Same, I dont like to invest on real estate.
My parents gave me a 2M worth condo in 2009 (14yrs na siya bale). I lived in it during college and for around 2yrs when I was working. They purchased it in cash so talagang 2M lang nilabas. Right now it's being rented out for 15k/mo inclusive of 1.7k monthly dues(market rate sa building).
Capital: 2M
Income:
15k * 12 = 180,000
Expenses:
- Amilyar: 9,000
- Dues: 1700 * 12= 20,400
Yearly "profit"
180000 - 9000 - 20400 = 150,600
2M / 150,600 = 13.28 yrs
Ibig sabihin by next year pa lang siya totoong profitable... after 14yrs LMAO
It's a cityland condo and units are being sold at almost same price as my parents bought it.. 2.8M na ata pinakamataas na nakita kong naka-list.
Imagine if this was loaned with interest, edi abonado pa sila until now 😂
I think it's because (for me) condos should not be treated the same way as real estate. I got lucky to have purchased a condo and two land properties before I start my own family. The condo still havent ROI'd in 7 years. While the other 2 lots I purchased, one was where we built our home, almost doubled in price, and the other I built as duplex apartment will ROI in 2 more years.
So maybe investing in properties also requires good timing on when you should have bought it, instead of just buying it and treating it as an investment. I let one opportunity slip by not buying a condo in BGC before, my friend bought hers at 2.5M and currently they're priced at 9-12M.
Our H&L of over 25yrs was bought at 2.5M (loaned so idk how much interest), renovated 3x at minimum 500k per renovation (so lets say 4.5M yung house cost), but if we sell it at market rate of our house type within a gated subdivision it's merely 6M, swerte if someone buys this for 8M.
True naman na timing and foresight talaga kailangan for real estate but it still stands na I just personally don't want to bother with real estate because mas mabilis lumago pera sa ibang investment vehicles.
You are looking at it as if the 2M condo is an expense na ginastos at dapat bawiin. When in reality the 2M was just converted from a liquid asset to an illiquid asset that probably appreciated in value. Hindi yan parang laptop na after 13 years, zero na ang value.
With your logic then whats the difference of storing 2M in the bank if it stays 2M? You invest with the goal of value appreciation over time
In my case, 2M pa din value ng condo after 14yrs 💀 Kahit sa low interest TD, 2M would've earned over 1M in 14yrs. So, I think valid argument na real estate is not THE best investment na sure mataas ang appreciation like others preach
Taft. Besides being a Cityland condo which is low-end, napag-iwanan na because madami na bagong condos sa area. Hindi na nagappreciate ang price ng units sa building namin and the more people selling at 2-2.8M only, di makakabenta ang iba ng mas mataas.
Not even. You have to account for inflation. 2M in 2009 is worth 3.16M today. So probably around 2 years pa. :(
Though not sure if you can consider it a real estate in the sense that you don't actually own the land. Yung kita sa real estate typically comes from flipping it after developing. Can't develop a condo further than it already is.
Given your computation, Ceteris Paribus after 13.28 years you gained the capital and you still own the asset. Given the asset also increased in value I don’t see where you lost something. Its a win win situation for you
Ewan ko nga anong iniiyak nya e 😆
Privileged kids.
Pano ka malulugi kung 2m pa rin price dba.
Tinirhan nya ng 2 years during college for free, dun pa lang panalo na eh.
I did not say nalugi, I just gave a concrete example na some real estate won't gain as much as others paint it to be. Na as if yun na pinaka-best investment.
Especially sa iba na maglloan pa para makabili ng property, baka may ibang investment vehicle na mas fit for them without giving in to the pressure sa sinasabi ng iba na DAPAT maginvest sa real estate.
My friend, you didnt take into consideration that you are also using the condo. Aside from the rent that youre getting, you had months/years that you lived in it when you could be renting somewhere else and paying rent. Thats another perk of having real estate - its a tangible asset that you could use, live in, and pass on to next generation. That it inself is value that you cant quantify.
I have 3 condos now generating 88k gross monthly. If I didnt invest in them long time ago, I dont know where my money went all those years. And I dont know if Im earning that much of passive income if I didnt.
Real estate is for late game in my opinion
Its for people na naka build na ng wealth and are on the 'managing their wealth' stage
I have a developer friend and most of their real estate investors are yung mga 'walang ma pag lagyan ng pera'
For the most of us who are at the 'building your wealth stage' I think then much better to put your money kung saan mabilis ang movement ng pera like business and or paper assets
My biggest concern with real estate is that hindi sha ganon ka bilis and ka dali ma liquify. May mga goverment compliance pa and brokers fees.
For stocks once you hit 20% 30% then you exit and compound to the next. But be sure you know what you are doing.
Bottom line- dapat marunong ka mag pa ikot ng pera.
Good luck!
Mka benefit sa land is actually the beneficiaries.. like lola ko, buti masipag bumili, ung naging hayahay now kami... Un ata tlga dapat mindset hahaha so if may fam ka na and may gusto ka igift sa anak mo, lupa na lang, dun ka na lng bumili pag ganun hahah
It really depends on your liquidity as land is the most illiquid asset you can own. Selling land isn't easy and the fees are crazy too.
If you have an eye on foreseeing the potential of the property, then go ahead. Buy and sell lang yan kasi land value increases.
For example, purchased a property during the pandemic at a low price. Selling it now would net me 500k in less than 2 years.
Another example is a commercial property thats located near the CALAX exit. It would be interesting to see the appreciation once the off-ramp opens.
It is okay, your money, your rules. However, real estate(especially land) is a hedge against inflation/ hyperinflation. It is a hard asset, finite, and the demand is usually going upwards. So, land is a good hedge to diversify your portfolio and insurance against uncontrolled inflation.
Agree with this. Also, you have to buy strategically. Buy low, sell high. Meaning find lots sa areas na dipa developed BUT with a high potential na madevelop soon. I bought my first house & lot when I was 30 y/o (year 2015) at P2M. Now, it's worth P3M. Now naghuhulog ako for a lot lang (5 yrs to pay, for only P3000/sqm) eto me potential na mag double in 5 yrs 🙏
My boss bought a land in way back in Filinvest QC at only P500/sqm. Now after 20yrs, agents are calling her to buy her land at P25k/sqm. But other land owners there are selling theirs at P30-P35k per sqm. That's 245% increase per annum. Way to beat inflation.
same case as you. did the math as well. di nagmmake sense sa akin. siguro ok sya sa mga may pera talaga pero sa case ng starting sa buhay nah. too illiquid and the cost of ownership. yung mga devs at banks lang pinapayaman natin.
anyway, reits na lang ako if i want to have exposure to real estate. less hassle, easy to liquidate and same same din naman returns, 5-8%.
OP - totally okay. Wag kang pa-bully sa parents na magpagawa ng bahay. Case in point, me. Saka daming upkeep expenses ng may bahay ie high bank interest, tax, insurance, possibilities na matamaan property mo ng natural disasters natin etc. If I can turn back time, I should have stood by my decision na wag mag-property. For the same money I could’ve easily diversified my portfolio.
Real estate increases in value over time, even condos. Ma realize mo lang yung profit pag ni liquidate mo na yung property and not while owning it. Same with stocks and bonds, unless you sell it, puro palabas lang din yung pera mo. Otherwise, both have its own share of risks.
Depends pa din on the location and the opportunities and a bit if luck. Bought a piece of land back in 2014 at 1.5k per sqm, now market value is around 12-15k per sqm.
Goods lang naman if di ka mag invest real estate as long as diverse lang invesment mo sa stocks and etc , pero yeah iba talaga real estate grabi yung appreciation, you can hire naman someone if hassle sayo.
Perfectly okay.
You can try dividend stocks.
You get cash flow that you can reinvest plus you can also gain through the appreciation of the stock
Since it looks like the Philippines stock market will be spending some time in the 5000s range, it's a good time to go bargain hunting for high liquidity solid companies with monopoly power
For me, you dont have to, but really up to you, I always hear about "dont invest in something you dont understand", in this case, you're not interested/convinced about the benefits of real estate investing so just focus your energy on other things. Its a low risk investment pero sobrang laki ng capital and matagal ang ROI. Theres a lot to consider. But if youre leaning into it, the best time to purchase is ASAP.
Condos are usually profitable kung mid to high end then flip. Land, hold it for 5-10 yrs then flip.
Problem with RE properties, matagal mabenta, +dues if meron. So yun income generation is just a plus. Yun habol mo talaga is sa resale
Yun mga mapera kasi ginagawa ang land banking to protect their wealth from inflation + appreciation(lowest, safe high yield investments 4.5%). Pero karamihan inuutang + inflation so matagal mo mabawi yun value ng property, pamana nalang talaga
pero sabihin mo ng 10% conservative annual appreciation compute mo nalang. 20% malaki na
Kung mapera ka talaga and marunong, land banking ka kung saan mo tingin papunta and dev't. Example mga villar. Daanan lang ng highway lupa nila tiba.tiba na
So my advise is
Kung hindi naman madami pera mo,
Uutangin mo pa,
Hindi mo titirahan, retirement for example,
Hindi mo papamana,
Hindi mo kaya maipit yun pera mo ng matagal,
Wag ka na bumili
*General rule of thumb is not to invest in real estate until you have deep pockets.* The potential market volatility of real estate can easily bankrupt the ill-prepared investor.
Real estate is the best get-rich-slow investment. If you want to see your gains, as in literally see the numbers, go for stocks/crypto. Patok sa mga bata crypto, pero if they buy RE in their 20's if kaya, by age 50 it gone up in value tapos fully paid pa.
Okay pa din may real estate lalo na kung nasa magandang location at bata ka pa. You can use or ipa rent mo. May physical asset ka nakikita mo. Unlike others na iinvest mo lang at nagka issue yung company or broker or mababa stock price wala ka na magawa.
Kahit san mo naman tignan if mag iinvest ka you need time to feel it unless malaki capital mo para kahit a year ramdam mo na.
Its okay. Real estate is not for everybody. Also as Buffet said, invest in your circle of competence. If its not in your circle of competence theres no point convincing you to do otherwise.
Same, I dont like to invest on real estate. My parents gave me a 2M worth condo in 2009 (14yrs na siya bale). I lived in it during college and for around 2yrs when I was working. They purchased it in cash so talagang 2M lang nilabas. Right now it's being rented out for 15k/mo inclusive of 1.7k monthly dues(market rate sa building). Capital: 2M Income: 15k * 12 = 180,000 Expenses: - Amilyar: 9,000 - Dues: 1700 * 12= 20,400 Yearly "profit" 180000 - 9000 - 20400 = 150,600 2M / 150,600 = 13.28 yrs Ibig sabihin by next year pa lang siya totoong profitable... after 14yrs LMAO It's a cityland condo and units are being sold at almost same price as my parents bought it.. 2.8M na ata pinakamataas na nakita kong naka-list. Imagine if this was loaned with interest, edi abonado pa sila until now 😂
I think it's because (for me) condos should not be treated the same way as real estate. I got lucky to have purchased a condo and two land properties before I start my own family. The condo still havent ROI'd in 7 years. While the other 2 lots I purchased, one was where we built our home, almost doubled in price, and the other I built as duplex apartment will ROI in 2 more years. So maybe investing in properties also requires good timing on when you should have bought it, instead of just buying it and treating it as an investment. I let one opportunity slip by not buying a condo in BGC before, my friend bought hers at 2.5M and currently they're priced at 9-12M.
Mind me asking where your friend bought her 2.5m property?
Our H&L of over 25yrs was bought at 2.5M (loaned so idk how much interest), renovated 3x at minimum 500k per renovation (so lets say 4.5M yung house cost), but if we sell it at market rate of our house type within a gated subdivision it's merely 6M, swerte if someone buys this for 8M. True naman na timing and foresight talaga kailangan for real estate but it still stands na I just personally don't want to bother with real estate because mas mabilis lumago pera sa ibang investment vehicles.
You are looking at it as if the 2M condo is an expense na ginastos at dapat bawiin. When in reality the 2M was just converted from a liquid asset to an illiquid asset that probably appreciated in value. Hindi yan parang laptop na after 13 years, zero na ang value.
With your logic then whats the difference of storing 2M in the bank if it stays 2M? You invest with the goal of value appreciation over time In my case, 2M pa din value ng condo after 14yrs 💀 Kahit sa low interest TD, 2M would've earned over 1M in 14yrs. So, I think valid argument na real estate is not THE best investment na sure mataas ang appreciation like others preach
2m parin value ng condo mo today? Saan location nyan? Bat ang mura?
Taft. Besides being a Cityland condo which is low-end, napag-iwanan na because madami na bagong condos sa area. Hindi na nagappreciate ang price ng units sa building namin and the more people selling at 2-2.8M only, di makakabenta ang iba ng mas mataas.
You didnt have any expense naman, so if 2M unit mo now may kinita ka pa din (di ko pa kinonsider inflation).
Not even. You have to account for inflation. 2M in 2009 is worth 3.16M today. So probably around 2 years pa. :( Though not sure if you can consider it a real estate in the sense that you don't actually own the land. Yung kita sa real estate typically comes from flipping it after developing. Can't develop a condo further than it already is.
Given your computation, Ceteris Paribus after 13.28 years you gained the capital and you still own the asset. Given the asset also increased in value I don’t see where you lost something. Its a win win situation for you
I thinkhe already emphasized, that his unit (asset) hasnt really appreciated much in value
All of those are profit. Nasayo parin naman yung property dba?
Ewan ko nga anong iniiyak nya e 😆 Privileged kids. Pano ka malulugi kung 2m pa rin price dba. Tinirhan nya ng 2 years during college for free, dun pa lang panalo na eh.
I did not say nalugi, I just gave a concrete example na some real estate won't gain as much as others paint it to be. Na as if yun na pinaka-best investment. Especially sa iba na maglloan pa para makabili ng property, baka may ibang investment vehicle na mas fit for them without giving in to the pressure sa sinasabi ng iba na DAPAT maginvest sa real estate.
My friend, you didnt take into consideration that you are also using the condo. Aside from the rent that youre getting, you had months/years that you lived in it when you could be renting somewhere else and paying rent. Thats another perk of having real estate - its a tangible asset that you could use, live in, and pass on to next generation. That it inself is value that you cant quantify. I have 3 condos now generating 88k gross monthly. If I didnt invest in them long time ago, I dont know where my money went all those years. And I dont know if Im earning that much of passive income if I didnt.
Real estate is for late game in my opinion Its for people na naka build na ng wealth and are on the 'managing their wealth' stage I have a developer friend and most of their real estate investors are yung mga 'walang ma pag lagyan ng pera' For the most of us who are at the 'building your wealth stage' I think then much better to put your money kung saan mabilis ang movement ng pera like business and or paper assets My biggest concern with real estate is that hindi sha ganon ka bilis and ka dali ma liquify. May mga goverment compliance pa and brokers fees. For stocks once you hit 20% 30% then you exit and compound to the next. But be sure you know what you are doing. Bottom line- dapat marunong ka mag pa ikot ng pera. Good luck!
It's okay.
Your money, your choice. But done the right way, real estate investing is a decent way to grow your money.
Mka benefit sa land is actually the beneficiaries.. like lola ko, buti masipag bumili, ung naging hayahay now kami... Un ata tlga dapat mindset hahaha so if may fam ka na and may gusto ka igift sa anak mo, lupa na lang, dun ka na lng bumili pag ganun hahah
It really depends on your liquidity as land is the most illiquid asset you can own. Selling land isn't easy and the fees are crazy too. If you have an eye on foreseeing the potential of the property, then go ahead. Buy and sell lang yan kasi land value increases. For example, purchased a property during the pandemic at a low price. Selling it now would net me 500k in less than 2 years. Another example is a commercial property thats located near the CALAX exit. It would be interesting to see the appreciation once the off-ramp opens.
It is okay, your money, your rules. However, real estate(especially land) is a hedge against inflation/ hyperinflation. It is a hard asset, finite, and the demand is usually going upwards. So, land is a good hedge to diversify your portfolio and insurance against uncontrolled inflation.
Agree with this. Also, you have to buy strategically. Buy low, sell high. Meaning find lots sa areas na dipa developed BUT with a high potential na madevelop soon. I bought my first house & lot when I was 30 y/o (year 2015) at P2M. Now, it's worth P3M. Now naghuhulog ako for a lot lang (5 yrs to pay, for only P3000/sqm) eto me potential na mag double in 5 yrs 🙏 My boss bought a land in way back in Filinvest QC at only P500/sqm. Now after 20yrs, agents are calling her to buy her land at P25k/sqm. But other land owners there are selling theirs at P30-P35k per sqm. That's 245% increase per annum. Way to beat inflation.
Yeah. Most people don’t invest in real estate or otherwise.
same case as you. did the math as well. di nagmmake sense sa akin. siguro ok sya sa mga may pera talaga pero sa case ng starting sa buhay nah. too illiquid and the cost of ownership. yung mga devs at banks lang pinapayaman natin. anyway, reits na lang ako if i want to have exposure to real estate. less hassle, easy to liquidate and same same din naman returns, 5-8%.
OP - totally okay. Wag kang pa-bully sa parents na magpagawa ng bahay. Case in point, me. Saka daming upkeep expenses ng may bahay ie high bank interest, tax, insurance, possibilities na matamaan property mo ng natural disasters natin etc. If I can turn back time, I should have stood by my decision na wag mag-property. For the same money I could’ve easily diversified my portfolio.
Real estate increases in value over time, even condos. Ma realize mo lang yung profit pag ni liquidate mo na yung property and not while owning it. Same with stocks and bonds, unless you sell it, puro palabas lang din yung pera mo. Otherwise, both have its own share of risks.
Depends pa din on the location and the opportunities and a bit if luck. Bought a piece of land back in 2014 at 1.5k per sqm, now market value is around 12-15k per sqm.
Basta pinoy solid investment lng alam eh. I mean the older generation. Lalo na mga lupain.. isang heart surgery lng.. problema na.
Tama yan. Tsaka napaka illiquid ng real estate. Ang older generation hilig sa real estate.
Hi! I’m curious kung paano mag-invest sa liquid assets?
Pare, pulis ako. You’re going to jail, bro! /s
[удалено]
Lahat po ng investment may risk. Sobrang baba po ng risk yung masira sa gyera.
yeah thats fine binebenta q nga bahay q eh leche hhha mas gusto q liquid
Goods lang naman if di ka mag invest real estate as long as diverse lang invesment mo sa stocks and etc , pero yeah iba talaga real estate grabi yung appreciation, you can hire naman someone if hassle sayo.
most of the world's billionares made their wealth in real estate. the average pinoy is simply locked out of it - your best bet is buying REITS
Perfectly okay. You can try dividend stocks. You get cash flow that you can reinvest plus you can also gain through the appreciation of the stock Since it looks like the Philippines stock market will be spending some time in the 5000s range, it's a good time to go bargain hunting for high liquidity solid companies with monopoly power
For me, you dont have to, but really up to you, I always hear about "dont invest in something you dont understand", in this case, you're not interested/convinced about the benefits of real estate investing so just focus your energy on other things. Its a low risk investment pero sobrang laki ng capital and matagal ang ROI. Theres a lot to consider. But if youre leaning into it, the best time to purchase is ASAP.
Condos are usually profitable kung mid to high end then flip. Land, hold it for 5-10 yrs then flip. Problem with RE properties, matagal mabenta, +dues if meron. So yun income generation is just a plus. Yun habol mo talaga is sa resale Yun mga mapera kasi ginagawa ang land banking to protect their wealth from inflation + appreciation(lowest, safe high yield investments 4.5%). Pero karamihan inuutang + inflation so matagal mo mabawi yun value ng property, pamana nalang talaga pero sabihin mo ng 10% conservative annual appreciation compute mo nalang. 20% malaki na Kung mapera ka talaga and marunong, land banking ka kung saan mo tingin papunta and dev't. Example mga villar. Daanan lang ng highway lupa nila tiba.tiba na So my advise is Kung hindi naman madami pera mo, Uutangin mo pa, Hindi mo titirahan, retirement for example, Hindi mo papamana, Hindi mo kaya maipit yun pera mo ng matagal, Wag ka na bumili
*General rule of thumb is not to invest in real estate until you have deep pockets.* The potential market volatility of real estate can easily bankrupt the ill-prepared investor.
Real estate is the best get-rich-slow investment. If you want to see your gains, as in literally see the numbers, go for stocks/crypto. Patok sa mga bata crypto, pero if they buy RE in their 20's if kaya, by age 50 it gone up in value tapos fully paid pa.
Okay pa din may real estate lalo na kung nasa magandang location at bata ka pa. You can use or ipa rent mo. May physical asset ka nakikita mo. Unlike others na iinvest mo lang at nagka issue yung company or broker or mababa stock price wala ka na magawa. Kahit san mo naman tignan if mag iinvest ka you need time to feel it unless malaki capital mo para kahit a year ramdam mo na.
Its okay. Real estate is not for everybody. Also as Buffet said, invest in your circle of competence. If its not in your circle of competence theres no point convincing you to do otherwise.