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Tourist Visa Can You Invest on a Tourist Visa? (Additional Math Question)

Discussion in 'Passports and Visas' started by Rye83, Mar 16, 2019.

  1. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Lots of discussion about a foreigner owning a condo and @Rye83 seems to have a very broad knowledge of the subject.

    It seems to me in any matter of the law here (not only property law), the decision is down to a Judge - he is very likely to go for the Filipino side. Heads the Filipino (individual or Nation) wins .... Tails the foreigner loses. Referring now specifically to property, I cannot see why a Judge, without 'compensation', would allow a foreigner to use the rules to benefit himself over the interest of Filipinos or The Philippines. That is why we have to be so very careful here. Human Rights? ...... Stop swearing!!!

    I am interested to know specifically about Condos which are individual buildings; i.e. a single house built on land owned by someone else. Surely if a person owns land and retains ownership (obviously the house owner needs to have many safeguards written into the Agreement), knowing he will own it and any property built on it within say 40 years, the cost of acquiring a property should be much lower as the land would be 'on loan' for a negligible sum (?). So a house built for 2.5 million on land worth 1.5 million would have an overall cost of 2.5m and not 4m.

    Readers must wonder why I would propose such an arrangement (giving away a house after say 40 years) - it is because I wish to purchase a property for the benefit of my wife ONLY and not for it to become an inheritance for others. This does not fit what others might desire to do, but we all have reasons for everything.

    There are problems in this approach to do with how long someone lives but perhaps there is a type of condominium that can be purchased with a 'life interest' clause (although there is a big danger lurking with that!).

    Does anyone have any knowledge in this field or any thoughts?
     
  2. Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

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    Most Condos on Leased land have I believe, only a Life span of 50 Years then according to what I have read have to be pulled down and Rebuilt. but here is something else;
    *****
    50 years

    Your condominium doesn't have a lifespan, but the corporation managing it has one. In the Philippines, 50 years is the lifespan of all companies and corporations, big or small. However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point.Nov 23, 2018
    + this Link you may find useful *******************https://pursuitofpassion.ph/practical-living/what-happens-condo-50-years/

    Hope it helps somewhat :cigar:
     
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  3. OP
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    Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Just an update on the original topic on investor's visa. It is quite simple: remit 75k USD to a Filipino bank, invest in public traded companies through a Filipino brokerage (likely the same bank you remitted the money too), have it all documented through the appropriate government agencies and you have yourself permanent visa so long as you maintain that 75k USD investment.

    I recently bumped up my investments with a US brokerage bringing dividend income up around 1k/month plus capital gains. I still have enough cash sitting around to go for this visa and may give it a go after the new year (or likely after this idiotic and unpredictable administration is out/makes a peaceful transition to the next idiotic and unpredictable administration).

    From what I have seen the Philippines stock market has been moving mostly sideways for the last half decade, I would need to do some research to see what approach would be best for investing in this "emerging market". If they can't provide dividend income to make up for the lack of growth I'm not sure it would be worth the trouble.
     
  4. cabb

    cabb DI Forum Patron ✤Forum Sponsor✤

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    If you're conservative just looking to meet the letter of the law. Here is a money market fund that should have no risk and pays almost 4%.

    https://www.securitybank.com/person...stment-trust-funds/sb-peso-money-market-fund/

    If you want to invest. Here is one for you. SPC Power Corp (SPC) pays a 10% dividend and has been increasing in value.

    https://www.pesobility.com/dividends/SPC
     
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  5. OP
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    Rye83

    Rye83 with pastrami Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Would have to look at their holdings to see if that fund qualifies. (Do they invest a percentage in foreign markets? Would it matter since it is a Filipino managed fund?)

    Utilities make me nervous. 10% is quite high. Missing information: What is their coverage ratio? Profits? P/E ratio? Rolling dividend chart? Quarterly, monthly, annual, semi-annual dividends? Advisor ratings? A lot more research needed but good information to start with. Thanks.

    I'm curious if any of these brokerages offer online-no-fee trading similar to Schwab/other US brokerages. My guess is no.
     
  6. cabb

    cabb DI Forum Patron ✤Forum Sponsor✤

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    I just did some quick googling so not much to add to above. I searched for money market funds and highest dividend paying stocks. I did notice that SPC has an 82% margin, which sounds more like a software company than a brick and mortar power generator. Maybe that's why power is so expensive?
     
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  7. tbevan

    tbevan DI Junior Member

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    Agree with "The Dude" and "Rye" don't get anchored down and requirements to report foreign accounts ( must report any accounts 10k at anytime during the year).........Having a duel US/PH citizen wife make life a lot easier re: visa's. 1 year stamp everytime we enter the country. Works for us as we go home for 45 days every 6 months.
     
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