As many know I am against the hyped up prices we are currently seeing in the Philippines but it still doesn’t stop people investing in property that is likely to see a fall in market prices. But just also wanted to mention that a lot of the prices are regional and that buying in more remote locations your going to get a better deal for your money.
But there are other things to consider when buying a house in the Philippines one of those is how the area is going to develop over the next 20 years. I sit in Minglanilla and can see how much the landscape has changed with sub divisions here there and everywhere while the infrastructure has remained the same such as roads. These create issues because at your original road junction which was quiet it could be like here where they built a Gaisano mall on the end of it plus several sub divisions along the adjoining road meaning the road is now full of habal-habal drivers clogging up the corner as well as jeepneys and tricycles along the main road that didn’t used to be there. These things have happened within 4 years what will it be like in 10? because that’s how you need to look at it as the growth rate in specific areas is huge but there is no road widening, no improved drainage, no improved electric and water supplies all in all its just congestion without serious planning.
Heading further from the towns and cities can offer cleaner air, less traffic, better road conditions and often less crime due to less problems such as drug addiction in the area. Sub division properties offer up guarded areas at the same time a friend of mine had a relative of the guard as a maid. She was fired for some reason and shortly after while out my friends house was robbed conveniently the guard never seen anything yet its on the second floor and can only be accessed from the front (in view of the guard post). So not all is as secure as things seem so improving the security on the home is also paramount to safety which is why you see so many properties with metal grills on the windows and doors. I do have concerns with these during fires due to being difficult to escape if trapped in the wrong room.
Buying a house in the Philippines should also be a long term project not a financial investment. Prices are volatile in the Philippines as is the government anything could rob you of your home in the future. That’s why I would look to limit your investment into the property and see it as “dead” money. Poverty is increasing in the Philippines not declining. Construction has continued through a worldwide recession and even today you find development signboards everywhere as the big corporations sell on “everything is fine, its all great!”. When in reality its why they sell from plan if the market collapses you will find construction stops and very likely impossible to get new builds completed as the big boys pull the plug waiting for better days again. One of the risks of buying from plan, at the same time seeing the cost of what people are paying for a piece of land even that gives me doubts on how long this is going to last. Although if you own the land you can’t really lose except you may be waiting years for the other houses to crop up around yours if the market does go pop.
Get a good lawyer and don’t listen to sales people as generally there seems to be more lies than there is truth in the sales pitches. Like a well oiled machine they are looking to make as much money out of you as possible. Buying a house in the Philippines is also only open to Filipino nationals except for condo’s at the same time it may actually pay to invest your money into something else and rent because you will normally find your financial returns are higher than the value of the home your renting meaning your money grows monthly/annually depending on type of investment.