Hi there Marco!
We are in the process og purchasing a condo in a new reclamation project in Manila. (SAIL residence by SMDC) A good friend is married to a Philippina and they have come across this deal that seems like a good investment. Buy now, rent out for 5-7 years and then sell at a hopefully very good profit. I wil be buying through my Norwegian holding company owned 100% by myself. Purchase price 13 mill pesos with 5% now and 15% divided over next 36 months. We take handover next july/august. Remaining 80% due in 3 years after handover. Is this a feasible project for a non citizen of the Philippines? Will I be able to borrow money in a local bank when 80% are due? Whar are my tax risks when reselling, renting out , etc?
thank you very much for feedback!
Regards, Bjorn Anker
Hi Bjørn,
I can't comment about the "good" investment, as that requires financials to determine a proper cash flow and return on investment.
However, Manila was recently noted as one of Asia's Top Up and Coming Rental markets. That is a great sign!
In regards to the loan, I'm seeing many home loans in the 8% to 10% interest range. That is much higher than I would feel comfortable with, but everyone has a different tolerance for leverage risk.