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Rexsmith

How To Invest In The Growth Of The Philippines

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Rexsmith

General question. How can one take advantage to the growth in the Philippines? I have read and heard that buying apartments here are generally not a good investment. Land is much better but foreigners can not buy it. 

Aside from using the stock market (Philippine ETFs and Philippine stocks) are there other options? 

Thanks

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smokey

Money seems to flow one way here into.  Open a buisness very risky.   Buildings also risky.  Only investment i ever received a profit on has been 5 year tier 2 last few with union bank 

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liquido

Make good friends with a politician....

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Ozepete
47 minutes ago, Rexsmith said:

General question. How can one take advantage to the growth in the Philippines? I have read and heard that buying apartments here are generally not a good investment. Land is much better but foreigners can not buy it. 

Aside from using the stock market (Philippine ETFs and Philippine stocks) are there other options? 

Thanks

The best option is DONT!

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fred42

We invested in property here and got our money back in first 5 years..After that,6 years on an income gravy train.

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Cgu

As you mentioned the property market is growing strong and will grow strong. For stock markets you will have better opportunities around the world.

That leaves you currently with 2 options: Properties and fix income (which currently is quite good).

1) Properties

Land is the better option and you can easily setup a corporation. Do not worry (as I am sure there will comments about that). Just find the right partners and good lawyer. Friends of mine did it and they were fine. Just put a lien on the property and you will act similar as a bank (meaning property cannot be sold without paying the debt first - meaning your debt). But with good partners is not a problem.

I only recommend A-Land. Be prepared to pay a minimum of 30k/sqm up to 120k/sqm. Such land can be sold within weeks with good profit, but at the same time is very hard to buy.

Condos: The same here, I recommend only A-class. Be prepared to pay from 150k/sqm up to 300k/sqm. They are harder to sell as land, but they sell. Stay away from B-class condos (around 50k/sqm). They are attractive in price, but the same might happen as in Manila - ghost towns. They are very hard to sell. Mostly OFW invest in them, but afterwards they are empty and can hardly rent. Selling nearly impossible. C-class would be really good, but you have to a real expert. Mostly it is dominated by big local players.

Rental incoming is not good, except C-lass. The rental is around 6-8% for all properties, but you need to take into account that it might be not rented and you get hit with association fees - so do not count on steady income.

2) Fix income

Currently short time deposits (30 days) are paying 4.9-5.0% NET (payed into your account). Longer term 2-3 years can pay around 6.0% and if you want to put a little risk on it, it can pay up to 7.5% (NET). Advantage is that you are liquid and have not other fees - all net.

Be aware that these are all in PESO terms. In REAL terms is a different story. Per example if you bought a property in 1997 you needed to wait until 2012 to break even. Some properties are still in negative territory.

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smokey
9 hours ago, fred42 said:

We invested in property here and got our money back in first 5 years..After that,6 years on an income gravy train.

We? Key word one puts up the money other takes all the risk of ownership. So condo units unless priced 150 000 sq meter are not good? At that price you already over paid .  how many condo units can be rented and have a roi i think its called in 10 years

Edited by smokey

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fred42
6 minutes ago, smokey said:

We? Key word one puts up the money other takes all the risk of ownership

We= Me + Wife. Married 33 years. 
Does years married = a reduction in risk? Do you have a chart that shows risk reduction per decade?
Thanks..
Depending on your data charts,I`ll decide to cut and run...Or not.

Edited by fred42
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smokey
1 minute ago, fred42 said:

We= Me + Wife. Married 33 years. 
Does years married = a reduction in risk? Do you have a chart that shows risk reduction per decade?
Thanks..
Depending on your data charts,I`ll decide to cut or run...Or not.

You can be married 100 years and in this country your not the owner she is. 

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Province-life

Small business is the only one I'd do.

Land and real estate has been going up fast but no guarantee it will continue to do so. Rent returns are crap, 5 mil condos rent for 20k

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fred42
1 hour ago, smokey said:

You can be married 100 years and in this country your not the owner she is. 

Correct...But if ROI is 5 years as in my case,then that means that I got my original capital back in 5 years plus the gravy and fun for an extra 6 years..
If she kicked me out tomorrow,how would I lose except for the future profits? 
Businesses and marriages fail all of the time..People survive despite it. Live life..Enjoy it whilst you can.
Like me!!

Edited by fred42
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savarity

Well, of course people don't "enjoy it" when something goes wrong.

As far as investing in a nation's growth potential. The way the big funds do it is by buying bank stocks in those nations.

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smokey
11 hours ago, fred42 said:

Correct...But if ROI is 5 years as in my case,then that means that I got my original capital back in 5 years plus the gravy and fun for an extra 6 years..
If she kicked me out tomorrow,how would I lose except for the future profits? 
Businesses and marriages fail all of the time..People survive despite it. Live life..Enjoy it whilst you can.
Like me!!

I do my rental income is 55.000 month and house is paid 4 life is peachy

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fred42
3 minutes ago, smokey said:

I do my rental income is 55.000 month and house is paid 4 life is peachy

 

There ya go!!

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smokey

If i was to do it over i would put any extra in a tier 2 and rent a nice condo get bored move to another nice condo

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