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The
number of millionaires in the United Kingdom will rise
by 400 percent in the next few years and the
Philippines
is already reaping the rewards, a recent survey says.
“The
number of British people investing in overseas real
estate has increased dramatically in recent years, with
some agents in the Philippines claiming that four in 10
of their buyers are from the UK, compared to just one in
10 a few years ago,” says a statement from marketing
firm PLC Global Filipino, citing a study conducted by
UK-based Centre for Economics and Business Research.
“If
recent surveys are an accurate indication of the future,
then Filipino realtors might be seeing an even higher
percentage of Brits buying from them in the near
future,” the firm adds.
Commenting on the findings of the study, which suggests
that the number of British millionaires will rise
dramatically from 376,000 to 1,700,000 in the near
future, the Philippine-based condo hotel marketing group
points out that the number of British citizens in Manila
and Cebu has increased noticeably in the past few years.
The
increase in the number of British investments in
Philippine real estate has prompted the British
diplomatic officials to acquire a large tract of land in
Fort Bonifacio in Taguig, Metro Manila, where they will
build a new embassy.
“While
we do expect to see an even higher proportion of British
residents in the Philippines, the fact that there is
going to be four times the number of millionaires
doesn’t mean that there will be four times the number of
people looking to buy in the Philippines,” PLC Global
Filipino clarifies.
The firm
explains, though, that foreigners looking for property
investments in the Philippines for retirement purposes
can enjoy quite a number of advantages, among which are
lower cost of living, housing, food, and labor.
“At the
moment, a standard one-bedroom condominium can be
purchased for around $60,000, or 32,500 pounds. Where
can you find a 350 square foot flat in the heart of
central
London for only 25,000 pounds and then get up to 18 percent per
annum return of investments from rental returns, tax
free,” says Beth Collingz, director of the company.
“These
figures probably seem crazy to London property buyers
unless they remember the prices of flats and apartments
back in the late 1970s,” she adds.
Collingz,
who used to live in South Kensington before settling
down in the Philippines and still owns several Chelsea
Embankment Townhouses and St. Catherine Dock Flats,
gives the following suggestions to British citizens or
those married to Europeans who have $50,000 or 30,000
pounds to invest.
First,
to spend it buying a studio condotel suite at the
Lancaster Atrium Manila for what she calls an “initial
property appreciation investment.” Collingz explains
that the suite, which has a total floor area of 28.17
meters, will start earning rental income in 2010.
Second,
to purchase a studio condotel suite at the Lancaster
Suites Manila which, after its turnover this year, will
start earning rental income almost immediately.
Last, to
buy a studio condotel suite at the Lancaster Cebu Resort
Residences, which, like the Lancaster Suites Manila,
will rake in revenue starting this year.
“My
phone has been very busy with buyers from the UK,
Scotland, and Australia interested in purchasing
investment opportunities and holiday homes here. A lot
of this interest is being driven by the relatively cheap
market prices in the Philippines compared to Europe and
the easy payment options available for local condotel
developments,” Collingz says.
“Those
are not the only factors. Offshore property investors,
foreign baby boomers as well as overseas Filipinos are
looking for ways to maximize the return on their
investments as they approach retirement,” she adds.
According to Collingz, the advantage of purchasing a
condotel for a second home is that it can be used as a
vacation home and then rented out with the help of the
in-house condotel management when not in use.
With
today’s purchase prices, these condotel units give a
projected return on investments of 12 percent to 16
percent, depending on the mode of payment for the unit.
“International buyers know it’s a buyer’s market in the
Philippines right now. There are a lot of properties
available and fewer local buyers,” she says. “I’m
working with clients who are purchasing their second
properties with me. We also have referrals from many of
our prior customers and new clients who have found us
through our web sites. |
