Investment Survey

[earthlyken]

Hello Guys,

Good evening, just want to get have a survey for possible investment.

Scenarios:

You have extra 2 Million pesos for investment, where will you invest?

1. Bank Time Deposit.
2. Uber Taxi / Grab Taxi.
3. Food franchise.
4. Condo and have it rent out.
5. Invest in a Micro lending business.

As of now, my choice is #4.

TIA

[machine.pistol]

My comment on no. 4. It's costly to maintain a condo unit. And the return recovery period is too long.

Taxi business with 3 or 4 units is not ok. Sakit ulo sa driver and mulcters. Plus expensive upkeep if you don't have garage and mechanic.

Time deposit interest is too low.

I'd probably just put it in bonds. I'm a risk averse person. That's why it's my choice.

[earthlyken]

My comment on no. 4. It's costly to maintain a condo unit. And the return recovery period is too long.

Taxi business with 3 or 4 units is not ok. Sakit ulo sa driver and mulcters. Plus expensive upkeep if you don't have garage and mechanic.

Time deposit interest is too low.

I'd probably just put it in bonds. I'm a risk averse person. That's why it's my choice.

Hi Sir,

tried investing sa sunlife financial,

first couple of months (3 to 6 months), tumaas siya ng 15k to 25k na kita...then after that, pababa ng pababa na siya...to the point na mababa na siya sa capital na pinasok ko...

nag antay ako ulit ng morethan 1 year then yung tumaas siya ng 3k, pull out kona agad...

nakakatakot sa stocks mag invest pag wala ka talaga alam, kagaya ko..

[khrisme]

Hi Sir,

tried investing sa sunlife financial,

first couple of months (3 to 6 months), tumaas siya ng 15k to 25k na kita...then after that, pababa ng pababa na siya...to the point na mababa na siya sa capital na pinasok ko...

nag antay ako ulit ng morethan 1 year then yung tumaas siya ng 3k, pull out kona agad...

nakakatakot sa stocks mag invest pag wala ka talaga alam, kagaya ko..

Sir anong kinuha mong investment plan sa sun life?

[vinj]

I'll buy a lot as well.

[yebo]

forget the taxi business. yung mga matitinong taxi drivers nasa malalaking taxi operators na. ang mapupunta sa iyo pag 3 units ka lang yung mga reject. lolokohin ka lang. 6 hours lang magbaba at mag-install ng transmission. pag nakatyamba ka ng sira ulong driver wala pa 6 months napalitan na lahat ng pwedeng kahuyin na pyesa ng units mo kaya wla pa 1 year nagsisira na.

[macsd]

I'll just add on what Jut has already mentioned as he practically covered all items in your list. As to the micro lending or lending for that matter, you have to find a good lending company that is willing to take your investment. Yes they earn good interest but do take note that interest are more on paper than you can feel it. The reason for this they tend to roll those interest to expand the market and worse it take's time to liquidate your capital as the money is always more on the borrowers rather than on hand.

I would suggest you visit big banks ( BPI, Security, Metro etc...) and check out their investment products. More often they would have corporate bonds/investment that can earn you 3-5% interest. This is something you can just sleep on as it's risk free and let your money work for you instead of you still working for the money.

[jut703]

Hello Guys,

Good evening, just want to get have a survey for possible investment.

Scenarios:

You have extra 2 Million pesos for investment, where will you invest?

1. Bank Time Deposit.
2. Uber Taxi / Grab Taxi.
3. Food franchise.
4. Condo and have it rent out.
5. Invest in a Micro lending business.

As of now, my choice is #4.

TIA

My thoughts on your initial 5 options.

1. A time deposit will earn you about 1.5% per annum, which isn't much. 2 years ago, this would've left you losing out on inflation. But right now, with low oil prices, inflation is just at around 1.5% too. Of course, in a decade's time, inflation will rise again so you'll lose out once more. No risk, practically no return either. In 10 years, your 2M will just be 2.3M.

2. It's much easier to be a small-time Uber operator than a taxi franchise operator. Uber and Grab have less barriers to entry compared to taxis. I made some computations concerning this venture a few months back, which was reposted on this investment blog: The Uber Investment - Alpha Investments

Long story short - Uber is a volatile investment that doesn't earn much, especially when you consider that Uber can't give out huge incentives forever and that everyone's getting in on the bandwagon.

3. Food franchises are another bandwagon item and have been the long-time favorite of people with a bit of money to spare and want to "invest in a business". Most food carts give you meager returns, and like Uber, the market is just so saturated that it takes a lot of effort, luck, and time to be able to stand out and make good money out of it.

4. Condos are generally good investments, but what most don't take into consideration is that not all locations will appreciate significantly.

If you really want to have good capital gains, get a unit in BGC from a high-end developer, no lower than Alveo. Budget condos like Avida, DMCI, and SMDC don't appreciate as quickly as their expensive counterparts. However, your 2M isn't enough to buy a condo in cash, or even as 20% DP (higher end condos in BGC are north of 20M).

The location you're referring to along N. Domingo won't appreciate as quickly as BGC, but of course, in 10 years you could expect that the price will most likely have doubled. At least the condos there are more affordable.

ROI based on rental income alone will take about 8-10 years, which is quite a long time, but again, don't forget the capital appreciation.

You must consider, however, that unlike paper investments, condos aren't as easy to liquidate. There's always that risk that you won't be able to sell your condo at the price you want because people are flocking to buy something newer (and the condo boom isn't about to end yet in the QC area as lots of lands are still being converted to high-rise developments).

At the very least though, you have something for your future generations to inherit and live in.

Since you're considering condos, consider buying lots as well. Sure, you miss out on the rental income, but lots in developing areas will appreciate much faster than condos. Again, 2M isn't enough to buy a decent lot in the booming districts of Metro Manila, but it could serve as your downpayment. You can also explore up-and-coming provinces like Laguna and Pampanga.

5. I know of quite a few people who have ventured into lending, some more successful than others. I haven't delved deep into it, so I can't say for sure what factors can make or break your investment. In general though, it's a very informal and risky business, but the returns can be big (assuming you're able to collect).

Hi Sir,

tried investing sa sunlife financial,

first couple of months (3 to 6 months), tumaas siya ng 15k to 25k na kita...then after that, pababa ng pababa na siya...to the point na mababa na siya sa capital na pinasok ko...

nag antay ako ulit ng morethan 1 year then yung tumaas siya ng 3k, pull out kona agad...

nakakatakot sa stocks mag invest pag wala ka talaga alam, kagaya ko..

Never make an investment into stocks, mutual funds or VULs with the intention of pulling out in such a short span of time (1 year is way too short). When investing in equity, always plan for the long term.

If you invested in 2007, and pulled out during the 2008 financial crisis, you would've missed out on the strong bull run from 2011-2014, where you could've easily doubled your returns.

In general, investing in insurance companies' VULs and mutual funds aren't as profitable as investing in stocks or UITFs directly because of the high management fees they charge. The advantage of course is that you get insurance coverage, so it's a 2-in-1 product. But there's the school of thought where you can just buy cheaper term insurance (usually 1/10 the cost of VULs), then invest the difference. This will lead to bigger returns for you, but you have to have the discipline to invest consistently every month.

If you decide to invest in equities - be it stocks, mutual funds or UITFs, NOW is the best time to get started. The market is currently down (from a high of over 8,500 last year, the Philippine Stock Exchange Index is down to 6,600). Once the market rebounds in about 2-3 years, you'll be able to ride that upward wave and get very good returns.

Whatever investment option you choose, make sure to study it very carefully, and invest the time and effort to have a deep understanding of what you're getting yourself into. Good luck.




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[badkuk]

4. Condos are generally good investments, but what most don't take into consideration is that not all locations will appreciate significantly.

If you really want to have good capital gains, get a unit in BGC from a high-end developer, no lower than Alveo. Budget condos like Avida, DMCI, and SMDC don't appreciate as quickly as their expensive counterparts. However, your 2M isn't

My tita once bought a house & lot and condo at not so premium places; hindi rin siya masyado nag appreciate. i guess you just can't go cheap with property, unless titirhan mo talaga.

[vinj]

My tita once bought a house & lot and condo at not so premium places; hindi rin siya masyado nag appreciate. i guess you just can't go cheap with property, unless titirhan mo talaga.

Location, location, location.

[earthlyken]

My comment on no. 4. It's costly to maintain a condo unit. And the return recovery period is too long.

Taxi business with 3 or 4 units is not ok. Sakit ulo sa driver and mulcters. Plus expensive upkeep if you don't have garage and mechanic.

Time deposit interest is too low.

I'd probably just put it in bonds. I'm a risk averse person. That's why it's my choice.

when you say "It's costly to maintain a condo unit" what do you mean about it sir? are you referring the association dues?

[XTO]

ibili ko ng lote yan.


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[earthlyken]

ibili ko ng lote yan.


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Hi Sir XTO,

Buy a Lot worth 2Million then sell it for a higher price?

parang condo lang...but a condo, have it rent out then after couple of years benta..kumita kapa monthly + patong sa selling price.

[EQAddict]

Hi Sir XTO,

Buy a Lot worth 2Million then sell it for a higher price?

parang condo lang...but a condo, have it rent out then after couple of years benta..kumita kapa monthly + patong sa selling price.

I agree with #4 as I also follow that strategy. Capital appreciation with some monthly cash rental returns. I know there are better strategies but this one works for me. Though where you buy is very important.

[XTO]

Hi Sir XTO,

Buy a Lot worth 2Million then sell it for a higher price?

parang condo lang...but a condo, have it rent out then after couple of years benta..kumita kapa monthly + patong sa selling price.

A 2 lot worth a million each is another option because its much easier to sell. I prefer lot instead of condo. Ang condo kasi hindi sa iyo ang lote only the unit. Also mahirap makipag deal sa administrator in case may pagagawa ka. Dami kuskos balungos.

Yes, location will make a real difference. Daming condo ang gaganda sa mata while vacant but once occupied di mo mapipili neighbors mo -wala na atrasan.

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[dishcom]

Mahirap mag hanap ng investment... syempre gusto natin yung safe na malaki ang kita..
.
Hindi ko ma rerecommend ang condo sir.. matagal bumalik ang puhunan plus pag nababakanti ang unit e tuloy tuloy ang monthly due mo.. kung paupahan din naman ang papasukin mo. Bumili ka na lang ng lot at doon ka mag pa tayo ng paupahan....

[earthlyken]

Mahirap mag hanap ng investment... syempre gusto natin yung safe na malaki ang kita..
.
Hindi ko ma rerecommend ang condo sir.. matagal bumalik ang puhunan plus pag nababakanti ang unit e tuloy tuloy ang monthly due mo.. kung paupahan din naman ang papasukin mo. Bumili ka na lang ng lot at doon ka mag pa tayo ng paupahan....

Magandang suggestion din yan sir, kaso after buying a lot, you also need to build a structure for rent..

hinde ata kakasya yung 2M dun...

[earthlyken]

BTW, the location pala is sa San Juan area, along N. domingo street siya..

Bungad sa lahat ng establishment..

less than 10 minutes going to greenhills.

[dishcom]

Magandang suggestion din yan sir, kaso after buying a lot, you also need to build a structure for rent..

hinde ata kakasya yung 2M dun...

Kung sa metro manila. Midyo alanganin nga ang 2M.. Pero sabi nga pag may lupa na e madali na tayuan ng bahay...
.
Ok sana yung taxi business. Maka kuha ka ng 3 unit. Problem naman e yung pag hihintay mo ng prangkisa plus pa yung matinong driver.. kung wala kang talent sa pag hawak ng tao e wag ka mag taxi operator. Kasi maraming taxi driver na barubado or mainitin ang ulo...
.

[confused shoes]

Medyo mahihirapan yung 2M sa mga nakalista.
Siguro kung may kakilala kang maganda ang business, siguro pwede kang maki share. Like yung mga bumibili at nag didistribute ng bigas. Kung minsan kinakapos ng capital mga yan.