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Why Invest in Philippine Real Estate Properties?
WHY INVEST IN PHILIPPINE REAL ESTATE?
The 5-year Economic Recovery Plan is patterned from the economic structure in the U.S., where the strength of the economy is supported by the strength of the real estate industry and it's attractiveness to foreign investors.
US studies believes that the younger generations go to the west to earn more money and the older generation go to where they can spend less and live their life to the fullest. This is where the Philippines can cater the needs of the international market whether it be for retirement or for a second home making the Philippines the ultimate retirement destination in Asia.
If one buys a real estate property, there will be more demand for new homes and developers. Also, they would buy homes appliances, furniture and more. In effect, factories will produce more and hire more people to meet these demands. There will also be new business when foreign property buyers come to the Philippines.
The dollar vis-a-vis our peso affords Filipino ovearseas workers a much better lifestyle which they cannot afford or enjoy if the same money is spent abroad.
OUTLOOK FOR THE PHILIPPINE ECONOMY
* Philippines sustained annual growth rate of 6.2% p.a. as of 2004
* NEDA expects to accelerate to 6.3% in 2006
* Population growth continues at 2.3% p.a.
* Philippines has a huge domestic market which creates demand for homes
* Increase demand for homes leads to increase development of projects
* There is a firewall between Politics and Business sectors
* Annual remittance of US$12 Billion from Overseas Filipinos fuels consumption
* Consumption is the main driver of economic growth
* Leading contributors for growth: finance, transportation, communications, construction of homes, and real estate
* About $4.4 Billion worth of infrastructure now in various stage of development
* NSO Philippine population figures: 12M in Metro Manila, 84 Million in 2004 and will reach 100 Million in 2010
OUTLOOK FOR THE PROPERTY MARKET
* Strong recovery of the property sector in 2004
* Sales of residential projects are 25% higher than 2004, mostly projects geared towards mid to upper middle income market
* Prices in real estate increased by 10% p.a.
* No new significant supply of projects since 1998 to 2003
* New projects are being launched since 2004
* New CBDs now being constructed such as Greenfield district in the City of Mandaluyong and the Global City at Fort Bonifacio
* A major portion of project sales are coming from the overseas Filipino
* EXPATS with a population of 9 million worldwide
* According to HLURB, the residential sector is leading the market recovery. Comparing the same period of 2003 to 2004, there has been a 31% rise in residential project permits. From 131,130 units in 2003 to 172,833 units in 2004.
* Residential demand has been spurred by increased affordability as developers offer low monthly amortization and strong dollar purchasing power from Filipinos Overseas which accounts more than 80% of residential property sales.
"We are bullish in the prospects for the Philippine residential real estate sector. It is poised to bounce back in a very big way." - CNN International
10 REASONS TO INVEST IN THE PHILIPPINE PROPERTY
* Prices in Metro Manila are inexpensive by comparison to major cities around the world.
* Property is a good hedge against inflation which is showing signs of re-emerging in the global economy.
* Rental income from property is a stable source of income, and while it may fluctuate, is highly unlikely to vanish altogether.
* Real Estate always has a residual value, although prices can certainly fall as well as rise. But property values will never fall to zero unlike shares or hedge funds.
* Property is a kind of hybrid asset with the capital appreciation of a stock but the income producing capacity of a bond.
* Demand for property typically picks up during an economic recovery such as the one being seen in the Philippines today.
* Real Estate in prime locations is always an excellent collateral security against loans, and allows financing to be secured anytime.
* Units in projects are being sold pre-development generally appreciate in value when the project is finished.
* Buying Real Estate on installment basis is like buying a pre-need plan. Paying for it in installment for a future need.
* The demand for housing of all types is greater than supply. The backlog for housing is about 4 million units.
10 Reasons why Filipino EXPATS are buying Philippine Real Estate
* Convert their savings into a real property investment
* Pride of ownership ... "made na ako".
* For use by relative
* For income (rental) or appreciation
* For future use when they retire
* For use whenever they come for vacation
* Avail of high purchasing power of Dollar $ to Pesos
* Properties abroad are very high
* Affordability of homes in the Philippines
* Low and affordable monthly amortization
* People who have worked in the United States for the past 25 years amassed savings in the form of equity for their homes. According to U.S. Census figures indicating that the average annual income of Filipinos in the U.S. is $65,189. Filipinos who are permanent residents have stable jobs and have a strong dollar purchasing power here in the Philippines.
Greater Opportunities Real estate is the most global business on earth. Its significant growth opportunities are simply tremendous.
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