Thursday, March 27, 2008

MONEYVANTAGE: The Property Sector

It has become the best choice in investments for most people as a vehicle or income stream. Real Estate values appreciate for the past few years and started booming after 1997 Asian financial crisis was over in 2001 at that time when Asian countries have finally recovered. Year 2002, where most of the major developers and private contractors have started running their engines for the bull run up ahead as the Philippine economy is on a swing again.

Source: "Investing in Stock Market Today" (www.citiseconline.com)

Right now it is a Buyer's Market wherein the demand of real estate is high but somehow it is a little bit slowing down due to the U.S. financial crunch of what our North American-based Filipinos are experiencing right now yet it is favorable for our local young urban professionals, OFWs living in the European countries and elsewhere to invest in the Philippines because they are somehow not affected with the US$ dollars decline in value due to the fact their are using Euros as their currency plus the low interest rates from our local Philippine lenders and banks, flexible payment terms and schemes from the developers had also attracted favorably to the end-users.

According to Global Property Guide, House prices in the Philippines rose by 14.29% y-o-y to Q2 2007, up from 8.45% y-o-y to Q2 2006. Strong economic growth and the continued inflow of remittances from Overseas Filipino Workers have been fueling the housing market in the Philippines. Our total U.S. $ dollar reserves reach a whopping U.S.$ 34.8 Million dollars from its previous U.S.$ 8 Million dollars according to the reports of Bangko Sentral ng Pilipinas (BSP) as of this writing.

Somehow Filipinos put a great value in owning a property in order for them to secure in the long term on their retirement age here in the Philippines. Not only that our retired fellow Filipinos who are coming back but the majority of foreign expatriates and retirees coming here to study, do business or even live their transition ages in style. Prices of commodities are less expensive compared to theirs, cost of living is not that high with the value of money they are receiving from their pensions able to sustain and compensate them with excess cash on their hands, Climate in our country is tropical it is mostly sunny and rainy wherein most of these foreigners would like to frolic in the hot sun.

REAL ESTATE BOOM continues as seen on the Philippine Industry Growth Cycle which has becoming relevant for those who are engage in stock market. The propery sector is in the growing stage and would likewise pick up the pace in the future.

Copyright 2008-2009 - PinoyMoneyVantage
Post a Comment