Rental Real Estate Philippines:
Still at this, Dave? Well yes I am because it’s a very important subject to me … for several reasons:
- Everyone needs a place to live
- In the parts of the Philippines I have visited, “decent” rental housing units are few and far between
- Building a multi-unit rental and living in one of the units yourself is an old but very viable real estate technique.
- Many families wonder what will beci=ome if their children after the parents are gone
- Leaving income producing real property to a son or daughter is so much better than passing on cash money, which often gets blown un a few months
- Many readers here are much older than their wives …what we she use to support herself after you’re gone?
My friend Bob started this thread, actually, on his Living in the Philippines web magazine site, when he talked about ideas of things he could invest in now that would be there in the future as something for a family legacy
I’ve written about this several times already myself …see:
While I was out walking yesterday I snapped a picture of the progress on the new townhouse/apartment project I have been following nor for a while … owned by the same fellow who put up the complex I first wrote about a few months back.
I don’t know yet how much these units are going to rent for … as far as I know they are going to be straight rentals and not being sold as condos, but I feel the project definitely enhances my neighborhood.
And in spite of all the hugely overblown news you hear about a “lending crunch”, the banks here in the Philippines are really going after business and home owner loans.
Interest rates and terms are not quite what Americans have grown used to over the past 20 years .. 15 to 20 years are typically the longest and you can expect to pay 12% or so, but then again, mortgages at artificially low rates on property at vastly over-estimated vales are a large part of what got the US in the current mess anyway.
By the way, for those of you from the US who might contemplate something like this now or in the future (of course I am not a tax professional, you should consult your own), according to my readings and to some other research I have done, the IRS does not care where your primary or secondary home is located … you still get homeowner tax breaks even if the property is in the Philippines.
Also, if you build something like this as an investment, I see no reason you don’t get all the normal tax breaks any other investor/property owner gets … including reasonable and necessary expenses to visit your income producing property, taxes, fees, and of course a credit for the Philippine tax which you would certainly be liable for.
Providing decent homes for people who need them and building a solid investment portfolio for your children (no ‘toxic paper” or up and down like a yoyo mutual funds) can not be an all bad thing to do.
Rental Real Estate Philippines could be a solution.