The Philippines is experiencing a real estate boom right now, and as such, is considered a great place to invest in when it comes to property. The reason why lots of developers are buying up property and selling them off as condos, gated communities, and the like is due to the fact that more people now have more buying power than they did before. This is because of the economic rise of the country due in part to the continued influx of BPO companies, manufacturing plants, and the remittances of OFWs.
In the Philippines, only citizens are given the right to own real property, however, this does not mean that you cannot have real estate investments in the country if you are a foreigner. There are actually a few ways for you to make money from real estate holdings in the country, and this is through the following:
- If you belong to a corporation where 60% of the company is owned by Filipinos, your company can purchase and own land in the country.
- If you inherited property as the legal heir of a property owner through heredity. For foreigners, this may only be possible if they are half Filipino, or if their ancestor purchased the property before the creation of the 1935 constitution.
- If you buy condo units in a building that is 60% owned by Filipinos. This means that only 40% of the building’s units can be owned by foreigners.
- If you are married to a Filipino, your spouse can purchase the property in their name, provided that the Filipino spouse has not changed citizenship or renounced their Filipino roots.
Real Estate Investments You Can Choose From
Whether you are a foreigner or a local, there are many options to choose from when it comes to real estate investments. Here are three of the most popular ones:
Rental property – you can choose from residential, commercial, and bare property rental options. The easiest would be to lease out property to businesses that need land that is located in a prime area since you won’t have to build anything in order to make money. You will however need to ensure that they can rent the property for at least 25 years, with an option to renew another 25 years.
The next best option is residential property rentals, and this is a good investment to make particularly if you get in during the pre-selling phase where prices are very low, and if the property is located near schools, malls, hospitals, and offices. Options you have for this include townhouses, apartments, condominium units, and dormitories.
Buying and Selling – this is also a good investment to make, particularly if you are willing to wait a couple of years until a development finishes the project you are investing in. For you to make a reasonable amount of money from such an investment, you need to get in at the pre-selling/development phase, and to sell when the entire project is finished.
This is a good idea if you have a lot of surplus cash that you can afford to have tied-up in such an investment for a few years. You will also need to take care that you choose the right developments, the right developers, and the right locations when investing in something like this.