Real Estate Philippines Industry in 2009, and forward to 2010
The year 2009 for the Real Estate Philippines industry was much better compared to 2008. In general, most of not all real estate developers saw a recovery on their balance sheets, as the U.S. and the rest of the world slowly gets back up on its feet after taking a big fall in the 2008 global financial crisis. This simply means that people now have more money to spend this year as opposed to last year, so more of us are able to invest in their dream homes.
We must always keep in mind that the Real Estate industry is a CYCLICAL business, meaning that it regularly experiences boom and bust cycles throughout the years and is very much reliant on the income spending power of people at a given time period. You should always observe the market on whether it’s a good time or a bad time to invest in a property. And how will you know? Here are some tips…
- Check the STOCK MARKET. If you study history, it will always show you that the Stock Market and Properties always have a similar trend. So, if the stock market is up, then real estate must also be up. This is because investors have more money to spend if they earn more with the stock market
- Always account for your own personal spending power. Assuming the economy is good and stable (like the Philippines today) and your own income is also stable/increasing, make sure that you have enough income to cover the downpayment and monthly costs of owning a property. A good rule is that your monthly amortization for your house/condo should be 30% of your gross monthly income, so you will be safe in paying that property with less rish of having it foreclosed due to non-payments.
- For those who have a BIG risk appetite – buy when there’s blood on the streets! Meaning, if the prices of a particular property are EXTREMELY low due to a fortuitous event (like the recent Ondoy and Pepeng flood and landslide tragedies, read more at http://www.realestatephilippinesblog.com/hard-but-valuable-philippine-property-lessons-from-ondoy-and-pepeng/). *** This move is HIGHLY RISKY, and must be entered ONLY with extreme caution, research, and willingness to risk big money.
More FREE tips for Real Estate Philippines Investing can be found by Subscribing to this Blog on the Upper Right Sidebar of this page, or by reading this: http://www.realestatephilippinesblog.com/how-to-invest-in-philippine-property/.
Happy Investing to all of you and Godspeed to our upcoming year 2010!
I’m reaching out because upon completing a search, your site’s tag of looking for HONEST opinions, important news and sound advice caught my eye. I’m looking online to see if others have had similar experiences w/ Centurty Property Mgmt or Meridien Developer Groups. See below for more. Your site is a great venue for balikbayans, expats and future homeowners to search for info on real estate investments. I’m hoping it can be a forum to find out if my incident is isolated or if others share my sentiment…
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I’m inviting homeowners to share their experiences w/ the the Meridien Development and/or the Century Property Management Group on this thread. They develop and property manage sites in Fort Bonifacio, Makati, and Pasig, Philippines.
We personally have painful stories to share regarding the incompetence & irresponsibility of these two groups. They’ve successfully defined POOR CUSTOMER SERVICE every step of the way. Reaching out to see if others have been wronged and how. I will post more specifics regarding numerous developer and property manager errors shortly.
Please note, the experience we had with the Century Properties Sales Office was top notch and should not be confused with the “Property Management” (post sales) portion of the business.
Thanks for sharing with us, really helpful.
We have also been a victim of this Century Properties. We have been selling for them for many years and now left out empty pocket and empty stomach. They terminate their agents as soon as na napakinabangan. Harapan etong panloloko sa mga maliliit na ahente gaya namin!
your situation is very very bad indeed and I feel for your damages. We agents work very hard, and it is very unfortunate that they have mistreated you. Get a very good lawyer (even though he/she charges high) and fight for your case. Will let you know if I come across one. Goodluck to you!
this information is really helpful,
and i must say that its a good news for us filipino’s that the
real estate business here in the philippines are making its buzz in the real estate world.
Thanks ! Do more research …. It seems that the property sector of the Philippines is very bullish. Try browsing my TIPS FOR BUYERS section ————>
Thanks for your comments. I also want to share something,
In my experience it does not matter which developer you deal with in the Philippines, they are all the same. (Very poor quality customer service after sales, which is very frustrating.)First of all they’re sending agents, representatives abroad to promote the sale of their developments/projects. Their promoters most of them even don’t have enough knowlegede. What I can share with people who wants to invest their money is; 1.) ask the details of the unit interior finishes you are interested in, before you make any payment deposit, sign any sale contract agreement etc., go through all the terms and conditions in the contract with your lawyer, do not be fool by the sellers who will try to give you pressures to make fast decision because the units are almost all sold out and that there are only few units left. Make sure that there is always black and white anything you discuss, 2) Before you make any decision in parking your money with property in the Philippines, check out your income taxation (e.g.rental income) first if it is favourable for your investments. In my research Philippines taxation system is unattractive at all besides taxation system system is very complicated. My advise is, do some research with other countries as well when you invest into properties, as there are other countries who offer more attractive tax incentives, offer professional services before and after sales, more details on the their projects and safe assurance returns of your investments. Good luck!
Thank you for sharing your thoughts Ms. Lenn
Very appreciated