Real Estate investing in the Philippines?
 

My wife and I recently had an eye-opening discussion. We were discussing buying real estate in California or Arizona since we're splitting our time between business here in the US and visiting family and friends back in the US. I grew up in the US and was always under the assumption that it was a better place to invest in terms of real estate. Boy, was I surprised...

In 1986 (after the first People Power revolution toppled Marcos), property rates in Laguna (Im not using Manila rates since we're looking at Laguna property but they follow the same trend) ranged from P50 to P150 per square meter (around 10 square feet). Now, it ranges from P1000 to P3000 depending on location.

That's a twentyfold appreciation in 19 years. Now, compare that to our old house in the SF Valley in California. My parents bought it in 1978 for $60K and now its valued at around $400K. Not bad. Around sevenfold increase.

However, compare that to the Philippines... 20x vs. 7x

A little bit of a CAVEAT though... the bulk of the appreciation of real estate prices here came around 1995 to 1997 when the Philippines hit a period of economic boom. It crashed with the 1997 Asian "economic flu" and languished for a further dive around 2000 with the ouster of President Joseph Estrada.

Foreigners/non-balikbayans (balikbayans are returnees who were born in the PI but naturalized as citizens of other countries) are entitled by law to up to 1000 sq meters of land. Also, there's special visas you can apply for re investment/corporate held property.

Just sharing some info since there's a ton of webmasters setting up shop here.

i plan to invest in real estate eventually and its very possible i will choose to buy something out of the united states

Do you get to own the land over there or is it leased?

Cool. If you ever decide to come by the Philippines, hit me up. :thumbsup

Own it. Non-Filipinos/non-balikbayans can own up to 1000 sq meters in Manila. Apparently, the ceiling is even higher if its for provincial properties or agricultural type properties.

Hmmm, a couple sites I read seem to indicate that owning 1000 sq meters thing is for natural-born Filipinos who have lost their Philippine citizenship not true foreigners but I have no idea. A friend of mine was interested in buying some property on Siargao Island or nearby.

smart way to invest in the PI is marry a filipina and have her hold dual citizenship. eliminates many obstacles.

best ROI will be in coastal props in the provinces, not manila.

beach props are artificially devalued because natives usually want more inland or higher ground where it is cooler.

the graying of western baby boomers are starting to look for retirement places to live near the water.

best picks IMO cebu island, negro oriental, palowan. stay off mindanao.

Good advice if you like to keep your head attached to your shoulders.

They have nasty habit of lopping foreigners heads off down that way ....

:(

How about the inflation and interest rates during that time frame? How much did they increase?

the problem with the phils is unless you are physically on the property, squatters will take over and claim it as their own. happened to me.

i am seriously considering moving to manila in oct/nov this year.

Guess I won't be investing in the Philippines realty anytime soon!

With all respect, I believe you forgot to count in the devaluation of the Philippine currency. 20 years ago you paid about a third for one Philippine Peso than today, so if you divide 20 by that factor you end up at about the same level as in the US.

While property in the provinces and small towns of the Philippines can be great investments if land is involved, buying property in Manila (i.e. condos) is a big loss. Much cheaper to rent than to buy.

I made millions in a Manilla brothel.