Why Cebu, Philippines is Good for Investment?

please see this video - investing in cebu,by: primary homes

• Its channel is deep enough to accommodate the flow of goods through international cargo sea vessels, and the Mactan island serves as protection from winds and current
• Cebu’s weather promises to be good for business because typhoon activities are minor and rainfall is evenly distributed throughout the year
• The island is not located within any earthquake belt
• There is no known active volcano
• International airport has been large enough to connect the island to several continents
• Minutes away from business establishments, 5 star hotels and exciting beach/diving resorts
• Public administrators have been known to be development-oriented, steering Cebu to greater heights by putting in place infrastructure facilities needed for economic growth
• Cebu has at least 9 economic zones, that offer to cut bureaucratic red tape by providing a much easier system for investors, plus incentives
• No. 1 in good fiscal management: it ranks highest among the country’s provinces in terms of assets and cash in bank
• No. 1 because of the current unity that has never before been seen in any province: unity among elected officials, unity among business groups, unity among its people, and unity between the private and public sectors
• Many universities and other educational institutions that serve as magnet to students from other provinces and scholars from other countries
• Filled with highly skilled and efficient manpower resources
• Good Culture of professionalism and craftsmanship among its people
• Only Destinations where resorts-area is close to city limits
• 2009 Top destination in the Philippines
• 2007, 2008, 2009 Conde Vast Traveler Magazine Top Island Destination
• 2010 Best Honeymoon Destination World Travel Fair, Shanghai
• 2010 3rd best island in Asia

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"HOW REAL ESTATE PROPERTY IN CEBU EARN"

FOUR BASIC TYPES OF PEOPLE WHO RUNS A BUSINESS :

1.) EMPLOYEE – PAYS UP TO 15-35% WITH HOLDING TAXES DEDUCTED FROM SALARIES . THIS ARE PEOPLE WHO WORK IN A PRIVATE OR IN AGOVERNMENT ESTABLISHMENT THAT EARN A MINIMUM OR ABOVE MINIMUM SALARY.

2.) SELF-EMPLOYED – PAYS FROM 10% TO 20% PORTFOLIO TAXES.THIS ARE PEOPLE WHO WORK ACCORDING TO THEIR PROFESSION. THEY ARE SALES AGENTS, DOCTORS, AND LAWYERS.

3.) BUSINESSMAN – MINIMAL TAXES THROUGH PASSIVE INCOME. THIS ARE THE TYPE PEOPLE WHO RUNS A  BUSINESS.

4.) INVESTOR – MINIMAL TAXES THROUGH PASSIVE INCOME. USUALLY, THIS ARE THE PEOPLE WHO CAME    FROM OTHER COUNTRIES. THEY COME TO THE PHILIPPINES JUST TO VENTURE AND PROVIDE JOBS FOR THE FILIPINOS.

IN SHORT, THOSE ARE INVESTORS AND BUSINESSMAN ARE EARNING A PASSIVE INCOME. AND GOOD THING ABOUT THEIR PASSIVE INCOME IS THAT THEY RECEIVED A REGULAR BASIC ON IT WITH A LITLE EFFORT. UNILIKE WHEN YOU ARE AN EMPLYOEE, YOU WILL JUST RECEIVE A LIMITED INCOME AND YOU ARE OBLIGE TO PAY 15% - 35% WITHOLDING TAX. SO, IF YOU GONNA EARN 250,000 IN ONE YEAR YOUR TAX WILL ALSO BE QUIET BIG, IT’S 37,500. AND THE QUESTION IS, WOULD YOU LIKE TO BECOME A PERSON WHO EARN A PASSIVE INCOME OR THE PERSON WHO IS REGULARLY DEDUCTED A WITH HOLDING TAX FROM HIS EARNINGS.

Some examples of passive income are:

1.) Rent from property;

2.) Royalties from publishing a book or from licensing a patent or other form of intellectual property;

3.) Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;

4.) Pensions.

WITH REGARDS TO “RENT FROM PROPERTY”, A GOOD EXAMPLE OF THIS, ARE THE REAL ESTATE PROPERTIES, LIKE LOTS ONLY, HOUSE AND LOT AND CONDOMINIUMS..

ABOUT SAVING MONEY IN THE BANK, I WOULD RATHER SUGGEST THAT MUCH BETTER IF YOU INVEST YOUR MONEY IN REAL ESTATE WHERE THE LOCATION IS EXCELLENT AND STRATEGIC. IN THE BANK, THIS IS WHAT HAPPENED TO YOUR SAVINGS,

MAXIMUM INTEREST -                 4%

AVERAGE INFLATION RATE-    4%- 12%, LETS JUST SAY 7%


FORMULA:
BANK INTEREST -  4%
INFLATION RATE - 7%
                            - 3%

 INFLATION RATE IS THE DEVALUATION OF CURRENCY. THE VALUE OF MONEY GOES DOWN AND AMOUNT OF COMMODITIES GOES HIGH. LIKE FOR EXAMPLE, 5 YEARS AGO, PANDISAL BREAD COST ONLY 1 PISO. BUT NOW, 1 PIECE OF PANDISAL BREAD IS ALREADY COST 5 PISO.


UNLIKE WHEN YOU INVEST IN REAL ESTATE TO AN EXCELLENT  OR IN A STRATEGIC LOCATION. "ANYWAY, YOU CAN ASK ME WHERE TO FIND THIS PLACE HERE IN CEBU".


REAL ESTATE PROPERY


APPRAISAL VALUE/CAPITAL GAIN EVERY YEAR    = 10%, IF YOUR PROPERTY WORTH 1M NOW,
 AFTER 1 YEAR, THAT CAN BE ABOUT WORTH 1.1M ALREADY.


NET RENTAL YIELD  EVERY YEAR                          = 8 % 
TOTAL                                                                     = 18%   
  
FORMULA: 10% APPRAISAL VALUE + RENTAL YIELD 8% = 18% LESS INFLATION RATE 7% = 11% GROSS


AND GOOD THING ABOUT REAL ESTATE PROPERTY, IS THAT YOU CAN CONTROL THE RISK. WHEN A FIRE INCIDENT HAPPENED, A FIRE INSURANCE CAN BE A GREAT HELP TO RECOVER..


ABOUT THE DEMAND OF REAL ESTATE IN CEBU, WE CAN SAY THAT THERE IS A BIG DEMAND. LET ME SHOW YOU THIS ARTICLE WRITTEN BY A SUN STAR NEWS STAFF WRITER, http://cebufilipinohomes.wordpress.com/news-update/%E2%80%98bright-year-ahead-for-real-estate%E2%80%99/