Investments in Philippine Condotels reported $8.9 million in sales at the US Road Show
Investments in Philippine Condotels reported $8.9 million in sales at the US Road Show
PLC Global, headquartered in Manila, is the lead Marketing Partner for the Lancaster Brand of Condotels in the Philippines. Beth Collingz, the company's International Marketing Director, recently announced that the company's recent US Road Show was another major success, generating some $8.9 million in sales for Lancaster The Atrium Condo Hotel.
The Philippines is a great place for overseas Filipinos and offshore property investors to create a retirement fund due to the country's inexpensive real estate prices and high hotel room rates. Executive Studio (Semi Fitted) Suites at Lancaster Atrium are now available for pre-construction purchase with a reservation of only 25,000.00 for a 32.50sqm [350sqft] Studio, followed by 48 consecutive monthly payments of only 17,801.58 [No Interest for the first 4 years]. Collingz said that the remaining amount of the purchase price would be paid in 96 equal monthly instalments of PHP 24,075.73 beginning on the fourth anniversary of the reservation date.
Studio Condotel will be ready for occupancy and thereafter income positive with a projected ROI of at least $500 per month through rentals, according to Collingz. This means that the remaining 96 monthly payments on the unit balance are self-liquidating. Furthermore, preconstruction property appreciates at some 20%-30% per annum, so not only does the Real Estate Appreciation look good, but after paying for the unit, the remaining 96 monthly payments on the unit balance are also self liquidating.
Real estate agents and brokers, who often run around like headless chickens looking for normal residential profile buyers without looking at the by far bigger picture of investments, investing, and retirement, may be missing out on a massive market given the potentially high rates of rental returns from Condo Hotel Investments, currently from 8% up to 16% per annum. Condotels are seen purely as an investment opportunity by us. No, Real Estate is not your main focus. When seen through the lens of a long-term income investment, Hotel Condominiums become not only real estate assets, but also income-generating property. This is especially true in the Condo Hotel sector. Condotels may be compared to a professionally managed 401(k) plan. As a matter of fact, Condotel apartments are entirely under the care of the Condotel management. The landlord doesn't have to deal with the headaches that come with renting out a house for the first time. Collingz said that the Condo Hotel Management team handles such requests.
My customer from Chicago, who is planning to retire in 2012, has recently bought four Studio Condotel Suites at Lancaster The Atrium Manila, which is now in preconstruction sales. To put it another way, if he opts for a 30% down payment and a no prequalification, no down payment, no interest payment plan over a period of six years, his out-of-pocket expense for the purchase will be just around $70.00 each day. In addition to any government or private company pension plan, he will be getting almost $2,000 a month in rental income even before he finishes paying for the apartments. Taking into account the 12 year payment plan, he would have a cash positive income of 20 dollars a day, or some $600 a month, during the first 4 years prior to completion, when you would only be paying something like 20 dollars a day, and after the units are already earning rental income, 45 dollars a day. Even better, Collingz found that rental income grew at the same rate as inflation and that buying during preconstruction led to a 60%–80% increase in property value over a four-year period.
The condo units are now held in fee simple, free and clear, and the owner has earned somewhere about $4,800 after 12 years, with a minimum investment of just 50% of the initial purchase price. What's more, according to Collingz, rental revenue rises annually with hotel rates.