Americans who want to expand their property portfolios overseas should consider investing in the Philippines, such as rental real estate in Quezon City.
A study ranked the Southeast Asian country as the best place for rental property investments this year, followed by the UAE and Costa Rica. The Philippines topped the list based on the potential return on investment.
GOBankingRates based its rankings from the average rent per month for a 1,292-square-foot house, taxes on a rental income worth $1,500 and the average return before maintenance, taxes and other expenses.
In the Philippines, foreign investors could achieve a rental yield of 6.13% with an effective income tax of 4.06%. Monthly rental rates on average cost $2,422. The investment return and income tax rate in the UAE are almost 1% lower at 5.19% and 5%, respectively.
Monthly rents, however, cost more than $3,000 in the country. Costa Rica has the lowest monthly rent among the top 3 countries at $1,450.
Rental properties in urban areas are unsurprisingly popular with foreigners. If you’re looking to invest in luxury homes, the Forbes Park community in Makati City has the highest average price worth P532.38 million.
The steep price may be too much even for those with huge capital, which is why some are looking for alternative properties. High-rise residential buildings within a mixed-use space serve as another option for taking advantage of the well-performing real estate market.
Like any other investment, you should only transact with developers with a positive track record for residential properties.
Foreign investors should consider investing in rental properties in Metro Manila, particularly in Quezon City where developers have launched high-rise buildings in several mixed-use projects. These developments currently attract a huge demand from local professionals and expatriates who want to live near their place of work.