Thank you for your inquiries, and for your trust to even consider asking me. First off, I’m far from being an expert on piggeries and real estate, I’m just a talkative guy who shares his investment adventures and learnings for others to learn from. I’m just someone like you guys in this journey towards financial freedom.
To BPM, on the piggery,
- Mini-piggery Venture: SOLD!
- Should I Leave My Day Job and Start a Piggery Business?
- Piglets, Price, Profit: Start-up Piggery Business
In brief, we relied on our relatives from the province to take care of the piggery for us. We also used pre-existing structures (like pigpens, etc) as such start-up cost was lower than usual. We discontinued the piggery after the first try due to lower than expected returns (our share was just 3.54% ROI, the caretaker another 3.54% which if you think about it is decent enough %wise but very low in actual amount).
We held on the pigs for 3 to 4 months, average weight when we sold them was 76kg, average selling price was at PHP115 (live weight per kilo). Prices of feeds back then were at Starter (P1041), Grower (P983), Finisher (P921). This still excludes cost of vaccines and medicines.
I’m not familiar with your circumstances abroad, but if you could hold on a little longer, and if you have someone you trust who can run things for you here in our country, I suggest you go ahead and get started with your piggery (it’s good that you’re preparing a business plan) while you’re still gainfully employed there.
You know, I’m not really a fan of totally closing one door (employment) and opening another one which carries more risk (self-employment). As much as I can, I’d do both in parallel, and just quit my day job once my business is more stable. I leave it up to you. Good luck and may you have a richer life!
To VD, on your investments
Admittedly, “investments” is loosely used by sales agents to make a condominium sale and I advice all buyers to take this with a grain of salt. Now, the question on rental income indeed being sufficient to pay off the monthly amortization of the condominium (thereby making it self-liquidating), well it depends on the location, and whether the property was bought at a very low price (such as pre-sell).
Though I’m pretty sure NOT ALL condominium units are self-liquidating in that regard. Personally, a 30-year breakeven period is indeed a no-go for me, but as you mentioned, the rental objective was just secondary, the primary objective was really to live in it. If I can bring this down to say 10 years, then I’d probably reconsider since at the end of 10 years, the property is still mine even if someone else paid the amortizations. Maybe we’ll find out by next year.
Kiyosaki will say you only consider as investment if it brings you positive cash inflows. I respectfully disagree. Some buyers get condominiums to live in it, for comfort, proximity etc, for them a better alternative than renting an apartment, and a more achievable objective than having a house and lot. If Juan finds these reasons worth it, if they get to save money compared to their present situation, then I’d say getting a condominium was a good investment in that regard.
Lastly, we should also consider appreciation of real estate values in the equation. Maybe the P10M property your bought almost 5 years ago has now increased in value. In that regard, the P10M was also a sound investment.
To OFWT, on potential apartments,
PS. It’s hard to be an OFW, it’s really a great experience to travel abroad as a tourist/ visitor, but as an employee, experience is very tough. As such, it is imperative that family and relatives here in the country are equipped with an investment mindset, that they are financially literate, so that they are able to properly managed the money sent to them.