A while back I did an article about how a local entrepreneur took a couple lots with run-down old houses on them and made a very nice apartment complex that will earn him money for life. Not quite passive income in the Philippines but well within the reach of many folks who write in saying, How can I support myself/start a business in the Philippines.”
But there was an investment required that might be too steep for some, so I have been keeping my eyes open for opportunities that require a smaller outlay.
Also, many, many people want to know where they can rent homes for longer than they would want to live in a hotel room, but shorter than average six or twelve month leases. Oh, and fully furnished with all utilities ready to go and amenities readily at hand, if you don’t mind, too, ok?
Recently I was in Subic again on some family business and we stayed at a hotel I have used before, the Bay Front. It’s moderately priced, PhP 3100 per night … about $73 USD at today’s rate … more or less Motel 6 rates back there in the States, these days.
But while driving about I saw a very impressive looking condominium place and decided to stop in and check out. I figured it was way outside my price range, and when I saw the amenities already there on the property I though that was the case even more so.
But I am so glad that Charles, one of the assistant managers, took the time to walk me through their programs. This place is a good deal, well worth checking into, literally or figuratively.
The basics are the developer is putting up a number of three-story buildings holding condominium units of various sizes, from one-room “studio” units to quite spacious three bedroom suites. All come absolutely complete down to the furniture, ready for the new owner to move into. Prices start at PhP 1.8 million und run up to about PhP 8 million … very reasonable for the amenities, the clean air, the esecurity, views etc. A unit of comparable size, could you find one, would go for 20% to 40% more in Metro Manila and would come complete with traffic congestion and smog at no extra charge.
Here’s the part that intrigued me. Not only can you just buy a condo unit here and live in it, you also have the opportunity to be a real estate entrepreneur in miniature. You buy a unit and if you only want to sue it part-time, the management will rent it out for you while you are not there. Let’s run some numbers:
PhP 2.5 million (for a decent size 1 bedroom unit. 30% down (spit over 4 months interest free) , that’s between 416 and $17,000 USD to move in, with 4 months to come up with the investment. The remainder the company will in-house finance for 10 or 12 years … under $700 USD per month is a safe bet at today’s rate. Many who are reading this have house payments that big or more … but if you don’t choose to live there full time, the corporation will rent it out … I have their rental prices but not their exact percentage for commission … but your’s be safe in figuring to clear more than PhP 3,500 for every rental day. That means 10 or 12 rental days per month will pay your total costs and be showing a small profit. Can the management keep it rented? They have been selling out frequently on Friday and Saturday nights, so there’s 8 or 10 nights per week almost for sure.
Worth checking out, I’d say, the folks who say “it can’t be done” are just making excuses, the opportunities surely exists here today, in concrete rather than just pager idea form.