The Fast and The Slow Income Generating Investments
In the Real Estate Industry anywhere else, There are opportunity
on both, Fast and the Slow income generating Investments.
Let's discuss first the Fast Income Generating Investments:
What are these Fast Income Generating Investments? These are Real Estate
Investments that can generate a passive income in a span of less than a year
or two years at the most. Example of this type of Investments are Apartments,
House, condominiums Investments with the Intention of Renting it out or in the
case of a Build and sell Business, They sell the Units, Make a profit and make a turn
around, Build again with the Intention of making Profit.
There are also type of Investments like a well planned Development Concepts of Subdivisions. Manny are Investing on this type, Buying lots at a Pre Developed
price and once the Subdivision is fully Developed and specially whe all lots are
fully sold out, The Investors will start to sell what they've Invested at the current
price of the Subdivision. This only takes three to five years time.
There are some situations that Investors can make a quick turn around of their Investments in less than a year. When there's a price Increase, they make profit
already. This Fast Income Generating Investments are the type of Investments that needs
a Big Capital Investments unlike the Slow Income Generating Investments.
The Slow Income Generating Investments:
These are the type of investments that need a very minimal Capital with a very good terms. Only people who have good foresights can see this type of opportunity.
An example of this are Undeveloped Big Parcel of Land (Raw Land), Where there are lot
of paper works to be done in the Future once it is applied for conversion od title fro Raw Land into a Residential Development or whatever type of Development in the future.
This type of Investments will take a minimum of 20 to 30 years before Development in the area will happen. These are the type of Investments with Real Big Returns. In the Philipine setting, Raw Land prices ranges only from fifty Centavos to One peso per square meter 25 year ago. Most of these Raw Land now were converted into Industrial, Commercial
And Subdivision Developments.
Price per square meter on middle class subdivision would range from PHP4000.00 to PHP6,000.00 per square meter. Had you Invested 10 hectares at the price of one peso per square meter 25 yrs. ago, It only cost you PHP100,000.00. If your property is Develop into a Subdivision, Where only 70% is for sale since 30% of which is allotted for the Roads and parks. You have 70,000 square meters at the Price of PHP6,000.00 is a Total of PHP420 million pesos. Does it Sounds GREAT?
I hope we learn a lot on this Topic.
Thanks for your time,
Peter Cadorna
