4. Real Estate
One of our main core competencies is market research, and we’ve done a ton of work on real estate.
You can never go wrong with real estate. Even the most downtrodden, seemingly uninhabitable areas will eventually rise in value. This is because population continues to increase. Developers will always be on the lookout for areas to put up housing and commercial centers.
To entice developers, local governments fund gentrification activities. You might come across rundown towns being given a makeover: newly paved roads, streetlights, and cleaner surroundings.
Development is rapidly moving south toward the Laguna area. Property values in many subdivisions have risen from 10,000 Pesos per square meter to 15,000 Pesos per square meter. Some areas are approaching 20,000 Pesos per square meter.
If you want to be in the real estate business, you must earn 120 units of the Continuing Professional Education (CPE) at any accredited real estate training center. Then you have to take the licensing exam at the Professional Regulation Commission (PRC).
You must work hard at developing your network of leads and contacts. It is important to amass a large database of buyers and sellers of properties. You can be a Buyer’s Agent and represent the buyer’s side in a transaction, or you can be a Listing Agent.
Commissions for real estate agents average 3% depending on the location of the area. If the property is in a prime, fast-moving location, commission rates will be lower so you can include it in your list.
5. Transportation Rental Services
Here’s one of the best investment ideas in the Philippines for 2017. It is a by-product of our horrendous traffic situation.
Did you hear the reports MMDA Chief Orbos might carry over the number coding scheme up to Saturday?
Instead of the current scheme, it might be revised to be Odd numbered cars will not be allowed on Monday, Wednesday and Friday while Even numbered cars will not be allowed on Tuesday, Thursday and Saturday.
You will not be allowed by Orbos to use your car; a product of blood, sweat and tears, three days a week! Not all municipalities observe a window for coded cars to use.
Without a reliable public transportation system, more people will be inconvenienced. There will be longer lines at the MRT which lack enough trains to service commuters.
The alternative would be to take the cab from home to work three days a week. The minimum charge of these taxi services is 300 Pesos one way. And some of these taxi services are not reliable. They may not have taxis available, and the driver may not even arrive on time.
For students, it’s not feasible to sign up for school bus services three days a week because parents will be asked to pay for the entire month.
For the average family, buying a car even through payment terms is hard on the wallet. It may be difficult to keep up with the financing with the prices of commodities and gasoline rising. Buying a second car would be out of the question.
If Orbos pursues his plan, a car rental business will be a welcome investment in 2017.
These car rental services offer different packages. You can choose from daily, thrice-a-week, weekly and monthly. Some of the rates I’ve seen range from 1,500 Pesos per day to 25,000 per month. The cost would depend on the size and type of car you rent.
A car is not a good investment because it is a depreciating asset. But when used as a service, you can generate a good income from it. If obtained via an auto loan, you could pay off the amortization through car rental payments.
A Toyota Vios 1.5 A/T would cost 800,000 Pesos. Under a 2-year, 50% down payment plan, your monthly amortization would be 18,000 Pesos. If you can rent it out for 25,000 Pesos monthly, you will net 7,000 per month.
It’s not a lot of money, but in 2 years, everything you earn will just be gravy. And that’s assuming you generate only 25,000 Pesos in gross revenues. Some car rental services claim, a car would generate 50,000 to 60,000 per month in revenues for the company.
In a car rental business, people are paying a premium for convenience. It can be expensive to the user, but at least he or she will not be tied down to a car amortization over the next few years.
While you’re at it, why not include bicycles and motorcycles in your list of available vehicles? It widens your market base and improves your value proposition.
6. General Cleaning Services
It is difficult for dual-income households to find enough time and give the home the care and maintenance it deserves. Sure parents can do the regular dusting and sweep, but proper home care needs more detailed cleaning measures to ensure the health of everyone under its roof.
Can you smell something musty wafting in the air? Do you find yourself sneezing more often? Do you often spot new rashes on your skin? Are more people getting ill frequently?
Whenever you come home, you bring unwanted “guests” with you. You don’t see them, but they are there. You track bacteria, germs and pests such as dust mites through your shoes and clothes.
Dust mites accumulate under your mattresses, in your carpets and places where they can feed on dead human skin. Their excretions become allergens which you breathe in.
Excess moisture in the kitchen and bathrooms will cultivate the growth of harmful molds and mildew which can be toxic to everyone’s health.
The level of contamination increases when you have pets and the level of risk rises if you live with children and the elderly.
General cleaning services provide homes and commercial establishments the correct methods to maintain a clean and healthy environment. Homes can sign up for a monthly cleaning schedule while businesses such as hotels and restaurants can opt for more detailed work every 3 to 6 months.
You will have to invest in industrial strength equipment and supplies, but some vendors are open to lease payment programs. Before starting the business get certified by accredited groups such as the International Sanitary Supply Association or ISSA.
Hire people who have general cleaning experience of at least two years. Always check their references to make sure they can be trusted.
7. Non-Medical Home Care
For years, the Philippines’ demographic for the elderly was described as “low and slow.” Our population was not aging as rapidly as other Asian countries.
However, a decline in fertility rate and a leveling off the mortality rate has meant that the aging of the Philippines has accelerated the last ten years.
Only 5% of the elderly; those aged 60 and above, live on their own. The majority lives with their children who are working and supporting their families.
It is difficult for the elderly to receive proper care if both spouses are working. Even if one chooses to stay home, he or she may not be equipped with the skills to caring for the elderly. Many Filipino caregivers prefer to work abroad than build a career in the Philippines.
Non-medical home care would be a great service to provide families who have a senior citizen. Services would cover the following:
- Meal preparation
- Light house work
- Medication reminders
- Physical therapy
- Home errands
- Accompaniment to medical appointments
This will be a great business opportunity for you if you have a background in health care. For personnel, look for people who have undergone caregiver training with TESDA or former nurses.
But it is more important to find people you can trust with the elderly. Make sure candidates can provide NBI, police clearances, and character references.