Condotel Investments in the Philippines - Second Homes for the Boomer Generation
What if… Just 5% of the Filipino Baby Boom Generation in the United States, Europe and Australia learned of a cost effective way to own more than 1 home in retirement?
Some 5 million boomers will retire over the next 10 years, 5% equals a demand of 25,000 condo hotel units per year, every year until 2017.
What if… you could buy a second home/condo, use it when you wanted, and a professional (hotel manager) optimized the rental income and minimized the expenses while you were not in residence? Would this be more desirable than the alternative of doing-it-yourself for at least 5% of the population?
What if… you could say you have condos in Metro Manila and Cebu? And all these condos cost you less than just one traditional second home?
What if… all these properties appreciated like your home has?
The Condo Hotel opportunity in the Philippines will be the choice of more than 5% of the Baby Boom Generation, and the trend is just beginning. The condo hotel industry will also breath new life and prosperity into the hotel industry, making quality hotels more profitable than ever. Condo hotel will separate the real estate business from the hotel service business and create a win-win for condo hotel ownership and hotel guests. Lastly, retirees of the next decade will expect more and be able to afford a higher lifestyle through condo hotel.
The Power of the Boomer Generation…. Why are Baby Boomers Important?
3 million Filipino Baby Boomers across the world began to reach retirement in 2006 and let’s not forget some 81 million US Baby Boomers* (born between 1946-64) whom began to reach retirement age in 2005. 28% of the US population is a Baby Boomer. 2016 is the peak year, with 4.3 million 59 year old birthdays. A Boomer turned 50 every 7 seconds in 2006!
Many US Boomers will choose to retire in warmer climates such as the Philippines where their pensions go a lot further.
Boomers have just begun buying their second/retirement homes.Metro Manila only has some 20,000 second condo homes, whilst Cebu has even less. By 2010, an estimated 2 million people are expected to own a second home and could be considered a boom market by any measure. More people will buy in the next 5 years than have purchased in the last 10 years, competition for desirable retirement residences will only intensify, appreciate in values will follow suit.
The current trend of lowering interest rates in the Philippines has helped fuel this real estate market. Currency exchange rates have a much more dramatic inflationary effect on real estate. The trend began in 2004, and is beginning to intensify as interest rates fell in 2006, causing some boomers to “buy early”. Real estate investments in the Philippines are fueled by stock markets around the globe ‘not returning the level of investment returns’ that many boomers had built retirement savings expectations around.
The second-home market can accommodate 10,000 to 15,000 new housing starts a year over the next 10 years”, estimates Beth Collingz, Marketing Director for PLC International Marketing Networks a Condotel Investment consultant for Pacific Concord Properties Inc Lancaster Brand of Condotels in the Philippines.
Can the demand for second home, resort properties and retirement residences in the Philippines be truly measured or is it just another version of real estate investment hype? A new study by CREBA, shows that 23 percent of all homes purchased in 2006 were for investment, while another 13 percent were vacation homes.
All too often we read reports about the increasing value of assets like real estate without any discussion of the cost of inflation in these increases or the exchange value of the currency being used to value the asset. If the dollar falls in purchasing value by 20% against other currencies, the value of real fixed assets should correspondingly rise by 20% (if they are desirable for purchase by foreigners). Real estate markets that have a high level of foreign investment will appreciate quickly as the dollar falls.
Can these high rates of appreciation in the Philippine second home market really continue? Many experts believe, “Yes!”, it can sustain for a long run (not months, but years). The fundamentals of rapid appreciation equate to supply growing slower than demand. Supply in areas such as Metro Manila has been on the increase (6,000 new or planned condo units entering the market by 2007-08) but is still way below demand. In Cebu, a popular tourist and retirement destination only less than a “few hundred” condos will enter the market - but the foreign buyer demand in both the Metro Manila and Cebu areas is extremely high. At this time, a 30% rise in property values could be easily absorbed in the Philippines.
Demand will grossly continue to exceed supply until somewhere around 2016.
Pacific Concord Properties, Inc., Flagship Lancaster Suites Condotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, one of the hottest Condotel Investments in the Philippines To be called Lancaster Suites Manila Atrium Tower II [which is the second Tower adjacent to the existing “Sold Out” Tower I] we are now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year "In-House" financing available, full condo ownership, no management costs for Condotel Suites, no enrollment charges for joining the Condotel Rental Pool, and minimum monthly maintenance fees, as buyers or sellers of Real Estate you really should take a moment to look at this Philippine Condotel Investment Opportunity
Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2009/2010, Lancaster – The Atrium will provide unit owners with residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool. Great Investment for Fil-Am's whom visit Manila for Vacations or Business as they can earn Rental Incomes [at current purchase levels] of some 14-16% ROI per annum as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites one of the Hottest Investment Opportunities in the Philippines.
All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 70 pesos/square meter of the unit floor area/month..
Purchasing at the Current Price would give a projected Annual ROI through future Rental Income of some 12-16% per annum depending upon the price of the unit when operational from later part of 2010... Interested ?
The Smart “Self-Liquidating” Investment Advantage !
Many of our clients are purchasing fully furnished “Ready-For-Occupancy” Condotel Suites at Lancaster Suites Tower I Manila and Lancaster Cebu Resort Residences that will be operational within the year, thereby realizing Rental Incomes of up to some 12% per annum, and using the rental income to Purchase a Studio Suite at the Lancaster Suites Manila Atrium Tower II on a “No-Down Payment” 6 year Interest Free Payment Plan with only $595 Monthly Installments enthuses Beth Collingz, Director, PLC International Marketing Networks.
Where would I normally find Condotels in the Philippines?
At the Lancaster Suites Manila, Shaw Bouelvard, Metro Manila and Lancaster Cebu Resort Residences, Mactan, Cebu.
How much do Condotels cost and can you finance them?
Condotels have a vast range in price. This is another benefit of Condotel investments. Most offer Studio, One Bedroom, Two Bedroom, Three Bedroom and Penthouse Suites. No matter what your price range is, there is something out there for almost anyone. In the Philippines, Lancaster - The Atrium Manila range between $34,000’s and $280,000, Lancaster Cebu Resort Residences range between $49,000 and $105,000 so regardless of your price range, there should be something for you.
Although financing has been difficult in the past on real estate investments in Philippines especially for Foreign Nationals through local Banks, they have been getting much better in the past several years. Not too long ago, you would have to cough up a minimum of what amounts to 50% down in order to be able to finance the purchase of a unit. Now, developers have their own ''In-House'' No Qualification Finance Purchase Arrangements.
Banco De Oro (BDO) a commercial Bank in Metro Manila has just approved a buyer's financing or mortgage plans for Lancaster Suites Tower I Manila Condotel units. Beth Collingz, PLC International Marketing Director stated that "The new financing scheme, a first providing Philippine Mortgages to Foreign Nationals residing overseas for the purchase of Condotel units in the Philippines, is now available to unit owners (Filipinos, Filipino-Americans and Foreign Nationals alike) whom are looking to purchase a Condo Hotel Suite or refinance their investments through BDO's Home Loan"
Lancaster Tower I Buyers can take advantage of this offer to free up some cash as well as to finance the fit-out of their units in the condotel pool or their business set up requirements in their commercial units or purchase preconstruction units in the new Lancaster Atrium Manila Condotels. “Many of my previous clients whom have purchased units in Lancaster Suites Tower I are now set to cash in on their equity by availing of the new 15 year financing option to be able to reinvest in new units at Lancaster Atrium which is currently on preconstruction selling” said Collingz
Pacific Concord Properties Inc was the first Philippine developer to adopt the International Standard of Escrow Trust Account Banking for all buyer's payments and units at the Lancaster Suites Manila and Lancaster Atrium developments that may be purchased on No Down Payment Plans with payment periods up to 12 years. Interest Free No Down Payment Plans are also available for payment periods of up to 6 years. Whilst the Lancaster Cebu Resort Residences may also be purchase on minimal 15% Down Payment Plans with payment periods up to 5 years. Interest Free No Down Payment Plans are also available for period of up to 2 years.
What is the best time to buy a Condotel unit?
There is a limited inventory of Condotel units, and there selling fast. Pacific Concord Properties Inc’s 405 unit - Lancaster Suites Manila Tower 1 ''Sold Out'' in record time. Most Condotels are sold out during the preconstruction and construction phase. As word continues to spread about the Condotel Developments of Pacific Concord Properties in Manila and Cebu, more and more investors from around the World, and not only Filipino Americans, are looking to participate in these solid investment opportunities.
Furthermore, because demand is outpacing supply, appreciation has been significant and rapid. In less than 24 months Pacific Concord Properties Lancaster Suites Manila Tower I saw prices appreciate from [Pesos] 43,000 to the current price of 90,888 per square meter or some 110% whilst the Lancaster Cebu Resort Residences have seen prices appreciate during the past 12 months alone from [Pesos] 64,000 to 83,200 per square meter or some 30% during which time the Philippine Peso maintained an average exchange rate to the US Dollar of around $1.00 to 50.00 Pesos. With Foreign Exchange Rates stabilized, now is the best time to act. Better yet, Pacific Concord Properties Inc provides Buyer’s the opportunity to avail of “Fixed Price” US Dollar denominated Contracts taking out any risk in Exchange Rate Fluctuations.
For inquiries on the Lancaster Suites currently available Condotel suites, price and terms of payment available together with information on the Launch of Tower II sales, please contact:
PLC International Marketing Networks
Pacific Concord Properties Inc., Manila Head Office
Shaw Boulevard. Mandaluyong City.
Metro Manila. Philippines 1552
Phone: Manila [63 2] 717 1958
Fax: Manila [63 2] 718 1828
Web: http://www.lancastersuites.com/ [Lancaster Condotels]
Web: http://www.plcglobalpinoy.com/ [Condotel Webring]