Memorial Lots

Today, we'll discuss another RE asset sub-type: memorial lots.

This asset may be on the grimmer side of RE, but let's face it. Everyone's time on this earth is limited. Everyone dies. This makes memorial lots somewhat of a necessity. Unless, of course, you wish loved ones to be cremated and kept at home.

I'm not sure how hard it is to put up a cemetery (like how to get government permits). But I'm pretty sure many property owners will oppose having one beside their property. This predicament makes memorial lots scarce.

Anyway, here's how an example of a memorial lot has performed in the past 40 years.

+ A Buyer purchased a lot in Sucat, Paranaque, in 1982 for Php3,660.

+ In 2022, the lot was appraised at.....drum roll, please....

Php226,400.

+ This translates to a return of 60.8x (or equivalently 6085%)!

+ In CAGR terms, the 40-year annual growth rate is 10.86%–at par with the 30-year growth rate of gated villages.

There are two ways to look at this:

1. People can make money from memorial lots.

2. If you don't want to take advantage of this (grim) opportunity, you better save your heirs the trouble and buy your memorial lot TODAY! Otherwise, your heirs will be shouldering the hefty price tag in your passing.

Special thanks to Prof @edenalemania for sharing this info.