Property Investment in the Philippines – Top TipsIf you are considering making an investment in real estate in the Philippines then it is certainly an attractive proposition. A good, steady and reliable income from rent and a forecast appreciation on building values of around 20% per annum in a country that is economically buoyant and growing is attracting investment in good residential properties from both home grown and overseas investors.
However, the Philippines is no different from any other country in that investors need to be careful with their money and following these few simple tips will help make sure that any investment is a sound one. As ever, always do your research and only ever deal with licensed real estate brokers. A licensed broker will have a good knowledge of the market, an understanding of the legalities of purchasing property in the Philippines and be authorised by the owner of the property to sell on their behalf. If buying from a developer, always check out the company first. Make sure that they have a reliable history of building similar developments and are well funded and operated. It has been known for developers to go bankrupt before turnover of all the properties leading to long and drawn out legal proceedings before ownership can be transferred. Location is all important when deciding on a real estate investment. Avoid low lying or flood prone areas and look at appreciation rates for similar properties in the area over the past five to ten years for an indication of future growth potential.
Be aware of fake deeds and titles. Always check carefully any documentation provided both for validity and for accuracy. Visit the property before buying and make sure that all that is described in the documentation physically exists in the property. Check all the amenities that are available with or near to the property, many of which will affect both the rental value and the re-sale value. Amenities include access to central facilities such as gyms, clubhouse, swimming pool etc. as well as the location of shops and the availability of suitable access roads and other nearby transport and recreational facilities. If you are raising finance in the Philippines, be sure to use only reputable and large banks or intuitions and shop around for the best interest rates and terms on any loan. In particular, if you are a foreign investor in the Philippines, always be sure to use local and reputable legal and property experts to help you choose and purchase your property to ensure that you can make use of their local knowledge of the areas to invest in and the legal processes involved in finalising a purchase. |
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