Real estate investment related
1. Cheap price and good yield
(1) Real estate price : Philippines is USD 3,952 per square meter, which can be purchased at about 1/4 of the price in Tokyo
In the Philippines, foreigners are not allowed to own land, so they cannot own detached houses with land attached, but they can own buildings such as condominiums.
(Certificate of Title will be issued by the government)
(2) The surface yield of rental properties is top class in the world. There are properties with a yield of 10% or more in the Manila metropolitan area.
2. Stable operation (low risk of vacancy and rent delinquency)
(1) In the Philippines, the demand for housing is increasing as the economy expands, and the housing occupancy rate has exceeded 90%.
(2) The risk of delinquency is low due to the advance payment of one year’s rent in cash or check, and the security deposit system.
Sale of pre-built properties
In Phillipin, there are (pre-built) properties that are sold from the stage when the construction plan of the condominium is completed, and the longer the period until completion (completion), the cheaper the purchase.
There are cases where the property is sold for 3 to 5 years until completion, and the price increases by 5 to 10% every quarter, and in some cases, the price at the time of completion is 1.5 times.
【purchase】
The reservation (deposit) will secure the property, and the down payment will be paid off by the time construction is completed (the higher the down payment, the cheaper the price).
【sale】
(1) Before completion: Can be sold if the property price rises, etc.
(2) After completion: You can aim for an increase in rental income and property price.
Capital gain: Sale transfer at market price
Income gain: Income from rental
This time, in collaboration with a major Philippine developer, we will introduce real estate projects in business districts and resort areas in the Philippines.
Investment scheme
We will conclude a contract (acquisition of right to use) of a condominium in a good location in the Philippines with only a down payment before completion.
* Some expenses such as bed purchase at the time of rental are required
・Operated for 2 years as a rental property by a management contractor after completion
*According to the contract, the balance of the property will be paid with a loan, but the rent will be covered, so there is no real burden.
・Aim for capital gains from sales in the third year!
Lessee example
POGOs (Pogo is a registered licensed casino company: Philippine Offshore Gaming Operator). By 2019, 60 companies have been registered and approved, and the number of employees exceeds 100,000, so there is demand for condominiums as employee dormitories.
Down payment + rent for 2 years + rise in property down payment
* In addition to rising prices, there is also the risk of falling prices.
* You can also make a contract to fix the price at the time of sale at a price set in advance.
Expected income equivalent to 22 months rent with 30% down payment (annual rental management fee is equivalent to one month’s rent)
* In the 3rd year, there will be no profit on property price increase, but there will be no loss on price drop.