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Doomsters attempt to pour cold water on the Philippine Investment Property Market
Despite the usual denials from so called international property managers and purveyors of doom, demand for investment property in the Philippines will not dry up
By: Beth Collingz
Much fuss in the press is made about overseas Filipinos doom and gloom and a supposed slow down in buying property back home but these people are not the only buyers of real estate and many are selling up and abandoning the gloom and doom in the US and elsewhere and returning to live and buy property in the Philippines. More over, overseas Filipino workers are not affected by the Global Credit Crisis as, in the majority; they are not employed in manufacturing sectors but in medical services as nurses, care givers and med-tech assistants. Thousands of Filipinos continue to leave for abroad every month and are still the preferred choice for seamen and in the services industry and inward remittances from this sector remain on the increase.
There is an immediate demand for residential property at all property price ranges. Foreign nationals will continue to be attracted to property in the Philippines because of its relative low cost of living and political stability. The best investment returns are actually going to come out of Asia and emerging markets - the US's day in the sun is certainly over. Investors are moving to new areas to find value said Collingz "More and more of clients for buy-to-let Condo Hotel Investments are coming from the UK and the Middle East. There has been a distinct market shift from US based clients over the past few months and we see that trend continuing throughout 2011 well into 2015.
“A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, 100% financing availability and easy no down payment options available for our Condo Hotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condo Hotel Investments where they can use the Condo for vacations and rent it out through our In-House Condo Hotel Management when they are not using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 6-8 percent depending upon the mode of payment for the unit”
Collingz maintains the global crisis presents itself as an opportunity for the country to put its best foot forward and be noticed. We just have to do what we have to do, and rise to the occasion. As luck would have it, the global credit crunch tends to highlight the unique advantage of the Philippines as a destination for foreign investments and tourism. It is just a matter of marketing the country all the more vigorously. We have to find alternatives to whatever markets or foreign investors that we may lose. And we will get them in droves. If you know your trade and you are offering a good product “the market is here to stay so why rock the boat” she said, even as she advised investors to become more astute in their choice of investments.
“People have to realize that markets, especially in real estate, go in 10 year repetitive cycles. Compared to today’s situation, we have had far worse to contend with in the past two cycles the real-estate industry in the Philippines and South-East Asia in general, has experienced. It was by far worse times during the late ’80s and the devastating effects of the Asian financial crisis near the end of the ’90s with a very limited market base” said Collingz.
In order to maintain sales momentum, current marketing trends simply have to change. If you compare the situation in the late ’80s to today, people forget the telex machine had just become redundant and communication was limited to sending a fax offer to buy real estate. A top of the line computer was Apple IIE. Cellular phones were few and far between and the internet was not even around. Ergo, Philippine real-estate investors were merely comprised of wealthy local Chinese businessmen.
During the late 90’s Asian Crisis, not many people used the internet. Now it’s 2011 and a very different ballgame. Today’s technology, unheard of 15 to 20 years ago, has for the most part contributed to sales and marketing efforts of developers and will continue to do so. It is the communication factor that will drive sales of Philippine real estate upwards through 2011 well into 2015 and beyond. Now I receive daily calls and numerous emails from prospective buyers in Australia, Hawaii, New York, Doha, Dubai and the UK. I even get calls from clients located in Fiji and Mauritius. During the previous crisis years I didn’t get any. To maintain sales, its really a simple matter of being organized, having a great development to market with global appeal, an excellent developer, focus, mind set, intelligence, time, enthusiasm and dedication said Collingz.
“Global investors are looking to replace failed pension plans and other future saving schemes with a solid investment in real estate. Many are looking for investments that will give them an income for retirement. Savvy investors are now looking for a more solid investment with potential for monthly income and Philippine Condo Hotel investments are ideal because Philippine Hotel rates are the same if not more expensive than those in the US or Europe but the entry level to purchase real estate is only about 20% of what you would have to pay for a Studio in Manhattan” credit crunch or not she added.
Further fuelling real estate development is the fact the Philippines remains undiscovered as far as British and many European investors are concerned. Yet because of its close links to the US, English is widely spoken and it is well regarded for its people, affordable living, beaches and diving. It’s a whole new market enthused Collingz. “Buying property here is easier than many people think and investment from overseas in tourism real estate is growing, especially in the resort areas of Cebu and Manila itself where rental potential is good”.
Thanks to the Philippine real estate sectors own safety nets for installment sales; to our conservative banking system for adhering to sound policies that limit exposure to high-risk ventures, thus minimizing their non-performing loans and assets; to the government for its commitment to continue stimulating and pump-priming the economy while keeping inflation in check. All these amount to continued rise in real estate, housing and construction projects in the Country today.
Pacific Concord Properties Inc recently launched Guaranteed Rental Income [GRI] Investment Suites for their Lancaster Atrium Condotel development located along Shaw Boulevard, Metro Manila. Philippines.
Beth Collingz, PLC International Marketing Networks Director for Overseas Sales and Lead Marketing Partners with Pacific Concord Properties Inc., owner and developer of the Lancaster Brand of Condotels in the Philippines said the Lancaster Atrium Guaranteed Rental Income units come fully furnished, fully fitted to condotel standards with a guaranteed minimum rental income of –Pph-600/sqm per month for 5 years which represents a 6% ROI on the unit purchase depending upon the terms of payment selected by the buyer.
Collingz said all units at Lancaster Atrium have basic kitchen facilities. The GRI Condotel units are fully furnished and fitted ready for Hotel rental operations. Foreign Nationals may also apply for the Philippine Retirement Visa through the purchase of Lancaster Condotel Suites
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PLC International Marketing Networks, with its internet based Global Agency, are the lead marketing partners with Pacific Concord Properties Inc for the Lancaster Brand of Condotels in the Philippines
Further information on Philippine Condo-hotel investments may be obtained from:
PLC International Marketing Networks
Pacific Concord Properties Inc., Manila Head Office
Shaw Boulevard, Mandaluyong City.
Metro Manila. Philippines
Pacific Concord Properties Inc., Cebu Office
Lapu-Lapu City, Mactan.
Direct Line: [+63 32] 340 0721
Cell Phone: 0916 650 9783 / 0922 858 7027
Cell Phone: International [+63] 916 650 9783 / 922 858 7027
Web: http://www.lancastersuites.com [Lancaster Condotel Investments]