Cebu Real Estate Investment Opportunity

RESProDeP Continuing

Improvement Program

RESProDeP

Why do in

Estate

Invest

ReaL

iNtRO to tHe rEaleSTatE MArkeT

What do people invest in?

- LIFE INSURANCE COMPANIES

- PENSION FUNDS

- MUTUAL FUNDS

- BANKS

- FOUNDATIONS

DIFFERENT CONSTITUENCIES, EXPERTISE, LIABILITIES, REGULATIONS, SIZES

TWO MAJOR INVESTMENT OBJECTIVES

INCOME

G R O W T H

Relatively Long-term (Appreciation)

Short-term (On-going need for Cash Inflow)

tHe adVANtaGeS oF REaL esTAtE iNVestMeNT

RISK CONTROL=

ADVANTAGES OFREAL ESTATE INVESTMENT=

ADVANTAGES OFREAL ESTATE INVESTMENT

CASH FLOW (LIQUIDITY) = PASSIVE INCOME

ADVANTAGES OFREAL ESTATE INVESTMENT

RENTAL YIELD more than

BANK SAVINGS RATE

MORE INCOME

ADVANTAGES OFREAL ESTATE INVESTMENT

LEVERAGE

(CAN BE USED AS COLLATERAL)

BANK

ADVANTAGES OFREAL ESTATE INVESTMENT

HEDGE AGAINST

INFLATION

INFLATION

House Price Changes, 5 Yrs (%) - Philippines Compared to Continent

Japan, -15.05

Indonesia, -14.04

Malaysia, 16.01

Thailand, 17.68

Taiwan, 22.75

Singapore, 24.47

Hong Kong, 44.7

Philippines, 57.81

China, 78.69

South Korea, 20.89

-20 0 20 40 60 80 100

1

China

Philippines

Hong Kong

Singapore

Taiwan

South Korea

Thailand

Malaysia

Indonesia

Japan

ADVANTAGES OFREAL ESTATE INVESTMENT

FLEXIBILITY /

EXPANDABILITY

ADVANTAGES OFREAL ESTATE INVESTMENT

DEPRECIATION

(HEDGE VS TAX)

TAX

0

5

10

15

20

25

30

5 Yrs 10 Yrs 15 Yrs 20 Yrs

AmortizationIncome

ADVANTAGES OFREAL ESTATE INVESTMENT

POWER of AMORTIZATION

ADVANTAGES OFREAL ESTATE INVESTMENT

0

5

10

15

20

25

30

5 Yrs 10 Yrs 15 Yrs 20 Yrs

AmortizationRental Rate

PREDICTABILITY/CONSERVATIVE

NET INCOME RANGE

House Price Changes, 1 Yr (%) - Philippines Compared to Continent

Indonesia, -2.87

Japan, -1.78

China, 1.11

Taiwan, 1.83

Malaysia, 2.5

South Korea, 3.1

Philippines, 4.58

Thailand, 4.63

Singapore, -21.05

Hong Kong, -14.77

-25 -20 -15 -10 -5 0 5 10

1

ThailandPhilippinesSouth KoreaMalaysiaTaiwanChinaJapanIndonesiaHong KongSingapore

House Price Changes, 10 Years (%) - Philippines Compared to Continent

ending 1Q 2009

Japan, -32.04

Indonesia, -3.54

Hong Kong, 5.3

Taiwan, 7.72

Thailand, 19.81

Philippines, 30.32

Singapore, 32.61

South Korea, 69.82

-40 -20 0 20 40 60 80

1

South Korea

Singapore

Philippines

Thailand

Taiwan

Hong Kong

Indonesia

Japan

Gross Rental Yields - Philippines Compared to Continent

Taiwan, 2.68

Hong Kong, 3.12

China, 3.55

India, 3.59

Singapore, 3.79

Cambodia, 4.33

Japan, 5.69

Thailand, 7.99

Malaysia, 9.22

Philippines, 10.99

Indonesia, 12.34

0 2 4 6 8 10 12 14

1

IndonesiaPhilippinesMalaysiaThailandJapanCambodiaSingaporeIndiaChinaHong KongTaiwan

ADVANTAGES OFREAL ESTATE INVESTMENT

PREDICTABILITY/CONSERVATIVE

NEW COUPLE

YOUNG FAMILY

MID-LIFE STATUS

RETIREMENT

SINGLE STATUS

Different Lifestyles, Life Cycles, Personal Goals, Levels of Wealth

LEGACY

end

For More info./ Inquiries pls.contact:

MARY JEAN SAILEPhil. Real Estate Proj. Property ConsultantPrimary Homes Inc.Lic.#: 2008-S-8-1322 (N)Mobile#: +639297163343Facebook/E-mail: mjsaile@yahoo.comWebsite: www.realtorsaile.bahay.ph