Real Estate Ventures and What Nots

[jhnkvn]

I'm here to ask the opinions of my fellow Tsikoteers regarding venturing into real estate in Dasmarinas, Cavite.

For people who knows me, my family is part of those low-profile rich people. You won't be seeing any Mercs, Bimmers, and other luxury cars in our garage. Hell, my mom makes Uncle Scrooge look like Santa Claus on how she controls our family personal finances like how I used to wait 20 minutes just for hot water because she kept unplugging our centralized water heater.. or that we still have a fully functioning Sony component system that uses cassette tapes and is older than me. As an entrepreneur by heart, I began rummaging through family assets looking for another business venture when I stumbled upon a parcel of land that's quite promising.

So... gusto ko pasukan ang real estate.... as a developer.

As I analyzed the market, you come to the impression that the only "profitable" venture in real estate is to be a developer. If you go purchase a property with the intention of renting it out, your typical ROI is typically at 10-12 years. It's safer but unlike Hong Kong, our secondary market is practically nonexistent. This is because our tractable land is vast versus Hong Kong that's compact and finite.

Take Anvaya Cove or Nuvali as an example. You can go and purchase a property, you may also rent it out, but you'd take a hard hit in reselling them to the secondary market. This is because the developer would anticipate the demand and simply build more to accommodate the demand. This is why there are phases in development: "phase 1 has been sold out and we're building phase 2" scenarios. So if you are going to resell the property, you'd have to heavily discount it and no investor would want that.

Since wala ako alam sa industriya, I did what every entrepreneur would do: industry analysis muna. So from Quezon City, I find myself roaming around Cavite and looking at real estate property ventures... and yeah, posing as a supposedly "interested" buyer for investment or family purchases :naughty2: On a side note, tanginang Daang Hari yan... akala mo pumasok lang si Villar, plonked down cash, and said "200 hectares of land please".

Okay, for pointers on what 11 hours did:

1. Styling sets them apart: CrownAsia had Italian, Avida Setting had American-styled residential units, Avida Dasmarinas had Mediterranean, while Century Properties in Carmona..... well, I forgot what style they had but I damn liked their Moderno units (The Moderno at Canyon Ranch - Century Properties) for their modern-styling.

2. For costing: Out of 100% land, 60% are workable, 40% aren't (ex. roads, shrubbery, etc.), their prices per square meter, lot appreciation history, etc.

3. Concrete: CrownAsia used hollow-blocks, Avida used wall-blocks (isipin mo parang sandwich: two concrete panels tapos cement filling), while Century used concrete panels (much like Avida but more pre-fabricated.. so parang lego nalang abot sa site). Anybody in the construction industry who can enlighten me on this one?

With courtesy, good looks :naughty2:, and aviators, extracting information was fairly easy. But, for a summary: real estate there was definitely booming. House and lots are hard to come by.. especially good ones.

Location of the lot is 6 hectares just 5 minutes..... walk from SM Dasmarinas and Robinsons Place Dasma. And personally, I still have no idea what Dasmarinas-people want. On the residential side, I'm looking at middle-income (ex. 130-150 sqm lots) or low income. I'm also looking on going for middle-rise condomiums and townhouses. I also threw out the idea of partnering with them because I'm definite I won't be learning anything and learning's paramount.

So, if you were me and can't spend the money by fooling around in Quezon Avenue, what are you going to do in real estate? Are Dasmarinas folks ready for condominiums or are they still primarily geared for your typical house and lot? And as a purchaser of house and lots, meron ba kayo architectural "leanings"?

Also, may alam kayong "good" subdivisions, villages, etc. sa Dasmarinas which I can do market study on? Baka resident kayo at pwede ko hiritin pangalan niyo

[renzo_d10]

Sa Dasmarinas lang ba gusto mo?

I know several developers who are into building gated compounds. Tipong sa 600sqm na lot, there's 6 houses. And most of them sell their houses pretty fast.

Take for example yung unit sa San Juan. I saw how they built it from ground up, and I can say pulido talaga. Once finished, the units were priced around 25-30mil, wala pa isang taon parang tatlo nalang ata natitira na unit out of eight?

Of course, not all of them are successful some takes time to sell din the project. Some stop na agad after finishing their first project because they were really ugly. Big, but ugly. & the market didn't like them.

If you wanna sell your house fast. I'd say a safe margin for pricing each unit is ~13-18mil. With a good location to put it on, and connections that could help you sell it (call me, maybe? :classic baka in a year maubos na lahat nung units.

Condos are harder to sell. Well I think depende pa rin, pero that's just me. Most people look out for houses talaga, whether gated compounds or sariling gate. Wala rin masyado naghanap ng house & lot, maybe siguro masyado na mahal and di na uso very big houses for a family of three? Hehe.

Hirap nalang talaga humanap ng lot na hindi masyado taga presyo.

[jhnkvn]

Well, I'll start out with Dasmarinas muna since nandyan na. I do plan on expanding in the future though (hence learning is paramount).

Land prices are also appreciating fast thanks to consumers buying. Trickle down effect ng growth usually goes to banks kasi which in turn makes liquidity abundant. Sarap tuloy mangutang

[Balikpinoy]

Factor in PagIbig loan buyers as your target market. There's plenty of low income housing being developed in the Laguna area.

[threx666]

I'm here to ask the opinions of my fellow Tsikoteers regarding venturing into real estate in Dasmarinas, Cavite.

For people who knows me, my family is part of those low-profile rich people. You won't be seeing any Mercs, Bimmers, and other luxury cars in our garage. Hell, my mom makes Uncle Scrooge look like Santa Claus on how she controls our family personal finances like how I used to wait 20 minutes just for hot water because she kept unplugging our centralized water heater.. or that we still have a fully functioning Sony component system that uses cassette tapes and is older than me. As an entrepreneur by heart, I began rummaging through family assets looking for another business venture when I stumbled upon a parcel of land that's quite promising.

So... gusto ko pasukan ang real estate.... as a developer.

As I analyzed the market, you come to the impression that the only "profitable" venture in real estate is to be a developer. If you go purchase a property with the intention of renting it out, your typical ROI is typically at 10-12 years. It's safer but unlike Hong Kong, our secondary market is practically nonexistent. This is because our tractable land is vast versus Hong Kong that's compact and finite.

Take Anvaya Cove or Nuvali as an example. You can go and purchase a property, you may also rent it out, but you'd take a hard hit in reselling them to the secondary market. This is because the developer would anticipate the demand and simply build more to accommodate the demand. This is why there are phases in development: "phase 1 has been sold out and we're building phase 2" scenarios. So if you are going to resell the property, you'd have to heavily discount it and no investor would want that.

Since wala ako alam sa industriya, I did what every entrepreneur would do: industry analysis muna. So from Quezon City, I find myself roaming around Cavite and looking at real estate property ventures... and yeah, posing as a supposedly "interested" buyer for investment or family purchases :naughty2: On a side note, tanginang Daang Hari yan... akala mo pumasok lang si Villar, plonked down cash, and said "200 hectares of land please".

Okay, for pointers on what 11 hours did:

1. Styling sets them apart: CrownAsia had Italian, Avida Setting had American-styled residential units, Avida Dasmarinas had Mediterranean, while Century Properties in Carmona..... well, I forgot what style they had but I damn liked their Moderno units (The Moderno at Canyon Ranch - Century Properties) for their modern-styling.

2. For costing: Out of 100% land, 60% are workable, 40% aren't (ex. roads, shrubbery, etc.), their prices per square meter, lot appreciation history, etc.

3. Concrete: CrownAsia used hollow-blocks, Avida used wall-blocks (isipin mo parang sandwich: two concrete panels tapos cement filling), while Century used concrete panels (much like Avida but more pre-fabricated.. so parang lego nalang abot sa site). Anybody in the construction industry who can enlighten me on this one?

With courtesy, good looks :naughty2:, and aviators, extracting information was fairly easy. But, for a summary: real estate there was definitely booming. House and lots are hard to come by.. especially good ones.

Location of the lot is 6 hectares just 5 minutes..... walk from SM Dasmarinas and Robinsons Place Dasma. And personally, I still have no idea what Dasmarinas-people want. On the residential side, I'm looking at middle-income (ex. 130-150 sqm lots) or low income. I'm also looking on going for middle-rise condomiums and townhouses. I also threw out the idea of partnering with them because I'm definite I won't be learning anything and learning's paramount.

So, if you were me and can't spend the money by fooling around in Quezon Avenue, what are you going to do in real estate? Are Dasmarinas folks ready for condominiums or are they still primarily geared for your typical house and lot? And as a purchaser of house and lots, meron ba kayo architectural "leanings"?

Also, may alam kayong "good" subdivisions, villages, etc. sa Dasmarinas which I can do market study on? Baka resident kayo at pwede ko hiritin pangalan niyo

Dasmarinas is noted as one of the cities with the highest number of subdivisions, as I what I've known , lots inside the city proper fetch at least 8k per sq m , and almost all big names na mall developer have their branch in Dasma e.g. SM , Robinsons , and Ayala

[1997]

two things I learn when im working in a real estate company... 1.Cash flow 2.Out source.

[jhnkvn]

two things I learn when im working in a real estate company... 1.Cash flow 2.Out source.

Care to explain more regarding outsourcing? I'm quite noobish abot sa real estate you see

[vinj]

Care to explain more regarding outsourcing? I'm quite noobish abot sa real estate you see

RE. outsourcing, if you don't have the resources, you'll get contractors for your land development, structure, utilities and finishing. You can also opt to tie-up with real estate brokerages to sell your units.

+1,000 on cash flow if i may add.

[jhnkvn]

Dasmarinas is noted as one of the cities with the highest number of subdivisions, as I what I've known , lots inside the city proper fetch at least 8k per sq m , and almost all big names na mall developer have their branch in Dasma e.g. SM , Robinsons , and Ayala

Yep. In fact, Ayala is constructing a (estimate) 6-8 hectare mall beside their Avida Settings townhouses to be finished sometime November-December 2013. As per my visit, most of their Phase 1 and Phase 2 townhouses are already bought out with probably 5/400 houses available due to their inherent bad location (ex. lot is not square but slanted). They've also said of plans in building upscale residential units (yun mga tipong 400sqm and above) as their Phase 3 once the mall development is done.

[jhnkvn]

RE. outsourcing, if you don't have the resources, you'll get contractors for your land development, structure, utilities and finishing. You can also opt to tie-up with real estate brokerages to sell your units.

+1,000 on cash flow if i may add.

Yep. I definitely plan to outsource a lot

[vinj]

Yep. I definitely plan to outsource a lot

Even with outsourcing, you will need a competent project manager to coordinate all of these along with your architects, sales, post project, etc.

[stickers]

since you got no experience sa real estate yet. why not go joint venture with one of the developers? at least lupa lang puhunan mo. yun nga lang mas matagal ROI nyan compare sa you buy and sell the property.

[111prez]

If you do not need the money, land banking is an option

Buy as much of the adjacent and contiguous lots to either increase the total size of the property and/or make its boundaries and shape much better

With a bigger size and better shape, it will have a higher value and attract more potential JV partners or buyers in the future

[jhnkvn]

since you got no experience sa real estate yet. why not go joint venture with one of the developers? at least lupa lang puhunan mo. yun nga lang mas matagal ROI nyan compare sa you buy and sell the property.

It's on the table actually. SM has already approached us on the premise of buying the lot.. pero gusto nila part lang (kuripot as usual ) I also believe AyalaLand is interested in the land for residential development. But we reckon it's better to further develop the land instead as this would give our family business diversification into real estate.

Yun problema sa JV is that I'm afraid I won't learn the ropes much. Many have entered into JVs and let the developer (ex. AyalaLand) handle everything while they simply get a cut on the property. From a value proposition, pangit. This is why I'm currently leaning on starting small muna: purchasing a lot sa Bulacan then developing it to learn the ins and outs before I venture out in developing the larger parcel of land sa Cavite.

[uls]

DIY nalang like some people i know

may land sila ang they bought earthmovers and bulldozed the land by themselves. ayaw nila mag JV

[jon777]

So what happened to the rich and goodlooking TS with the "kuripot" mother? Start na ba?

[lowslowbenz]

^

Yeah, baka pwede na ako bumili ng house and lot sa kanya!

[jhnkvn]

Di kaya ako rich and good looking... well, maybe the good looking part lang cguro :naughty2:

I ended up going small muna. The typical buy-build-sell route to be frank, I'm envious at lot-owners.. ang mahal mahal ng mga lote I can't believe Banawe's going at 60k/sqm nowadays.

[vinj]

Di kaya ako rich and good looking... well, maybe the good looking part lang cguro :naughty2:

I ended up going small muna. The typical buy-build-sell route to be frank, I'm envious at lot-owners.. ang mahal mahal ng mga lote I can't believe Banawe's going at 60k/sqm nowadays.

That's a good way to start really, learn from the small build-sell route first.

Lots are expensive in the Metro already. I know of people who sealed their retirement fund by buying lots many, many years ago and selling it in the last few years.

[Manilablock]

Di kaya ako rich and good looking... well, maybe the good looking part lang cguro :naughty2:

I ended up going small muna. The typical buy-build-sell route to be frank, I'm envious at lot-owners.. ang mahal mahal ng mga lote I can't believe Banawe's going at 60k/sqm nowadays.

Kung gusto mo mabilis ang development ng lote mo tayuan mo ng palengke (wet/dry market), hindi lahat ng ang katabi ay SM or Robinson ay attractive sa mga buyers, pero kung meron palengke na malapit, lalapitan yan ng mga tao.

Then saka ka decide kung mid or high value homes ang ipapatayo mo, sa mid mas mura ang puhunan mo, build as you received DP at move-in.

Possible din na meron mga banks, hardwares, fastfoods na mag rent (long tern lease).