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  1. What is the Philippines economy like? • The Philippines economy has grown at a rate of 4.4% in 2008 and expected to grow at a rate of 4.0% in 2009 (Economist Intelligence Unit) • High government expenditure and large remittances from abroad are projected to drive the Philippine economy. • Stable currency. • Higher production in the agriculture and manufacturing sectors. • A surplus in the Balance of Payments. • Low debt ratios. • Rising disposable income. • Rising consumer expenditure. • Reducing unemployment. Is Cebu and the Philippines going to be seriously affected by the global economic slowdown? The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued because the economy is expected to remain resilient due to significant reforms in fiscal and banking sectors, build-up of reserves, low debt ratios, an increase in government spending, resilient external sector, a surplus in the Balance of Payment, large remittances, channeling of remittances into investments especially housing, resilient domestic financial markets, adequately capitalised banking system, low exposure to sub-prime related distressed credit products and increasing saving ratios. What are the Philippines main attractions? Warm all year round weather, a rich culture, friendly fun-loving population, stunning landscapes and beaches, warm clear waters with colourful coral reefs and marine life and a large number of facilities and attractions make the Philippines an extremely desirable destination for tourism and development. Is the Philippines expensive? The Philippines offers extremely good value for money to travelers. The cost of living is well below European countries such as the UK. Here a few examples: • Average apartment electricity bill from $20 to 40 / month • Average apartment water bill $3 to 5/ month • Average landline phone $10 to 15/ month • Meat $3 to 4/kg • Poultry $2/ kg • Fish $2 to 3 / kg • Vegetables $0.75 to 1.50/ kg • Average salary for a maid is US$40 to 45 /month • Average salary for a driver US$90 to 100/ month How safe is the Philippines? On the whole the Philippines is a safe country to visit, but you should take precautions. Things to look out for are street crime, which has begun to grow in the larger more tourist filled areas, particularly pick pockets. You should keep valuables out of sight and be careful not to walk around with large amounts of cash. You should also avoid walking through dark or deserted places at night. There is a conflict with rebels and the government but this is confined to remote areas in the south of the country. Are there any hazards that I need to be aware of when I travel to the Philippines? The Philippines can be struck by natural disasters like typhoons, earthquakes, floods, landslides and volcanic eruptions, but they are no more than in many other countries in this part of the world. Travellers need to keep out of the typhoon season from October to December. Is the Philippines easily accessible? Certainly, there are frequent low cost flights from all major cities in the world. Do I need a visa to travel? European and US national are allowed to enter the Philippines without visas for a stay not exceeding 21 days, provided they hold valid tickets for their return journey. Can foreigners own property the Philippines? Ownership laws in the Philippines does not allow foreigners to own land, but allows the ownership of apartments in high-rise buildings as long as the foreign proportion in a apartment block does not exceed 40%. Foreigners can buy a house but not the land on which it is built. A long lease on the land of up to 50 years which is renewable for another 25 years is usually arranged. Can I buy a property without physically travelling to the Philippines? Yes, as long as you deal with reputable developers and agents and have a lawyer that represents you, then there is no reason why you shouldn’t buy a property without travelling if this is what you want to do. Are there any advantages in buying off plan? Buying off plan in one of the newly built developments offers exceptional value and is the best option for foreign buyers for the following reasons: • It allows the buyer to pay in small installments. • New roads and the infrastructure of the development are already in place. • The new developments are built to modern international standards. • A very good selection of units is available to suit all tastes and budgets. • The properties offer excellent potential for capital appreciation especially as the construction work progresses. • There are usually no restrictions on selling the unit before completion. • Clean title deeds and easier property registration. • Growth of the real estate market, price increases and project completion means that investors in new developments will indeed greatly benefit from substantial capital appreciation by the time their property gets ready. Is buying property in the Philippines a good investment? The Philippines real estate market has excellent potential as: • The stability of the property market in The Philippines is closely linked the stability of its economy which is currently expanding at a sustainable rate. • Warm all year climate with excellent rental potential throughout the year. • High demand from domestic and international investors. • Prices are still very reasonable and much lower than prices in similar economies. • High yields and excellent capital appreciation potential. • Strong demand from 11 million Filipinos living abroad. • High infrastructure expenditure. • Good accessibility and low cost flights. • Thriving tourism with the number of tourist increasing rapidly further driving demand for real estate. • A wide and distinctive range of luxurious developments in outstanding locations. Which areas are good to invest in? The islands of Boracay and Mactan present excellent investment opportunities because of their accessibility, beautiful beaches, stunning landscape, luxurious resorts and a wide a range of facilities and activities. Can I rent my Philippine property when I don’t need to use it? Certainly, booming tourism and strong all year round rental demand offer investors the opportunity to rent out the property for excellent yields.
  2. The Philippines is a welcoming, stunning and culturally rich country which offers extremely good value for money to travelers. Today the Philippines is a politically stable country with a growing economy, a thriving tourism industry and excellent opportunities for foreign property investors. The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued because the economy is expected to remain resilient while the property market is exhibiting prolonged growth as the current circumstances have created an ideal environment for a sustainable capital appreciation because of significant demand and still reasonable real estate prices. Strong economy, warm all year round tropical climate, stunning landscapes, beautiful beaches and numerous recreational facilities make the Philippines a most desirable destination for both tourism and investment. The Philippines is an archipelago that is situated in Southeast Asia in the Western Pacific, east of Vietnam and north east of Malaysia between the Philippine Sea and the South China Sea. It has over 7,000 islands with most of the population living on just 11 of them. The three main islands of Luzon, Visayas and Mindanao are mountainous as well as forested. The Philippines occupies about 300,000 square kilometers (115,800 Sq miles), and the largest city is the capital, Manila. The Philippines has tropical rainforest climate with high temperatures and high humidity with warm, shallow waters around the islands, with a lot of beautiful corals and the coral reefs. The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued because the economy is expected to remain resilient while the property market is exhibiting prolonged growth as the current circumstances have created an ideal environment for a sustainable capital appreciation because of significant demand and still reasonable real estate prices. Political Stability in the Philippines The Philippines is a peaceful, politically stable country and Filipinos are peaceful freedom-loving people. Despite minor isolated incidents, free democratic elections and improved social living conditions have greatly contributed to the political stability of the country. The Philippines has a representative democracy modeled on the U.S. system and the country has a free press and media with a large number of English national newspapers, national TV stations, hundreds of cable TV stations, and over 2,000 radio stations. The Philippines Key Statistics Population: 96.061 million Population growth rate: 1.991% Language: Filipino (official; based on Tagalog) and English (official); eight major dialects – Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan. Government type: Republic Capital: Manila Time zone: UTC +8 GDP: $300.1 billion GDP growth rate: 4..4% GDP per capita: $3,200 Unemployment rate: 7.3% Reserves of foreign exchange and gold: $33.75 billion Investment (gross fixed): 14.8% of GDP Industrial production growth rate: 7.1% Currency: 1 US$= 47.0 Peso (or Piso). Airports with paved runways: 171 Ports: 1500 Produce: Agriculture – sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish. Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing. Property prices are still much lower than in similar locations, a fact that’s drawing an increasing number of investors looking to buy undervalued real estate with outstanding growth potential. Filipinos working abroad fueling a boom in the property market into ensure their home, slamming and homes, their the future. According to industry experts, property prices have improved significantly Since the global financial crisis in 2009 with investment of 9 Million Filipinos live and work abroad is an important factor. Chief Estate Brokers Association of the Philippines Real Emily Duterte said, “workers in overseas properties are moving the market now. Sales and when a demand to rise, the prices. ” According to the head of research at Jones Lang LaSalle Philippines Claro Cordero, To achieve properties for sale throughout the country PHP300 billion (6.9 billion dollars) by the end of 2010 to PHP100 dollars each in 2009 and 2008. As shown on ABS-CBN. Com, Filipino workers abroad account for 10 percent Percent of the population of the Philippines. Although they Reputation for work as the lowest paid workers, such as construction Workers, maids, cleaning ladies and they are increasingly on the higher more lucrative sectors such as medicine, technology and media. In 2009 they managed to send home $ 17,300,000,000 produce over 10 Percent of GDP, according to the Government. Houses around PHP2 million (45,000 dollars) in Manila are usually priced choices for workers abroad, according to the association Duterte broker. However, the living abroad began to change these preferences of buyers. Manuel Serrano, president of the Chamber of Real Estate and Construction Association says that workers overseas, the housing market reignited Philippines. He said: “At first they were more interested in House and property, but in the last two years, the tempo changed. The Demand for condos is now. ” Reports have been done and the results have been that generally the Philippines provides the highest rental yields for real estate investments across the Asia markets, higher yields than popular tourist destinations such as Thailand. In areas such as Makati, the financial district of Manila luxury condominiums in this area are providing investors with very high rental returns. Again condos in Makati have also been recording high occupancy rates in the first quarter of 2010. There was a slight decline in vacancy at 6% from 7% in the final quater of 2009 due to the lack of new developments and a strong demand from new working professionals in the area and expartiates relocating to Manila from overseas. There are many new residential real estate developments being built now in Manila and Makati which is set to push vacancy levels up to about 9% in the next 18 months. The start of 2010 we saw rentals of luxury 3 bedroom apartments of 250 sqm in the Manila, Makati Central Business District renting for P540/sqm. Demand for smaller apartments in the Makati area is less, however the rental per SQM is higher. Unfortunately Foreigners are unable to purchase land in the Philippines, some do illegally in the countryside, However in areas such as Manila and Makati foreigners can only invest in residential real estate. Ways in which foreigners usually own estate in the philippines is by either having a Filipino spouse or owning a Philippine corporation or the most common which is simply owning a property without land such as a apartments / condominium. One big driver of the Philippines residential real estate market is that there are over 11 million Filipinos working overseas in counties such as USA and UK who send billions of dollars back to the Philippines, many of these overseas workers will eventually return to retire to the Philippines, they are investing and purchasing property now, taking advantage of the a benefits offered by the banking system. Although the Philippines residential real estate market is attractive and is a cost-effective investment strategy, the capital value of luxury apartments condominiums are probablly not going to increase significantly as they have in cities such as Hong Kong and Tokyo, as there is alot of new supply becoming available and the buyer sentiment will cause demand to fall. Cebu / Manila & Philippines residential Real Estate markets have started to show big improvements since the financial crisis and the fall in real estate market prices in 2009. We are going to outline some key factors to help you select your real estate investment in the Philippines / Cebu / Manila real estate market. Reports have been done and the results have been that generally the Philippines provides the highest rental yields for real estate investments across the Asia markets, higher yields than popular tourist destinations such as Thailand. In areas such as Makati, the financial district of Cebu & Manila luxury condominiums in this area are providing investors with very high rental returns. Again condos in Makati have also been recording high occupancy rates in the first quarter of 2010. There was a slight decline in vacancy at 6% from 7% in the final quater of 2009 due to the lack of new developments and a strong demand from new working professionals in the area and expartiates relocating to Cebu or Manila from overseas. There are many new residential real estate developments being built now in Cebu and Manila and Makati which is set to push vacancy levels up to about 9% in the next 18 months. The start of 2010 we saw rentals of luxury 3 bedroom apartments of 250 sqm in the Cebu, Manila, Makati Central Business District renting for P540/sqm. Demand for smaller apartments in the Makati area is less, however the rental per SQM is higher. Unfortunately Foreigners are unable to purchase land in the Philippines, some do illegally in the countryside, However in areas such as Cebu and Manila and Makati foreigners can only invest in residential real estate. Ways in which foreigners usually own estate in the philippines is by either having a Filipino spouse or owning a Philippine corporation or the most common which is simply owning a property without land such as a apartments / condominium. One big driver of the Philippines residential real estate market is that there are over 11 million Filipinos working overseas in counties such as USA and UK who send billions of dollars back to the Philippines, many of these overseas workers will eventually return to retire to the Philippines, they are investing and purchasing property now, taking advantage of the a benefits offered by the banking system. Although the Philippines residential real estate market is attractive and is a cost-effective investment strategy, the capital value of luxury apartments condominiums are probablly not going to increase significantly as they have in cities such as Hong Kong and Tokyo, as there is alot of new supply becoming available and the buyer sentiment will cause demand to fall.
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