Investment as a capital investment

Investment as a capital investment – Majestic Empire Residences

Our apartments and houses are designed with the aim of creating a retirement community that offers older people an exceptional, beautiful living space in a tropical, paradise-like climate. For investors, this concept combines very low acquisition costs, stable annual rents and a clearly positive market environment to create a capital investment with attractive prospects.

What makes this investment special

Majestic Empire Residences are aimed at a steadily growing target group: people who want to spend their retirement in peace, security and warmth. The tropical climate, natural surroundings and low cost of living are precisely the factors that attract long-term tenants. For owners, this means predictable income, long stays and the option of using the property themselves later on or passing it on within the family. The current pre-sale prices offer an additional entry advantage, as they reflect the upward potential of future price levels.

Revenue model: annual rents as an anchor of stability

The focus is on letting with annual tenancy agreements. This structure minimises vacancies, reduces changeover costs and increases the predictability of cash flows. Short-term lets are not planned, which results in a stable, predictable income profile for investors that is particularly well suited to a residential complex geared towards senior citizens.

Return on investment (gross) – calculation examples

Assumptions: Long-term rental with annual contracts; rents in euros; gross view (individual costs/taxes/insurance/maintenance not deducted).

House

Purchase price: €49,900
Rent: €400 per month ⇒ €4,800 per year
Gross rental yield: €4,800 / €49,900 ≈ 9.62%
Payback period (ROI): €49,900 / €4,800 ≈ 10.4 years (≈ 10 years and 5 months)

Apartment

Purchase price: €34,900
Rent: €350 per month ⇒ €4,200 per year
Gross rental yield: €4,200 / €34,900 ≈ 12.03%
Amortisation period (ROI): €34,900 / €4,200 ≈ 8.3 years (≈ 8 years and 4 months)

Return on investment (net) – calculation examples

Assumptions:

Exchange rate: €1 = PHP 66
Administration fee: PHP 5,000/month ≈ €75.76/month ⇒ €909.09/year
Maintenance reserve (minimal): 5% of the annual rent as a small flat rate

House

Purchase price: €49,900
Gross rent per year: €4,800
minus administration fee/year: €909.09
minus maintenance (5% of €4,800): €240.00
Net rental income per year: €3,650.91
Net per month (average): €304.24
Net return: 7.32% (€3,650.91 / €49,900)
Amortisation period (net): ≈ 13.7 years

Apartment

Purchase price: €34,900
Gross rent per year: €4,200
minus administration fee/year: €909.09
minus maintenance (5% of €4,200): €210.00
Net rental income per year: €3,080.91
Net per month (average): €256.74
Net return: 8.83% (€3,080.91 / €34,900)
Amortisation period (net): ≈ 11.3 years

Explanation: The annual rental agreements support the basic assumption of continuous occupancy, which means that the above key figures provide a realistic guide to gross and net returns. The maintenance reserve has been deliberately set at a low level (negligible).

Clarification regarding own use in annual tenancy agreements

With annual rental agreements, it is not possible to use your own unit during the term of the agreement. However, upon request, owners can use an alternative apartment within Majestic Empire Residences, subject to availability and separate terms and conditions. This allows for personal use without interrupting the annual 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, unspoilt nature and a relaxed lifestyle. This environment is ideal for senior citizens in particular: plenty of sunshine, sea air, quiet neighbourhoods and the opportunity to enjoy a stress-free everyday life. These location qualities are a natural generator of demand for long-term rentals.

Early stages of tourism – increasing visibility

The island is still in the early stages of its tourism boom. This is precisely what gives investors an early mover advantage: while established destinations have already reached high price levels, the ratio of acquisition costs to rental income is still particularly attractive on Tablas. At the same time, the region's visibility is continuously improving, broadening the demand base.

Accessibility and infrastructure

The island's accessibility is constantly improving. Air and ferry connections provide stable basic transport links, and the digital infrastructure is also growing. For long-term tenants — and especially for senior citizens — reliable travel options and good internet connectivity are decisive factors. The combination of physical and digital accessibility enhances rentability and supports value retention.

Price level and catch-up potential

Compared to other Philippine holiday islands and European coastal locations, the acquisition costs on Tablas Island are remarkably low. This low entry level is a key lever for potential value appreciation: as awareness increases, connections improve and the long-term rental market grows, prices and rents are moving towards a higher equilibrium. Investors thus benefit twice — through ongoing rental income and potential increases in property value.

Demographic tailwinds

Numerous interested parties from Germany, Austria and Switzerland are looking for affordable alternatives for a warm, secure retirement. The lower cost of living and moderate entry prices at Majestic Empire Residences create a significant advantage in terms of attractiveness. This demographic dynamic has a direct impact on rental security and supports the positive price trend.

Project profile and demand quality

The clear focus on senior living with a high-quality, peaceful environment increases the length of stay for tenants and reduces turnover. Annual contracts fit in with the target group's life plans and make cash flows predictable. For investors, this creates a sustainable demand profile that stands out clearly from short-lived, seasonal models.

Summary for investors

Majestic Empire Residences combines low entry prices, stable annual rents and a location profile with a clearly positive trend. The sample calculations show gross returns of approximately 9.6% (house) and 12.0% (apartment) as well as net returns of approximately 7.3% (house) and 8.8% (apartment) and amortisation periods of around 10.4/8.3 years (gross) and 13.7/11.3 years (net). The market characteristics of Tablas Island — early tourism phase, growing visibility, improving accessibility and demographic demand — form a convincing framework for a long-term capital investment.

Investment as a capital investment