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Profession Realtors A guide for overseas property investors and those in search for a home to buy in the Philippines
Profession Realtors A guide for overseas property investors and those in search for a home to buy in the Philippines
A guide for overseas property investors and those in search for a home to buy in the Philippines |
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| Written by Beth Collingz | |
| Tuesday, 14 November 2006 | |
 Before buying Overseas property you need to ask some serious questionsBuying property overseas has become more and more popular with an increasing number of people now owning a home abroad. Investors are also on the increase and with so many emerging markets overseas property investors are spoilt for choice.Your objective ask yourself some questionsWhen buying a property abroad it is essential to know your objective. Is the property simply an investment or is it somewhere to live or visit. Do you want short term capital gain or do you want it to provide a one off profit over a particular period of time. Is the property to provide a long term regular income or are you buying off plan and intend to sell before completion. Golden rule keep your cool When buying property abroad you need to stick to your objectives and never buy unplanned on a holiday. Lack of planning may mean you may live to regret the purchase you are about to undertake. A cool head is essential, ignore the pressure some agents may pile on you. It’s a good idea to see your chosen area at varying times of year. A self imposed cooling off period will make sure that you have not bought in haste. Buying property off plan Buying a property at the drawing board stage preconstruction can be very rewarding. Most developer’s need the extra finance and can give some impressive incentives and return rate predictions. Questions to start with:
 Buying property overseas safely Overseas property buyers should take advice from qualified solicitors or other independent professionals and ensure that sales documents, title of property, building permits and registrations are correct and translated into the language of the purchaser Investors are particularly enthusiastic about the Philippines investment and development prospects as more and more International Hotel chains and real estate developers move into the property sector. But this is just the start of the Philippines property investment opportunities. Many Asian countries are acutely aware of the important role tourism and the property market can play in maintaining economic growth and the Philippines are, for the most part, encouraging foreign interest. Cebu City, Philippines, is one of the fastest growing markets in Asia. In the Philippines, you can own and hold title as a Foreign Investor to Condominium units as a non-resident foreign national. With several new hotels being built in Mactan, Cebu over two-three years and with the costal island province already achieving higher international investments than most other destinations in the Philippines, Cebu has huge potential. Due to the sustained economic growth in the city, a majority English speaking work force and the continued inflow of foreign direct investments, special economic zones for tax free manufacturing, the demand for quality accommodation, particularly Condotel units, has been buoyant. This, combined with the large Expatriate community, easy direct International Flights from Europe into Cebu-Mactan International Airport, demonstrates the property investment potential of Cebu. The Lancaster Cebu Resort Residences Condotel development’s of Pacific Concord Properties in Mactan, Cebu is a medium scale residential project consisting of four 5-storey and one 6-storey apartment buildings, where Fully-furnished Studio and two-bedroom apartments are available from only £29,750.00. Conveniently located, the development is twenty five minutes to Cebu City centre, and three minutes to Mactan-Cebu International Airport. Another exciting Asian property market for investors is Metro Manila, Philippines. With urbanization increasing at 10 per cent per annum, and a ten-year high for affordability, with property developers offering short term 5-6 year payment plans, without or at no interest, profitable property investment opportunities abound. Twenty minutes from the Central Business District of Makati and five minutes from the emerging business district of Ortigas Center, right in the heart of Metro Manila, the Lancaster Atrium Suites 42-storey twin towers Condotel development of Pacific Concord Properties in Shaw Boulevard, is situated in the Philippines up and coming neighborhood for international business development. Eight minutes from the Asian Development Bank Headquarters, San Miguel Corporation, Shangri-La Edsa Plaza Hotel, SM Mega Mall and Robinsons Galleria, an affluent and international business population is close to hand, the Lancaster Atrium Condotel apartments are being marketed to International businessmen and foreign property investors alike. With high demand, buyers purely investing will purchase Condotel apartments and an offer of a contract providing a return of up to 16 percent ROI through rental incomes per annum. The Lancaster Atrium Studio Suites in Manila, start from £18,800 whilst One-bedroom apartments start from only £47,600. There is no end of new building projects across these Asian cities, and in terms of property highly favored by investors, Condotel Developments are likely to provide a good return. According to Beth Collingz, of PLC International Marketing Networks, a Lead Marketing Partner with Pacific Concord Properties Inc., whom have Condotel developments in Metro Manila and Cebu, and specializes in working with international clients: “My phone has been very busy with buyers from the UK, Scotland and Australia interested in purchasing investment properties and holiday homes here. A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, especially UK Housing prices, and the easy payment options available for our Condotel 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 Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel 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 12-16% depending upon the mode of payment for the unit” Beth Collingz, who runs PLC Global Pinoy, an internet based marketing network specializing in Condotel Investments in the Philippines, indicated that more than 85% of all Condotel sales in Metro Manila were to international clients. While such a level of foreign-purchasing activity is not as high in the Philippines provinces, Cebu in particular, has seen a sharp increase in real estate purchases by international buyers in the past several years. “These international buyers know it’s a buyer’s market in the Philippines right now—there are a lot of properties available and fewer local buyers,” Collingz said. “I’m working with clients who are purchasing their second property with me. We also have referrals from many of our prior customers and new clients who have found us through our Web sites, lancastersuites.com and plcglobalpinoy.com which include a special section for international buyers” While Metro Manila is still a popular choice with international buyers, Collingz says clients tell her that it makes more sense to buy in a year-round vacation destination. The Lancaster Cebu Resort Residences Condotel development by Pacific Concord Properties located in Mactan, Cebu — the area around Cebu International Airport — fits the bill with all it offers to International buyers. Accessibility from Europe is also a factor. “London to Qatar, London to Amsterdam to Singapore or Hong Kong direct flights to Cebu and Manila, for example, average just 16 hours, add to that the many airline specials from Qatar Airlines whom probably offer the cheapest air fares that fly directly into Cebu and Manila and it’s easy to see why the Philippines is becoming an international community.” Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with its flagship Lancaster Condotel Developments fit’s the bill. Financing Options and Security open up Philippine real estate market to International buyers. Previously a stumbling block for some international buyers was the perception that it is difficult —if not impossible — to obtain financing in the Philippines. As a result, many purchases in the past were cash sales. Pacific Concord Properties recently introduced the new affordable easy payment plans for the Lancaster Atrium Manila Condotel Suites where a Studio Unit can be purchased without any down payment, and 67% of the contract price payable over 60 months interest free and the 33% balance payable on turnover of the unit or to be extended for another 60 months through PCPI’s no prequalification no hassle finance plan, sales of the companies inventory of units will surely sell out quickly to investors seeking to take advantage of the Condotel Investment “Boom” in the Philippines. “Where can you find a 350 sqft Freehold Flat in the heart of Central London for only 25,000 Pounds or a Studio in Manhattan for only 34,000 Dollars and then get up to 16% per annum ROI from rental returns” enthuses Collingz. “These figures probably seem Crazy to London Property Buyers unless they remember the prices of Flats and Apartments back in the late 70’s” and all of this comes complete with average 85 degree temperatures and sunshine nearly all year round” said Beth Collingz whom used to live in South Kensington and still owns several Chelsea Embankment Townhouses and St. Catherine’s Dock Flats before coming over to the Philippines You must have the answers to the six primary factors to consider when making a real estate investment--and how each one affects your level of income said Collingz 1. Why you're making the investment. Do you intend to use and enjoy the property? Or, are you only looking at the investment potential? That's important to your initial outlay and your long-(or short-) term returns. 2. What's your tolerance for risk? Learn your Risk Comfort Level, is this investment within those parameters? 3. Your options for financing. Cash or credit. Your answer helps determine your investment. 4. What fits well in your existing portfolio? To be well-balanced, your portfolio should have a range of assets including real estate--and your portfolio should include a range of properties. 5. Your level of experience in the market. Experience is the roughest teacher--because it gives the test before it gives the lesson. 6. Your desired level of involvement. Your level of participation will help you determine your type of investment. Then act. Take a first step. Don't invest money you can't afford to lose. Control the circumstances as much as possible. But don't wait for a sign from above that the timing and the opportunity are ideal. The sign won't come...and the market won't wait. For a first deal you should probably invest no more than $50,000. Here are some buys you could make right now with that budget: 1. A Freehold Studio Condotel Suite at the Lancaster Atrium Manila for Initial Property Appreciation Investment and Rental Income from 2010 in Metro Manila, Philippines. Floor Area 28.17 square meter [304sqft] at $1,518.00/sqm. Total Contract Price: USD 42,762.06. Pay Cash and take a full 20% discount [Save USD 8,552.41] on the unit price. Pay 90% Now [USD 30,788.68] and the remaining 10% [USD 3,420.96] on unit turnover from December 2009 2. A Freehold Studio Condotel Suite at the Lancaster Suites Manila for Rental Income from 2007 in Metro Manila, Philippines. Floor Area of 27.23 square meters [293sqft] at $1,618.00/sqm. Total Contract Price: USD 44,058.14 [Tax Exempt]. Pay Cash and take a 10% discount on the Contract Price. Save USD 4,405.81 Pay 90% of the contract price now [USD 35,687.09] and the remaining 10% balance [USD 3,965.23] on unit turnover from March 2007 3. A Freehold Studio Condotel Suite at the Lancaster Cebu Resort Residences for rental income from 2007 in Cebu, Philippines. Fully Furnished Studio 36.5625sqm [395sqft] $1,507.00/sqm USD 55,099.69. Pay Cash and take a full 10% discount [Save USD 5,509.96] Pay Reservation [USD 1,820.00] and Cash Balance within 30 days [USD 47,769.72] for an Effective Total Cash Price of USD 49,589.72. Immediate Occupancy. A major stumbling block for some Investors from the UK was the perception that purchasing property in the Philippines was risky with nightmare stories of fraud and deception abounding due to the lack of Professional Realtors and Internationally accepted principles’ of Real Estate Transactions. With Pacific Concord Properties Inc adopting International Property Standards and the only Philippine Real Estate Developer to operate the internationally accepted practice of Escrow Trust Account Banking for all payments made by buyers of its Condotel Suites, international offshore property investors need no longer worry about the security of their investments Another drawback to purchasing property in the Philippines was that most overseas buyers of the real estate have become accustomed to normal home buyers standards like putting their money in escrow (which protects them if the developer does not deliver on its commitments) whenever they buy real property. Pacific Concord Properties Inc., now sets that “International Standard’ in the Philippines with the “Buy Safe Payment Policy” of Escrow Trust Account Banking with Equitable PCI Bank, one the Philippines largest Banks, for the purchase of a Condotel unit in either the Lancaster Suites Manila, Lancaster Atrium Manila or Lancaster Cebu developments. Buyers of Condotel units at the Lancaster Suites Manila, Lancaster Atrium Manila and Lancaster Cebu Resort Residences in Cebu, pay their Reservations, down payments and all monthly payments directly to the Companies Trust Account with the Bank thereby ensuring that funds are maintained and ultimately used only for the purpose of direct construction related costs. This not only guarantees that the buyers money is safe, but more importantly the development will be completed on schedule and within projected time frames for the project. Collingz highlights the importance of working with those experienced in this type of transaction. “Buying property in the Philippines is significantly different from buying in the UK and other European countries, for example,” said Collingz. “The purchase process is more direct, with less stress and more accountability; and we work directly with the buyer or collaboratively with the client’s agent or representatives. Our goal—and that of Pacific Concord Properties Inc — is to make the whole process as easy as possible. Prospective buyers can view properties online on our Web site and save listings they’re interested in an online portfolio” Communication is the key to the process, according to Collingz. “We spend a lot of time communicating with buyers before they visit, so that we all have a clear picture of the type of property that’s right for them. We also make travel arrangements and hotel accommodations and provide them with information in advance of their visit so they understand the process and their options. That way they can make the best use of their time here—and we can ensure they have time to get to know and enjoy the area.” In many cases, buyers arrive for a three to five-day visit and sign a sales agreement before heading home. Pacific Concord Properties’ staff then handles every detail of the closing so that on their next visit, the buyers can enjoy their new home or investment property For further details of Lancaster Condotels in the Philippines please do not hesitate to contact us... PLC International Marketing Networks Pacific Concord Properties Inc., Lancaster Suites Condotels Shaw Boulevard, Metro Manila EMail: plcsales@pldtdsl.net Web: http://www.lancastersuites.com Web: http://www.plcglobalpinoy.com |
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| Last Updated ( Monday, 08 January 2007 ) |
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