“More and more foreigners are realizing that it it is great sense to invest in real estate in the Philippines.”
By Hoppler Editorial Board
November 11, 2015
With a booming Philippine economy as a backdrop, foreigners are realizing that it makes great sense to invest in real estate here. While the constitution does not allow them to own land, they still have an option to own property by buying condominiums.
Chinese and Southeast Asian investors have increasingly taken a second look at the Philippines for valuable investments. For one, Japanese and south Korean investors have been leveraging their wealth by being one of the biggest buyers of Philippines condo projects. With investor confidence being a bit wobbly with China, more wealthy Chinese with lots of cash on hand are buying condos like hotcakes.
Here are 5 reasons why expats should invest in a property in the Philippines:
Expatriates can enjoy familiar global brands. In Bonifacio Global City (BGC) alone, along High Street, you are greeted by Nike, Adidas, Krispy Kreme, Old Navy and others. Compared to the rest of Asia, the Philippines offer not only a large English-speaking population but a lot of Western brands as well.
Another plus factor that puts the favor of having real estate here is the openness of the Filipino culture. The unique blend of east and west has cultivated the Philippines both in appearance and culture which creates an interesting and fascinating society expatriates are very much at ease with.
More to gain
Investors claim the Philippine real estate offers “appreciation, and reasonable rental yields”. As the value of the US dollar and Euro continue to drop, properties here now are seen by foreigners as a way to get their money out of the western world. They say you will get at an average 7% return. There is also a stable rental market. Buying a one-bedroom condo unit in Makati is a good investment as it is small enough to be easily rented out.
Cost of Living
When expats consider investing in properties, an important factor is the cost of living. To them, the country presents an affordable living environment. Renting a large apartment in the metro would cost around P40,000-P80,000 while small apartments range between PHP 15,000 and PHP 25,000. Should expatriates want to save on their cost of living, there are boarding houses that can be rented for as little as PHP 4,000.
Settling down for good or buying your own property in the Philippines equates to a lower cost of living in the long term. Most homes are attached or single-detached homes. The former are available starting at PHP 2,200,000, while the latter will cost you PHP 5,500,000 and up.
For retirees seeking a kinder climate, a place without winter, the Philippines stands out as a great choice. They can either opt to stay in the big city or head to a more sedate life in the province with a live-in maid service that cost only a few hundred dollars monthly, plus a family driver who can double-up as security.
First-class lifestyle and astounding sceneries
Expats can experience the beauty of a tropical climate brimming with the best western amenities. Furthermore, expatriates enjoy the convenience and accessibility to affordable luxuries, the finest schools and hospitals, huge shopping malls, first-rate hotels and restaurants and stunning beaches.
The Philippines is definitely an ideal country to invest in. With a little time and effort, expats will soon see and appreciate the Filipino people’s distinct character, positive outlook on life and endless opportunities for growth and profit if they decide to invest in this dynamic country.