Taken from a money-opinion website
"Oddly enough, it's a good investment. We bought a plot in Manila Memorial for about P200K, and checked a year later, and it costs P330K.
**********************************
"I've heard of a developer who makes nothing but cemeteries and memorial parks(small ones). He's a multimillionaire now."
**********************************
"I bought several lots at Ever Memorial years ago. Before knowing it, it has doubled its value na. I have sold most of it this year. "
**********************************
"Exactly what happened a decade ago, when a relative died, hassle masyado. Since then, members of our family bought memorial plans, memorial lots, and crypts, for "personal" use.
It really pays to be prepared. Kasi lahat tayo doon din ang punta eh."
**********************************
"If you believe that PRICE is a function of Supply & Demand and if you accept that SPACE is running out in the City, then don't be surprised that Columbaries/Ossuaries/Cemeteries do increase in Market Value. "
**********************************
"...kasi yung iba talaga, nag sasamantala, if you are "in need.
Try this, go to any funeral parlor, then act a bit agitated and confused, as if somebody died already, and ask for how much their services are.
Then come back a week later, relaxed and all focused. Try to ask for the price of the same service you did ask last week.
You'll be surprised, I assure you.
The same goes for memorial lots, for the same cash price, you'll get a discount if you tell them you are just buying for future use, as against the same lot, if you tell them you'll be needing them now!"
**********************************
"before its too late.. this is true in all memorial business whether buying lots or plans.. i have a case where costumer called me up monday asking for the cheapest lot.. but i never knew they already have a 'dead' in waiting.. came few days, maybe they're still scouting for a cheaper one.. but the interment is coming on a weekend..
two days before the interment, the lot i was referring was gone.. so they payed 3k more than what they want and no more choice of lots.. so they settled for the one available since the interment will be soon. they have no choice..
so the best thing to do is to buy now, before its too late.. because you wont be able to think fast if you're already crying.. "
**********************************
"I have invested in memorial lot about 3 years ago at a discounted cash price. Value now is more than 50% based on prevailing market rates. so a return of about 15% per annum.
suggestion when you decide to buy for investment,
1. choice lots
2. well planned memorial park.
3. good name and brand
4. long track record
the last one is important because you have an idea of the price of lot 10, 15 or 20 years ago and then you can compare the price to the present value. If there is an increase of more than 10% per year for the past 10 years, then buy it for investment. "
**********************************
"just an opinion... whether it is a bone crypt, memorial lot or a columbarium, this investment of the living for the 'future' dead is a wise decision he/she makes because it will later be used by someone that person loves... if your objective is to buy now and realize a profit later, then it is also a good move to do because you can definitely make something out of it, provided of course there will be a ready buyer later on... one scenario that this investment could be sold is when somebody is 'in dire' need of it -- this is what they call 'at need' basis... you can readily sell it because the one paying for somebody is looking for something of good location, accessible or readily available, then it is easy to 'market' it."
Friday, February 25, 2011
Is it smart to invest in a memorial plan
By Ma. Salve Duplito
INQUIRER.net
Filed Under: Financial & Business Services, Investments, Personal Finance
In a largely happy-go-lucky country, talk of death still spook Filipinos, and most try to avoid planning—and even just thinking—about kicking the bucket.
“I am not comfortable with the idea of getting a memorial plan. Irrational as it may sound, I feel like it’s courting bad omen,” says Ed Timbungco, a 30-something professional working in Makati City.
This sentiment is not uncommon among the young, and the topic becomes even more of a taboo when parents or grandparents are around. Unfortunately, the cost of putting a loved one in his final resting place may be a bigger reason to get scared.
From moving a body from the hospital to the funeral parlor to entertaining visitors with the ubiquitous biscuit and “sapin-sapin” (these days it’s catered food) to bringing them to the memorial park, you can spend anywhere from P300,000 to as much as P4 million, depending on the design of the casket, the length of interment and the burial lot, among others. For someone, who is already grieving and who may have spent a lot of money on hospital bills already, that will be both emotionally and financially draining.
The high side of the figures does make death sound like such a rip-off, but given the realities, how does one pay for something that can happen when it is least expected? An informal survey is very telling: Seven out of 10 office workers are unprepared for funeral costs, with no memorial plans, and only one in the group has plans to buy one in the near future.
The reasons vary, and most of them have to do with budget and cash flow. “I am more concerned with living now, than dying,” says an artist. “It’s not yet in my priorities. I am still saving up for the kids’ education,” says INQUIRER.net assistant editor Erwin Oliva.
However, a few of those in the group have prepared for funeral costs through other means: The expected inflow from insurance policies, pension plans and other investments. They prefer to prepare for the cost by saving at their own pace and controlling where to put their money, rather than handing their savings over to a company or a funeral home.
Advantages
Registered financial planner Malaya Laraya says there are good and bad points in memorial plans. He advises that spreading the costs over time if you yourself plan to use them makes more sense than investing in them with the hope of selling at a higher price in the future.
Affordability, low initial outlays and increasing attractiveness of additional benefits await persons, who are thinking of preparing early for the inevitable.
Laraya says initial outlays for a simple memorial lot, which one can buy from a developer, can be as low as P2,000. Getting a plan from a tie-up between a developer and a life insurance company will also allow buyers to get add-ons like funeral service arrangements—something that can be comforting to a person, who is grieving and may be worried over other expenses like hospitalization costs. But these can be more expensive.
What’s attractive is that memorial plans are also forms of forced savings, something that helps ordinary Filipinos pay for a future need in “tingi” [piecemeal]. With the high cost of living and generally low incomes, that can be a blessing even if returns are not much.
Alvin Tabañag, also a registered financial planner, a memorial plan becomes heaven-sent for someone, who doesn’t have sufficient savings. “Funeral services excluding memorial lots can cost says P15,000 to P20,000 for simple coffins and basic services to P200,000 for the more elegant ones,” he says.
Disadvantages
Both Tabañag and Laraya, however, do not expect memorial lots and plans to be good investments over time because they are usually sold at a loss and their values do not appreciate.
“Most long-term time deposits can beat memorial plans in terms of returns, and they are insured up to P250,000,” says Tabañag.
Laraya also points out that selling memorial plans and lots can be tricky because there is no easy way to put a price tag on them.
“The market is very inefficient. Anyone would know how to sell a Treasury bill, but a memorial plan or lot? Plus, how do you value the add-ons and extras that came with it? Can you explain it to a buyer the way an agent could? Aside from getting a discount on it, why would a buyer then get a memorial plan from you instead of going straight to the developer or the life insurance company?” Laraya says.
There’s also the hassle of transferring titles to your name and going through the fine print of the contract.
These, however, do not mean saving up for funeral expenses should be put in the back burner. It still makes sense to prepare for it in advance so that you are not pressured into throwing an expensive “last hurrah” for a loved one when you’re feeling extra vulnerable.
Whether the preparation is done by handing over your savings to a company or a funeral home, or through a do-it-yourself memorial savings plan, may not really matter. What matters most is that the tears, in the end, will not be because of financial stress.
INQUIRER.net
Filed Under: Financial & Business Services, Investments, Personal Finance
In a largely happy-go-lucky country, talk of death still spook Filipinos, and most try to avoid planning—and even just thinking—about kicking the bucket.
“I am not comfortable with the idea of getting a memorial plan. Irrational as it may sound, I feel like it’s courting bad omen,” says Ed Timbungco, a 30-something professional working in Makati City.
This sentiment is not uncommon among the young, and the topic becomes even more of a taboo when parents or grandparents are around. Unfortunately, the cost of putting a loved one in his final resting place may be a bigger reason to get scared.
From moving a body from the hospital to the funeral parlor to entertaining visitors with the ubiquitous biscuit and “sapin-sapin” (these days it’s catered food) to bringing them to the memorial park, you can spend anywhere from P300,000 to as much as P4 million, depending on the design of the casket, the length of interment and the burial lot, among others. For someone, who is already grieving and who may have spent a lot of money on hospital bills already, that will be both emotionally and financially draining.
The high side of the figures does make death sound like such a rip-off, but given the realities, how does one pay for something that can happen when it is least expected? An informal survey is very telling: Seven out of 10 office workers are unprepared for funeral costs, with no memorial plans, and only one in the group has plans to buy one in the near future.
The reasons vary, and most of them have to do with budget and cash flow. “I am more concerned with living now, than dying,” says an artist. “It’s not yet in my priorities. I am still saving up for the kids’ education,” says INQUIRER.net assistant editor Erwin Oliva.
However, a few of those in the group have prepared for funeral costs through other means: The expected inflow from insurance policies, pension plans and other investments. They prefer to prepare for the cost by saving at their own pace and controlling where to put their money, rather than handing their savings over to a company or a funeral home.
Advantages
Registered financial planner Malaya Laraya says there are good and bad points in memorial plans. He advises that spreading the costs over time if you yourself plan to use them makes more sense than investing in them with the hope of selling at a higher price in the future.
Affordability, low initial outlays and increasing attractiveness of additional benefits await persons, who are thinking of preparing early for the inevitable.
Laraya says initial outlays for a simple memorial lot, which one can buy from a developer, can be as low as P2,000. Getting a plan from a tie-up between a developer and a life insurance company will also allow buyers to get add-ons like funeral service arrangements—something that can be comforting to a person, who is grieving and may be worried over other expenses like hospitalization costs. But these can be more expensive.
What’s attractive is that memorial plans are also forms of forced savings, something that helps ordinary Filipinos pay for a future need in “tingi” [piecemeal]. With the high cost of living and generally low incomes, that can be a blessing even if returns are not much.
Alvin Tabañag, also a registered financial planner, a memorial plan becomes heaven-sent for someone, who doesn’t have sufficient savings. “Funeral services excluding memorial lots can cost says P15,000 to P20,000 for simple coffins and basic services to P200,000 for the more elegant ones,” he says.
Disadvantages
Both Tabañag and Laraya, however, do not expect memorial lots and plans to be good investments over time because they are usually sold at a loss and their values do not appreciate.
“Most long-term time deposits can beat memorial plans in terms of returns, and they are insured up to P250,000,” says Tabañag.
Laraya also points out that selling memorial plans and lots can be tricky because there is no easy way to put a price tag on them.
“The market is very inefficient. Anyone would know how to sell a Treasury bill, but a memorial plan or lot? Plus, how do you value the add-ons and extras that came with it? Can you explain it to a buyer the way an agent could? Aside from getting a discount on it, why would a buyer then get a memorial plan from you instead of going straight to the developer or the life insurance company?” Laraya says.
There’s also the hassle of transferring titles to your name and going through the fine print of the contract.
These, however, do not mean saving up for funeral expenses should be put in the back burner. It still makes sense to prepare for it in advance so that you are not pressured into throwing an expensive “last hurrah” for a loved one when you’re feeling extra vulnerable.
Whether the preparation is done by handing over your savings to a company or a funeral home, or through a do-it-yourself memorial savings plan, may not really matter. What matters most is that the tears, in the end, will not be because of financial stress.
Subscribe to:
Posts (Atom)