Filipinos are used to leaving the Philippines for some time and returning home when investments are all set so they can build big businesses or earn stronger foreign currencies and retire comfortably.
Filipinos who work remotely for foreign clients they met online rejoice in the higher exchange rates; however, it comes at a significant cost to most citizens. The momentary thought of winning is a pyrrhic victory. Overseas Filipino Workers' families might receive higher amounts of money than usual. However, the advantage will immediately be negated by rising prices of goods.
Peso has depreciated by 7.8% against the US dollar since 2022. The United States is at its 40-year high of 8.6% in terms of inflation, while the Philippines is at its "manageable" rate of 5.4 percent.
Here are the effects of the peso's depreciation:
Filipino diaspora
Due to continuous inflation, Filipinos might choose to go to other countries and work on jobs regardless of being overqualified. This has been going on for decades; however, if the peso continues to depreciate, surely more Filipinos would prefer to settle in foreign lands.
According to the Philippine Statistics Authority, Overseas Filipino Workers (OFWs) were at 2.18 million, with women making up 59.6%, equivalent to 1.06 million in 2020.
Higher cost of goods and services
Local travel or to foreign countries becomes more expensive. All purchases will increase, including airline tickets, meals, and accommodation. The buying power of Filipinos will get weak as the peso depreciates.
Consequently, this leads to higher import prices and overall inflation. As it continues, it shall be called stagflation—consisting of sluggish growth due to rising inflation which happened around the world in the 1970s, when people also had to line up for highly-priced gasoline fills. Philippine inflation is projected to average at 5% this 2022 due to the rise in oil and non-oil commodities.
Foreign investors' hesitation in investing
Take overseas Filipinos, for example. Hesitations toward investing might arise since the prices of goods worldwide continue to rise. On the other hand, this would motivate them to look into real estate as a more financially sound option for investment.
Condo investments are one viable solution for a person to save money as inflation continues. The cost of real estate properties shall rise in the years to come due to the construction industry's reliance on gas. As Filipinos choose to put their money towards tangible investment, it helps secure their financial future since purchasing a property at a certain date will lock-in. Thus, the years when the investment shall yield its returns will greatly help ease an individual or family against the forecasted stagflation.
Why is the Philippine Peso weakening?
According to a UK-based research firm, the weakening of currencies can be blamed on the inactivity of the central banks in the Philippines, India, Indonesia, Thailand, and Vietnam. The latter three kept their policy rates unchanged while the US Federal Reserve has shown increasing aggressiveness, with bigger and more frequent increases.
Why is investing still encouraged?
Not even the best financial analysts could foresee the future. Real estate, if strategically chosen, shall appreciate continuously among all investments. Once barren lands could be filled with infrastructures that would attract local businesses to soon rise. The reason the Central bank is holding its ground is that huge infrastructure projects are already in place for the Philippines' economic recovery, regardless of what is happening to the local currency now.
Yes, the rising prices are a pain, yet fruits of labor shall be reaped since the government has been continuously focusing on nation-building, making sound economic decisions that will make the country more sustainable in the next coming decades. Food sovereignty is one goal—to ease up from the rising prices, the younger generation is encouraged to look at farming as one important profession that feeds people and helps the economy as it becomes less dependent on imports.
While the younger generation of OFWs is at their strongest earning capacities, Vista Residences continues attracting its population to condo investing. The world will eventually stabilize from "currency chaos," and the ones who invested first shall continue to rise up the ladder. Foreign investors no longer have to go home, and process payments and reservations for real estate properties as Vista Residences Inc.'s website provides virtual tours and easily reachable agents who answer questions promptly.
Why choose to partner with Vista Residences
Leasing is also managed by allowing investors to enroll their properties via online communication. Vista Leasing helps turn passive assets such as real estate into liquid funds by offering worry-free management of condo units. Investors no longer employ their own assistants to ensure that the team is well-maintained and to assure return on investment. Vista would take care of marketing, maintenance, human resource management, and customer care. This shall make Properties by Vista as working offshore investments for Filipinos building wealth remotely.
The company's services do not stop when investors sign up to make their big purchases. Leasing helps generate rental income that would expedite the return on investment.
Where are these real estate properties?
Properties by Vista Residences are located in the most progressive cities of the Philippines, such as Baguio City, the Metro Manila area, Cagayan de Oro, and Cebu. These cities have distinct tourist destinations that would attract foreign travelers, well-known universities, and healthcare institutions that allow students to consider Vista as a company that provides well-engineered condo units for their long-term stay.
Besides these, the major cities mentioned attracting international companies to source the best talents and add value to their teams to increase the competence of their companies around the world. For instance, Baguio City prides itself on the coldest weather in the Philippines as it houses educational institutions known to outrank others across the Philippines and Southeast Asia.
After all, inflation happens around the world as geopolitical conflicts are not yet on the brink of pausing. Filipinos are always resilient across many circumstances. The Philippines is still a home to go back to, for it is home to the happiest, most hospitable people.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
