DUBAI: All the talk about investing in real property for retirement or as source of passive income can be confusing especially for Overseas Filipino Workers (OFWs) thinking of spending their savings for the purpose.
To clear the air, The Filipino Times interviewed three experts — Manuel Arbues II, Ayala Land International (ALI) Sales Inc.’s Regional Head for North America and the Middle East; Miguel Bilan, Jr., International Sales & Operations Manager at Sta. Lucia Land Inc.; and Martin de Leon, AVP and head of Condo Division at Greenfield Development Corp. (GDC).
Here’s what they say.
Where to buy
Bilan said there presently are some locations outside Metro Manila worth considering in terms of locations for property investments.
“Bulacan, Pampanga, Tarlac areas are getting so much attention now because of the massive development that happened and are about to the happen in the Clark City area,” he said.
Bilan added that Davao, Cebu, Iloilo, Palawan and Bohol are locations also to watch for “as these cities are now becoming attractive for businesses to relocate which could be an opportunity for OFWs to invest on these areas while property prices are a bit lower compared to Metro Manila.”
Arbues said OFWs should likewise consider the immediate areas around the ongoing Php393 billion Metro Manila Subway project for investment.
The project cuts across the city from Mindanao Avenue to Tandang Sora, North Avenue, Quezon Avenue, East Avenue, Anonas, Katipunan, Ortigas North, Ortigas South, and on to Kalayaan Avenue, Bonifacio Global City, Cayetano Boulevard, the Food Terminal Inc. complex and finally the Ninoy Aquino International Airport (NAIA). It is seen to considerably cut travel time from Quezon City to NAIA from almost two hours to 40 minutes.
De Leon said Mandaluyong has been a consistent growth area in terms of real estate developments with prices of condominiums remaining competitive compared to Makati, BGC and Pasay.
De Leon said there are also ongoing infrastructure projects that will promote increase in the value of real estate in this area, among them, the Sta. Monica-Lawton bridge that will connect BGC to Mandaluyong and is scheduled for completion next year.
De Leon said OFWs should also start investing in properties in Laguna, particularly in Sta. Rosa, which is expected to continuously grow in the next few years, with the opening of CALAX (Cavite-Laguna Expressway) which will make traveling to and from Laguna, much faster and easier.
What to buy
Arbues said more OFWs, noting that they are away from home and usually have no one to look after their property for them, are beginning to have preference in condo units because developers usually offer services that cover the A to Z of it.
“Yung house and lot, kailangang tauhan mo. Kapag walang tao it will be prone to vandals; and you need to regularly maintain it,” Arbues said.
Building management has all this covered in the case of condo units where an OFW need not worry about the nitty gritty of it because the developer has everything taken care of.
“Isa pa, pag walang nakatira, i-lock mo lang. May building security naman and maintenance,” he said.
When to invest
Arbues, Bilan and de Leon said the time to invest is now.
“To be candid about it, a lot of properties have already gone up. The best time is ngayon na talaga,” Arbues said, explaining that property values have and will continue to shoot up.
He cited properties at Bonifacio Global City (BGC) which was valued at Php4 million a few years back and are now worth more than double at around Php10 million.
“Tataas pa ‘yan,” Arbues said.
Bilan for his part said “the soonest anybody can start investing or buying their home the better.
“Time is always our enemy in investment. The more we prolong our decision to start investing, the more opportunities we lose. Philippine economy is doing very well particularly the real estate industry. So many infra projects are being undertaken now and there is no best time to start investing but now,” he said.
De Leon said: “There is a school of thought in investing that the best time to invest is when all indications are pointing up for a particular asset.
“2020 is the best time to start investing in real estate in the Philippines because of the ongoing infrastructure developments in the country, these projects will promote increase in real estate value hence higher yield on your investments.”
