Investing in Philippines

[Derrick Dill]

Hey BP,

My grandfather recently passed away (Filipino) and he left me land walking distance from University of Antique. I was thinking of doing student housing there. I've been trying to do my due diligence, but it's proven difficult to find quotes for the area. From what I've gathered I can build nicer student housing for about 20k (USD).

Couple questions:

1. Is the 20k I found a reasonable estimate?

2. What can I expect in rental returns (USD) / month?

Thanks in advance!

Any insight in greatly appreciated!

[Gabe G.]

@Derrick Dill I have done some research into the Philippines. First thing that stands out. Foreigners can't own land. That's why most foreigners that buy over there, buy a condo. Because they can own the structure, but not the land underneath of it. If your family member was a citizen and willed it to you. Maybe there is something different I am unaware of.  

As far as building a 4plex.  Rental rates I am unsure of. However, since you would most likely not have tenants that are foreigners and renting to college students. If these were studio units, or one bedroom. I would expect rental rates of 100-190 dollars a month. Though I am not 100 percent familiar with the area the school is located in. But most Filipinos can't afford much more than that. Only places you see high rents, are places that foreigners reside. Makati, IT park in cebu city, etc.

I would seriously think of taking a step back and really think, if you want to be an owner of rental properties in a 3rd world country. I am not certain on eviction laws. However, I know the court system as a whole is jacked up through most of the country. At least on the criminal side. I doubt the civil side is any different.

It may be best, to just dispose of the land and take whatever cash you can get from it.

Good luck.