How to Invest in Philippines’ Property – Asia’s Hottest Market With the high property prices in Singapore, many investors are looking overseas to find attractive investment opportunities. Besides the developed markets such as the US, London and Australia, there has also been interest in looking at fast-growing emerging markets such as the Philippines. In this article we’ll take a look at the Philippines real estate market, the type of properties you can invest in, what investors should look out for, and how to invest in it. Why invest in Philippines real estate? Given the difficulties in the developed economies of the world, you might wonder why foreigners would want to purchase a property in the Philippines. The main reasons they have started to do so at an accelerating pace include: 1. The rapidly growing Philippines economy sets the context for rising property prices. The Gross Domestic Product (GDP) of the Philippines rose by 7.8% in the first quarter of 2013, with expectations for strong growth for the rest of the year. From 2002 to 2012 the average annual GDP growth rate of the Philippines was 5%. 2. Property prices in the Philippines are one of the lowest in Asia, up to 80% lower than Singapore for premier city centre properties (US$2,807 per square meter versus $16,350 in 130610 Figure 1 Source: Global Property Guide 3. Rental yields in the Philippines are one of the highest in Asia, at around 7%, versus just 3% in Singapore. 130610 Figure 2 Source: Global Property Guide 4. The stable and strong growth of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) industries in the Philippines increases both the income of the locals and also the number of expats, which creates demand for apartment rentals. What foreign investors should take note of Foreign ownership of Philippines property can occur under the following circumstances: The foreign investor purchases a condominium unit, where not more than 40% of the building is foreign owned (this is the most common situation) The foreign investor has a Filipino spouse through which they buy the property The foreigner holds a Special Retirement/Investment Visa Via forming a company. When buying Philippines property via a company, a minimum of five shareholders are required, and the Filipino shareholding must be at least a 60%. Foreign ownership of Philippines property requires payment of taxes. Taxes include a documentary tax of 1.5%, a transfer tax of 0.5%, 10% Value Added Tax (VAT), and income tax on rent of 5.13%, along with other fees. Source: Yahoo! Singapore Newsroom NOW IS THE BEST TIME TO INVEST IN THE PHILIPPINES Why real estate is good investment: bit.ly/19auyap Property Investment and Rental Income: bit.ly/1fcOPMC For SINGAPORE Inquiries, Please contact Jo: 9879 2248 / Email: maginvestkapinoy@gmail For QATAR/UAE Inquiries, Email: maginvestkapinoy@gmail
Posted on: Tue, 11 Mar 2014 06:05:07 +0000
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