This September, overseas Filipino workers and UAE residents who want to invest in the growing real estate market in the Philippines will have the opportunity to attend free investment seminars in Dubai. They will also have the chance to make business transactions directly with representatives from top real estate developers at the First Philippine Property Show in the Middle East on September 26 and 27 at the Crowne Plaza Hotel in Sheikh Zayed Road, Dubai.

Now is the best time to buy a house and lot or a residential condominium in the Philippines while the prices are lower compared to other Asian countries. Unlike other markets in Asia, which are driven by speculators, the growth in the Philippine real estate industry is due to a real demand from residential and commercial end-users. This stable investment environment is attractive to long-term investors from abroad, and Filipinos are committed investors who do not easily retract their investment in case of global crisis.

Some of the exhibitors in the real estate show include top developers like SM Development and Hamilo Coast of SM Group; Megaworld of Alliance Global; Alveo, Avida, and Ayala Premier of Ayala Land; and Aboitizland of Aboitiz Group, Cebu.

Besides Filipinos, foreigners are allowed by the law to buy and own residential condominium units covered by a Condominium Certificate of Title registered with Registry of deeds from the local government unit.

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Overseas Filipino workers are the biggest market for real estate, and it looks like their tastes are changing. According to the Officials of the Chamber of Real Estate and Builders’ Associations, buyers are now going for either midrange properties or socialized (cheaper than low-cost) housing.

Low-cost properties used to be the bestsellers in the OFW market but now, they don’t even look at properties worth 2 million. Instead, OFWs prefer midrange residences, house-and-lot packages (usually townhouses) or condominium units that cost between Php 3 million and Php 7 million. This might seem a little surprising, considering the global financial crisis but on second thought, buying midrange housing is more practical in the long run. They are constructed better than low-cost housing, have more convenient locations, and have a higher resale or rental value. The OFW community is also no longer made up of manual workers – professionals like nurses, IT consultants, and doctors have joined the diaspora.

Despite the OFWs’ changing tastes, low-cost housing is still a major driving force of the Philippine real estate industry. Socialized housing offers house and lot packages worth Php 300,000 each and are located in industrial estates and economic zones. The buyers of socialized housing are usually employees and their families. To make the houses more affordable, value-added tax exemptions are included in the payment packages and no down payment is required.

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Since banks usually have more strict requirements when it comes to loans, you can take out a mortgage from a private lender instead of traditional sources. Mortgages from private lenders are usually short-term asset-based loans, and the decision to lend is based on the value of your property as collateral, and not on your credit history. Private mortgages are also used by those who need immediate financing but who do not have the documents required by banks and other lending institutions.

Private mortgages are easier to get because the lender usually bases his or her decision to lend based on the asset used for collateral, which is the property. If the value of your property is high enough and you generate income that will pay off the interest of the loan, your personal financial situation will not affect the lender’s decision.

For non-income producing properties like homes, a private loan will get you at most a 55% loan of the appraised value of the property. Besides the value of the property, private lenders usually look at how the borrower intends to repay the loan before approving it. Since private mortgages usually last from six months up to three years, lenders have to consider if an exit strategy (how the borrower intends to pay the loan) is viable.

Beauty pagaents are usually frivolous affairs, but not Miss Real Estate Philippines. Held at the Philippine Real Estate Festival on July 25 at the SMX Mall of Asia, Miss Real Estate Philippines is a competition that aims to find ambassadresses for the country’s real estate industry.

Out of 200 candidates, who were all educated about the real estate industry and why it is vital in the Philippine economy today, only 24 made it to the pre-pagaent screening. The name of the winner has not been released yet but whoever she is, she’s going to do more than just wear a crown, look pretty, and enjoy the valuable prizes that include a house and lot. She will also represent the Philippines in the first ever Miss Real Estate Asia and handle the responsibility of heading the outreach projects that will provide homes to the underprivileged. I don’t think there’s ever been a beauty pagaent in the Philippines that is as socially involved as this one.

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If there are a lot of questions you’d like to ask about the Philippine real estate industry, you can get all the information you need about the latest developments, financial institutions, investment advice and more at the Philippine Real Estate Festival 2008. Themed “Living Under One Roof”, the festival will be held at the SMX Convention Center from July 24 until July 26 and will be populated by over 150 real estate practitioners, professional groups, expatriates, and overseas Filipino workers.

Besides exhibits and booths of real estate developers and contractors, the Philippine Real Estate Festival will also hold free lectures on a wide variety of topics such as making your dream home under a tight budget, tips on how to avail affordable housing loans, identifying fake titles, and identifying practical investments. Pag-Ibig Fund and other financial institutions will also be around to answer any questions you might have on housing loans and related topics. Specialized sessions for OFW groups and real estate brokers will also be held to discuss topics related to real estate investments or to honor newly passed Brokers and the best Filipino real estate investors.

Schedule of Activities

Visit the Philippine Real Estate Festival website for more information on the activities and exhibits.