Rental property formula,... turning a profit?

[smokey 21,911]

This whole discussion was about how much it would cost to BUILD a house here- no one was talking about the cost of buying a house and lot.

 

Faluango said that you can build a 70 sq m house for 850,000 - and I agree with him. In fact I said i can build a 70 m house for 750,000- and i posted pictures of one that i have already built , along with pics of the floorplan of ones that I am about to build

 

What i think is misleading, and what has caused this problem with people believing some posts - is that the picture that Faluango is NOT of a 70 m house. I would say that it is more like 100 m . And my cost to build that would be about 1,100,000

 

 

 

but dang does it come with marble floors?? is their stained glass shower doors? what about the kitchen stainless steel refrigerator and can it be rented say 8,000peso no lease

[Brucewayne 3,803]

Could you PLEASE show me EXACTLY where I can get a place like this for P850,000? The places I have seen for P850,000(E14,500/$20,000)have been 1/3 that size(25-30 sq. mtrs.)and are quite laughable.This seems actually do-able for that price.

 

 

It does look like a very nice plan.

[Cuda 54]

Exactly, if you worked hard all your life you deserve to retire in style and spend that extra 6000 pesos per square meter.

 

Just what I want to say is that you can get a decent single storey house with Filipino kitchen and bathroom for 12,000 PHP per square meter, like this:

 

 

So 70 m² would cost you a approx 850,000 PHP

 

This is a very nice design .Is it build in Cebu city area ?

[Faluango 119]

This is a very nice design .Is it build in Cebu city area ?

 

I found this picture online on a Dumaguete real estate website. Real estate is very well priced in those areas compared to Cebu city.

[smokey 21,911]

I found this picture online on a Dumaguete real estate website. Real estate is very well priced in those areas compared to Cebu city.

 

 

 

and there is a reason for that ???? location location .... the same reason a 2,000 sq foot home in the middle Beverly Hills california.. cost more then the same home in mayberry SC

[Faluango 119]

and there is a reason for that ???? location location .... the same reason a 2,000 sq foot home in the middle Beverly Hills california.. cost more then the same home in mayberry SC

 

Yes, but if you look at it in another way: Dumaguete might be a better location than Cebu city / Talisay area. Why? Because it's more livable, no traffic jams, less crime, less pollution and prices are much lower.

[smokey 21,911]

Yes, but if you look at it in another way: Dumaguete might be a better location than Cebu city / Talisay area. Why? Because it's more livable, no traffic jams, less crime, less pollution and prices are much lower.

 

 

 

i can not speak for anyone but ME but many people who are raised in a larger city find the quiet and slowness to be shall we say depressing , i think personally cebu is slow compared to manila , if you are a roamer you would drive to the city every day and that would make the cost of living in the outskirts very high in time and gas..,,, i think most people who spend a life time working and as they say at rock and roll speed think living in the outskirts will be nice but when reality hits its for many boring.. in cebu on a 7 day week i would stay home maybe 1 day a week and that day killed me with boredom,,, What you think you will enjoy as a life and reality are often far apart so better to rent for a while,

 

 

and an easy test for yourself to see how well you can handle all the quiet is go out about 3 miles into the ocean on a boat and try to live there 2 weeks

Edited June 22, 2012 by smokey

[Brucewayne 3,803]

and there is a reason for that ???? location location .... the same reason a 2,000 sq foot home in the middle Beverly Hills california.. cost more then the same home in mayberry SC

 

 

Actually, I would love to live in or around Duma and would love the solitude.

The problem is that so many items are hard to get and the hospitals have such poor reputations.

I am sure that if I went sooner rather than later, it would be best because all the good, inexpensive places would all be gone before long, but try to tell my wife that!

Edited June 22, 2012 by Brucewayne

[Cuda 54]

I found this picture online on a Dumaguete real estate website. Real estate is very well priced in those areas compared to Cebu city.

Have you visited Dumaguette yet ? I will take a trip there later this year.

[senseless 966]

I am trying to figure the formula of rent versus investment on homes in the Cebu area.

 

 

Hypothetical question; a 100sq.m. property is bought for P160,000 and a 60sq.m house is built for P90,000 that is a P250,000 investment.

What is the formula for deciding the rent on this house?

I have heard one should bring in 100% of the original investment within 3 years and with maintenance, taxes and insurance, one should start turning a profit at about 5 years.

That would mean that one would have to charge about P83,000 per year, or P7,000 per month (roughly).

Sounds a bit high to me, but this is what someone in Philippine rental properties told me.

I was thinking it could be that the property is too expensive to support the P90,000 house at a rent that would justify the investment, or the property investor I talked to has the wrong figures.

It could also be that I am just thinking too frugally, but I really would not be able to see myself paying rent at that level for such a small house and lot.

Hopefully someone can set me straight here, as I have not got a clear picture as to how the rental business is done here.

 

Here is the formula... List it different places at different prices, and see what the most you can get for it is. Then see if the renter will let you jump up the rent on them after they move in on the next lease agreement. Because, you know, moving is a pain in the ass, so the land lord already has you over a barrel. Try to jump up the rent by 10% per year.

[smokey 21,911]

Have you visited Dumaguette yet ? I will take a trip there later this year.

 

 

 

reminds me of car car .... and downtown every person in the world has a smoke belching bike... years ago i heard the biggest bike dealership was the mayors... i did not see any trikes..

[Brucewayne 3,803]

Here is the formula... List it different places at different prices, and see what the most you can get for it is. Then see if the renter will let you jump up the rent on them after they move in on the next lease agreement. Because, you know, moving is a pain in the ass, so the land lord already has you over a barrel. Try to jump up the rent by 10% per year.

 

 

Ouch!

That's what some landlords here do.

Thank goodness our rent is locked in as long as we stay here.

[senseless 966]

Ouch!

That's what some landlords here do.

Thank goodness our rent is locked in as long as we stay here.

 

It's how our rent is ATM. Got jacked up 10% on the last lease renewal.

 

But at least we can deduct repairs. So there is lots of stuff I've been doing and just deducting it from our rent. Adding exterior lights, insulation, aircons, etc.