Philippine Real Estate Rental Business

Here is a cool tip for buyers who can pay for their real estate in cash. Inquire with the developer all the financing terms available. Ideally, you would want to go with a developer who offers a 20% down payment payable in 36 months and 80% of the balance due after the down payment term. SMDC offers this payment scheme. They also offer discounts of up to 14% for outright cash buyers, but don't go with it, why? Because 14% in 3 years is just around 4.67% per annum and there are plenty of safe, well regulated and insured financial instruments out there that can net you more than that rate.

So here it goes. Pay the 20% down payment amortization and place the remaining 80% in various financial instruments like time deposits, UITFs and stocks for a maximum period of 3 years, just remember to stay liquid and do not overdo it with stocks since there is no assurance that there is no downturn within the 3 year period and you do not want your money stuck in it. As an added bonus, since you are only paying for the small monthly amortization, you would not loose too much money in case of non delivery by the developer.