Why would the Philippine government get into the real estate business? It has everything to do with getting dollars from Philippine Americans who have a great deal of disposable income compared to Philippine natives to reinvest in their homeland.
The government of the Philippines is hosting a 5 city road show to promote properties back in the Philippines as potential vacation or retirement properties to those living in America. They have determined that this can be a great source of income for the country whose economy has stagnated over the past few years.
The Philippine economy has been relatively weak. But Manila is hoping that Filipinos living in the U.S. will bring American-style enthusiasm for homeownership to the Pacific Ocean archipelago, lifting the economy in the process. According to U.S. Census data, the median household income for people of Filipino descent was $63,930 in 2004, far above the $44,684 median household income for all Americans.
“The hottest market for Philippine residential real estate is the Filipino-American community, since they have the income and the motivation to acquire condos or houses back home,” says Albert bel Rosario, the Philippine ambassador to the U.S. “We hope these roadshows will serve to boost foreign investment, sell domestic property abroad and demonstrate confidence in our economy,” he adds.
It is the latest twist in efforts by developing countries to boost remittances by expatriates, many of whom are graying in America and thinking about how they want to live out their golden years. Growing remittances to their homelands by immigrant workers in the U.S. and other Western countries have become a vital economic development tool for poor countries. via the WSJ.com subscription required.
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