Anyone know about a Beach Front Resort

Just brain storming/no boots on ground as yet...on the possibility of owning a beach front resort here in Surigao City....It basically sits on a 3500m2 plot of land direct pebble beach front & current owners in cebu (think one owner is Japanese) are asking for 13.0m pesos (They leave everything...lot/stock & barrel ('covid' nego has yet to begin).... It has 10 small s/s stone guest homes (approx 25m2/each) with full bed fittings wif A/C's, basically for check in/overnight staying customers + 12 sea front kubos for family swimming activities.
It also has its own dinning area cum kitchen wif 12 sets of tables/sufficient chairs for dine in & makeshift karaoke system.)....Has a front security guard post & another reception area & an open bamboo fitted sari shop + It also has its own groundwater pump.
(I actually stayed/rented one of the family kubo units for seaside swimming in Oct 2019) & remember we had a great time.
Have dropped BDO an email seeking advice for a valuation/bank loan if available (no clue if I and partner will be  eligible)....also NO squatters seen!
What do you guys think? & what are the cons of such investments?
Any feedback would be much appreciated.

Thanks

Do you have a business plan to service a Bank Loan, would be my first question.

There are no tourists for a while more. Unless you have extra moolah and is able to sit on the property for while. You will have to spend the upkeep until the tourists start coming in again. You need to know the previous 3 years occupancy rate. We're they international tourists or local? Is the resort already known in cyberspace with a good vibe? Can you keep the resort name? Do I get a free week for this advise?

Thanks guys. was just brainstorming
This is the link : "Miwa Beach Resort"

https://www.facebook.com/marketplace/it … 318706394/

It looks like a steal imo (3800peso/m2)... only thing is :
a) Have no business plan as yet.
b) Have seen foreign tourists when I was there last year Oct'2019.
c) Just brainstorming here & would need some financing iagw.
d) All expats on expat.com will be most welcome to attend the opening bash + a weeks stay if this becomes a reality.
e) 1 problem...the rooms do NOT have any attached toilet but an outdoor common toilet+shower area.
f) No clue on property taxes etc
g) Never dreamed prices could fall this low....maybe a catch really no idea/clue.
h) Really need to research more into this & any more tips/advice from you guys will be very much appreciated

Thanks again

It's a nice dream, don't give up your day job

manwonder :

All expats on expat.com will be most welcome to attend the opening bash + a weeks stay if this becomes a reality.
e) 1 problem...the rooms do NOT have any attached toilet but an outdoor common toilet+shower area.

Let us know when you achieve indoor plumbing, will be glad to spend a week.

mugtech :
manwonder :

All expats on expat.com will be most welcome to attend the opening bash + a weeks stay if this becomes a reality.
e) 1 problem...the rooms do NOT have any attached toilet but an outdoor common toilet+shower area.

Let us know when you achieve indoor plumbing, will be glad to spend a week.

News just in  :D ...I had presumed the units had no toilets...as I used only the outdoor toilets when I rented one of those kubo huts & thought that there weren't any. I was WRONG all 10 units come with attached toilets/shower (no photos sorry)...as just got partner to double check wif agent.

Nuckinfuts :

It's a nice dream, don't give up your day job

Haha Agreed...But I currently don't have a day job....except the one that keeps me daydreaming most of the time.

So, there's indoor plumbing.
What about air conditioner? If there is, will be happy to stay there a week too. 😀

Jackson4 :

So, there's indoor plumbing.
What about air conditioner? If there is, will be happy to stay there a week too. 😀

Some have A/C's those bigger houses (I think 5 units)...the smaller ones only have fans built in.

https://toughnickel.com/starting-busine … h-no-money

This makes me daydream even more.

:D

Now I'm having a nightmare .. The dutch wife pillow broke quarantine

I don't know anything about getting a loan here, just the missus tells me if we already own property, it's not hard since you have collateral. The asking price is a lot but it looks like you are getting a lot also, I don't know what the place is worth, I only know if I have 13m to invest, probably getting some condo's and renting it out is probably safer and less of a headache, or maybe even commercial property in the same building as the condos. Just a thought, owning a resort looks like it requires a lot of work.


first and foremost, make sure you know what you are doing and getting yourself into, just this forum alone I have read enough of how people get burned as a foreigner buying property.

You mentioned the owner is Japanese so most likely there's a partner, is that partner his wife or some other local.

Make sure everything is legit with a lawyer YOU can trust before forking over any cash.

Do your research first and when you are done. DO RESEARCH AGAIN just to see if you missed anything.

Have you checked reviews on various sites like google, pagoda, booking, etc ?

Get a view of what visitors are saying about the place and things you'll most likely change when you obtain it. (OP, I sent you a PM)

Have a Plan. Plan Twice, execute once.

How is the location like? Island? assume it will probably get hit or maybe even hit hard with all the hurricane / typhoon PH gets. Assume also there will be damages to the property each time a typhoon comes by.

Is it easily accessible for tourists via taxi or trike ?

As previous members posted, bathroom in every room. That's already a +

If you are really committed when the time comes, maybe you can ask the previous owner to look at the books, hope it's not cooked. To get a idea or the income and overhead costs, assure him you are just interested in the cost of operations as it's normal if they are hesitant to show you this.

Knowing the current cost of operations is imperative to keeping it alive once you obtained the property, will you have enough cash reserve to keep it going in case business is bad? especially now with covid-19.

A resort to me is a place I go to relax, I don't care if there are malls or restaurants nearby, but would be nice if the resort provided all the amenity. For example, I stayed in Astoria Palawan, it a beach resort. They had buffet, lunch/dinner, decked out bar at the  restaurant, Gym, Spa, massage, Air conditioned rooms with comfortable beds and very very nice showers. I haven't seen a tub that size in 10 years and I stay in hotels a lot due to travel. Will this be what your place provide? Just a example.

But for the sake of those that goes to resorts and want other activities, it's good to know whats in the neighborhood, put it as part of your marketing brochure and maybe even work with them and get a discount if they are coming from your resort. I recall Astoria Palawan had a theme park nearby where the hotel shuttle would take us for free. 5 minute ride, first entry was free of charge as long as we were guests at the hotel.

Do you have plans to do marketing, have someone post ads and of course, post on every hotel booking chain out there and do much to attract attention, visitors will come.

Will you be running the place or you will hire someone ? again make sure it's someone you trust, or there will be holes under the table where the cash register is, accepting visa/MC will negate part of this issue, a good chunk of income will be from your amenities that your resort will be providing.

Keep a inventory log of everything and I mean everything, toilet paper to sugar and fish that your restaurant will be serving, employees steal anything and everything they can, even if they don't need it.

This is all I can think of off the top of my head, sry bout the "wall of text".  :D

frankanderson :

I don't know anything about getting a loan here, just the missus tells me if we already own property, it's not hard since you have collateral. The asking price is a lot but it looks like you are getting a lot also, I don't know what the place is worth, I only know if I have 13m to invest, probably getting some condo's and renting it out is probably safer and less of a headache, or maybe even commercial property in the same building as the condos. Just a thought, owning a resort looks like it requires a lot of work.


first and foremost, make sure you know what you are doing and getting yourself into, just this forum alone I have read enough of how people get burned as a foreigner buying property.

You mentioned the owner is Japanese so most likely there's a partner, is that partner his wife or some other local.

Make sure everything is legit with a lawyer YOU can trust before forking over any cash.

Do your research first and when you are done. DO RESEARCH AGAIN just to see if you missed anything.

Have you checked reviews on various sites like google, pagoda, booking, etc ?

Get a view of what visitors are saying about the place and things you'll most likely change when you obtain it. (OP, I sent you a PM)

Have a Plan. Plan Twice, execute once.

How is the location like? Island? assume it will probably get hit or maybe even hit hard with all the hurricane / typhoon PH gets. Assume also there will be damages to the property each time a typhoon comes by.

Is it easily accessible for tourists via taxi or trike ?

As previous members posted, bathroom in every room. That's already a +

If you are really committed when the time comes, maybe you can ask the previous owner to look at the books, hope it's not cooked. To get a idea or the income and overhead costs, assure him you are just interested in the cost of operations as it's normal if they are hesitant to show you this.

Knowing the current cost of operations is imperative to keeping it alive once you obtained the property, will you have enough cash reserve to keep it going in case business is bad? especially now with covid-19.

A resort to me is a place I go to relax, I don't care if there are malls or restaurants nearby, but would be nice if the resort provided all the amenity. For example, I stayed in Astoria Palawan, it a beach resort. They had buffet, lunch/dinner, decked out bar at the  restaurant, Gym, Spa, massage, Air conditioned rooms with comfortable beds and very very nice showers. I haven't seen a tub that size in 10 years and I stay in hotels a lot due to travel. Will this be what your place provide? Just a example.

But for the sake of those that goes to resorts and want other activities, it's good to know whats in the neighborhood, put it as part of your marketing brochure and maybe even work with them and get a discount if they are coming from your resort. I recall Astoria Palawan had a theme park nearby where the hotel shuttle would take us for free. 5 minute ride, first entry was free of charge as long as we were guests at the hotel.

Do you have plans to do marketing, have someone post ads and of course, post on every hotel booking chain out there and do much to attract attention, visitors will come.

Will you be running the place or you will hire someone ? again make sure it's someone you trust, or there will be holes under the table where the cash register is, accepting visa/MC will negate part of this issue, a good chunk of income will be from your amenities that your resort will be providing.

Keep a inventory log of everything and I mean everything, toilet paper to sugar and fish that your restaurant will be serving, employees steal anything and everything they can, even if they don't need it.

This is all I can think of off the top of my head, sry bout the "wall of text".  :D

Wow...thanks very much Frank a real eye opener/detailed list that i need to do/brainstorm again.
All i have is looked at is the overall price & fixture fittings $value...Btw Surigao City has no taxi's so it will be a 15min drive (pte hire) in my blue multicab or a trike fm the airport.  :D
Also looking at the possibility of selling 9 of the units....what do you guys think?
More info/brainstorming is very much appreciated.
Thanks again

Only an observation but why air this here? Surely your accountant, personal research will give you the answers you are looking for, throwing it out "here" smacks of another coming in with cash and stealing it under your nose. Even if it's just the house with a large lot and bulldoze the rest. An island paradise.
I'm sure you have run businesses prior to this, now here, the current post and in your heart know what to do and how to do it, I do wish you luck with this enquiry/venture and if I wanted/chose to live in that neck the woods I have the cash as plenty of others do and could barter with the owner/s.
We already have a beach resort and no wankers to deal with and sure money from other investments, though less now with C-19 we are still comfortable. We live in paradise for under 6M pesos.
If I were 10 or 15 years younger and needed another investment? Play your cards close. We looked at resorts years ago because they were beachfront and were very affordable then, post C-19 their prices have halved even less, glad we didn't buy as the beaches were sh1t as was the location and all that goes with barking dogs, chickens, karaoke and drunks and I'm sure these days crap figures from those that wanted 40 to 50M pesos then, now I see one selling for the last 6/7 months for 18M and it's a dive, no beach only a sea wall.
I think my point here is and as always OMO but you good sir need to do your homework and then some, stop alerting people with a few dollars to invest in your preliminary find and short circuiting the finder.

Good luck mate.

Cheers, Steve.

You are retired. Do you want to continue relaxing or do you want a headache in the coming years?

bigpearl :

Only an observation but why air this here? Surely your accountant, personal research will give you the answers you are looking for, throwing it out "here" smacks of another coming in with cash and stealing it under your nose. Even if it's just the house with a large lot and bulldoze the rest. An island paradise.
I'm sure you have run businesses prior to this, now here, the current post and in your heart know what to do and how to do it, I do wish you luck with this enquiry/venture and if I wanted/chose to live in that neck the woods I have the cash as plenty of others do and could barter with the owner/s.
We already have a beach resort and no wankers to deal with and sure money from other investments, though less now with C-19 we are still comfortable. We live in paradise for under 6M pesos.
If I were 10 or 15 years younger and needed another investment? Play your cards close. We looked at resorts years ago because they were beachfront and were very affordable then, post C-19 their prices have halved even less, glad we didn't buy as the beaches were sh1t as was the location and all that goes with barking dogs, chickens, karaoke and drunks and I'm sure these days crap figures from those that wanted 40 to 50M pesos then, now I see one selling for the last 6/7 months for 18M and it's a dive, no beach only a sea wall.
I think my point here is and as always OMO but you good sir need to do your homework and then some, stop alerting people with a few dollars to invest in your preliminary find and short circuiting the finder.

Good luck mate.

Cheers, Steve.

Hi guys am back after the brown out
(Whole of surigao city)...
Sound advice Steve thanks...Like I said this was mainly me brainstorming & seeking the possibilities/advice.
So much more needs to be checked & re-checked & then checked again.
Thanks for the feedback & to the many others who have also given great feedback.
Like you say what had happened to me in my past land purchase would make me even more careful than ever before rest assured....which is why I laid facts as they were.
This may/may not be for me...but it could be for someone else viewing this very link & whom may have deeper pockets/better ideas & I for one will always be interested in ...you never know.
Its been a great learning experience for me. Still waiting for further advice/feedback as you can see prices for these huge beach front resorts have dropped so dramatically like you mentioned.
(Already >50% on this one & further drops may be on the cards in the coming months!)
& I do tend to get a little excited on the possibilities.

Thanks again.

Jackson4 :

You are retired. Do you want to continue relaxing or do you want a headache in the coming years?

I am *semi retired 56...Headaches maybe not but challenges oh god yes.

:D

Nuckinfuts :

Now I'm having a nightmare .. The dutch wife pillow broke quarantine

The Dutch wife is a pillow with regional origins, but that too has evolved into a sex doll.

:D

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
Short time?
This resort seems not the resort I have in my mind.

Jackson4 :

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
This resort seems not the resort I have in my mind.

Sign of desperation?.. a good bargaining tool?...if only saul goodman was around.

frankanderson :

I don't know anything about getting a loan here,.  :D

Nope would not dare getting a local loan with the current 7.0% interest rates they charge for property loans (must be the highest in the modern world.)...the reason I did approach a local bank was to get a *free approx bank valuation & loan quantum that they are willing to put up for such a beach resort to give me an idea. (which would be valuable info!) AFTER ALL this property was easily 30m pesos not too long ago.
Infact they may/may not reply at all.

Or, if you can get a loan in Singapore you might get a better rate. You are still a Singaporean.

This scenario sound so bad. Just bad. Bad!

Whose name will that be in anyway?

Jackson4 :

Or, if you can get a loan in Singapore you might get a better rate. You are still a Singaporean.

Yes still Singaporean & will die a Singaporean.
Any Large loans in general...still cause severe headaches for me.
I am free...loan free that is.

Jesse777 :

This scenario sound so bad. Just bad. Bad!

Whose name will that be in anyway?

Brainstorming buddy just brainstorming... thanks for your input...btw I used to own land/house in Malaysia (Johore) many years back in a place called Bandar Selesa Jaya / Close to Tuas Link causeway...that too was a BAD investment though I made a decent profit on the sale in ringgit lost most of it when exchanged back to Sgd...which suddenly jumped in value vs the ringgit...but at least it was a pretty straight fwd deal.
Still brainstorming.
:/

Jesse777 :

Whose name will that be in anyway?

Aha...how about you?
a)Manwonder
b) Jesse777
....8 more names to go.

:D

I am lucky. I didn't invest in Malaysia. I keep my money in Singapore dollar.

Richard Yan :

I am lucky. I didn't invest in Malaysia. I keep my money in Singapore dollar.

Agreed.

Jackson4 :

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
Short time?
This resort seems not the resort I have in my mind.

I had a quick look but never chased up the rental rates but given what you offer up it wouldn't be for me either.
I booked a room in a supposed resort for 2 days before I went to Boracay many years ago, A/C, deluxe suite, beachfront, ensuite etc. (not one room was beachfront, all behind reception/managers residence) The photos on the site I am sure were the managers house because the rooms were all cr*p, old, dirty smelly, the power went out in the morning, enquiry to reception,,,,,,,, yes sir every day for 6 to 8 hours. I argued false advertising and was given 900 pesos refund for the next day booked and went to Boracay a day earlier. I never saw a westerner there and most rooms had 8+ with screaming babies and loud parties and Couldn't get out quick enough. It was a locals "resort" but touted very differently and far overpriced.

The rates you tracked down say it all Jackson.

All I can suggest to the OP is if this is a genuine business ask for the tax figures for the last 3 to 4 years and see where the land lays, lies or lies. If serious at 13M and it's the dive it seems 6 to 8M unless those "true" figures offer a different scenario. To me MW it really looks like you are buying or looking at buying a house on the beach  with some defunct infrastructure. Passion at times makes one ignorant of facts and a few slaps at times wake people up. My remarks are simply offered as a reference and not attacking the OP's asks.

As always OMO/Observation. Good luck.

Cheers, Steve

From another submission from the OP:

i don't have a lot of money and can't afford investing in properties, i just came here to relax and be able to live decent on my SS when it starts.
if i had it to do over again, i would rent somewhere for a year and move to a new place and rent for a year etc..
that way i could get to experience all the different islands and areas and be free to go whenever i wanted.
I'm not sure my wife would agree and i wouldn't be leaving a good strong house for my kids to inherit. it may be hard on the kids to change schools every year or two also. but it would be an adventure and my kids will probably go to the US to live and work anyway. being locked into "land" has lost its appeal to me.

Cheers, Steve.

manwonder :
Jesse777 :

This scenario sound so bad. Just bad. Bad!

Whose name will that be in anyway?

Brainstorming buddy just brainstorming... thanks for your input...btw I used to own land/house in Malaysia (Johore) many years back in a place called Bandar Selesa Jaya / Close to Tuas Link causeway...that too was a BAD investment though I made a decent profit on the sale in ringgit lost most of it when exchanged back to Sgd...which suddenly jumped in value vs the ringgit...but at least it was a pretty straight fwd deal.
Still brainstorming.
:/

you can't own land in philippines if not a citizen

Jackson4 :

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
Short time?
This resort seems not the resort I have in my mind.

take long time to make 13m peso back in short time :D

Jesse777 :
Jackson4 :

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
Short time?
This resort seems not the resort I have in my mind.

take long time to make 13m peso back in short time :D

Agreed..13m peso is still out of the question (for a site in a 3rd class province)...how about if it was cut down to size like 6-8m as someone else mentioned...or even lower  :D  (bank foreclosed properties database is building by the day)....as the saying goes best time to enter any market is when NO one else is looking/bothered.
I am still brainstorming & yes quite happy to stay interest free.
Thanks

manwonder :
Jesse777 :
Jackson4 :

I checked Miwa Beach Resort's Facebook page.
Aircon Room short time: Peso 350
Fan Room short time: Peso 250
Short time?
This resort seems not the resort I have in my mind.

take long time to make 13m peso back in short time :D

Agreed..13m peso is still out of the question (for a site in a 3rd class province)...how about if it was cut down to size like 6-8m as someone else mentioned...or even lower  :D  (bank foreclosed properties database is building by the day)....as the saying goes best time to enter any market is when NO one else is looking/bothered.
I am still brainstorming & yes quite happy to stay interest free.
Thanks

then you only lose 6-8 million  :D

I guess we can count that as win  :D

I admire your stamina MW, hang in there bud. Watch wait and pounce.
6 years ago we saw the property where we are now living in, then 14M Too far from San Juan (La Union 10 minutes) where we were looking we both agreed back then. A year or so went by while we looked at property and this one showed up again at 12M,,,,,, I started watching this property, all others we were looking at in/around San Juan were small lots and/or poorly designed houses on a small lot, ie 250 to 300M2 and 5 to 15K per M2 back then and the prices kept rising while we watched, chooks, dogs karaoke etc. were normal and something I didn't want, we were living and working in Oz but back here a couple of times a year looking for nirvana,,, hard to find and rising prices.
4 years ago this property showed up again at 11M and I suggested to Ben that we look at it given the land size and buildings when we are back there in 6 months if it's still on the market, he agreed.
When back, we consulted the listing agent, meeting etc to look at properties on the books (absolute beachfront was the criteria) many we looked at in their office that we knew and eventually this property was shown to us and now 9M,...... A difficult owner......... OK lets have a look.  Though 10 to 15 minutes further away from the better half's 5,000 relatives has shown its merits from my point of view.

Within a few weeks 5.75M and the prior owner could stay there for 2 years. Done and dusted and our home on the beach with none of the sh+t that goes with it. Bargains can be had if you are patient,
We have a vacant lot next door and she for the last 2 years won't budge  from 13M; last vacant lot on the beach with none of the normal sh+t that comes with living here. Smaller lot and tax declared lot if she ever paid for that.
After our purchase a Filipino family purchased the house and lot 3 doors up for 21M. There are 2 or 3 other sellers trying to offload in the low 20's and they are one block back.

Regardless MW if it's a business you have to treat it as such and if/when the figures don't stand up then it's really a house on the beach in a 3rd class province. (at least here it's a first class province) Do you want to live there if things go south with your cohorts? 3,4,5,6,7,8, that invested in a house on the beach? picking up the pieces because the home work was not done properly?
I sit here on a secluded beach and wonder many things. Buying another headache is not one of them because I am retired and leave that to braver hearts, perhaps you are one but as always buyer beware.

Luck and good wishes to you MW.

Cheers, Steve.

I cannot believe the property prices in the Philippines. It does not look like not a whole lot of locals will be able to afford it. I am still scouting for beachfront residential lot this time in Batangas. It was a 2000sqm beachfront advertised in facebook at P1,234. So, I took it as per sqm price. When I made contact, the agent said P10k per sqm. There is no integrity! You cannot trust these would-be agents. The place has half-finished house, unfinished cement block fence.
MW - The price offered may seemed low to you maybe because you are already conditioned to expect higher price. Look at the expense and the realistic intake. Say, capitalization is USD 260K. If ROR (rate of recovery. Accounting 101 😂) is 10% year, you would need to have a yearly revenue of around USD 50K. That's 2k US a month. This is Jackson4 math, I also am not an accountant nor having an accounting degree. 😵
Oh, wait, I forgot your 7% loan on the capital.
How much is Guido hitting you for protection?
.
Recommendation: Find a girlfriend who already has a property on the beach.😂

I read this somewhere...so its quote:
Most people tend to gauge the value of cash according to the interest rate it can earn. Short-term interest rates in the major currencies will probably remain close to zero for the foreseeable future. Don’t be fooled into thinking that this means a large cash holding is a wasted asset. On the contrary, as the vice-like grip of DEFLATION takes hold, a company with significant cash reserves will be able to take advantage of the increasing numbers of opportunities that will present themselves.
"Unquote"

Makes sense as to what is happening to real estate prices here right now...I'll wait i've got lots of time...but not too sure these sellers with bank loans ([at]7%) have that same luxury.

Jackson4 :

I cannot believe the property prices in the Philippines... When I made contact, the agent said P10k per sqm. There is no integrity! You cannot trust these would-be agents.

Agreed.

manwonder :
Jackson4 :

I cannot believe the property prices in the Philippines... When I made contact, the agent said P10k per sqm. There is no integrity! You cannot trust these would-be agents.

Agreed.

they have nothing to lose in taking the shot

they might win jackpot

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