ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Guide to Real Estate Investment in the Philippines

Updated on April 6, 2014
South Park District
South Park District

The year 2014 is seen by many investment analysts as a particularly opportune time for investing in real estate in the Philippines. Although the country has been hit by an enormous disaster last year with such an impact that has initially been thought to cause some economic slowdown, it has nevertheless breezed through it with ease and the country’s economic fundamentals is sound in all aspects. On the political aspect, economic growth has also been largely unaffected by the pork barrel scandal.

The country’s robust economy has been particularly favorable for the real estate industry, and growth and investment in this sector has seen an upward trend of steady growth in the past few years, with research and surveys indicating that it is one of the topmost locations in the Asia-Pacific region for the property market this 2014. The market is also relatively stable owing to factors such as strong capital inflows from overseas Filipino workers, the steady growth of the BPO industry, positive demography, as well as the country’s cultural similarity with the West, which is seen to have an impact with its workforce. Overall, property investment prospects is rosy for the Philippines. The following factors should be considered by those who want to take an opportunity to make profit from property investment in the Philippines.

Target Market

In Metro Manila, property investors obtain profit primarily out of rentals. In fact, the trend in condominium property ownership nowadays is to initially provide for the initial down payment required to obtain a unit, and then lease the unit to renters to provide for the succeeding amortization payments for the property. Whatever is left of the rent proceeds after amortization and condominium dues payments translates into an income for the unit owner. It should be noted, however, that income generation from this set-up is highly dependent on the target market of the investor, as well as the location. For investors targeting primarily university students, properties along Manila’s university belt area will be a good choice. Before investing, however, sustainability should also be examined. An area that is already highly saturated, for example, can not be at all profitable.

Financial Growth

Creating a financial growth plan is one effective means of gauging one’s investment priorities. For example, how do you see your investment making a good profit for you in a span of five years? Being able to determine the investment’s profitability will help in making a sound business and investment decision. On the other hand, if you are not able to have a clear idea of the profit you are going to make in a particular investment, chances are that it is not a good idea after all.

Risk

All investment carries with it an attendant risk. In real estate, risk includes the cost that is associated with amortizations and interest rate payments. In the Philippine setting, however, analysts agree that interest rate is one of the factors that is highly favorable for investment. Other risk factors include short and long-term changes that can have an adverse impact on a particular investment. Conducting a research before deciding on an investment can help determine what short and long-term changes might accrue in the future, and can help you prepare for such eventualities.

Project Features

Another important factor affecting a property investment’s profitability are the features that add value to it and the lifestyle of its target market. A real estate development project that offers complete and sensible amenities, for example, will be preferred more by buyers and renters alike over one that offers amenities that are of no use at all. For residential condominium towers, amenity needs may, however, vary depending on the target market. On the other hand, there are projects that offer not only the standard amenities but also add component projects within the development that may not be necessary but fully complementary with each other as a whole. For example, a development may consist of residential towers, office towers, malls, hotels, gardens, and other features that would make the project a whole community by itself once completed. It is also commonly referred to as a mixed-use development. In Metro Manila, a good example of such a project is the South Park District.

South Park District Mall and Corporate Center
South Park District Mall and Corporate Center

Comments

    0 of 8192 characters used
    Post Comment

    • openraintree profile imageAUTHOR

      RJ NG Choy 

      4 years ago

      Pinoy citizenship is not required under Philippine law for foreigners who want to own a real estate property, but this is limited only for condominium projects.

    • Jack Burton profile image

      Jack Burton 

      4 years ago from The Midwest

      Is there not a requirement for pinoy citizenship before real property can be purchased?

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)