Eurasian marriages, British economy fueling real estate investments in Philippine condominium hotels

The number of millionaires in the United Kingdom will rise by 400 percent in the next few years and the Philippines is already reaping the rewards, a recent survey says.

“The number of British people investing in overseas real estate has increased dramatically in recent years, with some agents in the Philippines claiming that four in 10 of their buyers are from the UK, compared to just one in 10 a few years ago,” says a statement from marketing firm PLC Global Filipino, citing a study conducted by UK-based Centre for Economics and Business Research.

“If recent surveys are an accurate indication of the future, then Filipino realtors might be seeing an even higher percentage of Brits buying from them in the near future,” the firm adds.

Commenting on the findings of the study, which suggests that the number of British millionaires will rise dramatically from 376,000 to 1,700,000 in the near future, the Philippine-based condo hotel marketing group points out that the number of British citizens in Manila and Cebu has increased noticeably in the past few years.

The increase in the number of British investments in Philippine real estate has prompted the British diplomatic officials to acquire a large tract of land in Fort Bonifacio in Taguig, Metro Manila, where they will build a new embassy.

“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 that there will be four times the number of people looking to buy in the Philippines,” PLC Global Filipino clarifies.

The firm explains, though, that foreigners looking for property investments in the Philippines for retirement purposes can enjoy quite a number of advantages, among which are lower cost of living, housing, food, and labor.

“At the moment, a standard one-bedroom condominium can be purchased for around $60,000, or 32,500 pounds. Where can you find a 350 square foot flat in the heart of central London for only 25,000 pounds and then get up to 18 percent per annum return of investments from rental returns, tax free,” says Beth Collingz, director of the company.

“These figures probably seem crazy to London property buyers unless they remember the prices of flats and apartments back in the late 1970s,” she adds.

Collingz, who used to live in South Kensington before settling down in the Philippines and still owns several Chelsea Embankment Townhouses and St. Catherine Dock Flats, gives the following suggestions to British citizens or those married to Europeans who have $50,000 or 30,000 pounds to invest.

First, to spend it buying a studio condotel suite at the Lancaster Atrium Manila for what she calls an “initial property appreciation investment.” Collingz explains that the suite, which has a total floor area of 28.17 meters, will start earning rental income in 2010.

Second, to purchase a studio condotel suite at the Lancaster Suites Manila which, after its turnover this year, will start earning rental income almost immediately.

Last, to buy a studio condotel suite at the Lancaster Cebu Resort Residences, which, like the Lancaster Suites Manila, will rake in revenue starting this year.

“My phone has been very busy with buyers from the UK, Scotland, and Australia interested in purchasing investment opportunities and holiday homes here. A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe and the easy payment options available for local condotel developments,” Collingz says.

“Those are not the only factors. Offshore property investors, foreign baby bombers as well as overseas Filipinos are looking for ways to maximize the return on their investments as they approach retirement,” she adds.

According to Collingz, the advantage of purchasing a condotel for a second home is that it can be used as a vacation home and then rented out with the help of the in-house condotel management when not in use.

With today’s purchase prices, these condotel units give a projected return on investments of 12 percent to 16 percent, depending on the mode of payment for the unit.

“International buyers know it’s a buyer’s market in the Philippines right now. There are a lot of properties available and fewer local buyers,” she says. “I’m working with clients who are purchasing their second properties with me. We also have referrals from many of our prior customers and new clients who have found us through our web sites.”