5 Reasons to Invest in Real Estate in the Philippines
The real estate market in the Philippines is currently experiencing a slowdown due to the country’s political and economic instability. And while there is indeed some uncertainty, it won’t be long before investments start coming in – especially as the cities open up again. So, for those looking for reasons to invest in real estate in the Philippines, this blog might be the sign that you’ve been waiting for!
That being said, despite the current volatility in the market, there are still several reasons investing in real estate in the Philippines is a good idea.
Why Invest in Real Estate in the Philippines?
The current state of the Philippine real estate market is ripe for investment. With an ever-growing population and a strong economy, now is the time to invest, with demand for residential units increasing in early 2022.
Here are five reasons you should invest in real estate in the Philippines:
- The Philippines Offers an Affordable Entry Cost to Real Estate Compared to Other Nations
- Enjoy Passive Income via Rentvestment Opportunities in the Metro
- Enables You to Diversify Your Investment Portfolio in a Developing Industry
- The Value of Real Estate Provides Long-Term ROI
- There are Tax Perks Like Benefits and Deductions
Affordable Entry Cost
The entry cost to real estate in the Philippines is quite affordable when compared to other countries in Southeast Asia.
For example, the average price of a condominium unit in Metro Manila is around Php 4.2 million or 113K per square meter, which roughly converts to about US$ 72,000 or US$ 1,936 per square meter. This is significantly cheaper when compared to Singapore, where the average price for a condo unit is around SG$ 1.1 million, which is around Php 45.6 million or US$ 781,000.
Not only is the initial investment more affordable, but the Philippines also offers a wide variety of real estate options to choose from. Whether you’re looking for a condo, townhouse, or even a house and lot, there’s bound to be a property that fits your budget and needs.
If you’re in search for luxury property developers, Anchor Land is here to help you get started.
Passive Income via Rentvestment
Rentvesting is a popular investment strategy among millennials who want to start building their wealth but don’t have the budget to purchase a property outright. It involves renting a property in a desirable location and using the money you save to invest in other assets, such as stocks or bonds.
The Philippines is an ideal place to rentvest because of its many city locations that offer high rental yields. For example, Makati, Pasig, and Taguig are cities in the metro that have shown to be popular rental destinations for property seekers in 2022. This is primarily driven by these cities being central business districts, which provides opportunities for rentvestment.
Diversify Your Investment Portfolio
The Philippine real estate industry is still relatively young, which means there’s plenty of room for growth. This makes it an ideal investment for those looking to diversify their portfolios and reap the rewards in the future.
In addition, investing in real estate also provides a hedge against inflation. As the cost-of-living rises, so does the value of your property. This makes real estate a more stable investment than other assets, such as stocks or bonds.
Long-Term ROI
One of the biggest reasons to invest in real estate is the potential for long-term ROI. When done correctly, real estate can provide a consistent stream of income that can last for decades and serve as the foundation for generational wealth. And with the right property, you can even see your investment grow in value over time.
Of course, it’s important to remember that ROI is not guaranteed. But with the right property and a little bit of luck, you could see some amazing returns on your investment.
Tax Perks
Lastly, there are several tax perks associated with investing in real estate in the Philippines. These include deductions on your income tax, capital gains tax, and value-added tax, to name a few.
For example, the Tax Cuts Act of 2017 provides rental property owners with up to 20% deductions on the net rental income. This is just one of many other tax incentives for real estate property investments.
5 Basic Investment Tips
If you are thinking of investing in Philippine real estate, there are a few things you should keep in mind.
- Do your research.
Before investing in any property, it is important to do your research and understand the market. This includes understanding the current state of the market, as well as the future prospects for growth.
- Work with a reputable real estate agent.
When looking for a property to invest in, it is important to work with a reputable real estate agent who can help you find the right property for your needs.
- Have a long-term perspective.
Investing in real estate is a long-term process, and it is important to have a long-term perspective when making your investment. This means that you should not expect to see immediate results, but rather, you should focus on the long-term prospects for growth.
- Have a diversified portfolio.
Also, investing in real estate should be just one part of your overall investment strategy. It is important to have a diversified portfolio that includes stocks, bonds, and other investments.
- Be patient.
As mentioned, a property investment like real estate is a long-term process, and it is important to be patient when making your investment. Do not rush into any decisions and try to maintain at least a five-year outlook on your property investments.
If you are thinking of investing in Philippine real estate, these tips will help you get started. Remember to do your research, work with a reputable real estate agent, and have a long-term perspective when making your investment. With a little patience, you can be well on your way to earning a good return on your investment.
Anchor Land is Your Partner in Luxury Property Investments
Investing in real estate is a big decision. But with the right property and a little bit of planning, it can be a lucrative investment that provides long-term ROI – just remember to do your due diligence before making any decisions.
Now that you are equipped with some important tips for investing in Philippine real estate, it’s time to start looking for your dream property. And if you’re not sure where to start, we’re here to help. We’re a pioneering luxury real estate developer in the country with over decades of experience, offering a wide variety of property options, from condominiums to warehouses and commercial spaces.
For more information on our properties, please contact us today. We would be happy to discuss your investment needs and help you find the perfect property for your portfolio.
