Also, how realistic is it to profit from renting out condominiums? We bought a property in Eastwood for P10M back in 2011 originally for family use. After 2 years of using it we decided to rent it out for P30K a month. With that it will take us 28 years to pay-off the condo using just rental income so it does not seem profitable. Is it time to call “bulls**t” on these agents selling properties as investments? – VD, Manila (via FB page)
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
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,
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