Although many Filipinos associate foreclosures with bank-owned houses, these properties come in wide variety of types: from lots, warehouses, and raw lands, to entire commercial buildings
Although many Filipinos would normally associate foreclosures to bank-owned houses that the previous owners have failed to completely pay for, there is a wide range of foreclosed properties available in the market today, from lots, vacation homes, and even agricultural land, to warehouses, industrial estates, and entire commercial buildings.
Case in point: an eight-story hospital building being marketed by noted real estate brokerage My Saving Grace Realty & Development Corporation (MSGRDC). According to MSGRDC founder and CEO Ramil Alquileta, this property offers buyers a good opportunity to invest and earn from foreclosed commercial real estate.
Currently listed at a negotiable price of Php280 million, this eight-story hospital building was the former Dee Hwa Liomg Hospital in Barangay Maisac, Mabalacat, Pampanga, which is about 2.5 kilometers from the North Luzon Expressway (NLEX).
This former 400-bed hospital has a 20-bed ICU, a 12-bed emergency unit, and equipment for nuclear medicine (cobalt machines, MRI equipment, and CT scanner). The property comprises two parcels of land, with a combined area of 12,724 sqm. The structure’s total floor area measures approximately 12,600 sqm. This property was foreclosed due to limited finds and its expansion was not finished.
But do foreclosed commercial properties make for good real estate investments?
According to Alquileta, they definitely do. “There are very few of these property inventories available in the market today, and the ones that become available are bought really quickly by savvy investors.” However, as is always the case in real estate investment, location matters a great deal in investing in foreclosed commercial properties.
“I believe that this particular property offers quite a good deal as it is close to NLEX, which is Pampanga’s connection with the rest of Central Luzon and Metro Manila.”
In addition, being a mere 2.5 kilometers from NLEX makes the property very near downtown Angeles City, the Marquee Mall, and the Clark Freeport Zone.
According to Alquileta, this property is available for purchase through cash or installment, with the following payment conditions:
For installment
Property value: Php280 million
20% upon offer (Php56 million)
80% balance is payable for up to 3–5 years with 10% interest per annum
This is just the tip of the iceberg, as aside from banks, foreclosed properties are being offered by insurance firms, SPAV companies (companies formed under the Special Purpose Vehicle Act of 2002), and government shelter agencies (such as Pag-IBIG Fund and the Social Security System, among other firms). Any would-be real estate investor will be hard-pressed not to find something that has enormous investment potential.
Indeed, a quick search using the Lamudi website alone will generate almost 24,000 foreclosed properties for sale across the Philippines. These inventories range from high-end condos and vacation homes to entire buildings, agricultural land, and warehouses.
For the savvy investor, this presents a huge opportunity to cash in from the real estate market as foreclosures are often offered below market price yet when flipped can be sold at a hefty profit.
This article was sponsored by My Saving Grace Realty & Development Corporation.
Founded by a once homeless man, My Saving Grace Realty & Development Corporation (MSGRDC) came into being after Ramil Alquileta realized how it was to be homeless when he got tied up with debts and then eventually had to give up his own house and almost all their properties to cover the yearlong debt he had. Because of this, he founded the MSGRDC in order to help most especially the hardworking Filipino compatriot throughout the world in acquiring the best value for money property available in the market.
