[mikefluk]

Hi

Have just read details on this resort - (you can google it) with brilliant sounding returns

Has anyone invested or any experinces here

Would love feedback Thanks

[Caribbean Beauty]

mikefluk, on Feb 12 2009, 02:20 PM, said:

Hi

Have just read details on this resort - (you can google it) with brilliant sounding returns

Has anyone invested or any experinces here

Would love feedback Thanks

In the words of the great Mr Royle: 19.5%? My A**E!

Which you can kiss goodbye if you invest.

Do you ever read the newspaper or watch telly? If not, try it.

[Ulidia]

mikefluk, on Feb 12 2009, 06:20 PM, said:

Hi

Have just read details on this resort - (you can google it) with brilliant sounding returns

Has anyone invested or any experinces here

Would love feedback Thanks

I like the Philippines a lot (I live in Makati, Metro Manila on a semi-permanent basis).


However, I wouldn't touch anything that provided a guaranteed rental return, least of all a return as high as 19.5%.


(Gross) rental yields can be high in the Philippines, but that is more in the Metro Manila area (potential for rental income over 12 months, rather than the tourist areas where rental income is very seasonal) and, even then, 19.5% is unheard of.


The other thing to bear in mind regarding a potential purchase in the Philippines is that the peso has strengthened significantly vis-a-vis sterling over the past 6 / 7 months, with the result that prices now look high to me .... i.e. most of the new build studios in the coastal resorts are being priced from £55k and above. Instinctively, that seems high to me compared to prices in other countries with similar levels of infrastructure.

[whojamaflip]

read up what is happening in boracay (I have no idea, been there twice - nice place). the government can basically take land away from whoever it wants, then sell it back the previous owners

AVOID!!!

[mikefluk]

Ulidia, on Feb 12 2009, 08:52 PM, said:

I like the Philippines a lot (I live in Makati, Metro Manila on a semi-permanent basis).


However, I wouldn't touch anything that provided a guaranteed rental return, least of all a return as high as 19.5%.


(Gross) rental yields can be high in the Philippines, but that is more in the Metro Manila area (potential for rental income over 12 months, rather than the tourist areas where rental income is very seasonal) and, even then, 19.5% is unheard of.


The other thing to bear in mind regarding a potential purchase in the Philippines is that the peso has strengthened significantly vis-a-vis sterling over the past 6 / 7 months, with the result that prices now look high to me .... i.e. most of the new build studios in the coastal resorts are being priced from £55k and above. Instinctively, that seems high to me compared to prices in other countries with similar levels of infrastructure.

Thanks for this particularly as you live out there. Has anybody visited the numerous sites on the internet marketing this. The reviews in Singing Pig forums were more positive than here. I have got a solicitor checking out the ownership and rental guarantee issues in particualr that it comes with 60% developer finance who is also providing the guarantee on a back to back basis, Its only a studio for £59k within a hotel complex with its own beach. I would value a critique form anybody who has downloaded the brochure off the web, I can post the link if necessary but if you google bule coral resort and spa it will come up

Thanks

[mikeymadman]

mikefluk, on Feb 12 2009, 10:42 PM, said:

...snip... Singing Pig forums ...snip...

Are ... you ... serious... ?

[Ulidia]

mikefluk, on Feb 12 2009, 10:42 PM, said:

I have got a solicitor checking out the ownership and rental guarantee issues in particualr that it comes with 60% developer finance who is also providing the guarantee on a back to back basis

Developer finance is fairly standard in the Philippines.


Most developers offer interest free finance spread out over the term of the construction period. In addition, some developers offer longer-term developer finance (i.e. pay, say, 40% of total over the construction period and then the remaining 60% spread out over a 5 to 15 year period).


Note, however, that the longer-term developer finance is typically priced at very high rates of interest - certainly a minimum of 15% but I've seen rates of up to 20% quoted (this isn't overly surprising when its noted that even conventional mortgage financing offered by banks in the Philippines tends to be at rates of 12% or above).


If you are looking at a Philippines property purchase on basis of a holiday home, then a Boracay studio could certanly be worth considering. However, if you are looking at it from a pure investment perspective, then I would consider some of the Metro Manila condo units / apartment units offered by either Cityland or DMCI Homes.


Cityland and DMCI Homes have proven track records at building condos for the mid-price market .... typically these condos offer fewer shared facilities / amenities than the higher priced condos and their finishing tends to be more basic. However, its the mid-price market that is in most demand locally, due to the growing population and growing middle-class (though impact of global downturn has yet to be felt in Philippines) so these condos are easier to rent out and, unlike the holiday spots, its possible to rent the unit out for 12 months of the year.

[Caribbean Beauty]

Listen Chaps,

55k will buy you a studio apartment in Brighton UK during the depths of this depression - in the Uk where you have a functioning courts and legal system should anything go wrong and you need to sue somebody. And with a reasonable rental demand from retirees, young professionals, artists, foreign students, Gatwick Pilots and so on and so on.

Hold on and buy a studio in the Uk if I were you, forget developing nations which will shortly be taking retrograde steps backwards to return to third world status, once the global economic system has finished its crash, and even the IMF is brassic. Does on somehow think that the Phillipines will escape this unscathed? The middle class renters there will suffer, the Japs won't be investing any more and the whole of SE Asia will get back to its traditional near-past industries of people/drugs trafficking and the paddy fields.

Happy days.

[mikefluk]

Caribbean Beauty, on Feb 13 2009, 08:33 AM, said:

Listen Chaps,

55k will buy you a studio apartment in Brighton UK during the depths of this depression - in the Uk where you have a functioning courts and legal system should anything go wrong and you need to sue somebody. And with a reasonable rental demand from retirees, young professionals, artists, foreign students, Gatwick Pilots and so on and so on.

Hold on and buy a studio in the Uk if I were you, forget developing nations which will shortly be taking retrograde steps backwards to return to third world status, once the global economic system has finished its crash, and even the IMF is brassic. Does on somehow think that the Phillipines will escape this unscathed? The middle class renters there will suffer, the Japs won't be investing any more and the whole of SE Asia will get back to its traditional near-past industries of people/drugs trafficking and the paddy fields.

Happy days.

I already have 2 hotel rooms in Scarborough catering for the retired generation. They have been yielding 12% steadily for the past 2 years so want to diversify away from the UK Also have syndicate membership in council housing in East Germany also doing well at the moment with a steadily increasing yield. Don't share your synopsis of the east and West mate. We are entering recession with lots of debt same as US Who do you think is financing that debt - our good old friends in the East that you still hold colonialship views on. You ar obviously unprepared for the massive wealth transfer that will happen between the West and the East, an event that will happen in my lifetime. The Phillipines is in the right place to benefit from this.

All parties involved have long track records with a chain of hotels around the Eastern Hemisphere. The whole project is underwritten by a bond form Phillipines Government although I take on board comments re Boracay. I am not saying it is not without risk but if you look at Mactan Island where it is and Jan 2011 when it will be built it is not without opportunity either.

if nayone however has reports about specific problems with the project or developers or anything else fort hat matter then I would like to know

[zilly]

mikefluk, on Feb 12 2009, 06:20 PM, said:

Hi

Have just read details on this resort - (you can google it) with brilliant sounding returns

Has anyone invested or any experinces here

Would love feedback Thanks

Yes my experience is guaranteed rental return on overseas property = total lie based on the fact that once you've bought the place and realise that it's a lie, they'll stop returning your calls and emails.

Caveat Emptor my friend!

[Caribbean Beauty]

mikefluk, on Feb 13 2009, 06:11 AM, said:

I already have 2 hotel rooms in Scarborough catering for the retired generation. They have been yielding 12% steadily for the past 2 years so want to diversify away from the UK Also have syndicate membership in council housing in East Germany also doing well at the moment with a steadily increasing yield. Don't share your synopsis of the east and West mate. We are entering recession with lots of debt same as US Who do you think is financing that debt - our good old friends in the East that you still hold colonialship views on. You ar obviously unprepared for the massive wealth transfer that will happen between the West and the East, an event that will happen in my lifetime. The Phillipines is in the right place to benefit from this.

All parties involved have long track records with a chain of hotels around the Eastern Hemisphere. The whole project is underwritten by a bond form Phillipines Government although I take on board comments re Boracay. I am not saying it is not without risk but if you look at Mactan Island where it is and Jan 2011 when it will be built it is not without opportunity either.

if nayone however has reports about specific problems with the project or developers or anything else fort hat matter then I would like to know

LOL - "massive wealth transfer that will happen between the west and the east" - the funniest claim I have read in days, you ought to write for Daily Mash.

What wealth will be transferred? There is none in the west and there never was - it was all credit and debt based ponzi wealth. And SE Asia is totally doomed to fall along with the west (have you read about the riots in China, Thailand etc lately?) as demand for their new-manufacturing output has disappeared overnight. Plus, many big SE Asia banks invested in the fake dream of western wealth too, and are suffering now as a result. So perhaps you should have written that there is now a "massive bad-debt toxic asset transfer between the west and the east". In the long term, there will be riots and coups and bloodshed in the East, and slow return to solvency after many years of peaceful resignation (except the odd French riot of course) in the west.

Back to the rice paddy fields for your Phillipino farming friends - still, they can rent your future investment apartment and pay you with sacks of rice, the occasional goat and a daughter at Christmas, as they won't have any cash to pay you with.

Good luck.

[mikefluk]

Caribbean Beauty, on Feb 13 2009, 01:58 PM, said:

LOL - "massive wealth transfer that will happen between the west and the east" - the funniest claim I have read in days, you ought to write for Daily Mash.

What wealth will be transferred? There is none in the west and there never was - it was all credit and debt based ponzi wealth. And SE Asia is totally doomed to fall along with the west (have you read about the riots in China, Thailand etc lately?) as demand for their new-manufacturing output has disappeared overnight. Plus, many big SE Asia banks invested in the fake dream of western wealth too, and are suffering now as a result. So perhaps you should have written that there is now a "massive bad-debt toxic asset transfer between the west and the east". In the long term, there will be riots and coups and bloodshed in the East, and slow return to solvency after many years of peaceful resignation (except the odd French riot of course) in the west.

Back to the rice paddy fields for your Phillipino farming friends - still, they can rent your future investment apartment and pay you with sacks of rice, the occasional goat and a daughter at Christmas, as they won't have any cash to pay you with.

Good luck.

Wrong again my friend. There will be a new world order. After a global currency devaluation where USA and UK will become third world countries (you are right about debt) A new world currency to replace the dollar and a revaluation of gold. Debt will be inflated away (after current deflation which has been caused by monetary tightening 3 years ago) All existing paper currencies will be devalued by 10 to purge the debt and there will be a clamber to real assets such as gold oil and commodities. Property will benefit at that stage too. The new world powerbase will be China which is the worlds greatest creditor now (Just like USA all those years ago) and I suggest you my friend learn to speak chinese so you can ask them if they want their shoes shined

[Ulidia]

Caribbean Beauty, on Feb 13 2009, 08:33 AM, said:

Hold on and buy a studio in the Uk if I were you, forget developing nations which will shortly be taking retrograde steps backwards to return to third world status, once the global economic system has finished its crash, and even the IMF is brassic. Does on somehow think that the Phillipines will escape this unscathed? The middle class renters there will suffer, the Japs won't be investing any more and the whole of SE Asia will get back to its traditional near-past industries of people/drugs trafficking and the paddy fields.

I'm not a 'blind faith' defender of the Philippines .... it has a hell of a lot of problems and, from my perspective, investing in property in the Philippines is something akin to Russian Roulette. If you're prepared to gamble with money you can afford to lose, then go ahead and invest in real estate there .... all the more so if its a lifestyle purchase.


That said, I think you under-estimate the status of the Philippines compared to the UK .... i.e. the Philippines is undoubtedly a second world country but it already went through its own version of the current crisis in 1997, with the result that banks there have very conservative lending policies. The availability of money is limited and the cost of it is high with the result that property speculation has been limited ..... property prices in Metro Manila are still circa 50% less in real terms than at the start of the 1997 crash.


Are there risks to the Philippines' economy as a result of the global crisis? Sure, but it doesn't relate to Japanese investment. Very few Japanese invest in the Philippines. Rather, the risk is a slowdown in investment from the Chinese and the Koreans (Koreans have bought up whole condominium projects in the recent past) and, furthermore, that the Philippines economy will receive less foreign remittances from the legions of Filipinos working abroad, espeically in the US and Dubai.

[Ulidia]

Caribbean Beauty, on Feb 13 2009, 01:58 PM, said:

Back to the rice paddy fields for your Phillipino farming friends - still, they can rent your future investment apartment and pay you with sacks of rice, the occasional goat and a daughter at Christmas, as they won't have any cash to pay you with.

Its a pity that you feel the need to resort to crude and inaccurate racial stereotypes.


http://www.gov.ph/news/?i=23578

[mikefluk]

Ulidia, on Feb 13 2009, 03:18 PM, said:

Its a pity that you feel the need to resort to crude and inaccurate racial stereotypes.


http://www.gov.ph/news/?i=23578

Well said !! Incidentally the guarantee is underpinned by a korean travel agency guaranteeing just 5% of their annual tourist demand to mactan Island (from Korea alone) to Blue Coral Resort and Spa