Real Estate Use in the Present and in the Future — June 24, 2017 Meetup
We’re back with the notes for the last Manila REI Meetup. I wasn’t able to update you guys for the past two weeks since I was not available to attend the Meetups myself. I’m trying to gather notes of the ones I missed and publish them here as well.
So here are some of the subjects that were of interest last week:
1. Real estate for agricultural/farming purposes
One of the attendees had some land that can be converted to farming use. While initially the group thought of helping convert this land to residential or commercial use instead, the conversations led to helping him figure out what exactly is needed to make a business like that work.
Fortunately, members of the group are networked with various individuals that can help organize it. We’ll see if anything comes out of this.
We have an aging population of farmers, and organizing businesses like this to help gain some other productive use for raw lands is also interesting to do.
2. Buy a pre-selling now… what to do with it later?
Another attendee asked the group that if you invested now in a pre-selling condo, what would you do with it? I’ve been very open about my pessimism about where the market is heading. There are ways to mitigate risks though.
In any case, it is impossible to say what will be the right decision two years from now. While members mentioned that the most likely use for the unit would be long term and short term renting, it could be equally possible that it would be better to sell it off.
I remember an investment advise I have heard countless of times: make money when you buy, and make money when you sell. Buying pre-selling properties should be done with the proper analysis and knowledge about your strategy. Don’t do it on a whim.
3. Faster and cheaper developments?
It also seems like prefabricated houses, or at least house components, can be making inroads in the Philippine market. I’ll be studying this area more and possibly present what I find out here and in the groups.
It would be interesting if a developer would take a risk with this technology and then we’ll see where it would go. I heard that some developers have experimented with this already for low cost housing, but I have yet to hear about doing this with middle-income houses.
It was another fun and very informative week. We transferred to a new location, plus we’re preparing for the “BIG EVENT” happening later this year. I hope to see you in one of our Meetups soon!
ABOUT THE AUTHOR
Ian Mallari is the founder of Manila REI Meetup group. It is composed of various types of investors, professionals, and specialists involved in Real Estate Investing. Manila REI Meetup meets every Saturday in Makati. Join us by signing up here.
He is also the lead consultant of the financial consultancy firm. He works with medium and large sized corporations/businesses in securing funding for their businesses. Right now, he works mostly with AA and AAA contractors for private sector projects.