Living in the Philippines – Best "Passive" Businesses to Start

For those OFW’s and foreigners wishing to start a business, but not wishing to involve themselves with the stress of a business involving day-to-day operations, employees, landlords, inventory, and so forth, there are several available opportunities for foreigners living in the Philippines. Buy fixer upper properties, improve them, then rent or sell them.

1. Buy Fixer Upper Properties, Improve Them, Then Rent or Sell Them. This is a great business for those of you who have experience in your home country in buying, fixing up and renting or selling properties. Over the past 10 years, a lot of people got involved in this kind of business in their homeland.

With the overall economic problems in the world the past couple of years, the Philippines has not been immune, and there are a lot of properties in a state of disrepair, as well as lot of distressed and foreclosed properties.

2. Build An Apartelle. An Apartelle is an apartment building where all but one of the units are rented out long term, and you are left to operate on a nightly or weekly basis, like a hotel – hence the combined name of apartelle. These are common in the Philippines.

This business will require a heavier capital investment, yet with the right property and by focusing in the more rural areas or smaller cities, you can construct a small 4 unit apartment building for Peso 3,000,000 – not counting cost of the land.

You would want to rent out 3 units on a long term rental basis, and keep one for short term rentals – for the many traveling salesmen that frequent the countryside. They like booking into such short term apartelle units rather than the much more expensive hotels in the area.

3. Condotels. I have not given this business my “thumbs up” in all instances. Condotels have been heavily touted and promoted the past several years and there have been many, many new condominiums built in Manila, and now even in Cebu and starting in Davao.

The problem is that although the developers offer great down payment terms (usually around 30% down financed over 3 years) and in some cases carry back the mortgage and finance for perhaps 10 years, the interest rates are incredibly high, and the split of rentals with the management team runs around 50%/50%. There is also always a nominal monthly maintenance fee.

What looks like “cheap” entry point and cash flow out each month, in many cases simply becomes a bet on long term property appreciation – finding someone willing to pay you more for it than you paid for it.

This is because with all the inventory on hand, there is a surplus of condos which have been into hotel type rental pools, but not enough visitors to rent them all.

Consequently, what an investor thought would be a good positive cash cow, turns out to be a continuous negative cash flow – not what a new retiree to the Philippines is looking for to supplement his pension or annuity! This type investment will only drain you pension.

However, having written all this, I HAVE FOUND the past several month two exceptional condotel investments which DO meet my criteria of creating good ongoing rental income.

4. Farming. The likely cessation of the Agrarian Land Reform Program (CARP) will give the rural sector renewed confidence to invest in agricultural production capacity. CARP has held back investment in both production capacity as well as farm acquisition. An end to CARP will mean higher land prices since land will be valued for its higher income producing potential.

However, higher land prices are simply a “serendipity”, an added value, to the type of farming business I am writing about. I have found an extremely unique business opportunity, which will generate a great ROI (return on investment) and is completely passive. It has been structured by the developers (all foreigners) to be a one turnkey investment price. The price includes cost of the land, plus all

Clearing, planting, cultivation and harvesting for the first 5 years.

The business has been priced to fit the capital investment budget of the average foreigner retiree, and all landowners will be members of a cooperative which will share the farming equipment (tractors, equipment shed, and others). The farm will be “farmed” by the developer’s management team

The hottest trend now is in organic farming, and yet it is only in its infancy stage in the Philippines. There is one export product in particular which has caught my attention – the pili nut. The Philippines is the ONLY country with which produces and processes this nut in commercial quantity.

The current status of the pili is equivalent to that of the macadamia some 30 years ago. It has huge potential to develop into a major industry. They are in demand not only in Hong Kong and Taiwan but also in Singapore, Korea and Austria.

What Is Car Body Glass Coating?

Glass coating is an inorganic material made of a Silica or a Quartz-Silane-based compound. It is used to protect the painted surfaces of car bodies. It is less likely to stain. Unlike traditional wax, its luster and protection can be long-lasting once it is applied. This is because they do not contain materials that oxidize (bind with oxygen). Oxidation weakens the original protection and shine of many car products, thus rendering the car surface prone to damage. It is easy to maintain, provides clean, shiny surfaces and long-lasting protection.

What is the difference between coating and wax?

The main component of wax is carnauba wax oil, which is extracted from palm trees. In recent years, some waxes have added petroleum. Higher quality waxes contain more carnauba oil. Carnauba wax is oil based, so it has water-repellent characteristics and can obscure scratches. However, there are also disadvantages. Waxes can easily become dirty because oil has a high viscosity (thick and sticky). This means dirt can stick to it. Also, wax can easily melt and deteriorate because it is sensitive to heat. Sunshine or engine heat can promote deterioration and cause wax to melt off the car’s surface. Wax can also break down in the rain or when the car is washed.

On the other hand, coating has a chemical composition of silicon, silica, fluorine and titanium. These molecules form a film coating that penetrates between the molecules of the car’s painted surface, creating a very powerful protective layer. Resistant to dirt, heat and rain, coating’s protection and shine will last over a longer period than wax.

There are various kinds of coatings that range in application complexity from simple, which any consumer can apply, to products for professional use only.

During its application, if the car’s surface is dirty and rough, materials will not adhere to car body paint, so surface preparation before application is important.

Types of Glass Coatings

Glass-based coatings can be broadly divided into two categories: quartz-silane based coatings and silica-based coatings.

The quartz-silane-based glass coating, also known as “completely cured glass film type” achieves very high gloss and strong durability. It protects the car body by creating a cured coating of silica on the car’s surface. However, it takes about three weeks for the coating to be fully cured, which is a drawback. It is also expensive because it takes a long time for the product to be formulated.

The silica-based glass coating, also known as “glass fiber type “, also makes a film, coating the surface of the car body. It is fixed to a silicon polymer molecule. It is an easy formulation and, therefore, is costs less to produce. However, its durability and water repellency is inferior compared to the quartz-silane-based.

In addition, some of the fluorine-based coatings, such as Teflon, are used to coat car bodies. They are excellent in durability. However, they are inferior compared to glass coatings and more expensive to formulate. As a result, glass coatings are on the cutting edge of technology’s focus of exploration.

A Glass Coating Hybrid

Currently, there is debate about whether hydrophilic (attracts water) products are more effective than hydrophobic (repels water) products for car care. Glass is hydrophilic. The new types of glass coatings are hybrids, adding a silicone resin layer to the existing glass layer to change the hydrophilic trait of glass to hydrophobic, thus creating a strong water repellant product.

Pre-Employment Testing

As the job market becomes increasingly competitive, many employers are resorting to pre-employment testing to determine the best candidate for the job. While resumes provide employers with some insight into the capability of applicants, a relevant test can really help narrow the field. Unfortunately, there are also several disadvantages to pre-employment testing. Additionally, there are strict laws prohibiting discriminatory or disrespectful questions from being asked.

Advantages

Pre-employment tests provide employers with a number of advantages. Some such perks, include:

• Employers can identify positive traits within candidates, such as integrity, competence, motivation, and reliability

• Employers can identify negative traits within candidates, such as substance dependency and inclinations toward theft

• Provides further insight into candidates

• Can help determine differences between candidates who seemed equal after evaluating their resumes and undergoing an interview.

Disadvantages

Unfortunately, pre-employment testing is also disadvantageous for many employers. Some drawbacks include:

• Test results are only one factor of the hiring process. Employers should base their decision on other factors, such as their experience, qualifications, and interview.

• All tests administered by employers must be certified for validity and reliability

• Test results are not necessarily indicative of applicants’ ability to perform their job. Instead, tests focus on applicants’ potential.

• Testing conditions must be fair and consistent for every candidate

• Testing may eliminate some candidates who are highly qualified, but do not perform well on tests

• Applicants may react poorly to the test. Additionally, if they believe the test was discriminatory, they can legally challenge the test.

Discrimination

When writing tests, employers must be aware of the laws pertaining to employment testing. Any questions which require applicants to divulge something about themselves that could result in discrimination is illegal. For example, employers cannot ask about an applicant’s:

• Age-Some employers discriminate against older applicants because they assume that the older they are, the more pay they will request.

• Race/Ethnicity-Race and ethnicity are irrelevant factors when applying for a job. This law protects minorities from discrimination.

• Disability status-Some employers will discriminate against persons with disabilities, even if they will not impede the applicant’s job performance. The Americans with Disabilities Act prohibits employers from asking questions pertaining to an applicant’s disability status.

• Sexual preference-Because sexual preference is private and irrelevant to one’s job performance, employers are prohibited from inquiring. This law protects members of the LGBT community who might otherwise be discriminated against.

6 Things You Must Consider Before a Canadian Motorcycle Ride

If you plan to cruise the highways and drive a motorcycle in Canada the following information will be useful to consider both for your own safety, and for your own piece of mind.

Canadian Highways and Rural Roadways

Whether you decide to rent a motorcycle or drive your own, Canada has a massive system of well managed city streets and highways which will bring you just about anywhere you want to go.

The main highway through Canada is the Trans-Canada Highway, which goes coast to coast. The distance from the east coast to the west coast is about 8000 km or around 4,900 miles. You could go on a Canadian motorcycle ride for weeks and never get to see everything.

Motorcycle Rentals

Renting a motorcycle in Canada may be something you want to consider. Canada has several motorcycle rental companies found near the major cities and towns. Rates vary depending on the season, type of motorcycle and length of rental. The minimum age to rent a vehicle in Canada is usually anywhere from 21-25 years old. If you plan to travel through the western provinces on your motorcycle you might want to look into the many popular tourist attractions, and the great roads to travel.

In order to rent in most cases you will need to have a major credit card. Requirements may vary from each province. Be sure to reserve your motorcycle ahead of time during peak travel times, which are usually from mid May to November.

Camping With Your Motorcycle

Most Canadian provincial and national parks, private campgrounds and other conservation areas allow you to camp with your motorcycle.

All of the Canadian provinces have a government agency that is responsible for tourism. You should check their websites or call for information to get get maps, and possible promotional offers, and maybe even some more Canadian motorcycle information. If you plan to stay in a campground near a popular park like Banff, Whistler, and Fundy National Park you should book in advance.

Driving Laws- Canadian Motorcycle Driving

In Canada the road laws are very similar to the rules in most US states. Most road safety laws and regulations are determined at the provincial and territorial level, so make sure you know the particular rules for the province you plan to be visiting. One rule for motorcyclists throughout all Canadian Provinces is that you must wear a motorcycle helmet if you are driving a motorcycle in Canada.

Other things to consider while driving through all the Canadian provinces on a motorcycle are that you are allowed to make a right turn on red lights in most cities through the country after coming to a complete stop. Be careful because because in some areas of Quebec you are not allowed to do this. For more information, check with the Government of Quebec's website.

In all Canadian provinces pedestrians have the right-of-way and you must yield to pedestrians at crosswalks. The speed limit on the most rural highways is usually around 90-100 km / hr or about 55-65 mph. Speed ‚Äč‚Äčlimits are enforced primarily by the RCMP in rural areas, and municipal police in most major cities throughout Canada.

If you are rolled over by a police officer you must provide proof of insurance, driver's license and registration.

Weather

Many people who are not from Canada picture the country as having vast piles of snow and snowmobiles as the main mode of transportation. Nothing could be more false. In most provinces you can ride a motorcycle 8-9 months out of the year. In Vancouver British Columbia and other western cities and towns, people drive year round. The summer months can get very humid in Canada, and there are many Canadian motorcycle events held across the country on an annual basis.

Motorcycle Insurance Canada, Driver's License and Permit

If you plan a ride a motorcycle through Canada and you are from the United States., Your driver's license is valid in Canada. Be sure to bring proof of motorcycle insurance by talking to your insurance company for a free Non-resident Inter Provincial Motor Vehicle Liability Insurance Card before you leave, or carry your policy itself.

If you're driving a borrowed motorcycle, you should bring a letter signed by the owner that says you are allowed. Also for a rented motorcycle, carry a copy of the rental contract.