have $23,000 extra. I will probably lend this $23,000 to someone who is in need for an interest of $100/month per $10,000. So, it will help me pay off the bank too. The reason that I won't use this $23,000 to pay back to the bank directly is that I could get an interest rate at $100 or $150 if I happen to lend it to others.

Also, since the house is in good location. And former house owner used to rent it for $350 per month. I expect to rent this for $400 per month. Thus, it may also help my repayment with the bank. But if I get $400 per month, I will share with my mum. So, I'll get $200 per month from rent.

If everything goes on well, I'll have the house (half of the house). And if the price of the house increases a lot, I might sell it and share half with my mum to find somewhere I can afford to buy alone later.

Phewww!! It's going to be an interesting financial journey for me! Invest!

House location:

The house size 7m*12.5m

Update, November 17, 2016:
It has been a year since I bought the house. I rented it to a tenant for $400 per month 8 months but she already moved out (I got $3200). So, it helped my loan repayment which is $1800 per month, that means I had to pay $1400 per month after deducting monthly $400. Since $1400 is for me and my mum. I alone had to pay $700 per month for my part.

Let's talk about the money I had prior to purchasing the house
+approx $25,000 I have not sold the land in Kampong Speu. Link to article about the land
+$2,200 land. This land is still there.
+$13,000 (Not yet get from tong tin)
+$1,760 (Salary per month)
+$5,000 (Loan from Grandma from USA) - Grandma said she gave us. So, no need to return, but I used it to pay for the house also.
-$20,000 (I have this in my bank account as I got this from wedding gifts by guests on my wedding day) - This money has gone for purchasing the house. So, no more to consider.

Since we have had this bank loan, we have repaid about $10,000 in one year. 6 more years to go.
Whether I can sell this house or find a new tenant, I do have a plan to buy another house which cost around $40,000 in 2017.

August 17, 2014

It is definitely one of the time that I have to remember later and thus, I have to include in my personal blog post. Mainly, it's for my own mark.

On Saturday, August 16, 2014, I went to Oudong, Kampong Speu with my mum to see plots of land if it was worth buying. 

In deed, we found one; and it's all for myself.

The land is located on National Road No. 44, 4 kilometers after turning left from National Road No. 5. 
The road 130 kilometers long and the plot is located on the corner of National Road 44 and a small paved road leading to villagers in that area. 

The size of the land is 20m*60m. There is a small house inside, totally livable. There is a well, and many trees, especially mango and longans, and the plot was filled with land already almost about the same height to the road.

Price of the plot: $1,3000, bought on August 16, 2014. 

I hope this investment will lead me to making my first million before reaching 35 years old. 

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