=Real Estate Investors Forum=

[summit012]

Share your real estate investment strategies here.

[SILENTMAX]

heres a thought

if you had a comercial land you could have it leased to earn money and also mortgage the place so you can use the funds in investing in stocks, bonds, treasuries, and business franchises

[marlo_kalbo]

Yes maganda leases kasi you don't have to try and figure out what the vacancy rate is :)

The main problem really, is getting the lease, I mean, it is hard to find a renter once your commercial lot is unoccupied


-marlo

[summit012]

Originally posted by SILENTMAX
heres a thought

if you had a comercial land you could have it leased to earn money and also mortgage the place so you can use the funds in investing in stocks, bonds, treasuries, and business franchises


don't u think this is risky? u mortgage ur property n invest in stocks? what if u mortgage ur property so u can buy a bigger property?

[SILENTMAX]

marlo kalbo
yes that is true. most leases should be 6-10-20 years (im following the ayala procedure)

stocks=calculated risks ( i did not specify only "stocks" but a complete investment portfolio)

i suggest you try reading books about buffet(berkshire hathaway) for more clarity.

what if u mortgage ur property so u can buy a bigger property?
why not :D

[Marvel]

Originally posted by SILENTMAX
heres a thought

if you had a comercial land you could have it leased to earn money and also mortgage the place so you can use the funds in investing in stocks, bonds, treasuries, and business franchises

There are so many options available and it all depends on what kind of development exist around the surrounding areas. It is very important to study which option is best for you at a specific time depending on your equity, needs of surrounding business and investment forecast. If you have a vacant commercial land, you might consider converting it into a business parking lot for the meantime to generate additional income. You have to consider that banks will consider your ability to pay them incase you want to take out an equity loan of that property. That way if the property is generating income, it will be valued/appraised more and that means you can maximize equity on your property (you can borrow more). Next step, depending on the amount of loan you are getting consider again the different options you can do with that money to make more money. From the assessors office check if they have property tax sales, from lending institutions know all the available foreclosed properties for sale, keep your ears open on families or people who have properties who are suddenly in need of money an offer to buy their properties at very good deals. If real estate is doing well buy low and sell high. If the stock market is doing well then invest some of that into it. Diversify your investments be aggressive on the ones that you think are going to do well.
:) :)

[velocity000]

can no down or very little down be done here in the Philippines? and the balance is financed by the seller for period or say 30 yrs.? just wondering:)

[tondo boy]

no down, for 30 years? don't think so..try your dad!:*)

[SILENTMAX]

misc info

bpi does not accept re loans less than 10m (go directly to bpi family, do not pass go do not collect 200)

inhouse financing have high interests


Only Filipino citizens and corporations and associations at least 60% of whose capital is owned by Filipinos may acquire private lands.
_____________________________________________________
Crossing the line from renter to owner
Posted: 3:53 AM | May 13, 2003
Alexis A Acacio, Ph.D.
Inquirer News Service

"EACH one of us dreams to have our own home. When one starts his or her adult life, the first step usually is to rent a small place. As we move on in life and eventually have our own families, we come to a point when we ask ourselves if we are ready to acquire a home of our own. Having rented for so years, we finally would want to cross the line: from renter to owner.

Being prepared

If your goal is to eventually own a home, there is no better time to start preparing than now. Moving from a renter to an owner requires a lot of will power, energy and above all, honesty in dealing with ones' wants and financial capabilities. You have to sort out what you want, what you need and what you can afford for these can be different from each other. The decision to purchase a home depends a lot on your financial preparedness.

Becoming financially ready

Crunching the numbers is one of the most important steps before deciding to move. As an example, if you are paying 25,000 pesos per month as rent now, and then you may ask how much you may be able to borrow from the bank that will require a monthly payment of 25,000 pesos for the next 15 years. If you borrow 2.3 million pesos at 10-percent fixed interest and would want to pay in equal monthly amortization for 15 years, then your monthly payment would be about 25,000 pesos per month. Simply put, paying a monthly rent of 25,000 pesos for the next 15 years is like paying a 2.3-million-peso loan for a property that you will never own.

In moving from a renter to owner, equity is necessary to pay the down payment for your home. If for example you are buying a P4 million property that has a loan to appraised value ratio of 0.6 (which means that 60 percent of the total appraised value can be borrowed from the bank), then you will have to give out 40 percent or 1.60 million pesos as the equity. Raising the equity can become the biggest hurdle in moving from a renter to owner.

Expected rise in rent

Rent, especially in highly urban areas, will continue to go up to catch up with inflation.

Looking at the long term, the main reason you should buy a home is not to save money today but to save a lot of money and accumulate wealth throughout your entire life.

Real estate provides a hedge against inflation and serves a vehicle for the continuous accumulation of wealth. If you think that the monthly mortgage payments are huge, your rental payments will come to match them over time.

Other costs to consider

In buying a home, there are other costs to consider and you should be prepared for these. These costs include:

• Transfer costs-Purchasing a home requires that you pay the necessary government taxes to register the property in your name.

• Move-in costs -- Moving into a new home requires a budget for hauling and transferring. New appliances and furniture may also have to be bought.

• Real property taxes -- As owners of real property, taxes are to be paid on land and its improvements. As a renter, you may not have to worry about these.

• Maintenance costs -- Depending on your contract with your landlord, you may or may not have to worry about the maintenance of your home. But if you own one, you will have to set aside a budget for maintenance. Maintenance costs may not be as high for a new home but gets larger as the structure grows older.

• Taxes on your loan -- Interest payments are now charged the value added tax.

Equity buildup

Over time, as you pay your monthly amortization, your equity in your house will continue to increase since your loan balance steadily decreases.

Even if your home does not appreciate (which very rarely happens), you will be able to own a property that is free from any loan obligation.

As renters continue to spend money on the place where they live, homeowners will become richer through the gradual increase in home equity.

Pride of ownership

Having a home provides a lot of intangible benefits and is the dream of almost everyone. It can serve as a proof of the fruits of our labor.

Once you are locked in to a commitment to own a home, you continuously strive to meet the payments regularly. It may be hard at first but after you have adjusted your lifestyle, payments will be easier.

Making the move

Moving from renter to owner takes a lot of courage. Having assessed your real needs and finances it may be the perfect time to own a home now.

If you have raised enough money for the equity, then you have to think about the monthly payments. If you have a regular job and salary, it would be prudent to set aside a total of 6 months amortization as an "emergency fund" just to cover any unexpected occurrences that would affect your monthly income.

If you are an entrepreneur and your business experiences a lot of ups and downs, then the requirements of your buffer fund may be more.

Not for everyone

Moving from renter to owner may not be for everyone. A reason for not buying or building a home and choosing to rent relates to lifestyle and the profession or job that one has.

If you are always moving because of the nature of your work, then renting may be a better option until you decide to settle in a specific place.

Final note: The down payment may be the biggest obstacle in owning a home and it is wise to start saving now so when the time comes that you have the equity, then you can cross the line from renter to owner.

In borrowing money from the lenders, make sure that you have a healthy credit rating. As long as you have a good track record of paying your debts and obligations on time, then you may be able to borrow the amount that you need to finance your home. "

Alexis A. Acacio is an associate professor of civil engineering at the University of the Philippines. For comments and advice you may reach him at aaacacio@pacific.net.ph.

copyright ©2003 INQ7money.net all rights reserved

[almightyge]

on the consumer end.. check out the R.O.I that you would get upon purchasing a condo or a house...

making at least 7-8% a year is reasonable enough..

take for example a condo unit in PACIFIC PLAZA TOWERS in FORT.

these guys bought their units @ between P20,000,000 - P30,000,000.- and yet, their rental is just between P90,000 - P130,000 a month.. thats just a shade over a million.. not that good right?

how about these guys who bought houses in Dasmarinas village or FORBES.. a P40-P50,000,000 property.. rental is just abt P100,000 amonth.. not that good too..

and the worst thing about these properties.. we only have a small market... then again.. thats on the investment side.. but if you are going to use the property for personal reasons... you are one blessed guy.. masarap tumira sa dasma coz i used to live there... i wanna go back there soon.. when i have the money na uli.

on a positive note, if you are wise enough... buy something that most consumers can afford.. say a P2.1 - P2.5M studio unit in makati.. located near the MAKATI CBD like ayala ave.. rental would be around a shade over P15,000 a month.. its an ayala project ok.. not cityland.. so dont fret abt the rental.. hehehe.. thats a good return of investment.

ibang usapan sa cityland.. you can purchase a studio unit @ 600,000 ata.. R.O.I is much higher kasi its more affordable... quality sucks though... but if its functional.. ok na rin.

best bet is to buy properties @ a very low price.. yung good buy nga kung tawag nila or super affordable ones..

dont bet on the commercial units. medyo di maganda returns eh.. but if your location is great. ibang usapan rin yun.

[tondo boy]

RE is long term investment definitely. Therefore, invest in as much research before spending your money. I agree, three things come to mind both in commercial and personal RE use: location, location, location!;)

[SILENTMAX]

almightyge uy pare musta na!

to anybody looking for re almightyge is a re broker whose friendly, trustworthy and most important of all has integrity (commision ko pare ha..... :) )

pare post ka naman nang mga available mo. sold out na ba verdana?

and also pare my sis is looking to rent a studio/condo/dorm space near dyan sa ortigas do you know of any spaces available?

[summit012]

:)

[Marvel]

Originally posted by velocity000
can no down or very little down be done here in the Philippines? and the balance is financed by the seller for period or say 30 yrs.? just wondering:)

I can say that you can buy a house with no out of pocket expense as long as you can qualify for the loan.

Basically when buying a property, you need money for downpayment, for points and fees. There are times when the seller provides this funds for you but they just add it to the value of the property you are buying, for example;

You are trying to buy a P1,000,000 property

In the Phil, they might ask for a 20% down, 1% for points and P50,000 in fees. 20% is P200,000 and 1% is 10,000. All in all you'll need P260,000 out from your pocket.
If you and the seller can agree, he can take care of the P260,000 in the form of cash given to you but he'll just jack up the selling price to P1,260,000. If your credit rating and income qualifies to pay the mortgage for 1.26 million then the bank will give you the loan.

But then gain there are several other ways too, ask lenders for all the loan programs they offer specially for first time buyers, government assisted loans, veteran loans, historic preservation loans and the like. :)

[velocity000]

:)

[Zeratul]

I just garnished a couple of properties from a client who defaulted on debt. Mayroon sa Bagac, Bataan, sa Tagaytay overlooking Taal, at sa Caliraya, Laguna (malapit kay Rod Ongpauco - dad ni Heart). According to the Sheriff, the Caliraya property rocks!

I am going on a fire sale to dispose of some. Brokers who want to do business, please post your comments.

[norieb]

Originally posted by almightyge
on the consumer end.. check out the R.O.I that you would get upon purchasing a condo or a house...

making at least 7-8% a year is reasonable enough..

take for example a condo unit in PACIFIC PLAZA TOWERS in FORT.

these guys bought their units @ between P20,000,000 - P30,000,000.- and yet, their rental is just between P90,000 - P130,000 a month.. thats just a shade over a million.. not that good right?

how about these guys who bought houses in Dasmarinas village or FORBES.. a P40-P50,000,000 property.. rental is just abt P100,000 amonth.. not that good too..

and the worst thing about these properties.. we only have a small market... then again.. thats on the investment side.. but if you are going to use the property for personal reasons... you are one blessed guy.. masarap tumira sa dasma coz i used to live there... i wanna go back there soon.. when i have the money na uli.

on a positive note, if you are wise enough... buy something that most consumers can afford.. say a P2.1 - P2.5M studio unit in makati.. located near the MAKATI CBD like ayala ave.. rental would be around a shade over P15,000 a month.. its an ayala project ok.. not cityland.. so dont fret abt the rental.. hehehe.. thats a good return of investment.

ibang usapan sa cityland.. you can purchase a studio unit @ 600,000 ata.. R.O.I is much higher kasi its more affordable... quality sucks though... but if its functional.. ok na rin.

best bet is to buy properties @ a very low price.. yung good buy nga kung tawag nila or super affordable ones..

dont bet on the commercial units. medyo di maganda returns eh.. but if your location is great. ibang usapan rin yun.

Great post! Thanks:)

[velocity000]

:)

[gurlreader]

Hi All,

These condos have been advertised on The Filipino Channel here in the US and I was wondering if this is a good buy in terms of location and is this type of structure (highrise condo near rockwell) in demand by renters?

How much rent can a studio or 1 bedroom go for near rockwell?

Is it near the Makati business district?

Thanks in advance for any comments.

Here's the link with prices. Would like to hear your thoughts. Thanks.

http://www.e-rockwell.com/html/manansala/m_home.htm

[twisted28]

gurlreader,

these condos are really nice and the prestige to become a member of the Rockwell community is really great! that is if you have money to burn. In terms of location, ang ganda talaga! the place really rocks! You also get free membership at the Rockwell Club!

since the manansala is a 1st class condo, it costs a lot to maintain it. check out their association/maintenance fee, from what i've heard its like renting a small apartment.

probably, if you're tired of living in the States, you've amassed a small fortune and you would like to live like a king, then this is the right project for you.

[SILENTMAX]

Originally posted by gurlreader
Hi All,

These condos have been advertised on The Filipino Channel here in the US and I was wondering if this is a good buy in terms of location and is this type of structure (highrise condo near rockwell) in demand by renters?

How much rent can a studio or 1 bedroom go for near rockwell?

Is it near the Makati business district?

Thanks in advance for any comments.

Here's the link with prices. Would like to hear your thoughts. Thanks.

http://www.e-rockwell.com/html/manansala/m_home.htm


as twisted have said it is expensive.

i read something about 4-7 months ago of a group of people forming to stop the added increase in maintenance cost of rockwell condominiums, they said that they were having problems coping with the living cost associated with their residence in rockwell.



personally i would suggest looking for other alternatives :)

try to contact almightyge he has some condo's available in ayala district. its called "columns" by ayala properties. imho this is a much cheaper alternative since this is targeted for the yuppies and not for the balikbayans or expats/foreigners :)


pareng ge..... commision ko ha ;)

[President]

Discuss Real Estate Issues here.

[Zeratul]

To all realty brokers out there, please enlighten us:

1. What book(s) do you need to review for the REB exam?
2. What seminars do you need to attend prior to application?
3. Where can you apply for REB license? DTI-Makati?
4. Does the REB have both written and oral components?
5. Are insurance/bank employees banned form licensure?
6. How often is the REB exam administered?
7. How is the passing rate?

[summit012]

Originally posted by Zeratul
To all realty brokers out there, please enlighten us:

1. What book(s) do you need to review for the REB exam?
2. What seminars do you need to attend prior to application?
3. Where can you apply for REB license? DTI-Makati?
4. Does the REB have both written and oral components?
5. Are insurance/bank employees banned form licensure?
6. How often is the REB exam administered?
7. How is the passing rate?



ok, let me try to ans ur question.

2. You can attend the review classes given by some broker's association.
3. Dti Makati
4. written exam
6. I believe its once a year.
7. 75%

[SILENTMAX]

pnb auctioning of closed assets

starting bids for trece lots 50k was in last sundays buliteen

100sqm

for the price of 2 cell phones u get a land of your own

[Iron_Mask]

Originally posted by SILENTMAX
pnb auctioning of closed assets

starting bids for trece lots 50k was in last sundays buliteen

100sqm

for the price of 2 cell phones u get a land of your own

Really, sa Cavite ba ito?

[velocity000]

do u know where exactly in trece it is? im not familiar with cavite, ok pa ang trece? how far it is from manila?

[SILENTMAX]

actualy im not sure where in terece it is ***** sa ka dulu duluhan nang mundo

but for 50k? why not diba?

forclosed assets of the pnb was in sundays news paper

meron rin mga 500k to 3m pero dun lang ako sa 50k kasi yung lang ang abot kaya

theres 4 lots na ganun min bid

[summit012]

I feel its quite risky to get in to real estate if your goal is capital gain, atleast for a novice. God knows when it will appreciate. :)

[SILENTMAX]

ok lang yan basta masabing may lupa :)

sometimes i dont think about the money
i just do it becouse its something to put my money in

if i didnt put here cgurado sa kotse ko nanman gagamitin to pang setup and it already gives me a headeache when i remember how much ive spent on my car.

btw i do own some real estate. and at least i know di ko na magagalaw yun.

[BabadSaComputer]

Originally posted by velocity000
do u know where exactly in trece it is? im not familiar with cavite, ok pa ang trece? how far it is from manila?
Sa dulo na ng Cavite yung Trece... Yup, mura talaga yung mga lupa diyan. May nakita akong foreclosed lot ng BPI sa Trece din. P100 lang, may lupa ka na.... 1 sq. meter lang nga... :glee:

[SILENTMAX]

trece is 20 mins away from the new sm dasma.
15 mins away from robinsons dasma.

[summit012]

are there future development plans in Trece? inside info naman.

[summit012]

up

[Carpe_Diem_Z]

Originally posted by summit012
are there future development plans in Trece? inside info naman.

Trece Martires City was the seat of government of Cavite until it was transferred to Imus.
Location wise it is very near to Tagaytay (around 15-20 minutes)

To learn more about our province -> http://www.cavite.gov.ph
Here's a map of Trece -> http://www.cavite.gov.ph/menu/general-profile/maps/trece.htm

[Carpe_Diem_Z]

Originally posted by Carpe_Diem_Z
Trece Martires City was the seat of government of Cavite until it was transferred to Imus.
Location wise it is very near to Tagaytay (around 15-20 minutes)

To learn more about our province -> http://www.cavite.gov.ph
Here's a map of Trece -> http://www.cavite.gov.ph/menu/general-profile/maps/trece.htm

CORRECTION: Cavite's seat of government is still in Trece Martires City, but the Provincial Capital is Imus.

:)

[President]

any other opportunity?

[President]

up

[summit012]

up

[summit012]

up

[dexyulim]

hi guys, i need a property within metro manila with priority near makati where i can park at least 4 trucks. around 500 sq.m. for LEase lang and sana affordable. =)

also, if any one has a property / building along edsa that i can lease for billboard purposes, please let me know. thanks.

you can reach me through 0917-5283990 or dexyulim@broline.com

[j_l_uy]

Hmm.. no more new info? I planning to do some real estate investing (that is.. after I have my own home :)) Anyway, guys.. did you see any more interesting lots (commercial or in provinces with great potential) to buy?

[jakesneigh]

hi guys, i need a property within metro manila with priority near makati where i can park at least 4 trucks. around 500 sq.m. for LEase lang and sana affordable. =)

also, if any one has a property / building along edsa that i can lease for billboard purposes, please let me know. thanks.

you can reach me through 0917-5283990 or dexyulim@broline.com

ano ba ang going rate for lease?

[gumacanian]

CORRECTION: Cavite's seat of government is still in Trece Martires City, but the Provincial Capital is Imus.

:)

What are the latest average land prices in Imus in close proximity to Robinsons? Last few years it has been around 3/3.5 K per sq mtr
Also..Is there land in this area available for lease? What are the lease terms and how much would I have to expect to pay?

pnb auctioning of closed assets

starting bids for trece lots 50k was in last sundays buliteen

100sqm

for the price of 2 cell phones u get a land of your own

Can you still bid on land this cheap??
BTW..Nice thread!!

[j_l_uy]

Can you still bid on land this cheap??
BTW..Nice thread!!

Agree... I have been reading newspaper concerning bank's closed assets and I have not found one that cost only 50k! D***.. what a wasted opportunity. :kyle:

[omeng]

Dang! merong palang thread na ganito. ayus! ako'y isang maglulupa din!

[simoen]

i like this thread!

i'd like your opinion on something. oxford suites in makati is selling studio type condo units for 2m less (i'm not that sure). is it worth it? lam ko maganda amenities nila and service as a hotel but pag condo, ganun din sila? i noticed there are several condos for rent din across oxford suites. in fact, ang laki nga ng sign nila e. so i wonder *** d na uupahan yung mga condos across oxford? if (a big, big IF) i buy a condo in oxford, what are the chances na mauupahan agad yun if yung sa harap nga lang ndi na rerent?

right now, i just wanna learn the tricks in real estate investing like looking at the environment, etc.

[j_l_uy]

right now, i just wanna learn the tricks in real estate investing like looking at the environment, etc.

Same here. Can anyone suggest a book where we can learn the real estate investing basics? Silentmax, omeng and others :depressed: :)

[trizfores]

Same here. Can anyone suggest a book where we can learn the real estate investing basics? Silentmax, omeng and others :depressed: :)

i think i saw one book in a bookstore sometime ago, but then i don't think that they help all the much. i learn by going around and asking certain people like different brokers about certain projects. the market changes from time to time, so i think it's best to get help from experts of some sort from time to time.

[gumacanian]

i think i saw one book in a bookstore sometime ago, but then i don't think that they help all the much. i learn by going around and asking certain people like different brokers about certain projects. the market changes from time to time, so i think it's best to get help from experts of some sort from time to time.

Exactly.. Are there any here?

[trizfores]

books? there are a few in the bookstore. like national has them in the business section, but look in the pinoy published books.

[gumacanian]

No..Not books!!
Experienced PEX property investors..
Perhaps Im barking up the wrong tree!!

[pexxerdoc]

^^Hmm..my question too.

[omeng]

Same here. Can anyone suggest a book where we can learn the real estate investing basics? Silentmax, omeng and others :depressed: :)

Read pareng donald books.

[gumacanian]

^^Hmm..my question too.

See!! Im not alone!! Its not like we are too busy playing golf all day..Is it Doc?:lol:
Seriously though..Im not sure we will find any of them here..Sigh. :depressed:

[trizfores]

i'm young and i have a little experience with real estate investing since it's a family business. still, i'm trying to do a few things on my own (just started recently). so, i don't know exactly what to say. it does depend on certain scenarios.

my advice is to talk to a bunch of brokers so you have a lot of options and opinions as well. then, take all that, and then weigh all the best options that they have. it's not too hard to ask around.

[gumacanian]

trizfores..thanks for that..
What have you just started doing? (if you dont mind telling)

[trizfores]

with what little i have (but then for some, it may be a lot) i recently purchased a studio unit at ayala columns. and it's an investment for me. passive income in the future when it gets rented. obviously bought it during preselling period, but i might sell it when it's done. prices do go up quite a bit. but then i highly doubt that i might sell it. it's a long term investment. for me, passive income is key for me.

passive income = money coming in without doing anything

[gumacanian]

passive income = money coming in without doing anything

Sounds bliss to me!!:smoker: Good move!!

[trizfores]

Sounds bliss to me!!:smoker: Good move!!

thanks. focusing on it

should read rich dad poor dad. i learned from it :)

[gumacanian]

I am assuming that you paid anything between 2/3.5 mil for such a unit?? What kind of monthly return does that offer and how does that compare with a tax free high rate bank deposit..( KD once said that one bank offers 10% if funds locked away for 5 yrs tax free) ?? Also..How much does the unit appreciate annually on average over lets say 10 years?

[trizfores]

yes i paid around that much. well, for studios that exist now in condos near by 15 k at least for rent. i can get an average of 15k a month (not furnished) and with the ammenities, calcualtion... at least 20k if i do furnish it up a bit. pricing terms of the appriciation, during its preselling time, after one tower was sold, the other went up by 3% if i'm not mistaken. for the 10 years though, i forgot. anyways, the good thing is the the real estate market is going up a little. hopefully back to its peak in 1997. never know. i also got it so that i can call the place my own if i ever want to live there.

i do have a few other investments, but, i don't think that i'd like to lock my money up for 5 years. never know what may pop up. at least with the condo, i can sell it if ever. i don't plan to put all my money in properties. like the saying goes: don't put your eggs in one basket.

[trizfores]

bumping it up

[orangepink]

some people are asking me if i know anybody who wants to buy their family-owned properties so i thought ok din yun RE for sideline.

i started posting ads on the internet. so i was thinking would it be feasible if i put up a website for that?mga 5k below lang nmn yung annual cost ganun na site.

my goal really is to reach a wider audience. karamahin kasi sa sumasagot sa online ads are foreigners. that's why i thought of putting up a website then lagay nlng ko sa google ad-sense/ad-words. what's your opinion? thanks!

[angelface49]

which is wiser investments - condo or lot in a exclusive village?? this is my dilemna - i usually look at the long term benefits.. but 5 years down the line, if the market price is high, i might sell it.. which is easier to sell, condo or lot ?

[gumacanian]

angelface49 ..Good question! I for one cannot answer but I guess it depends on who you will market the property to once the price has gone north.
Foriegners may be more interested in the former because a condo is something that they are allowed to own in the Philippines..
It would be nice to find out the areas in which houses/lots/ sell the quickest..Also if the sale is usually cash or instalment depending on the area..

[gumacanian]

some people are asking me if i know anybody who wants to buy their family-owned properties so i thought ok din yun RE for sideline.

i started posting ads on the internet. so i was thinking would it be feasible if i put up a website for that?mga 5k below lang nmn yung annual cost ganun na site.

my goal really is to reach a wider audience. karamahin kasi sa sumasagot sa online ads are foreigners. that's why i thought of putting up a website then lagay nlng ko sa google ad-sense/ad-words. what's your opinion? thanks!


I cant see why not!

[gumacanian]

Why is it so much cheaper in Thailand??

[snop]

Same here. Can anyone suggest a book where we can learn the real estate investing basics? Silentmax, omeng and others :depressed: :)

Or you can try searching the www. Here's a link. (http://moneycentral.msn.com/content/Investing/Realestate/P39214.asp?Printer)

If you're cut out for it, life as a landlord can be quite profitable. But success isn't assured. Here's what you need to know before diving in.

The idea of owning rental real estate seems to be gaining popularity here and abroad as investors tire of the swoops and swoons of the stock market. Those who are interested may find rentals to be a good way to build wealth and thus earn passive income.


How to find good investment property Basics By Liz Pulliam Weston

Excerpts:

Once you’ve made the decision to buy rental property, your real work begins. Finding a profitable rental property usually takes time, connections and plenty of research.

Know your time horizon

As with any other investment, you should have a good idea how long you plan to own a rental property before you buy.

The longer you plan to own the property, the more you’ll probably need to invest in maintenance, repairs and improvements.

If you’re keeping it for 20 years, at some point you’re going to be putting a new roof on that property. You’re going to be putting in new appliances and doing some major repairs. If you’re only planning to own a property for five years, by contrast, you’ll probably want to avoid making any major improvements unless you’re sure you can recoup the cost with a higher sale price.

You also may face more investment risk with a shorter time horizon. Although your rental will almost certainly appreciate over 20 years, it could easily lose value in the next five, particularly if you’re buying in an overheated market. You’ll need a bigger potential annual return to make up for that risk.

For many small investors, long-term ownership makes the most sense, said Pat Callahan, an attorney, landlord and founder of the American Association of Small Property Owners. You’ll have plenty of time to ride out any swings in the market, and rental income can make a nice supplement to your day job. Find enough rental properties, and being a landlord may become your day job.

Develop a network

Experienced landlords find their properties in a variety of ways. Some hunt for foreclosures, making friends with city hall clerks or bank employees who know which properties are about to be sold. Some run ads in local newspapers. Others work with real estate agents who keep their eyes peeled for possible buys.

“When you begin to own rentals, all the other investors start coming out of the woodwork,” said Sean Hoppe, a landlord in Pottsville, Pa., who owns 11 properties. “Through investor meetings, networking, etc., I can find out what is for sale.” (Hoppe, by the way, is 25 and hopes to retire from his job as a computer consultant in three years.)


Get your finances in shape

The better your credit, and the less credit card and other consumer debt you have, the better your prospects for getting a decent loan, Callahan said. Lenders usually require bigger down payments, higher interest rates and generally stronger finances when you’re buying rental property. That’s because they know people are more likely to default on investment property than they are on their own homes.

Landlords say it also pays to have a substantial cash reserve left over after buying a property. This can help pay for unexpected repairs and vacancies. Although there are few rules of thumb, setting aside at least one month’s rent for each unit is a good start. CPA Paul Berning suggests having a line of credit, secured either by the property or your own home, to cover larger costs.

You also should make sure you can save enough for retirement and other goals before investing in rental real estate. While rental income can supplement your retirement kitty, most people shouldn’t count on it to replace other investments or allow themselves to be entirely exposed to the whims of the local real estate market. Rents and property values can fall as well as rise, and those who are adequately diversified with investments in stocks, bonds and cash will be better able to endure the bad times as well as the good.

Avoid overpaying

As one experienced landlord put it: “You make your profit when you buy a property, not when you sell it.” Pay too much, and you’ll never recoup as much as you could have had you driven a better bargain.

The rental real estate market is generally tougher on investors who overpay than on homeowners who do the same thing, several landlords said. While a home is often an emotional purchase, which can lead to “I must have it!” offers and bidding wars, most landlords look strictly at the numbers to see if their investments will pay off. If you pay too much for a rental, you can’t count on a “greater fool” coming along later to bail you out.

Some landlords use formulas, such as not paying more than six to eight times the rents they expect to make the first year. Others try to estimate what the property could be worth after needed repairs and upgrades are made, and they don’t pay more than 70% of that price, less the cost of those repairs, CPA Berning said.

Every real estate market is different, however, and these formulas may not work in your area.

What’s key is to make sure your rental income will cover your out-of-pocket costs, Berning said. That includes the mortgage payment on the property, as well as taxes, insurance, maintenance, repairs and a vacancy rate of around 5%. (If you have five units, for example, you should expect at least one unit to be empty three months each year. Here’s the math: 5 units times 12 months equals 60; 60 times .05 is 3.)

If you can at least break even, you’ll be able to profit from any price appreciation as well as from tax breaks available to rental property.

When crunching the numbers, you should know that there’s a big difference in how repairs and improvements are treated for tax purposes. You can typically deduct the cost of a repair, such as patching a roof or fixing a leaking pipe, on your tax return for the year in which the repair is made.

Replace that roof or those pipes, however, and it’s typically considered an improvement, which means the cost can’t be deducted. Instead, it’s added to the amount you paid for the property to determine your tax basis when you sell. The higher the basis, the lower your taxable profit. But if you have to wait 20 years after making a major improvement to recoup any of the cost for tax purposes, you may think twice about buying a property that needs a lot of upfront work.

To better estimate your costs, get a thorough inspection before you buy a property. Some landlords have favorite electricians, plumbers and contractors that they send to any prospective property, promising them that they can do any repair work they find. Others use professional inspectors they trust.

Longtime landlords say all this work pays off in profitable properties that build their net worth while providing a steady income stream.

“It doesn’t matter if you’re a professional or a laborer,” Callahan said. “It’s the equal-opportunity wealth builder.”

While this article was written for American readers, I find most of the author's insights are applicable also in the Philippines.

Source: MSN.Money (http://moneycentral.msn.com/Content/Investing/Realestate/Realestate.asp)

[gumacanian]

How would you describe the current Philippine property market snop?
Hot?Cool? Hotting up? Cooling down?no change? Depends mainly on area/location?
If you had a new affordable house for sale in lets say Las pinas or Cavite,how long would you expect it would take to sell?? Best case,worse case,average?
Also,what are the odds of getting a cash deal against the odds of a installment deal?
If installment,what are terms likely to be? Deposit % of total?Monthly Payments? Over what period?

[snop]

How would you describe the current Philippine property market snop?
I’ve been always bullish on the Philippine Real Estate. Reasons include the relative affordability of the properties if dollars/pounds/euros are used vs pesos, the dwindling availability of raw lands, and the potential investments coming in from OFWs, balikbayans and new dual citizens.

Hot?Cool? Hotting up? Cooling down?no change?

According to the RE experts (IIRC, antediluvianist is one) posting in FinanceManila, the property rental market is cooling down. Sale of newer condos esp. in Fort Boni and surrounding areas are heating up. Nonetheless, he was talking about Makati and nearby barangays.

In our poor neck of the woods, Sucat is so-so or no change. The two vacant lots @10K/sqm adjacent to our house are up for sale for two years na. There's no buyer yet! The owners are in the states seemingly in no hurry to lower their selling prices.

Depends mainly on area/location?
Most probably. Cavite and Las Pinas may be another story. Don't you think that MetroManila is expanding centrifugally out to the peripheral areas near Bulacan, Cavite, Laguna, etc.?

If you had a new affordable house for sale in lets say Las pinas or Cavite, how long would you expect it would take to sell?? Best case, worse case, average?

I really have no idea. We’re into looong-term buying not selling. If Cavite and Las Pinas are like Sucat, my guess would be the same: so-so no change at this time but consider this: we've only been here four years.

[QUOTE]Also, what are the odds of getting a cash deal against the odds of a installment deal?IMHO, very poor. I'd bet installment, hands down! Who's got the money to pay cash, anyway?

If installment, what are terms likely to be? Deposit % of total?Monthly Payments? Over what period?Guess ko lang: 15 - 20% down. 30% of total 3 - 5 years to pay. But that's just me. The lending banks may have other more stringent requirements.

[Papichulo168]

How about condotels? Most sellers' selling point for condotels is that your unit earns revenue for you when you're not using it.

[Mr.D]

How about condotels? Most sellers' selling point for condotels is that your unit earns revenue for you when you're not using it.

The family bought a condotel unit in the mid 90's, the management guaranteed atleast Php. 8,000.00/ month income. Then the property crisis hit, so the Php. 8,000.00 income was not sustained. We tried renting it out by ourselves and was able to rent it out a little higher. Our tenant stayed for about 4 years. Its now again being rented out by management, averaging around Php 4,000.00/ month. If your able to rent it out by yourself and have a year's contract that would protect your investment from the seasonality of the hotel industry.

[omeng]

guys, what do you think of investing in a build and sell (residential) project and earning at a 10% profit(in a span of 12 months)?