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.