Nov. 22, 2006 – The number of British people investing in overseas real estate has increased dramatically in recent years, with some estate agents in the Philippines claiming that four in ten of their buyers are now from the UK, compared to just one in ten a few years ago.
And if recent surveys are an accurate indication of the future, then Philippine Realtors’ might be seeing an even higher percentage of Brits buying with them in the near future. A survey by the Centre for Economics and Business Research suggests that the number of British millionaires will rise dramatically from 376,000 to 1,700,000 – an increase of over four hundred per cent.
Commenting on the findings Philippine based Condo Hotel marketing group plcglobalpinoy.com say the number of British people in Manila and Cebu has increased noticeably to the extent that The British government recently acquired a large tract of land in Fort Bonifacio, Makati, Metro Manila, to build a new Embassy. The British ambassador explained the larger facility is meant to help serve the growing number of British nationals retiring in the Philippines.
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 to say there will be four times the number of people looking to buy in the Philippines. However, for those whom are looking to make investments for the future or prior to retirement, the Philippines offer a significantly lower cost of living. The Philippine Peso (PhP) exchange rate is approximately PhP 50 to $ 1.00 or PhP 94 to 1 Pound [Sterling (GBP)]. Housing, food, and labor costs are quite reasonable. At the moment a reasonable standard One bedroom Freehold condominium can be purchased for around $ 60,000 or GBP 32,500 or a Studio for only $ 34,000 or GBP 18,000
“Where can you find a 350 sqft Freehold Flat in the heart of Central London for only 25,000 Pounds and then get up to 18% per annum ROI from rental returns UK Tax Free” enthuses Collingz. “These figures probably seem Crazy to London Property Buyers unless they remember the prices of Flats and Apartments back in the late 70’s” and all of this comes complete with average 85 degree temperatures and sunshine nearly all year round” said Beth Collingz whom used to live in South Kensington and still owns several Chelsea Embankment Townhouses and St. Catherine’s Dock Flats before coming over to the Philippines
If you have $50,000 or GBP 30,000 to invest, here are some buys you could make right now with that budget:
1. A Freehold Studio Condotel Suite at the Lancaster Atrium Manila for Initial Property Appreciation Investment and Rental Income from 2010 in Metro Manila, Philippines. Floor Area 28.17 square meter [304sqft] at $1,518.00/sqm. Total Contract Price: USD 42,762.06. Pay Cash and take a full 20% discount [Save USD 8,552.41] on the unit price. Pay 90% Now [USD 30,788.68] and the remaining 10% [USD 3,420.96] on unit turnover from December 2009
2. A Freehold Studio Condotel Suite at the Lancaster Suites Manila for Rental Income from 2007 in Metro Manila, Philippines. Floor Area of 27.23 square meters [293sqft] at $1,618.00/sqm. Total Contract Price: USD 44,058.14 [Tax Exempt]. Pay Cash and take a 10% discount on the Contract Price. Save USD 4,405.81 Pay 90% of the contract price now [USD 35,687.09] and the remaining 10% balance [USD 3,965.23] on unit turnover from March 2007
3. A Freehold Studio Condotel Suite at the Lancaster Cebu Resort Residences for rental income from 2007 in Cebu, Philippines. Fully Furnished Studio 36.5625sqm [395sqft] $1,507.00/sqm USD 55,099.69. Pay Cash and take a full 10% discount [Save USD 5,509.96] Pay Reservation [USD 1,820.00] and Cash Balance within 30 days [USD 47,769.72] for an Effective Total Cash Price of USD 49,589.72. Immediate Occupancy.
In recent years the British economy has consistently been one of the strongest in Europe, and with a top rate of income tax cut a decade ago to forty per cent, the wealthy have become wealthier – and want to stay that way. Despite the top rate of tax coming down to forty per cent by the time other direct taxes such as National Insurance are taken into account around half of top earners salaries are – as many buyers of real estate in the Philippines see it – being lost to the Inland Revenue. By moving to the Philippines they effectively quadruple their disposable income.
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