Its a rosie picture being sold in the Philippines at the moment which is creating demand for properties especially for investment. Currently construction is looking to expand its infrastructure to cope with the ongoing upturn in construction trends although is it all going their way?
Firstly we have to remember the UK and US were sold exactly the same thing its all boom without gloom! now we are all gloom with no boom insight. OFW’s and others are investing in property developments as they see that its a booming market but has anyone looked at the second hand housing market? Offloading a house or condo isn’t easy and never has been. With the way everyone expects to make a profit as well they are competing second condo’s against new developments which offer discounts of “getting in first”. They are right though the boom may continue for another few years at the same time if the UK and US take another financial dip it could all be over by tomorrow as a downward turn would cause a spiral effect because so much is on credit rather than cash purchases sound familiar?
Personally I wouldn’t invest in anything I couldn’t already rent out and I look for long-term investments. Many OFW’s though are putting down 10% and then hoping they can sell it afterwards but what if the dip causes problems on the mortgage payments? what if a dip loses their jobs? Yes there are a lot of what if’s at the same time as I would say at any time only invest what you can afford to lose. The property market may drop here but its got a growing population the issue is the fact the majority of people here couldn’t afford a plush condo in Makati or Cebu city and its also the reason people struggle to sell them on. The other thing to remember if you can afford to pay cash is your money better off invested in something offering a higher return even if you take on a mortgage?
Bit of food for thought..