eth Collingz of PLC International said buyers are investors in hotel-condos, a real estate product that combines the flexibility of ownership of a condo in a hotel setting. Popular in the United States, Europe and the Middle East, hotel-condos are just starting to pop up in the Philippines for the first time.
Unlike simple condominiums -- which owners can use as they please -- hotel-condo units are both investment and residential units that can be used by their owners for up to 30 days per year. The plus is that the owners can invest in real estate while having access to hotel amenities like a spa, gym, room services. The remaining time, the units' owners return the rooms to a rentable pool run by the hotel. As the units are rented out, the owners receive a split of the income. Alternatively, unit owners can live permanently in their suites and enjoy hotel living 365 days a year.
One such project recently announced, with Pacific Concord Properties Inc -- among the first developers to do a hotel-condo in Metro Manila -- submitting plans to build a 42-story twin high-rise at Shaw Boulevard, will be called Lancaster The Atrium.
The Lancaster Atrium is a twin tower development that sits on a common podium with the Lancaster Suites Tower I, which was sold out in less than 18 months and is part of its hotel-condo program.
Units at Lancaster The Atrium Tower A are priced at $38,395 to $355,000 -- for sizes ranging from 300 square feet to 1,350 square feet
Collingz, Marketing director for PLC International Marketing Networks, which is exclusively marketing the Lancaster Suites and Lancaster The Atrium Hotel Condominiums in Metro Manila, said condotels started appearing on the market following PCPI's launch of the Lancaster Suites back in 2004. We see a marked increase of interest from buyers who live Europe as well as from corporations looking to invest in Philippine real estate. There have been a plethora of residential properties coming on the market, but not many Condo Hotel developments adding that, in the currently hot Philippine real estate market no one felt the need to try out a product that had not been tested in the country before."
The market for investment properties has shifted in part because of a booming demand for hotel rooms in Metro Manila and a weak dollar internationally. On a broader scale, baby boomers are retiring and buying second and third homes, and interest in real estate as an investment remains strong, when it comes to the market for hotel-condos, the Lancaster project is attracting international customers familiar with this type of investment opportunity. Collingz said
The Lancaster Atrium Tower A development will have 400 hotel-condo rooms and suites, a spa, swimming pool, business center, its own mini mall, shops and convenience stores and several restaurants. The project, located atop a common podium with Lancaster Suites Tower I is only one block from the Ortigas Center, Shangri-La Mall, Edsa Plaza Hotel and SM Megal Mall, will continue construction of its superstructure this year having already completed foundation works and put in place 5-levels of basement parking.
While it is possible to secure easy no prequalification, no down payment 6 year no interest payment plans for the Lancaster Atrium suites, Collingz said that most buyers purchase these properties with a small down payment of some 30% to reduce the monthly payments to around $400 a month for a Studio unit or take advantage of a 20% discount for outright cash purchases.
Unsurprisingly the hotel-condo investment trend in the Philippines will accelerate -- from Metro Manila to other major metropolitan hubs such as Cebu. PCPI's Lancaster Cebu development is already sold out with Condotel operations will commence this March.
PCPI has appointed Lancaster Hotels, Land and Properties, Inc (LHLPI) to oversee the operations, sales and marketing, and asset management of the condotel. Guided with a clear goal of maximizing profitability, LHLPI will spearhead the management of the condotel as well as that of the entire condominium building.
Collingz said that given the expertise of the hotel management team coupled with the prime location of the Lancaster condotels, we foresee a profitable operation in the years to come thereby ensuring maximum return on investment.
Statistics from the Department of Tourism indicate that the number of tourist arrivals to the Philippines has been consistently growing by double digit percentages for the past three years. In 2005, of the 2.3 million tourist arrivals, 1.7 million visited Cebu. In fact, an additional 40,000 hotel rooms are needed to accommodate the expected five million tourist arrivals by 2010.
The Lancaster brand of Condotel developments further validate the increasing demand for hotel rooms which make us more confident that our market and financial projections will be achieved said Collingz
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
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Real Estate
So you want to be a property developer?
If you're like most people, you'll have had the dream at one of two key times. Either you have just sold your own property and made a small fortune, despite the fact you did very little work on the property when you owned it. Or you've been watching one of the very popular TV property shows, where a couple of amateurs have blown their budget, made a series of basic mistakes, yet still made a small fortune.
Yes, life as a property developer seems romantic, and probably better than the daily slog you currently face at work.
Yet there can be few occupations as risky as being a property developer. Where else would you be asked to invest tens of thousands of pounds into a project, dedicate months of hard work and only then find out if you had made a profit. Even running your own business isn't that risky, as you can measure your profitability along the way.
The reality is that it's quite hard to make it as a full-time property developer. The money you made on the sale of your last house may have come from the growth of the housing market while you owned it. That's not something you can rely on as your main source of income.
And as a property developer you are reliant on being able to turn enough of a profit from a property to cover your living expenses for a few months, plus help to fund your next purchase.
So before you jack in your job and start scouring local estate agents' windows for suitable houses to do up, here are a few things to think about.
First off - are you really suited to this? Many of us are risk averse; that's why we like going to work and getting a regular salary. It makes it easier to live your life knowing you have that monthly income.
Being a property developer means the end of regular income (unless you decide to rent your properties out, anyway). And the financial risks are higher. If you can't sell a property you've just finished, that's not only going to stop you feeding your family, but will make it hard for you to move onto the next project. This is not an insurmountable problem, but an issue you should consider before making the leap.
Still sure you want to go ahead? Then the next thing is to look at the marketplace you are going to develop for. Look around your local area and try to work out where the greatest demand for property lies. Are there a lot of commuters wanting a well connected area or a virtually new property? Wealthy executives demanding four bedroomed detached houses? Families wanting lots of space for very little money? Retired people who want low maintenance bungalows within walking distance of shops?
Find the demand and develop for it. Try not to get hung up on the developer's dream. If you want to create the perfect home, then do it in your own. Keep your developing as a business.
Once you've done your targeting, it's time to do some hard work. You should be prepared to do as many unskilled labouring jobs in your projects as you can. In fact, to be a successful property developer you should be prepared to learn how to do the things you currently can't. It's a key attribute that will help you maximise your profits. Just remember to get qualified people in for the skilled work.
And the final part is to do whatever it takes to get a quick sale at the right price. It's the goal you've been working towards all along.
Still like the sound of being a property developer? Then good luck, and enjoy your new life!
For further information please visit our website at http://www.propertytoday.co.uk or ring us on 01733 427177.
Yes, life as a property developer seems romantic, and probably better than the daily slog you currently face at work.
Yet there can be few occupations as risky as being a property developer. Where else would you be asked to invest tens of thousands of pounds into a project, dedicate months of hard work and only then find out if you had made a profit. Even running your own business isn't that risky, as you can measure your profitability along the way.
The reality is that it's quite hard to make it as a full-time property developer. The money you made on the sale of your last house may have come from the growth of the housing market while you owned it. That's not something you can rely on as your main source of income.
And as a property developer you are reliant on being able to turn enough of a profit from a property to cover your living expenses for a few months, plus help to fund your next purchase.
So before you jack in your job and start scouring local estate agents' windows for suitable houses to do up, here are a few things to think about.
First off - are you really suited to this? Many of us are risk averse; that's why we like going to work and getting a regular salary. It makes it easier to live your life knowing you have that monthly income.
Being a property developer means the end of regular income (unless you decide to rent your properties out, anyway). And the financial risks are higher. If you can't sell a property you've just finished, that's not only going to stop you feeding your family, but will make it hard for you to move onto the next project. This is not an insurmountable problem, but an issue you should consider before making the leap.
Still sure you want to go ahead? Then the next thing is to look at the marketplace you are going to develop for. Look around your local area and try to work out where the greatest demand for property lies. Are there a lot of commuters wanting a well connected area or a virtually new property? Wealthy executives demanding four bedroomed detached houses? Families wanting lots of space for very little money? Retired people who want low maintenance bungalows within walking distance of shops?
Find the demand and develop for it. Try not to get hung up on the developer's dream. If you want to create the perfect home, then do it in your own. Keep your developing as a business.
Once you've done your targeting, it's time to do some hard work. You should be prepared to do as many unskilled labouring jobs in your projects as you can. In fact, to be a successful property developer you should be prepared to learn how to do the things you currently can't. It's a key attribute that will help you maximise your profits. Just remember to get qualified people in for the skilled work.
And the final part is to do whatever it takes to get a quick sale at the right price. It's the goal you've been working towards all along.
Still like the sound of being a property developer? Then good luck, and enjoy your new life!
For further information please visit our website at http://www.propertytoday.co.uk or ring us on 01733 427177.
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