Gosh am I on a Living in the Philippines roll here, or what? I was doing some checking into the fellow who owns the two apartment complexes I wrote about recently (he’s still not set up for an interview and feature here, but I’ll keep trying) I found out that the project currently under construction isn’t his second project, it’s building number three. Here’s a snap of the very first project, located right behind his home, right around the corner from me in our little “part-time-water” community.
The way the story was told to me, he had a grown son thinking about moving out, so rather than let the son move off to the wilds of Manila, the father built this three door complex on the side street behind the main home, and the son can live in one unit, collect the rents on the others and if the son really does decide to move up scale some day, he’ll collect on all three. Not shabby.
On the local news channels there is always one scandal after another trying to capture headlines. A real estate noteworthy piece of info came out of one of the latest scandals yesterday. The case involves some young men arrested on suspicion of being drug dealers, in part because they seemed to have ore money in their pockets to flash around than most of their peers.
As part of the ongoing Senate hearings into this issue, one of the boy’s father was asked to testify, under oath, where the father’;s income and the son’s sending money came from. According to the doting dad, back a few years ago when a condo development like this one was ‘pre selling’ ,,, that is when the developer sells reservations to buy condo units at an agreed upon price, before ground is even broken, the father reserved four units … similar to the picture.
Today, he claims, those 4 units bring in PhP 400,000 a month … more than $8500 USD per month ,… more than $2,000 USD per month for each unit. Sounds incredible, no? Well to paraphrase Mark twain, there are three kinds of lies here in the Philippines … lies, damn lies … and politicians … but I surely am not going to call the man a liar.
I know of condos in upscale developments like this one being rented on long-term leases by foreign corporations who use them for employee housing for their expat employees for prices in the US $2,000 per month range.
Several years ago a fellow American who lived in a smaller, but nice, condo near the US Embassy wanted to go back to the US for a time. He listed his home with the on-site rental/property management office and it was leased for $1200 USD a month in the same week to a new US embassy employee who was just checking in for a tour of duty,
Like anything else involving business, and especially real estate, here in the Philippines or in your home country, use common sense and competent advisors, but do not overlook the possibilities here in the Philippines for foreigners making money and building for the future even if we can’t own land outright ourselves. There are many more ways to profit than by buying a building lot and putting up a one family house … in fact investing in your own home is one of the worst real estate investments you can make. People used to argue with me about that, but not many Californians stuck with a property now worth less than half what they owe will argue with me today.