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Millions of Filipinos are trapped as renters paying out all their salaries in food, rent and help to relatives.

After a decade or two of working hard at 6 day weeks, they may have nothing but debts to show for it.


The big drop in Bitcoin and other cryptos recently may have demonstrated that it is very hard to escape poverty by speculating on things like small shares and crypto currencies.  Often, by the time you hear about how "hot" they are, the easy money has already been made already.  And before you can exit, you might get hit by a vicious selloff.

I feel nothing but compassion for those caught in the poverty trap, and have been pondering if there might be a way out.  And I have an idea borrowed from a Canadian billionaire I once met.  Someone who started with nothing, and came to own an entire city block in the city of Toronto

The idea is a little complicated.  I will take a stab at explaining it here.  Basically requires 2-5 people to cooperate in renting, and paying a little over the market, to allow one member of the group to become an owner-occupier.  The tenants sign a special lease that may allow them to build flexibility, and maybe some future equity if they continue to rent the space.


A Canadian billionaire I met built this condo in Toronto.  He started with nothing but some friends who wanted to share the rental of a property

I started thinking about this when my partner was telling me about a work mate, who had worked almost 20 years in the same company, and had no savings and no assets to show for it.  She expected to be handed some money when she left the company, but that would only be enough to payoff her debts and walk away with a modest lump sum.  Property ownership seems like an impossible dream.  Is there any alternative to the Philippines DEBT TRAP?

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We can talk about the Concept of escaping from the Poverty Trap.   Can you and others think about how many friends you might get to Rent a shared property?  How much they might each pay?  And what the minimum period of Lease they might sign?  That might be at the starting point in working through a Realistic example. 

( This might require some excellent persuasion, organization and management. There is NO FREE LUNCH.  But cooperation, might get a "bargain lunch"/  haha. )


( Rooms: Bed, Mattress, Private Bathroom, Microwave, Mini-Fridge, Air-Con & Storage )   This one is advertised below P5,000 a month:

Would you pay a little extra (over market) to live in a space like this, if you were building up some equity in the property?.  This may represent the lowest RUNG in the ladder, and there are steps above it    This one is advertised below P5,000 a month:

> MyTown Listing, under P5,000https://www.myproperty.ph/mytown-rio-6-bed-sharing-fully-furnished-unit.html

> More MyTown units: P4400: P4400-nr.UptownBGC: P4500-nr.32ndStBGC: P4150-Pembo:


1. Agree a rental and contractual framework: Number of people involved.  Min /Max rent per Month

2. Develop financial pro-formas, between Partner-tenants and Lead investors

3. Investigate properties that can be acquired to fit the criteria, and provide target returns: 10% 12%?  whatever

4. Get Tenant partners to pay 1-2 months showing their acceptance of the property based on photos

5. Negotiate purchase.  All-in price to include: purchase, commissions, CGT/DST, and a budget for needed upgrades


The Four Fivers, who might be paying P 5,000 each.  


Example: The Three Tenors - what do you need to provide to attract them ?

Based on Target Gross Yield, How much can be paid for a property??

Per Person - -   :  P  5,000 : P10.000 :
Persons --------- :       x 4.    :      x 3.     :

Monthly RENT:  P15,000 : P30,000 :
x 12 months.   :     P 180k :    P 360k :
 > Target: 10% :   P 1.8 M :  P 3.6 M :
 > Target: 12% :    P 1.5M  :  P  3.0 M :
Less: admin.      :   ( 25k )
Less: prop.tax.  :    ( 10k )
Less: 1 mo.Void :   ( 15k )
Less: Repairs.   :    ( 10k )
==. Total Cost. :     ( 60k ) :    ( 60k )
Net Cash Flow :   P 120k  :  P 300k :
Returns for
 >  10% Prop.    :    6.67% :    8.33% :
 >  12% Prop.    :    8.00% :   10.0% :


Maybe you can buy a property like above for P 3.6 Million, but can you get 3pax to pay P10k each?

What is SPECIAL about the Leases signed? - and will special leases attract tenants?


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A Comment on attitudes of Filipinos towards Saving

I think the problem with most Filipinos are that they think that rich people are those living with flashy lifestyle. When they save, it's to purchase consumer debt. Even managers who have large salaries actually spend more than they earn because naturally their expenses grow with their higher income. Instead of setting aside money growing passive income to grow their assets. They are actually earning millions a year but they are spending most of them.

(posted on a Viber chat - my responses follow):

Most people (esp. Americans) spend about 1/3 of their income on Housing.  The trick is to turn that expense into Net Zero, and save the 1/3  instead

My own housing expense is like zero or negative, because the appreciation I have made on my own home(s) exceeds the actual housing costs/


The traditional way, may not be the only way ... to come to Home Ownership.  These habits provide a great base for moving forward.

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