Real Estate Investment in the Philippines for Japanese Investors: Exploring the Appeal of Rentvesting
The Philippines is an attractive option for foreign real estate investors because of the quality workmanship and value appreciation of the properties available. The potential for passive income is also a big plus for most investors.
Over the years, more and more foreign investors have decided to grow their money by buying a condo unit for sale in the Bay City and other parts of the country. One division of these foreign investors that has seen much growth is the Japanese real estate investment in the Philippines.
The Philippine real estate industry has seen a surge in Japanese investors in recent years. This is mostly due to the emerging trend of rentvesting, a strategic approach that Japanese investors aim to capitalize on when obtaining a property in the country. Most of these investors have also realized the benefits of Japanese investment in the Philippines, which will also be discussed in this article.
The Appeal of Rentvesting
Rentvesting is a term that comes from the combination of the words renting and investing. This investment approach involves purchasing a property strictly for a rental business.
Most of the time, the investor already has a residence somewhere else and wants to retain it along with their current lifestyle. Their main reason for obtaining another property is to earn passive income.
Although rentvesting is fairly new for most investors, it is an appealing option because of its various benefits:
Income Sustainability
Purchasing a property and renting it out is an excellent way to get passive income while still having a full-time job or running another business. This allows investors to increase their cash inflow without compromising their current lifestyle by getting another job or venturing into a new business.
Additionally, rentvesting offers sustainable income, providing investors with peace of mind. They can rest assured that money will enter their bank accounts every month as long as the property is properly managed.
Lifestyle Maintenance
Another reason investors might be enticed to try rentvesting is that they can earn extra income while retaining their existing lifestyle. Aside from being able to keep their job or avoid having to launch another business, investors who try rentvesting can stay in their current residence.
For example, if a Japanese investor obtains a property in the Philippines, they can rent it out and continue residing in Japan. This allows them to maintain their current lifestyle and avoid the stress of moving to a different country while still having the opportunity to grow their money.
Future Readiness
Rentvesting is also an ideal way of reserving the property for future use. If a Japanese investor intends to retire in the Philippines in the future, they can buy a property now at a much lower price, rent it out, and earn while waiting. They can use this extra income to start a business or save for retirement.
Another option for investors is to rent their property out while waiting for its value to appreciate and sell it at the right time. By doing so, they can get a bigger return on their investment, which they can use to buy another property to live in that better suits their lifestyle and preferences.
Japanese Rentvesting in the Philippines: A Closer Look
Japanese investors in the Philippines come from different backgrounds. However, some are more common than others. Let’s take a closer look at the profile of Japanese real estate investors in the Philippines today.
Diverse Budgets
With the number of Japanese investors in the country, it’s not surprising that they all have diverse budgets. According to PropertyAccess, 32% of Japanese investors have a budget of USD 208,000 and below when searching for a property in the Philippines. Meanwhile, 22% have a budget between USD 208,000 and USD 347,000. Only 2% of Japanese investors are willing to spend more than USD 1,000,000 on a property in the country.
The range of budgets between different Japanese investors only shows how accessible and affordable real estate in the Philippines is, making it an ideal destination for various investors. Regardless of how much they are willing to spend on a property, there is a suitable option for them in the country.
Gender Profile
Although there are female Japanese investors here in the country, the real estate sector is still mostly male-dominated. According to the same report by PropertyAccess, 82% of the Japanese investors in the Philippines are male.
This dynamic can be attributed to female Japanese investors’ more conservative culture, especially in investing. Male Japanese investors are usually more daring when it comes to exploring opportunities in foreign countries, serving as the trailblazers for their female counterparts to follow.
Seasoned Investors
Another trend among Japanese investors is that most are experienced in investing. These years of experience are reflected well in the distribution of Japanese investor age groups.
Among all the Japanese investors in the Philippines, 34% are in their 50s. Meanwhile, 26% are aged between 40 and 49. This shows that most Japanese investors are already at a point in their lives where they have accumulated enough wealth to start diversifying their investments, making the Philippines an attractive option for them.
Benefits of Japanese Real Estate Investment in the Philippines
Many Japanese investors opt to buy a property for sale in Davao, Metro Manila, and other major cities in the country because of the different advantages they get to enjoy. Here are some of the perks of investing in a condo unit in the Philippines:
Availability of Properties
Developers in the Philippines offer properties of different sizes, which are sold at different price points. By doing so, investors have a lot of options to choose from regardless of their investment budgets.
Japanese investors also have a variety of properties to choose from in terms of location. They can select properties in different cities and provinces, depending on their preferences and investment goals.
Asset Expansion and Preservation
Since most Japanese investors are seasoned when it comes to investing, they prioritize expanding their assets and preserving their wealth. Investing in the Philippines allows them to do both, especially with the country’s booming real estate market.
The Philippines is also an attractive option for Japanese investors because of the continuous depreciation of the Yen. By getting a property in the Philippines, they can diversify their investments and potentially earn a higher return on investment by earning Philippine Pesos.
Favorable Payment Terms
Another reason the Philippines is a desirable investment option for Japanese investors is the favorable payment terms offered by developers. Many developers offer flexible payment plans, which makes it easier for investors to obtain a property.
Some developers offer installment payment options, extended payment terms, and reasonable or zero downpayment to Japanese investors. This means that they can start investing in a property without having to spend a large sum of money right away.
Tremendous Growth
The real estate industry in the Philippines continues to grow with the development of master-planned estates, such as the Bay City, Bonifacio Global City, and Davao Global Township. This means more properties will be built around these areas, providing more investment opportunities for Japanese investors.
Strategic Location
The Philippines is a strategic location for Japanese investors because of its proximity to Japan. By investing in a property here, investors can easily check on their investment whenever they wish without having to spend a lot of money and time.
Rentvesting Options for Japanese Investors
Anchor Land offers several properties that will be ideal for Japanese investors who are interested in rentvestment in the Philippines.
Copeton Baysuites, a pre-selling condo in Bay City provides its future residents with unparalleled comfort and convenience. This modern residential development perfectly complements the bayside lifestyle, offering world-class amenities that will surely appeal to tenants. Being near the Mall of Asia and various integrated resorts, Copeton Baysuites is also suitable for residents who want to enjoy the finer things in life.
Another property that Anchor Land offers for rentvesting is 202 Peaklane. Built in a prime location in Davao City, its architecture prioritizes comfort and convenience, with amenities such as a fitness gym and swimming pool.
The property is also near some of the most renowned schools in Davao City, such as Ateneo De Davao University, Davao Doctors College, and Davao Medical School. This makes 202 Peaklane a desirable location for students and professionals, providing a steady stream of potential tenants for Japanese investors.
To learn more about our rentvesting properties, don’t hesitate to contact us today. We are committed to providing top-notch real estate options for investors, including those from Japan. With a strong understanding of Japanese investing culture and needs, we aim to provide the best investment opportunities in the Philippines for our Japanese clients.