money Financial Planning

[xays99]

Hello sa financial guru triad!

 

What do you guys think about investing on lot/lands in the Philippines for the coming months?

[JohannBeckham]

Hello sa financial guru triad!

 

What do you guys think about investing on lot/lands in the Philippines for the coming months?

Farmland to farm as in agricultural land? If your just buying land, a piece of dirt for "putik" sake, my opinion is its not so good of an investment for it will be just a liability paying mortgage, amilyar, etc.

 

Kung ang plano mo nmn ay papatayuan mo ng town house, apartments pra paupahan ok din yun. Kung do the math yourself.

 

Kung para nmn sa personal na gamit, bahay pra sa pamilya then ok din yun, but its not an investment but a lifestyle choice.

[mrbig86]

Hello sa financial guru triad!

What do you guys think about investing on lot/lands in the Philippines for the coming months?

 

It depends on where you're going to buy that lot. First of all, make sure you're aware of where the development is going to be in the next 5-10 years. That way, you can pick a lot located in/around that area. Once development starts, the land value generally increases. I can give you an example about a lot I bought in the Visayas. I bought the lot roughly 10 years ago for 5 million. Now, the lot is worth 13 million because of the development happening in a nearby city. Another example is our property in Parañaque. When Arca South in Taguig started to be developed, it's value increased to more than double the original price in just 7 years - ready to be sold.

 

You will be able to get good information about the point I mentioned above from NEDA.

 

If you're thinking of investing in farm lands (for you to farm), take a note of the following:

1. Make sure the farm land has good irrigation system - some farm lands get enough water supply for a better part of 10 months, but some can barely get enough water for 8 months, worse some are only getting water for 5.

2. Compute your per cropping expenses (for rice fields, it's roughly around 30K per hectare every 3 months (one cropping), but may change depending on how your payment to your farmers are structured). The 30K includes fertilizer, pesticides, and all other expenses for you to complete one cropping (from planting to harvest)

3. Compute your per cropping income (If you're able to harvest, rice fields can net you around 20-50K per hectare, per cropping)

4. Make sure that farm land is not flood prone

5. Make sure you have a consistent buyer to sell to upon harvest

6. One last thing, make sure the area where you're planning to buy the land is not infested with NPAs.

 

Building a property to have it rented is not a good investment (in my opinion), unless you build a commercial building. Building an apartment which will only NET (not Gross) you around 20K a month is not worth the effort, not to mention it will take long to recover that ROI, while you're also required to maintain that apartment. If you're looking for a passive income, then it's a so-so idea.

 

I suggest you buy-hold-sell.

Edited June 10, 2020 by mrbig86

[MRROUGHSEX]

Great advise so far.

 

Me, fixed assets is not my cup of tea. I want ease of buying and selling like in a stock market. I can go and have adventure anywhere in the world (with internet LOL) and still be in touch with my investments online.

 

Fixed assets bind people to that area else risks squatting issue. Or if you have tenants, collection of rent becomes issue if you go elsewhere for a long period.

 

I love buying property for living in it. It's like paying rent but with a stopping point. When I move, I sell it and buy another one.

[mrbig86]

Another good investment (assuming money is not an issue) is buy and sell of office spaces. You buy an entire floor (during pre-sell), then sell it once the building is 75% complete.

 

You double (or even triple) your investment in 3-5 years. The challenge here is getting into the right crowd - who could connect you to the developer/owner of the building that will be constructed.

[xays99]

Thanks for the great advice guys😁. I was thinking of buy, hold and sell as well in developing areas or potential areas to be developed. With rumors of the chinese waiting to snatch up lands in our country Im development is going to boom in the next few years or decade. Will so more research into this endeavor.

[JohannBeckham]

Thanks for the great advice guys😁. I was thinking of buy, hold and sell as well in developing areas or potential areas to be developed. With rumors of the chinese waiting to snatch up lands in our country Im development is going to boom in the next few years or decade. Will so more research into this endeavor.

You mean just buy and hold "LAND" and incur all recurring cost/expenses without regular income on that piece of dirt and while waiting for 5,10,15 or 30 years for that piece of dirt to appreciate? Well if that would give you peace of mind since its a physical asset (meaning you can see and touch it), then thats ok i guess. Pero ako personally, I wouldn't do it. For asset appreciation/growth wont help with regular cash flow kya i would personally stick to residential rental, stocks/ETFs or mutual funds. But that's just me who's goal (of financial independence) might be different from yours.

Edited June 11, 2020 by JohannBeckham

[MRROUGHSEX]

Thanks for the great advice guys. I was thinking of buy, hold and sell as well in developing areas or potential areas to be developed. With rumors of the chinese waiting to snatch up lands in our country Im development is going to boom in the next few years or decade. Will so more research into this endeavor.

I like the word you use, "snatch" because foreigners like Chinese cannot legally buy land. :D

[xays99]

You mean just buy and hold "LAND" and incur all recurring cost/expenses without regular income on that piece of dirt and while waiting for 5,10,15 or 30 years for that piece of dirt to appreciate? Well if that would give you peace of mind since its a physical asset (meaning you can see and touch it), then thats ok i guess. Pero ako personally, I wouldn't do it. For asset appreciation/growth wont help with regular cash flow kya i would personally stick to residential rental, stocks/ETFs or mutual funds. But that's just me who's goal (of financial independence) might be different from yours.

 

Still doing research on this. My grand father did this but he also put those lands into use. I’m somewhere along the same path. Just too bad he passed away a long time ago. Been talking to my uncle and aunts on what he did back then but also asking around as well since the times have changed. Then either sell the property or just boost and continue using it depending on what happens.

 

I like the word you use, "snatch" because foreigners like Chinese cannot legally buy land. :D

Hahaha. I know lol. My grandpa was an illegal from Hong Kong and he snatched up dirt cheap lands for use in coco lumber and copra business decades ago. He put those properties under my grandma and their kid’s name.

[MRROUGHSEX]

 

 

Still doing research on this. My grand father did this but he also put those lands into use. I’m somewhere along the same path. Just too bad he passed away a long time ago. Been talking to my uncle and aunts on what he did back then but also asking around as well since the times have changed. Then either sell the property or just boost and continue using it depending on what happens.

 

 

Hahaha. I know lol. My grandpa was an illegal from Hong Kong and he snatched up dirt cheap lands for use in coco lumber and copra business decades ago. He put those properties under my grandma and their kid’s name.

Ayus. Good luck. Study it well.

[neville]

Mukhang no choice ako kundi gamitin ang buffer fund ko. Less than the projected budget ang dumarating na projects. Buti na Lang sa kuryente at net Lang ako magastos.

 

I decided to buy 2 Bond Funds to offset the paper losses I incurred from the market blood bath. Ipon pa Rin ako ng pambili ng pang-PCA para umangat nang kaunti ang port value ko.

 

Current losses in the market at 26.5%

 

*Whew!*

Edited July 1, 2020 by neville

[JohannBeckham]

Mukhang no choice ako kundi gamitin ang buffer fund ko. Less than the projected budget ang dumarating na projects. Buti na Lang sa kuryente at net Lang ako magastos.

 

I decided to buy 2 Bond Funds to offset the paper losses I incurred from the market blood bath. Ipon pa Rin ako ng pambili ng pang-PCA para umangat nang kaunti ang port value ko.

 

Current losses in the market at 26.5%

 

*Whew!*

Tapang ni Neville buying bond bonds when interest rates are going down (i dont foresee interest rate going up anytime soon, but i could be surprise)

[JohannBeckham]

ako nmn, i just continue to buy index fund (ETF) as per normal.

 

I just notice ang laki ng binaba ng dividends na marereceived ko sa last week ng july.

[MRROUGHSEX]

Mukhang no choice ako kundi gamitin ang buffer fund ko. Less than the projected budget ang dumarating na projects. Buti na Lang sa kuryente at net Lang ako magastos.

 

I decided to buy 2 Bond Funds to offset the paper losses I incurred from the market blood bath. Ipon pa Rin ako ng pambili ng pang-PCA para umangat nang kaunti ang port value ko.

 

Current losses in the market at 26.5%

 

*Whew!*

 

PSEI is down only 19% (6,209/7742-1), tataas din yan Neville. Always think 3 years from now.

[neville]

 

PSEI is down only 19% (6,209/7742-1), tataas din yan Neville. Always think 3 years from now.

 

 

Yep, listening to various RFPs assured me that the economy and the market will go up. As long as my goal is investing, not trading, letting time run its course will make my port green again.

 

Ayun, anim na mutual funds ko.