RESProDeP Continuing
Improvement Program
RESProDeP
Why do in
Estate
Invest
ReaL
iNtRO to tHe rEaleSTatE MArkeT
What do people invest in?
- LIFE INSURANCE COMPANIES
- PENSION FUNDS
- MUTUAL FUNDS
- BANKS
- FOUNDATIONS
DIFFERENT CONSTITUENCIES, EXPERTISE, LIABILITIES, REGULATIONS, SIZES
TWO MAJOR INVESTMENT OBJECTIVES
INCOME
G R O W T H
Relatively Long-term (Appreciation)
Short-term (On-going need for Cash Inflow)
tHe adVANtaGeS oF REaL esTAtE iNVestMeNT
RISK CONTROL=
ADVANTAGES OFREAL ESTATE INVESTMENT=
ADVANTAGES OFREAL ESTATE INVESTMENT
CASH FLOW (LIQUIDITY) = PASSIVE INCOME
ADVANTAGES OFREAL ESTATE INVESTMENT
RENTAL YIELD more than
BANK SAVINGS RATE
MORE INCOME
ADVANTAGES OFREAL ESTATE INVESTMENT
LEVERAGE
(CAN BE USED AS COLLATERAL)
BANK
ADVANTAGES OFREAL ESTATE INVESTMENT
HEDGE AGAINST
INFLATION
INFLATION
House Price Changes, 5 Yrs (%) - Philippines Compared to Continent
Japan, -15.05
Indonesia, -14.04
Malaysia, 16.01
Thailand, 17.68
Taiwan, 22.75
Singapore, 24.47
Hong Kong, 44.7
Philippines, 57.81
China, 78.69
South Korea, 20.89
-20 0 20 40 60 80 100
1
China
Philippines
Hong Kong
Singapore
Taiwan
South Korea
Thailand
Malaysia
Indonesia
Japan
ADVANTAGES OFREAL ESTATE INVESTMENT
FLEXIBILITY /
EXPANDABILITY
ADVANTAGES OFREAL ESTATE INVESTMENT
DEPRECIATION
(HEDGE VS TAX)
TAX
0
5
10
15
20
25
30
5 Yrs 10 Yrs 15 Yrs 20 Yrs
AmortizationIncome
ADVANTAGES OFREAL ESTATE INVESTMENT
POWER of AMORTIZATION
ADVANTAGES OFREAL ESTATE INVESTMENT
0
5
10
15
20
25
30
5 Yrs 10 Yrs 15 Yrs 20 Yrs
AmortizationRental Rate
PREDICTABILITY/CONSERVATIVE
NET INCOME RANGE
House Price Changes, 1 Yr (%) - Philippines Compared to Continent
Indonesia, -2.87
Japan, -1.78
China, 1.11
Taiwan, 1.83
Malaysia, 2.5
South Korea, 3.1
Philippines, 4.58
Thailand, 4.63
Singapore, -21.05
Hong Kong, -14.77
-25 -20 -15 -10 -5 0 5 10
1
ThailandPhilippinesSouth KoreaMalaysiaTaiwanChinaJapanIndonesiaHong KongSingapore
House Price Changes, 10 Years (%) - Philippines Compared to Continent
ending 1Q 2009
Japan, -32.04
Indonesia, -3.54
Hong Kong, 5.3
Taiwan, 7.72
Thailand, 19.81
Philippines, 30.32
Singapore, 32.61
South Korea, 69.82
-40 -20 0 20 40 60 80
1
South Korea
Singapore
Philippines
Thailand
Taiwan
Hong Kong
Indonesia
Japan
Gross Rental Yields - Philippines Compared to Continent
Taiwan, 2.68
Hong Kong, 3.12
China, 3.55
India, 3.59
Singapore, 3.79
Cambodia, 4.33
Japan, 5.69
Thailand, 7.99
Malaysia, 9.22
Philippines, 10.99
Indonesia, 12.34
0 2 4 6 8 10 12 14
1
IndonesiaPhilippinesMalaysiaThailandJapanCambodiaSingaporeIndiaChinaHong KongTaiwan
ADVANTAGES OFREAL ESTATE INVESTMENT
PREDICTABILITY/CONSERVATIVE
NEW COUPLE
YOUNG FAMILY
MID-LIFE STATUS
RETIREMENT
SINGLE STATUS
Different Lifestyles, Life Cycles, Personal Goals, Levels of Wealth
LEGACY
end
For More info./ Inquiries pls.contact:
MARY JEAN SAILEPhil. Real Estate Proj. Property ConsultantPrimary Homes Inc.Lic.#: 2008-S-8-1322 (N)Mobile#: +639297163343Facebook/E-mail: [email protected]: www.realtorsaile.bahay.ph