Real Estate Property Investments in The Philippines
Real Estate Property Investments in The Philippines
Over the past several years, we have seen an increase in seasonal activity in the international property market, particularly in the United Kingdom. According to statistics from the National Association of Estate Agents, between 2004 and 2006, the number of British individuals who had a second property overseas increased from 550,000 to 800,000. According to Collingz, with a projected 5.5 million more Britons wishing to live overseas, UK purchasers are becoming more attracted to the diverse cultures, lifestyles, and, in many cases, higher standards of living that other nations, such as the Philippines, can provide.
Collingz said that historical sales statistics indicate that the number of individuals purchasing property in the Philippines reaches a major high in the early fall, when many people take advantage of their summer vacations to search for their perfect second home in the country. After a few weeks back in Europe, as the days get shorter and the weather becomes more inclement, the desire to purchase a property in another country may rapidly grow. Over the last six months, PLC has been expecting the arrival of British overseas property buyers in the Philippines and believes that, rather than the United States market, the UK would be the best location to sell their condotel units in the coming months. Our PLC Global property site has already witnessed a surge in traffic from UK customers and estate agents who are interested in purchasing or marketing our Lancaster Brand of Condo Hotel suites to a UK audience in the month of September.
Taxpayers in the United Kingdom are also taking advantage of tax breaks and investing their Self-Invested Pension Plan [SIPP] funds in Philippine condotel investment real estate for the purpose of earning rental income and saving for retirement. Collingz stated that a Self Invested Pension Plan [SIPP] is a personal pension plan with one very important difference: the administration of the plan is independent of the investment content, allowing the plan holder the flexibility to select and alter the investments included in the plan. The long-awaited regulations on what savers may put into their personal pension plans were announced by HM Revenue & Customs in April 2006, after a lengthy period of anticipation. The Guidance Notes clarify that holders of the Self Invested Pension Plan [SIPP] are permitted to make investments in hotels, such as the Lancaster Brand of Condo Hotels in the Philippines, under certain conditions. The sole restriction is that SIPP holders are not permitted to remain in their rooms. It should come as no surprise that increasing the number of nights accessible to paying visitors improves the returns to the room owners. It is believed that there are more than 70,000 plans with a combined value of more than £14 billion.
The ability to manage one's own pension plan portfolio was only recently discovered by the general public in the United Kingdom, and even fewer were aware that they could invest their SIPP retirement funds in vacation homes, which are now among the most popular potential investments for inclusion in a SIPP.
If you're thinking about utilizing your SIPP to make a real estate investment, there are many compelling reasons why you should consider investing in Philippine Condotel Investment real estate to help you achieve high profit margins on your retirement portfolio. Due to the fact that a SIPP may create title to property in a nation whose legal system recognizes trusts, the Philippines is an excellent choice for this kind of investment. After all, an investment in a SIPP is just another type of trust. A lot of people would have you think that investing in international real estate is dangerous and difficult, but this is not the case. In contrast to the United Kingdom, where land and house prices have skyrocketed in recent years, the global real estate market has seen a significant decline. It is still feasible to purchase a preconstruction condotel suite at Lancaster – The Atrium in Metro Manila, Philippines, for less than GBP £25,000.00. Lancaster – The Atrium is situated in Metro Manila, Philippines.
Apartments for sale at The Atrium in Lancaster. The Atrium is a "Full Service" condominium hotel with studio, one, two, and three-bedroom suites available for purchase. Due to be completed and ready for turnover in December 2010, this project will provide unit owners with premier residential condo units the option of enrolling their units in the Lancaster Condotel Rental Pool and earning rental income [at current purchase levels] of approximately 8-14 percent per annum when not using their units through Condotel Management. As a result, Lancaster Suites is considered to be one of the most promising investment opportunities in the Philippines. The cheap cost of property taxes and upkeep in the Philippines is one of the most attractive aspects of owning property there.
Property taxes on a GBP £25,000 condotel suite are likely to be less than GBP £100 each year, and maintenance expenses are also very inexpensive. Adding the tax-deferred treatment afforded to investments made in your IRA, as well as the 12-16 percent returns earned via rental income generated by the Condotel advantage, you have an amazing return on your investment in Philippine Condotel investment real estate, said Collingz.
When it comes to buying Philippine Condotel Investment real estate as a SIPP investment, what are the disadvantages? As long as the SIPP is listed as the owner of your investment property, you will not be able to live on the premises. The restrictions on benefitting directly from your assets under a self-directed pension plan are stringent-you are not permitted to utilize any property held by your SIPP, or else you risk losing your SIPP's tax-protected status and, worse yet, facing fines from HM Customs & Excise. Although you can not sell your Philippine Real Estate Investment for immediate profit, you can rent out your SIPP investment for a steady income while retaining the profits and cash flow in your SIPP. You can also rent out your SIPP investment for a steady income while keeping the profits and cash flow in your SIPP. You should seriously consider investing in Philippine Condotel investment real estate if you want to make a unique and high-profit investment for your SIPP that will last a long time. It may assist you in accelerating the growth of your SIPP profits.
Many investors are resorting to their SIPPs to invest in foreign properties and generate tax-free or tax-deferred income as a result of the anticipated downturn in the UK property market and the failure of many pension schemes. Due to the availability of a self-directed pension plan instrument for investing in the Lancaster Suites Atrium Tower preconstruction apartments, this provides an exceptional opportunity for investors.
Due to the high rate of appreciation in preconstruction property, not only does the real estate appreciation seem to be excellent, but also the rental income is in excess of what many pension plans provide for the same or comparable investment (around 20-30 percent per year). According to Beth Collingz, a large number of new investors are seeking to replace failing pension plans and other future saving programs with a secure investment in property. Customers are searching for investments that would provide them with an income in retirement as an alternative to conventional private pension plans, which have failed to provide enough retirement income. The majority of corporate pension schemes, as well as government pensions, are inadequate. Savings account interest rates are at all-time lows, according to financial data. Savvy investors are now on the lookout for a more secure investment that also has the potential to provide monthly income. Condotels in the Philippines are an excellent choice".
Real estate agents and brokers have traditionally focused their efforts on finding "buyers" who fit the traditional residential profile, rather than looking at the much larger picture of investments, investing, and retirement. However, the potential for high rental returns from condotel investments, which currently range from 8 percent to 14 percent per year, opens up a huge market that has not traditionally been considered by them. "We're here to assist our customers by educating them on current investment possibilities and advising them on new investment prospects." Self-Invested Pension Plans, as well as the Lancaster Suites Atrium Condotels, are perfect examples of this, "Collingz continues.