Dollar Opportunity

by Steve Van Derodar

Photo by Lee Yik Keat via Steve Derodar

Perhaps, not many of us realize how lucky we are to be earning dollars. The buying power of a dollar is consequential. Economies of the world depend on the rise and low of the dollar. One paper commented, “Americans holding U.S. dollars can see those dollars go further abroad, affording them a greater degree of buying power overseas. Because local prices in foreign countries are not influenced greatly by changes in the U.S. economy, a strong dollar can buy more goods when converted to the local currency.”

It holds true too in Philippine real estate. While properties can be costing a lot of money, affordability is relatively felt in the monthly payments that these properties can have. Those who may not know that practically, a day or two’s income for any U.S. regular employee may be enough for a monthly payment for pre-construction, with a spread down payment or the equity of 10 to 20 percent.

It is not surprising that the U.S. is a major international market for Philippine real estate. As many of us earn dollars, we often believe that it is easier for us to come to terms with a property purchase. As payment terms are usually broken into monthly payments before the whole balance, which can be amortized as well depending on age to 15 to 20 years at maximum, age-qualifying up until 65 and sometimes 70 years old Even then, Americans have access to capital or home equity which they can use as well to pay off their foreign property balance.

Interestingly, there is a boom in Philippine real estate as the demand for real estate rises. Its robust economy, increasing urbanization, and growing population are among the key reasons. Notably, the OFW remittances and influx of foreign investors are substantial. You could just imagine how many foreigners own condominium and townhouse units knowing that they can buy these types of properties. The Philippine Condominium Act allows foreigners to own condo units as long as Filipinos own 60% of the building. They can also purchase a property through a corporation, provided its ownership is 60% or more by Filipino citizens.

One may think that property owners continue to make an income with the pandemic. And as they say, real estate investing is generally a safe option, even for first-time investors. There are enough opportunities for any type of property investment. Whether small or big, the potential is always high in property investments ad that the value of the land and the properties will only increase over the long term. Investing in a few condos for a rental is quite popular for many overseas.

“Interestingly, there is a boom in Philippine real estate as the demand for real estate is on the rise. Its robust economy, increasing urbanization, and growing population are among the key reasons. Notably, the OFW remittances and influx of foreign investors are very much strong. You could just imagine how many foreigners own condominium and townhouse units knowing that they can buy these types of properties. “

For the dollar earners, it might be wise to get into some real estate investments in the Philippines; not only that developers are offering attractive payment terms, but it’s also high time to make our dollars earn income through rental or appreciation. For the most part, the rental income pays for the mortgage when the rental is steady, which depends on the property’s location, quality, and functionality.

A friend would share that the soonest she had her unit rented out, she immediately received deposits to her bank account of her rental income, and for four straight years now, she never had a month without tenants. She was glad to share that the said payments were already a passive income since she had paid the property 3- to 4 years after purchasing the property. She used her hard-earned dollars, which gave her regular income. She would like to invest in another property, believing that the market is vital for rentals.

For the last 15 years, at least upon my observation, I have seen how properties have increased over the long term. The prices of real estate have really appreciated, and the rent has also increased at a market rate. In addition, there has been massive residential development construction left and right. It shows that the demand is high in a growing market.

So what are you doing with your extra dollars? With the developers offering easy installments to pay property downpayment, there’s abundant opportunity to invest dollars in Philippine properties. Anybody who makes dollars can genuinely take advantage of the market offerings with the ease of leasing management. And quite frankly, the property sector has just anything for any level of investing and with the variability of project developments at the affordability for your dollar.

With the many Filipino-Americans earning dollars from various professions, particularly in healthcare, finance, and almost practically for any working Filipinos, an investment in the Philippines is even more inviting. It makes me think that anybody is in a solid position to acquire properties. What are your dollars for?

Lucky you if you earn dollars. A dollar is an investment vehicle that you can use to grow your money. For those who make dollars, owning properties in the Philippines would be a great way to a profitable endeavor.

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(Stevenson’s experience in Philippine Real Estate spans more than 15 years. He has been involved in horizontal, vertical, vacation, and commercial properties. He has worked as an International Property Specialist in markets in Asia, Europe, and North America with Ayala Land, Federal Land, and Century Properties. Through PhilHouseHunters, he offers real estate investment opportunities, marketing, and consultancy with a key focus on Metro Manila and Mega Cebu areas. Visit www.philhousehunters.com. Email at derodarsales@gmail.com.)

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