Building Wealth Through International Real Estate Investing

Dynamic Preservation Of Wealth In Real Estate

One of the fastest ways people become millionaires is through real estate investment. No other industry has built more millionaire and fortunes than it. Dynastic wealth is often preserved through real estate investments across residential, commercial, and retail investments.

There is an emerging trend in Asia and more specifically the Philippine Islands. There has been a large growth in the middle class economy in this Asian region because of their ability to speak English and it being a hub for tech-investment.

The Movers and Shakers In Real Estate

Beth Collingz, PLC International Marketing Director for Pacific Concord Properties Inc’s Lancaster Brand of Condotels in the Philippines said When the unit owners are not using the condo hotel suite, the unit is put in the managed pool and rented out for them. The buyers have what is considered “hassle free” ownership. The condo hotel unit owners also benefit from having a professional onsite management company to handle to marketing, booking of their room and general expertise that they bring to the table. If a problem should arise with their condo hotel unit, the management company will take care of it instead of the owner having to worry about it. This makes the traditional landlord tenant issues a thing of the past.

The condo hotel buyer sees the benefit to owning a vacation property that also has the potential to produce income for them. The typical condo hotel produces higher levels of income than the traditional vacation home (and less headaches), making it all the more appealing to buyers said Collingz

Developments such as the Lancaster Suites Manila Tower I was sold out in less than 18 months and the building is set for completion Summer 2007. Condo hotels are different from traditional condos because they are sold “turn key”. Clients initially purchase the standard condo unit and then when the time comes for interior ‘fit-out’ they can avail of the in house Condotel package of furniture’s and furnishings for the unit. This means buyers do not have to worry about hiring a designer or contractor to come in to finish out the unit. Everything is included from linens, dishes, pillows etc

Leading the way in the Metro Manila condo hotel market is Pacific Concord Properties Lancaster Brand of condotel investments. Pricing for condo hotels can range anywhere from $43,000’s up to $350,000 for Penthouse suites. Of course the pricing depends on location, views and types of finishes.

The Lancaster Suites Manila Tower I development has enjoyed great success for its clientele with property appreciation already reaching 100% for its initial buyers.

Lancaster The Atrium, the latest development by PCPI in Shaw Boulevard, Metro Manila, is currently on preconstruction selling and looks set to sell out within the next few months. Lancaster The Atrium offers clients the choice of Studio, One, Two and Three Bedroom suites that all have kitchen facilities as regular residential condo unit. In addition, Lancaster The Atrium, as with the Lancaster Suites Tower I, offers unit owners and guests an extensive range of services and amenities said Collings.

Condotel Investments in the Philippines, Buy to Let rental properties are now being preferred to failing Pension Plans as more and more Filipinos and Overseas Property Investors look to the future and retirement.

20 Dollars a day for 6 years will buy you a Studio Condotel unit in the Philippines with a projected ROI through rentals of some 500 dollars per month after 3 years. With preconstruction property appreciating at some 20-30% per annum not only does the Real Estate Appreciation look good but the rental income is in excess of what many Pension Plans offer for the same or similar investment.

With many Overseas Filipinos and Offshore Property Investors looking to start saving for retirement, the Philippines with its comparative low cost of real estate yet high rates of Hotel Accommodations, make the Condotel investment an extremely attractive investment proposition.

Beth Collingz, International Marketing Director for PLC Global, a company specializing in Condo Hotel Sales and Investments in the Philippines for the Lancaster Brand of Condotels, said that many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate.

“Many of my clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Personally, I have always regarded Pension Plans as a glorified ‘Pyramid Scheme’. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”

High Rate Of Return

This potential, high rates of rental returns from Condotel Investments, currently from 8% up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so 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.

“We look at Condotels as pure investments. Not primarily as Real Estate. If you look at the Condo Hotel market as investing for future income, and think outside of the box, it is plain to see that Condotels are not only real estate investments but more importantly income generating property. Think of Condotels as a Managed Pension Plan. After all, Condotel units are fully managed property. The owner of the property does not have the hassle of renting out the unit and contend with all the normal pit falls of being an amateur land lord. This is taken care of by the Condo Hotel Management” said Collingz.

Retirement Investment Planning

“One of my clients from Chicago, just purchased 4 Studio Condotel Suites at Lancaster – The Atrium Manila which is currently in preconstruction sales. His plan is to retire in the Philippines in 2012, live in one of the Suites and receive the Condotel rental income on the other three. His outlay for the purchase is only around 85 Dollars a day for 6 years by opting to purchase on a 6 year no prequalification, no down payment, no interest payment plan. Even before completing payment for the units, he will be receiving some $1,500 a month in rental income in additional to any Government or Private Company Pension Plan. Better yet, the rental income is in tune with inflation and buying on preconstruction terms gives real estate appreciation of some 60-80% over 3 years. As Hotel Rates increase yearly, so does the rental income”

Foreign Nationals are legally allowed to purchase as much as 40% of the total number of condominium units on the market at any given time. Overseas Filipinos and more and more foreigners are now emerging as a market for condotel units. Many or our clients are coming from different countries like South Korea, Australia, United Kingdom, Saudi Arabia and other parts of the Middle East,” Collingz said.

Lancaster – The Atrium Tower II [which is the second Tower adjacent to the existing “Sold Out” Tower I] is now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership, no management costs for Condotel Suites and minimum monthly maintenance fees – “You really should take a moment to look at this Philippine Condotel Investment Opportunity” enthused Collingz.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month..

The Lancaster Atrium Suites are now available on the very affordable and competitive New Payment Plan that provides for Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

The current selling price for the Lancaster Manila Atrium Tower A Tax Exempt Studio Units is Pesos 75,888 or $1,615.00 per sqm. The One Bedroom, Two and Three Bedroom Suites are priced at Pesos 84,994.56 or $1,808.80 per sqm including Government Taxes [R-Vat 12%]. Units may be purchased on a Six Year No Interest Charge Term of payment or longer term “In-House” financing plans.

All payments will be made to the Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 60-70% on turnover of units.