Most people think about “stocks” when they hear the word investment. The truth is, anything of value in the world can be a good investment. The trick is to find the ones that will give you the best financial benefits. If you’re wondering where to invest your money, experienced investors would suggest that you diversify your portfolio. In other words, you should not put all your eggs in one basket.
In that case, the property investment market is such a good basket in which you can consider putting in some money and effort. Before you do so, here are a few facts you should know about investing in the Philippines.
Supply and Demand
The prices of properties in the Philippines are going up, encouraging developers in different parts of the country to keep building. But because there are so many projects up for sale, developers and agents need to keep their prices as competitive as possible. For those who are planning to invest in a property, now is the best time to do so.
The foreign exchange affects prices for everything, but unlike consumer goods, property prices are slow to react. If you invest in a property now, you can get a fixed purchase price. You will not have to worry about prices going up, particularly if you earn in pesos. If you earn in foreign currency and the value of peso goes down, you can get more out of your earnings.
If you are not a Filipino citizen, you cannot buy and own land unless you inherited it. Under the Condominium Act, you can buy condo units in a project as long as the common areas are held by a corporation and not the unit owners. But you can’t have more than 40% interest in a project. You may own a commercial property if you are a stockholder in a Filipino corporation doing business in the Philippines, but this is subject to certain restrictions.
Property investment is an attractive option for many people, including foreigners. If you do your research and choose the right development company to do business with, you can expect the best possible result.