The Philippine property market is at its prime at present. The economy too is flourishing bit by bit. For a country that once struggled, this is definitely good news.
The Philippines is said to be currently living through the best real estate market it has ever had in the last 20 years.
Its economy, as a whole, also seems to be quite thriving, alongside other Asian countries. This actuality sounds very promising, especially to foreign investors and locals. If this continues, there will no longer be a reason to hide in the shadows of Western nations such as North America and Europe, who at present, seem to be facing a slow economic growth due to pressing issues regarding debts, brought about by the recent worldwide recession.
The GDP or Gross Domestic Product of the Philippines was in fact worth 224.75 billion US dollars in the year 2011, and this is according to a report that was published by the World Bank. The GDP value of the country is deemed to be approximately equal to 0.36% of the world economy as a whole. This is the very first time that the GDP reached an all-time high of 224.75 billion, as for a long period of time, from 1960 to 2011, the country’s GDP only averaged 52.39 billion US dollars. The lowest average GDP of the country was during the year 1962 at just 4.40 billion.
The inflation rate in the country is at 3.80% as of August this year. From the year 1958 to 2012, the inflation rate averaged at 9.08% and peaked at 62.80% in the year 1984. Its lowest inflation rate ever was during the year 1959 at -2.10%. Interest rate also seemed to decrease at 3.75% as compared to the 4% rate earlier this year, and this rate is actually the lowest so far.
Despite these assuring figures, the country’s business confidence, on a scale of 0-100, declined to 42.5 in the third quarter of this year as compared to 44.5 in the previous quarter. Same goes for consumer confidence which declined to -19.5 in the second quarter from -14.7 in the first quarter. The consumers’ lack of confidence was very evident after the State of the Nation Address of President Aquino last June. Regardless of the report the president made that the economy is thriving, consumers think and feel otherwise. Consumers are hoping that if the economy is indeed doing great, it should be reflected in the decrease in both the prices of consumer goods and unemployment rate.
But then again, as mentioned a while back, Philippines’ property market is at its prime now, even with a decrease in both business and consumer confidence. Most individuals, who once rented, are now proud homeowners. This change is said to be founded on low interest rates and reasonable financing schemes. But then, let’s face it. Not everyone can afford to buy a property with a one-time payment. Most people prefer loaning from a bank, or perhaps acquiring a flexible payment scheme from the developer. Nonetheless, home loans shouldn’t be something one must dread. Based on the figures presented, current interest rates are quite friendly on the pocket. And again, this is the lowest percentage rate so far. If things continue as how they are right now, who knows? Maybe the interest rate would even get lower in your favor.
Just remember, in anything that involves a huge amount of money, it’s imperative that you consider all the factors and the options you have before making a decision. In securing yourself a home loan, risks are inevitable, but how you deal with them is something you are in full control of.