Investment in Philippines?

Our Experts Answer:

Sorry but no comment purely because I don't advocate investing overseas. I see most of these types of investment more as "emotional investments" and "speculative investing". Speculation to me is "gambling". An investor gets the benefit of a one month holiday at the loss of potential rent. Management fees and seasonal vacancies are often the killer of any profits with control in the hands of the majority shareholders. Huge loses can be incurred in the currency ex-change rates. Give me good old "kiwi home ownership" where I have my own control to make my own informed decisions.
My advice would be to sell the block of land, save on your development money and use it as a deposit on a property in New Zealand. We are at the start of the next "property boom cycle" having just gone through the "recovery period" (i.e. Auckland, Christchurch and Wellington property prices are back to where they were in the peak year of 2007).
I have seen too many investors buy off the plan only to lose their shirts when the developer went broke. Builders can go broke through strikes, governments change political stances, banks may pull the plug, interest rates change or just the cost of construction goes up.