Beth Collingz, International Marketing Director for PLC Global based in Manila, lead Marketing Partners for the Lancaster Brand of Condotels in the Philippines, announced “the companies recent US Road Show was another major success bringing in some $8.9 Million Dollars worth of sales for Lancaster – The Atrium Condo Hotel as investors look at to solve problems of real estate retirement investing as an alternative to social security systems that are on the verge of going bankrupt and Pension Plans that are failing left and right and will continue to fail as many are glorified ‘Pyramid Schemes’ or rely solely upon the ‘never ending chain’ principal.
“Overseas Filipinos and Offshore Property Investors looking to start saving for retirement, the Philippines with its comparative low cost of real estate yet high rates of Hotel Accommodations, make the Condotel investment an extremely attractive investment proposition. Clients are now looking at the preconstruction investment in a Lancaster Atrium Semi Fitted Studio Suite that may be Purchased on 12 Year Payment Plan Options that provides for Executive Studio [Semi Fitted] Suites to be purchased with a Reservation of only -Pph-25,000.00 for a 32.50sqm [350sqft] Studio then 48 consecutive monthly payments of only -Pph-17,801.58 [No Interest for the first 4 years]. During the first 4 years there is an Annual Lump Sum payable on the anniversary of the reservation date of -Pph-91,551.00 and thereafter continue the 96 consecutive monthly payments of -Pph-24,075.73 to complete the balance of the purchase price” Collingz said.
Collingz said “Having paid 50 percent of the purchase price within 4 years the Studio Condotel will be ready for occupancy and thereafter income positive with a projected ROI through rentals of at least 500 dollars per month makes the remaining 96 monthly payments on the unit balance self liquidating” said Collingz, and with preconstruction property appreciating at some 20-30% per annum not only does the Real Estate Appreciation look good but after paying for the unit, the rental income is in excess of what many Pension Plans offer for the same or similar investment of only 50 percent of the purchase price for the unit.
The potential high rates of rental returns from Condo Hotel Investments, currently from 8% up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around like headless chickens looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement. “We look at Condotels as pure investments. Not primarily as Real Estate. If you look at the Condo Hotel market as investing for future income, and think outside of the box, it is plain to see that Hotel Condominiums are not only real estate investments but more importantly income generating property. Think of Condotels as a Managed Pension Plan. After all, Condotel units are fully managed property. The owner of the property does not have the hassle of renting out the unit and contend with all the normal pit falls of being an amateur land lord. This is taken care of by the Condo Hotel Management” said Collingz.
“One of my clients from Chicago, just purchased 4 Studio Condotel Suites at Lancaster – The Atrium Manila which is currently in preconstruction sales with a plan to retire in 2012. His outlay for the purchase is only around 70 Dollars a day for 6 years by opting to purchase with a 30% down payment on a 6 year no prequalification, no down payment, no interest payment plan. Even before completing payment for the units, he will be receiving more than $2,000 a month in rental income in additional to any Government or Private Company Pension Plan. Apply that to the 12 year payment plan and during the first 4 years prior to completion, where you would only be paying something like 20 Dollars a day, and after the units are already earning rental income, 45 Dollars a day, he would have a cash positive income on 20 Dollars a day or some 600 Dollars a month. Better yet, the rental income is in tune with inflation and buying on preconstruction terms gives real estate appreciation of some 60-80% over 4 years enthused Collingz.
At the end of 12 years, having only put out 50% of the original purchase price of the units, the owner would have earned something like 4,800 Dollars and condo units are now in fee simple, owned free and clear, then earning more than 2,000 Dollars a month. Better yet, as Hotel Rates increase yearly, so does the rental income” Collingz said.