UK First Time Buyers Turn to Overseas Properties
Beth Collingz, PLC International Marketing Director for Pacific Concord Properties Inc’s Lancaster Brand of Apart-Hotels or Condotels in the Philippines said a recent study published by UK National Savings & Investments found 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than buying in Britain. Young people buying abroad and renting in Britain are and will continue to be a growing phenomenon. They generally look at spending less than £200,000. This comes on the back of recent reports by Barclays Bank that revealed the number of Britons keen to buy property abroad has doubled to 18,000 in a year.
When you consider these facts along with aging population, increased property wealth, Self-Invested Pension Plans and leisure lifestyle aspirations of the populous it is easy to see why many shrewd property investors are looking for better lifestyle and hassle free overseas ownership and why many advisors are looking aside from the traditional UK buy to let and Spanish holiday let for property options for Condotel Investments in the Philippines. Collingz said: “Since the Dollar value depreciated and UK Pound Sterling hit 96:1 on the Philippine Peso, my phone has been very busy with buyers from the UK interested in purchasing investment properties and holiday homes here in the Philippines.
A lot of this interest is being driven by relatively cheap market prices in the Philippines compared to Europe, especially UK Housing prices, and easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through In-House Management when not using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 8-16% depending upon the mode of payment for the unit”
Collingz, who also runs PLC Global Pinoy, an internet based marketing network specializing in Condotel Investments, indicated more than 85% of all sales in Metro Manila were to international clients. “These 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,” Collingz said. “I’m working with clients who are purchasing their second property with me. We also have referrals from many of our prior customers and new clients who have found us through our Web sites, lancastersuites.com and plcglobalpinoy.com which include a special section for international buyers”
Another major driving factor in overseas property investments from the United Kingdom is UK Tax Payers taking advantage of tax incentives and Investing their Self-Invested Pension Plan [SIPP] In Philippine Condotel Investment Real Estate for Rental Income and Retirement said Collingz.
A Self Invested Pension Plan [SIPP] is a personal pension plan but with one very significant difference: administration is separate from investment content, giving the plan holder freedom to choose for himself and change the investments within it. The long-awaited rules on what savers can include in their personal pension plans were unveiled in April 2006 by HM Revenue & Customs. The Guidance Notes confirm that the Chancellor is permitting Self Invested Pension Plan [SIPP] holders to invest in hotels such as the Lancaster Brand of Condo Hotels in the Philippines. The only stipulation is that SIPP holders may not stay in their rooms. With more nights available for paying guests, this not surprisingly increases the room owners’ returns. It is estimated there are now more than 70,000 plans holding over £14bn.
A year or so ago, few people in the UK realized that they could manage their Pension Plan portfolios themselves, and even fewer knew that they could invest their SIPP retirement money in homes in the sun which now prove to be among the most popular potential investments to include in a SIPP
If you’re considering using your SIPP to invest in real estate, there are some excellent reasons that you should choose Philippine Condotel Investment real estate to drive your retirement portfolio into high profit margins. The Philippines is ideal for this type of investment because a SIPP can establish title to a property in a country whose legal framework recognizes trusts – and a SIPP is simply another form of trust. “Investing in foreign real estate is neither as risky nor as tricky as a lot of people would have you believe. While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story. It’s still possible to buy a preconstruction Condotel suite at Lancaster – The Atrium located in Metro Manila, Philippines, for less than GBP £25,000.00”
“The beauty of holding property in the Philippines is the low cost of property taxes and maintenance. A GBP £25,000 Condotel suite will only set you back GBP £100 in property taxes per year, and maintenance costs are similarly low. When you add in the tax-protected status of investments made in your SIPP, annual off plan property appreciation and the 8-16% returns through rental income through the Condotel advantage, you have an incredible ROI on a purchase of Philippine Condotel investment real estate” enthused Collingz. With preconstruction property in the Philippines appreciating at some 20% per annum not only do real estate investments look good but the rental income return in the Country is in excess of what many Pension Plans offer for the same or similar investment.
Many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate. “Clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”
Collingz said this potential, high rates of rental returns from Condo Hotel Investments, up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement. “We’re here to help our clients and advise them of emerging investment opportunities in the Philippines. Self-Invested Pension Plans and Lancaster Condotels, fit this bill exactly.
Pacific Concord Properties, Inc., Flagship Lancaster Condo Hotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, is currently one of the hottest Condotel Investments in the Philippines. Lancaster – The Atrium is accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership and minimum monthly maintenance fees, you really should take a moment to look at this Philippine Condotel Investment Opportunity encouraged Collingz.
Further info regarding Condotel Investments in the Philippines, Lancaster Suites currently available suites, price and terms of payment can be found on the firms website.
PLC International Marketing Networks