Living in the Philippines – Best "Passive" Businesses to Start

For those OFW’s and foreigners wishing to start a business, but not wishing to involve themselves with the stress of a business involving day-to-day operations, employees, landlords, inventory, and so forth, there are several available opportunities for foreigners living in the Philippines. Buy fixer upper properties, improve them, then rent or sell them.

1. Buy Fixer Upper Properties, Improve Them, Then Rent or Sell Them. This is a great business for those of you who have experience in your home country in buying, fixing up and renting or selling properties. Over the past 10 years, a lot of people got involved in this kind of business in their homeland.

With the overall economic problems in the world the past couple of years, the Philippines has not been immune, and there are a lot of properties in a state of disrepair, as well as lot of distressed and foreclosed properties.

2. Build An Apartelle. An Apartelle is an apartment building where all but one of the units are rented out long term, and you are left to operate on a nightly or weekly basis, like a hotel – hence the combined name of apartelle. These are common in the Philippines.

This business will require a heavier capital investment, yet with the right property and by focusing in the more rural areas or smaller cities, you can construct a small 4 unit apartment building for Peso 3,000,000 – not counting cost of the land.

You would want to rent out 3 units on a long term rental basis, and keep one for short term rentals – for the many traveling salesmen that frequent the countryside. They like booking into such short term apartelle units rather than the much more expensive hotels in the area.

3. Condotels. I have not given this business my “thumbs up” in all instances. Condotels have been heavily touted and promoted the past several years and there have been many, many new condominiums built in Manila, and now even in Cebu and starting in Davao.

The problem is that although the developers offer great down payment terms (usually around 30% down financed over 3 years) and in some cases carry back the mortgage and finance for perhaps 10 years, the interest rates are incredibly high, and the split of rentals with the management team runs around 50%/50%. There is also always a nominal monthly maintenance fee.

What looks like “cheap” entry point and cash flow out each month, in many cases simply becomes a bet on long term property appreciation – finding someone willing to pay you more for it than you paid for it.

This is because with all the inventory on hand, there is a surplus of condos which have been into hotel type rental pools, but not enough visitors to rent them all.

Consequently, what an investor thought would be a good positive cash cow, turns out to be a continuous negative cash flow – not what a new retiree to the Philippines is looking for to supplement his pension or annuity! This type investment will only drain you pension.

However, having written all this, I HAVE FOUND the past several month two exceptional condotel investments which DO meet my criteria of creating good ongoing rental income.

4. Farming. The likely cessation of the Agrarian Land Reform Program (CARP) will give the rural sector renewed confidence to invest in agricultural production capacity. CARP has held back investment in both production capacity as well as farm acquisition. An end to CARP will mean higher land prices since land will be valued for its higher income producing potential.

However, higher land prices are simply a “serendipity”, an added value, to the type of farming business I am writing about. I have found an extremely unique business opportunity, which will generate a great ROI (return on investment) and is completely passive. It has been structured by the developers (all foreigners) to be a one turnkey investment price. The price includes cost of the land, plus all

Clearing, planting, cultivation and harvesting for the first 5 years.

The business has been priced to fit the capital investment budget of the average foreigner retiree, and all landowners will be members of a cooperative which will share the farming equipment (tractors, equipment shed, and others). The farm will be “farmed” by the developer’s management team

The hottest trend now is in organic farming, and yet it is only in its infancy stage in the Philippines. There is one export product in particular which has caught my attention – the pili nut. The Philippines is the ONLY country with which produces and processes this nut in commercial quantity.

The current status of the pili is equivalent to that of the macadamia some 30 years ago. It has huge potential to develop into a major industry. They are in demand not only in Hong Kong and Taiwan but also in Singapore, Korea and Austria.

Pre-Employment Testing

As the job market becomes increasingly competitive, many employers are resorting to pre-employment testing to determine the best candidate for the job. While resumes provide employers with some insight into the capability of applicants, a relevant test can really help narrow the field. Unfortunately, there are also several disadvantages to pre-employment testing. Additionally, there are strict laws prohibiting discriminatory or disrespectful questions from being asked.

Advantages

Pre-employment tests provide employers with a number of advantages. Some such perks, include:

• Employers can identify positive traits within candidates, such as integrity, competence, motivation, and reliability

• Employers can identify negative traits within candidates, such as substance dependency and inclinations toward theft

• Provides further insight into candidates

• Can help determine differences between candidates who seemed equal after evaluating their resumes and undergoing an interview.

Disadvantages

Unfortunately, pre-employment testing is also disadvantageous for many employers. Some drawbacks include:

• Test results are only one factor of the hiring process. Employers should base their decision on other factors, such as their experience, qualifications, and interview.

• All tests administered by employers must be certified for validity and reliability

• Test results are not necessarily indicative of applicants’ ability to perform their job. Instead, tests focus on applicants’ potential.

• Testing conditions must be fair and consistent for every candidate

• Testing may eliminate some candidates who are highly qualified, but do not perform well on tests

• Applicants may react poorly to the test. Additionally, if they believe the test was discriminatory, they can legally challenge the test.

Discrimination

When writing tests, employers must be aware of the laws pertaining to employment testing. Any questions which require applicants to divulge something about themselves that could result in discrimination is illegal. For example, employers cannot ask about an applicant’s:

• Age-Some employers discriminate against older applicants because they assume that the older they are, the more pay they will request.

• Race/Ethnicity-Race and ethnicity are irrelevant factors when applying for a job. This law protects minorities from discrimination.

• Disability status-Some employers will discriminate against persons with disabilities, even if they will not impede the applicant’s job performance. The Americans with Disabilities Act prohibits employers from asking questions pertaining to an applicant’s disability status.

• Sexual preference-Because sexual preference is private and irrelevant to one’s job performance, employers are prohibited from inquiring. This law protects members of the LGBT community who might otherwise be discriminated against.

Benefits of Shopping Malls

The earliest malls were Paris Arcades in the 19th century. They became very popular with shoppers instantly. Since then shopping malls have evolved to suit people’s tastes. Shopping malls are the most preferred shopping areas in our times among shoppers across the globe.

Earlier shops in shopping centres catered to the elite. But it is no longer the case. Now, there are shops in shopping malls which cater to different budgets.

Shoppers prefer shopping centres/malls to stand-alone shops for various reasons:

1. They have their own parking facility.

2. There is a wide variety of products available.

3. There are products from competing producers available under one roof. So, they can compare and make purchases.

4. They have facilities such as restrooms.

5. They have gaming zones.

6. There are food courts with a wide variety of cuisine.

7. There are movie theatres in shopping centres.

All these features making shopping a fun-filled and satisfying experience.

Since shopping centres are the most sought-after shopping destinations, it is beneficial for a businessman to set up a store in a shopping mall. Generally, retail store owners rent shop space in a mall. Renting store space benefits the businessman in many ways.

• Shopping malls are usually located in prime locations which are easily accessible. If a retailer sets up a store in a mall, he can have the shop in a prime location with a minimal investment. On the other hand, if he attempts purchasing a shop in such a location, he may not be able to afford it. A rented property implies low initial investment. This enables the businessman to utilize the saved amount on his business.

• He can attract clients of competitors who have shops in the mall. This enables him to build a clientele easily.

• He does not have to direct his time and efforts towards the maintenance of the shop. This helps him to focus on his business.

• Generally, the charges for utilities are included in the rent. Hence, he does not have to involve himself in these matters.

• Many a time, businessmen set up pop-up stores in shopping centres in order to attract customers for new products. This is a popular location for a pop-up store as it is a high traffic area.

With so many benefits of shopping malls to shoppers as well as businessmen we can conclude that shopping centres will only rise in popularity with time.

How Do Hemorrhoids Affect Your Overall Health?

Most people are too embarrassed to tell their doctors about their hemorrhoids. Also called piles, hemorrhoids are masses that accumulate around the rectum. Due to straining or pressure, veins protrude from thin membranes, forming pouches. These can be so painful and irritating that even normal tasks can become stressful ordeals. What is the impact of hemorrhoids to your overall health?

Internal hemorrhoids are those formed inside the rectum, and sometimes extend outside the anus when dilated. External hemorrhoids are lumps that can be seen by the naked eye. Digital rectal exams (DRE) administered by doctors can detect lumps that aren’t visible, but a common symptom of hemorrhoids involve streaks of blood in the stool or toilet paper.

Hemorrhoids can be hereditary in nature. If you have family members with the same problem, then yours is probably genetic. Frequent diarrhea and constipation can increase pressure on the main vein leading to your lower extremities. Straining can impede normal circulation in the body, which weakens the walls of the veins, forming hemorrhoids.

Hemorrhoids, both internal and external, are painful. Prolonged standing and sitting can cause irritation, pain and even inflammation in the affected areas. It is uncomfortable and can distract from work. Worse, there are instances when hemorrhoids can really take a toll on your health.

There are times where a blood clot may form and cause severe pain in the area. This condition requires immediate intervention. Since hemorrhoids can bleed, anemia may also be a problem. Bowel movements, and scratching can lead to severe blood loss in some cases. Untreated anemia will result in fatigue, poor nutrition and body weakness – all of which can get in the way of your work even further.

As stated before, hemorrhoids can also protrude outside the body. When this happens, there’s a tendency that blood supply may be cut off. This condition is called strangulated hemorrhoids, which can lead to tissue death. Infection is the primary concern when this happens.

Hemorrhoids require immediate medical intervention. Topical creams/ointments and painkillers may be prescribed to numb the pain. Your doctor may also suggest soaking the affected area in warm water to relax the area and prevent irritation.

Most hemorrhoids are mild in nature, and sometimes go away on their own. But if you don’t pay close attention, they may lead to complications. Always keep in mind that prevention is better than cure, so keep moving, get some exercise, and eat only the right stuff.