Real Estate as investment in the Philippines

They always say that real estate is a prime piece of investment. And it is, though it is among the most expensive.

Of course after the housing bubble in 2008 that resulted in the US recession (effects of which the global economy is still reeling from), people have been cautious in investing in real estate. But interestingly, the real estate industry in the Philippines is now experiencing continuous growth. There is increasing demand for condominiums and large real estate developers attribute it to the fact that at least three million people commute from nearby provinces to Metro Manila daily.

But I think what they do not consider is that these people choose to commute from outside Metro Manila because housing costs is cheaper there. This is also the reason why many subdvisions are being developed in Southern Tagalog and other nearby regions. Add the fact that many Filipinos are still conservative, opting to buy house and lots instead of condominiums that are in essence shared investments with the developer and the other owners.

Still, an article recently published in Time attest that real estate remains to be among the safest investments as gold is now "14% off its peak and fading" while stocks are fluctuating (late last year was a good buying time but not now) and bank deposits deemed unsafe - with really low returns that cannot keep up w/ the inflation. I am as well interested in mutual funds and the like and may dabble in it once in a while.

I am of course no expert in the field of real estate. I just want to share my views on the subject in this blog, having been exposed to the industry for more than a decade (even before I knew about the concept of real estate) through my parents. Both my parents have been top real estate agents for a large developer in the past, my mother now a licensed broker.

While I gained basic financial literacy on my own (so much still to learn), through my parents I gained insights on the industry. Which lot to pick? How to get huge discounts on the sale? I am pretty much excited to put this knowledge to good use. My parents do it for a living but they said helping someone find their dream home is always worth all the trouble (mind you, being an agent is not always equivalent to big bucks). I hope I have time to write as often as I can to help other people, especially first-time home owners.

This blog is pretty much different from other real estate sites because it strives to veer away from the hard-sell copy you find in brochures and leaflets. I try to be always honest, perhaps too honest for some. I am also taking the perspective of both the conservative buyer (doubts and all) and the investor.

So I hope you enjoy browsing through this blog. And if you have any questions, feel free to comment. I may be able to help and answer your queries.