'Good Utang' vs 'Bad Utang' Sharon Cuneta shares lesson on Real Estate Investing

Sharon Cuneta continues to be an inspiration to many, whether she’s talking about her incredible weight loss story, parenting style, or marriage. And now, she shares insights on other important topics like adoption, money matters, and real estate investing.

Savings should always be a top priority.

 “Ang tao hindi yumayaman sa kinikita niya lang. Yumayaman tayo sa naiipon natin,” says the Megastar. She gives an example: if you earn Php10,000 but your expenses amount to Php8,000, and you spend half of that on luxury items, then you need to review your priorities.

Don’t invest your money if you don’t know anything about the business.

 Sharon considers herself knowledgeable about real estate and admits that it’s where she puts most of her earnings. Not only did she learn from her late father, who made money buying properties in Philippines, renovating, and then selling Philippine properties at ahigher value, but she also had the chance to talk to real estate and financialexperts to get their advice on investments.

You’re not wasting money when you rent.

 A lot of people think that renting a house in Philippines versus purchasing a home is like throwing away money, but Sharon disagrees. After all, Sharon spent five years renting a condo with daughter KC Concepcion when Sharon and Gabby Concepcion separated.

But having a property to call your own is still the best investment.

 It doesn’t matter if it’s a small house for sale in Cebu, or a studio unit in Pasay — if you have the opportunity, buy your own property. “Pagdating ng araw, tataas ‘yung value nun. Ibebenta ninyo, kumita pa kayo.”

The most stable businesses for the Megastar are food, shelter, and clothing. 

The shelter is real estate. “Pero ang pagkain, madetalye at mabusising negosyo,” Sharon clarifies. But if you have a knack for it, say, you have one specialty, you can try and make a business out of it. It’s a nice “raket” for stay-at-home moms: post it online, get orders, and if people like it, more orders will come through.

There is “good” utang and “bad” utang.

Sharon doesn’t see bank loans and interests as bad. If you’re asking for a loan to purchase a house, you are loaning the time when you can enjoy living in the house while paying for it at the same time. “If you know your earning capacity, that’s a safe investment,” she says.

However, if you’re going on debt to pay for luxury purchases, then the Megastar considers it a “bad” debt. Don’t prioritize items that you use as status symbols — make your necessities the priority.

This story originally appeared in Real Living PH

* Minor edits have been made by the Earthauz.com editors.