Since real estate investment is a good way to balance your financial profile, putting your money in property is about playing the long game. In general, real estate banking guarantees that your capital can increase or appreciate over the years. The income opportunity you will get out of renting your house or lot or condominium unit is an added bonus.
However, you need to be careful about the property you purchase to optimize these advantages. After all, real estate is always a big investment, and if you select a developer with a well-known and proven record of doing high-quality and reputable ventures, it pays. The more valued and trustworthy the producer, the quicker and greater you are confident that his designs will be appreciated.
You will need to carefully think about why you want to invest in real estate. What’s your objective? Is it to achieve freedom or independence in financial terms? If so, the first step is to describe what your definition of that notion — not only in an abstract way but in terms of real money.
Does it entail, for instance, being able to retire early or cut back on work? Or you might want to achieve passive income to be more versatile with what you do with your time. There is also the idea of legacy: maybe you see real estate as something that you can build on so that when you pass on, you have something tangible and valuable to leave behind for your loved ones.
One problem remains the same, whatever your reasons are: timing. People are always wondering, what is the best time for real estate investment? The best time is now, in the case of the Philippines. There are some variables below to illustrate why:
Booming Philippine Economy
Last year, the Philippine economy shot up by 6.6 percent, outpacing its Southeast Asian neighbors. Thailand reported a 6.4 percent growth, while Indonesia reached 6.2 percent, and Malaysia reached 5.6 percent. Vietnam registered a growth of 5 percent, while Singapore reached 1.2 percent.
For the Philippines, the finance giant Citigroup forecasts a solid 2013, with the gross domestic product (GDP) rising by 6.1 percent, up from its previous 5.3 percent forecast. For this optimistic outlook, Citi’s analysts cite increased government spending and steady domestic demand.
The World Bank also paints a rosy image of the region, given that the government doggedly pursues economic reforms. These efforts, together with favorable global conditions, would produce, according to the World Bank report, “more and better employment and reduce poverty at a faster pace.”
BPO Sector’s Steady Rise
The country’s continuing success in the business processes outsourcing (BPO) industry, which accounts for around 70 percent of new office tenancies in Manila, is key. As the United States and Europe are still facing an economic recession, international businesses have flocked to the Philippines to set up operations for their back offices and other main services.
The industry aims to produce revenue worth US$ 25 billion by 2016, according to the Business Processing Association of the Philippines (BPAP).
OFWs And Their Economic Contributions
Another spot for the real estate industry is remittances from overseas Filipino workers. OFW contributions accounted for nearly 10 percent of the country’s GDP in 2012, which was over US$ 20 billion. And real estate is an investment that’s worth hard-earned money for an increasing number of OFWs.
The local developer behind Acqua Private Residences and Trump Tower, Century Properties, announced a 16.6 percent rise in its pre-selling projects in 2012, exceeding its original US$ 490 million targets. The 11 million-strong OFW force is credited by Century for its efficient sales.
Thriving Tourism Industry
The Philippines is expecting 10 million tourist arrivals by 2016, according to the Department of Tourism ( DOT). The Aquino administration is ramping up its efforts to improve infrastructure to support this initiative. In 2013, it spent more than US$ 9 billion, a record budget, to upgrade the country’s highways, bridges, airports, and ports.
You need a local expert when you purchase a great property investment, who knows the market patterns and the local businesses, transportation choices, and other essential features in the areas where you are looking to buy. Metro Realty Search is a real estate company that will direct you to select the property you are searching for.
Every region has good cities, every city has good communities, and there are good properties in every community. To line up, all three require a lot of footwork and study. Keep your expectations reasonable when you end up finding your perfect real estate property and make sure your own finances are safe enough that you can wait for the property to start producing cash.
Do you want to check out the Gold, Bloom, Fame, and Lush Residences of Metro Realty Search for your property investment? Click here!
Louie is the father behind the travel blog Browseeverywhere.com. He has a background in photography, E-commerce, and writing product reviews online at ConsumerReviews24. Traveling full time with his family was his ultimate past-time. If he’s not typing at his laptop, you can probably find him watching movies.