Investment as a capital investment
Investment as a capital investment
Investment as a Capital Asset – Majestic Empire Residences
Our apartments and houses are being created with the vision of building a senior living community that offers older people an exceptional and beautiful place to live in a tropical, paradise-like climate. For investors, this concept combines very low acquisition costs, stable annual rental income, and a clearly positive market environment into a capital investment with attractive long-term prospects.
What Makes This Investment Stand Out
Majestic Empire Residences is designed for a steadily growing target group: people who wish to spend their retirement years in peace, safety, and warmth. The tropical climate, natural surroundings, and low cost of living are exactly the factors that attract long-term tenants. For owners, this means predictable income, long occupancy periods, and the option to later use the property themselves or pass it on within the family. The currently valid pre-sale prices create an additional entry advantage, as they reflect the upward potential of future price levels.
Income Model: Annual Rentals as a Stability Anchor
The focus is on rentals with annual lease contracts. This structure minimizes vacancy periods, reduces turnover costs, and increases the predictability of cash flow. Short-term rentals are not planned; this creates a calm and reliable income profile for investors, especially suitable for a senior-oriented residential community.
Return on Investment (Gross) – Calculation Examples
Assumptions: Permanent occupancy with annual lease contracts; rents in Euro; gross calculation (individual costs, taxes, insurance, and maintenance not deducted).
House
Purchase Price: €63,000
Rent: €460 per month ⇒ €5,520 per year
Gross Rental Yield: €5,520 / €63,000 ≈ 8.76%
Amortization Period (ROI): €63,000 / €5,520 ≈ 11.4 years (approx. 11 years and 5 months)
Apartment
Purchase Price: €44,000
Rent: €360 per month ⇒ €4,320 per year
Gross Rental Yield: €4,320 / €44,000 ≈ 9.82%
Amortization Period (ROI): €44,000 / €4,320 ≈ 10.2 years (approx. 10 years and 2 months)
Return on Investment (Net) – Calculation Examples
Assumptions:
Exchange Rate: €1 = 66 PHP
Management Fee: 6,000 PHP/month ≈ €90.91/month ⇒ €1,090.91/year
Maintenance Reserve (minor): 5% of annual rent as a small allowance
House
Purchase Price: €63,000
Gross Rent per Year: €5,520
Less Management Fee/Year: €1,090.91
Less Maintenance (5% of €5,520): €276.00
Net Rental Income/Year: €4,153.09
Net/Month (avg.): €346.09
Net Yield: 6.59% (€4,153.09 / €63,000)
Amortization Period (Net): approx. 15.2 years
Apartment
Purchase Price: €44,000
Gross Rent per Year: €4,320
Less Management Fee/Year: €1,090.91
Less Maintenance (5% of €4,320): €216.00
Net Rental Income/Year: €3,013.09
Net/Month (avg.): €251.09
Net Yield: 6.85% (€3,013.09 / €44,000)
Amortization Period (Net): approx. 14.6 years
Explanation
The annual lease contracts support the assumption of continuous occupancy, making the above figures a realistic guide for both gross and net returns. The maintenance reserve has intentionally been kept low (minor).
Clarification Regarding Personal Use During Annual Lease Contracts
With annual lease contracts, personal use of your own unit is not possible during the rental term. However, upon request and subject to availability, owners may use an alternative apartment within Majestic Empire Residences under separate conditions. This allows personal use without interrupting the annual lease agreement.
Market and Growth Potential – Tablas Island (Municipality of Ferrol, Province of Romblon)
Location Quality and Living Environment
Tablas Island offers a combination of tropical climate, unspoiled nature, and a relaxed lifestyle. Especially for seniors, this environment is ideal: sunshine, sea air, quiet neighborhoods, and the opportunity to enjoy daily life without stress. These location qualities naturally generate demand for long-term rentals.
Early Tourism Phase – Rising Visibility
The island is still in an early growth phase in terms of tourism. This gives investors an early-mover advantage: while established destinations have already reached high price levels, Tablas still offers a particularly attractive ratio between acquisition costs and rental yield. At the same time, the region’s visibility continues to improve, broadening the demand base.
Accessibility and Infrastructure
Accessibility to the island continues to improve steadily. Air and ferry connections provide reliable access, while digital infrastructure is also growing. For long-term tenants — and especially seniors — dependable travel options and good internet connectivity are decisive factors. The combination of physical and digital accessibility strengthens rental potential and supports value preservation.
Price Level and Catch-Up Potential
Compared with other Philippine holiday islands and European coastal locations, acquisition costs on Tablas Island remain remarkably low. This low entry level is a key driver of appreciation potential: with increasing awareness, better connectivity, and a growing long-term rental market, prices and rents are likely to move toward a higher equilibrium. Investors benefit twice — through ongoing rental income and possible capital appreciation.
Demographic Tailwinds
Many interested buyers from Germany, Austria, and Switzerland are seeking affordable alternatives for a warm and secure retirement. The lower cost of living and the moderate entry prices at Majestic Empire Residences create a clear competitive advantage. This demographic trend has a direct impact on rental security and supports a positive long-term price trend.
Project Profile and Demand Quality
The clear positioning as a senior living community with a high-quality and peaceful environment increases tenant retention and reduces turnover. Annual contracts fit the life planning of the target group and make cash flows predictable. For investors, this creates a sustainable demand profile that clearly differs from short-lived seasonal models.
Summary for Investors
Majestic Empire Residences combines low entry prices, stable annual rental income, and a location profile with a clearly positive trend. The calculation examples show gross yields of approximately 8.76% (house) and 9.82% (apartment), as well as net yields of approximately 6.59% (house) and 6.85% (apartment), with amortization periods of around 11.4 / 10.2 years (gross) and 15.2 / 14.6 years (net).
The market characteristics of Tablas Island — early tourism phase, rising visibility, improving accessibility, and demographic demand — create a convincing framework for a long-term capital investment.