Owning a home in the US can be a big challenge—high upfront costs, expensive maintenance, difficulty moving, and the risk of property values going down.
In contrast, the Philippines offers a strong economy with a steady 6.0% GDP growth, opening up plenty of investment opportunities.
The country also has a friendly tax system, with rates that are competitive in the region. You can own 100% of your business* and enjoy tax holidays and incentives, creating great chances for businesses to grow and succeed.
Cebu offers several advantages over the U.S. when it comes to real estate investment, making it an appealing option for returning OFWs and expat investors. Here are a few reasons why:
Compared to the U.S., property prices in Cebu are significantly lower, making it easier to invest without requiring a large upfront investment. This allows investors to enter the market with more affordable options and potentially higher returns on investment.
Starter house prices in the United States and the Philippines vary significantly due to differences in the cost of living, market demand, and construction costs. Here’s a quick comparison:
United States Starter Home Price
Average Starter Home Price: In 2024, the median price for starter homes in the U.S. is approximately $243,000 (around PHP 13.8 million), according to Realtor.com.
Square Footage: Starter homes in the U.S. typically range from 1,200 to 1,800 square feet, depending on location.
Key Factors Influencing Price:
- High demand in metropolitan areas pushes prices up (e.g., San Francisco or New York City).
- Lower costs are seen in less urbanized regions or rural states.
New York:
- In New York City, a starter home (typically a small apartment or condo) in boroughs like Brooklyn or Queens can range from $400,000 to $800,000, depending on the area and amenities. In upstate New York, the prices are much more affordable, with starter homes ranging from $200,000 to $400,000.
California:
- In cities like Los Angeles or San Francisco, a starter home can easily range from $600,000 to over $1 million, especially in desirable neighborhoods. In more affordable areas like the Central Valley or Inland Empire, prices for a starter home might range from $350,000 to $500,000.
These are general price ranges, and the prices can be influenced by factors such as proximity to urban centers, the local economy, and specific property features.
Affordability Challenges: U.S. home buyers often face higher interest rates, property taxes, and closing costs, which significantly affect affordability.
Philippines: (e.g., Amoa by Aboitiz Land in Cebu)
Average Starter Home Price: A house in Amoa by Aboitiz Land costs between PHP 2.5 million to PHP 7.2 million (roughly $44,000 to $122,000).
Square Footage: These homes typically range from 93 to 158 square meters (around 1000 to 1600 square feet).
Key Factors Influencing Price:
- Prices are more affordable due to lower construction costs and land prices.
- Locations near urban centers like Cebu City tend to have higher demand and resale value.
Affordability Advantages: Flexible payment terms are available, including financing options for Overseas Filipino Workers (OFWs).
Comparison Highlights
Price Difference:
- A starter home in the U.S. is about 5-6 times more expensive than in the Philippines.
- Amoa homes are highly affordable for OFWs, especially when financed through bank loans or developers’ in-house schemes.
- In Cebu, the Amoa project stands out with its well-appointed property development, offering excellent rates for Ready-for-Occupancy (RFO) units. Townhouses start at just Php 17,900 per month, making them an attractive option for individuals and families in northern Cebu.
Target Market:
- Filipino developers like Aboitiz Land focus on making homes accessible for first-time buyers and OFWs, with community features like parks and amenities.
- U.S. starter homes cater to a wide range of buyers but often come with higher taxes and maintenance costs.
Investment Potential:
- Philippine properties, especially in growing areas like Cebu, have high appreciation potential and rental income prospects, making them attractive for OFWs.
This stark difference in affordability makes Philippine starter homes an appealing option for OFWs looking to invest in real estate while securing their family’s future.
Faster Appreciation:
Cebu’s real estate market is booming, driven by infrastructure growth, rising demand, and a thriving tourism sector. Notably, Aboitiz Land Cebu properties have seen a 309% increase in value, highlighting its strong investment potential.
In contrast, U.S. markets often face slower growth or volatility due to economic fluctuations and higher taxes. Cebu’s consistent appreciation and business opportunities make it a top choice for OFWs seeking high returns.
Why It’s More Attractive Compared to the U.S. Property Taxes
Lower Initial Costs:
In the Philippines, the VAT exemption allows buyers to save up to 12% on the purchase price of homes below PHP 3,600,000. In the U.S., buyers often face additional costs such as property taxes, closing costs, and state-specific taxes that can significantly increase the price of purchasing a home. These taxes can range from 1% to 3% of the property value annually, making the total cost of ownership higher over time.
No VAT on Residential Properties:
Unlike the U.S., where residential property transactions are subject to various state and federal taxes, including sales tax or stamp duty, the Philippines’ VAT exemption creates a more straightforward, cost-effective buying process for homes under PHP 3,600,000.
More Accessible for OFWs:
For OFWs looking to invest in their home country, this law makes it easier and more affordable to purchase property, compared to the often complex tax and regulatory environment in the U.S.
Rental Income Potential: With the growing number of tourists, expats, and digital nomads, Cebu presents excellent opportunities for generating rental income, particularly in the vacation rental market. In contrast, the U.S. market can be more competitive and expensive, with higher operational costs for rental properties.
Cebu has also become a preferred destination for South Koreans, both for education and investment. Its growing reputation as an education hub, with reputable language schools and universities, has attracted South Korean students in droves. In addition to education, Cebu’s real estate market offers strong investment potential, with relatively lower property prices compared to larger cities, making it a favorable market for long-term investment.
The combination of Cebu’s affordability, strategic location, and thriving tourism industry makes it a highly attractive option for both South Korean students and investors looking to maximize rental income in a growing, dynamic market.
Accessibility and Real Estate Properties situated in Prime Locations
Cebu’s landscape is one of its most distinct features, offering both stunning beaches and picturesque mountains. You can climb a mountain and, within just 15 minutes, be at a pristine beach, giving retirees easy access to a diverse range of outdoor activities. World-class dive spots and white sand beaches in Malapascua, Bantayan, Camotes, and Nalusuan make Cebu a tropical paradise for those who love the sea. For mountain enthusiasts, Osmeña Peak offers breathtaking views of Badian and Dalaguete, providing retirees the perfect combination of beach and mountain living.
The Balamban area, located along the Transcentral Highway, is a hidden gem for nature lovers, featuring cool mountain breezes, lush greenery, and breathtaking views. Popular spots include the scenic Tops Lookout, Sirao Garden (also known as Cebu’s Little Amsterdam), and the Busay area with its many cozy cafes and restaurants perched on the mountainside and the newly opened Asmara Foressa Bar & Restaurant in Barangay Cansomoroy.
In contrast, the U.S. offers diverse landscapes, but the distance between mountains and beaches can be vast, especially in certain states. Popular beach areas, like those in Florida or California, often come with a higher cost of living, while mountain retreats, like those in the Rockies or Pacific Northwest, are far from coastal areas. This makes it difficult to enjoy both the mountains and the beach within a short distance, as you can in Cebu.
Balamban: A Growing Hub for Investment
In recent years, Balamban and its nearby areas, like Toledo and Asturias, have seen huge growth and change. A big part of this transformation is the Aboitiz-led West Cebu Estate, which is working on a 3.3-hectare central business district within a 540-hectare economic zone in Balamban, registered with PEZA.
This growing, self-sustained area has the potential to appreciate in value as it attracts businesses and residents alike. Whether for personal residence or investment, properties in Balamban’s West Cebu Estate are positioned to provide substantial returns as the area continues to develop and expand.
Foressa Mountain Town: Eco-luxury & tranquility
If you’re looking to make an investment that offers both luxury and tranquility, the partnership between Aboitiz Land and Asmara Group in Foressa Mountain Town is the perfect opportunity. Situated in the serene heights of Balamban, this eco-luxury project promises not only a unique lifestyle but also a great potential for long-term value.
The bar and ristorante provide an exclusive dining experience, blending sophisticated design with nature’s beauty. Offering a fusion of local and Italian cuisine, expertly crafted cocktails, and a curated wine selection, this venue is the ideal place for those who seek exceptional experiences. The interior design harmonizes with the surrounding landscape, creating a truly immersive atmosphere that reflects contemporary elegance and sustainable living. Asmara Foressa Bar & Restaurant is open every Friday to Sunday, from 12:00 PM to 08:00 PM (GMT+8).
In addition to the dining experience, the Asmara Group will soon introduce a one-of-a-kind cabin experience, allowing you to further embrace the tranquility of the mountains.
Foressa Mountain Town is more than just a place to live; it’s a lifestyle. Surrounded by rolling terrains, lush forests, and tranquil water features, this development by Aboitiz Land offers a rare combination of urban sophistication and natural adventure. Located within the expanding West Cebu Economic Zone, it is perfectly positioned for growth, ensuring not just a serene living environment, but a smart investment for the future.
A Peaceful Retreat: Nestled in the serene mountains of Cansomoroy, Balamban, just 90 minutes from Cebu City via Transcentral Highway, Foressa Mountain Town offers the perfect escape from the hustle and bustle of city life.
Expansive Natural Beauty: Spanning over 250 hectares, it’s a paradise of rolling hills, lush greenery, and rivers—an ideal setting for those who cherish nature and adventure.
Tree-Lined Roads: Enjoy tranquil walks or morning jogs along tree-lined roads, providing the perfect peaceful start to your day.
Breathtaking Views: The perfect backdrop for creating special memories, with panoramic views that captivate and inspire.
Exceptional Amenities:
- Foressa Lodge: A community pavilion designed for celebrations, bringing loved ones together in a beautiful setting.
- Cycling Trails: Explore the scenic terrain by bike and experience nature from a new perspective.
- Walking & Jogging Trails: Enjoy morning or evening walks surrounded by nature’s beauty.
- Forest Reserve: A sanctuary for nature lovers to reconnect with the environment.
- Camp Site: Perfect for outdoor enthusiasts seeking adventure and tranquility.
- Lush Greenery: A stunning environment that allows you to immerse yourself in natural beauty every day.
Amoa in Compostela: A Serene Escape with Stunning Seascapes and Majestic Mountains
If you’re tired of the daily grind—juggling deadlines and dealing with traffic—imagine living somewhere that offers you a refreshing escape. Amoa is that place. Just a short distance from the hustle of the city, you’ll find yourself surrounded by nature, with lush gardens, peaceful mountain resorts, and working farms all nearby. It’s the perfect spot to unwind and reconnect with the calm of the outdoors, without ever feeling far from the comforts of home.
Ideal Location for Peace and Accessibility: Amoa is nestled in the beautiful barangays of Tamiao and Cabadiangan, Compostela, Cebu—just minutes away from Liloan and Danao. Enjoy the tranquility of nature while still being within easy reach of city life.
Amoa, an Aboitiz Land community, offers exceptional value for money with its picturesque views of both the sea and mountains, a feature rarely seen in most midmarket property developments.
Future-Proof Connectivity: The upcoming Metro Cebu Expressway will enhance your access to the region, linking Danao to Naga, making travel to and from the area even more convenient.
A Peaceful, Family-Friendly Neighborhood: Amoa offers a safe, serene environment for your family to thrive, with essential services and amenities just a short distance away.
Proximity to Top Educational Institutions: Close to the University of the Visayas Compostela and Cebu Technical University Danao, as well as renowned schools like Sacred Heart School – Ateneo de Cebu and the University of San Carlos – Talamban Campus, ensuring excellent educational options for your children.
Priveya Hills: Exclusivity meets unparalleled luxury
Aboitiz Land’s Priveya Hills is an exclusive sanctuary, crafted for the discerning few within the ultra-high-net-worth echelon.
This private enclave, a five-phase masterpiece, has been meticulously designed to offer vast, open spaces, lush greenery, and expansive residential estates that redefine luxurious living.
Each lot is generously sized, ranging from 400 to 1,000 square meters, ensuring unparalleled privacy and comfort. The community is built on a low-density design philosophy, allowing for a serene and intimate atmosphere. Phase 3 presents just 22 premium lots, located near the tranquil South Pond, offering an idyllic setting amidst the majestic mountains and breathtaking vistas.
- Prime Location: Close to prestigious schools, hospitals, and essential establishments.
- Convenient Yet Private: Nestled in a peaceful corner of Talamban, just 15-20 minutes from Cebu City’s business districts.
- Easy Access: Three entrances on two access roads ensure smooth movement for residents.
- Priveya Hills is an ultra-exclusive neighborhood with only 11 lots per hectare.
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Aboitiz: A Century of Heritage, Aboitiz Land: 30 Years of Expertise in Growing Land Value
For over 100 years, Aboitiz has been a beacon of progress in the Philippines, driven by values of integrity, innovation, and sustainability. Since its founding in 1920, Aboitiz has grown into one of the country’s most respected conglomerates, playing a pivotal role in sectors like power, banking, infrastructure, and real estate.
Aboitiz Land, the real estate arm of Aboitiz, continues this proud legacy with 30 years of proven expertise in land development. Aboitiz Land is a homegrown developer in Cebu, beginning its journey by creating master-planned communities in the Queen City of the South. It has since expanded its footprint to Batangas and Central Luzon, bringing its signature approach to master-planned developments across the country.
Known for its deep understanding of the Philippine landscape, Aboitiz Land has consistently delivered master-planned communities that not only cater to the needs of modern living but also preserve and enhance the long-term value of the land. Their commitment to creating spaces where families can grow and communities can thrive stands as a testament to their vision for a sustainable future.
As an OFW, you’ve worked hard to build a future. Now it’s time to invest in a place that reflects your success.
Discover the ideal community in Cebu that blends comfort, convenience, and value – a home where you and your loved ones can thrive for generations.
Start your journey today:
- Visit: facebook.com/AboitizLand.Inc
- Email: [email protected]
- Submit your details: https://bit.ly/aboitizlandcontactform
Let us help you find your perfect home in Cebu!
