The New Property Investment Opportunity

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Since 2008 property investors have kept cash deposits stored away as property markets all around the world have declined or in many markets crashed. Markets as far apart as the US, Spain and the UAE which were once the hot topic for property investors and featured significantly in all property shows around the world have now lost investors billions.

Many of these markets like Spain have little chance of recovery in the next decade and investors who have lost everything in these markets will be very slow to return and risk further losses.

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In the long term property investment should always be considered as part of a diversified portfolio and picking the right market and the right time has never been more crucial. SCS has a long track record with regard to providing property advice starting with the Docklands in London in the early 1990’s. This proved a real success with investors achieving significant returns.

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With experience comes knowledge and SCS are now promoting Manila in the Philippines where we see significant growth opportunities. SCS has invested significant resource in Manila and currently already have an office in Manila and the right infrastructure for servicing our clients.  Manila represents a good opportunity for foreign investors.  The fundamentals are also good with the local economy growing at a very good rate and significant construction continuing.

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Key to determining whether a market represents good value is the yield that can be had from renting the property. Typically in most mature capital cities this figure is between 1 to 4%. In Manila the current yield is around 8 to 10% per annum and can be higher. This represents real value and underpins the value of the property.

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Over the last 10 to 15 years the Philippines has been politically stable and the democratic process is working. The government realize also the importance of inward investment and actively encourage foreign investors. For many property investors who have experienced the bureaucracy and headache when investing in countries like the UAE, Eastern Europe and Mediterranean this is a refreshing change.

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As with property investment anywhere the main criteria is location and this is the same in Manila. Manila suffers from the same problems of many third world growing cities with regard to pollution, traffic congestion and corruption. Makati which is in the central business district [CBD] of Manila is unique in that many of the worlds top companies have there offices here. Makati is also the exception to the rule here, as significant amounts of money are being spent on infrastructure and many of the vehicles, which pollute the rest of the city, are banned.

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New business is sprouting up in Makati all the time and the call centre business will soon be as big in Makati as it is in India. Business in Makati creates a rental demand and also a demand to buy as people want to be near their work, rather than struggle for hours in dreadful traffic, which can take hours just to go a few miles.

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Property in Makati and Manila is still comparatively cheap enabling local buyers to comfortably purchase with the use of housing loans. Developments are sprouting up all over Manila and banks are full with local investors wanting to benefit from the winds of change in this dynamic new market.

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SCS has opened an office and have local people working on the ground to help clients make the most of this opportunity. We can offer a complete solution from sourcing property, help with mortgage finance to property management and rentals.

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SCS has established excellent relationships with key developers who focus on Makati and we are also able to source foreclosed properties from the banks, which is at a discount to the market price.

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For property investors who wish to start reinvesting back into property or for investors who have yet to do this Manila should be considered. It is possible to source good quality investment property in Makati for $50,000, which will generate a significant rental yield.

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