Event Coverage
SILVAR Members Learn Business of Real Estate in the Philippines
Here is a group photo with members of SILVAR's Global Business Council, SILVAR Executive Officer Paul Cardus, Past President David Tonna, NAR President's Liaison to the Philippines Jennifer Tasto and the International REALTOR® Members from the Philippines.
"Doing Business in the Philippines," hosted by the SILVAR Global Business Council on November 20, attracted more than 40 members and guests. The Philippines is Asia's second fastest growing economy today and the business of real estate there is booming, according to Philippine-based real estate agents.
The program, moderated by National Association of REALTORS® President's Liaison to the Philippines Jennifer Tasto, had as panelists International REALTOR® Members from the Philippines from the Chamber of Real Estate and Builders' Associations Inc. (CREBA), SILVAR's cooperating real estate association. They included Bernard Umali, Evangeline Yia, Arlene Posadas and Connie Castellano. Their presentations focused on buying and selling property, estate settlement, project selling, ownership of land and registering property in the Philippines.
Here are some facts members learned:
• Top buyers of Philippine property are early nesters due to the country's young population, business process outsourcing workers, overseas Filipino workers and investors.
• The Philippine economy is strong, with a growth of 5.6 percent in the second quarter of 2015, defying a regional slowdown which has affected countries like China and Japan.
• Over 10 percent of Filipinos live outside the Philippines and work in over 150 countries. Overseas Filipino worker remittances are at a record high, posting $26.93 billion in 2014. Of this money, 60 percent is devoted to real estate investment.
• The cost of real estate in the Philippines is much more affordable than in other Asian countries, along with the rate of return on investments.
• Growth in business process outsourcing and tourism has spurred real estate sales.
• The migration rate in Manila also has made the country's capital a favored location for residential condominiums. The Philippines has an estimated population of 101 million people, many of whom flock to the capital in search of employment.
• Renting property has become a thriving business because there is a housing backlog - 5.5 million housing units are needed to serve the Philippines' rapidly growing population.
Many in attendance were immigrants from the Philippines, former natural born Filipinos interested to learn if they can still purchase property there, as the country has restrictions on foreign ownership. A foreign national and/or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years. A foreigner married to a Filipino citizen can hold title in the Filipino spouse's name. The foreign spouse's name cannot be on the title, but can be on the contract to buy the property. Discussion became quite technical when a question on divorce and ownership was raised, as there is no divorce in the Philippines.
"Real estate is a truly global business and especially interesting as each culture is different. In most countries, the practice of real estate is not regulated, so it is very beneficial for REALTORS® to learn about other countries, especially when they have foreign clients not acquainted with rules and practices here, and vice versa," said Mark Wong, chair of SILVAR's Global Business Council.
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The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
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