Strategy for buying foreclosed property in the Philippines

You wont find the same bargains in the Philippines as Japan, at least not on the entry price, but you will get greater capital appreciation. The Philippines has its advantages and disadvantages. The advantages are:
1. Westerm legal system and language
2. Greater transparency

The difficulties are:
1. Depending on the type of property, you might need to buy in a girlfriend's name, or tie up the property so its 'effectively' yours.
2. Avoiding areas of property overhang

There are several types of property buyer in the Philippines. By far the biggest type is the expat Filipino living abroad. Rather than let his family squander all his money he invests in property and lets his family use it. He uses it when he returns. Usually he wants it close to services in Manila. Places like Tagaytay and Alabang are popular, or Baguio City in the north. On other occasions the expats are buying places in residential estates close to their home town, though it cant be too rural. Having lived overseas, they are accustomed to the convenience, services and safety, etc of the west.
Foreigners are another big buyer of property, though their taste tends to be pretty similar. Some want however a resort on the coast of Subic, Boracay or Bohol, os they are in the company of other retirees. Most of them are old men after some titilation before they die. Probably the biggest cause of death in that demographic. he he.

The implication is that these areas have a potential rental market overhang, so rental returns are likely to be thin, as developers mass-market these properties in foreign markets to Filipinos abroad. The greater opportunity is:
1. Smaller regional cities that will soon have a shopping mall
2. Areas within close proximity to regional airport, eg. Davao City
3. Areas on an proposed railway, eg. Calamba
4. Areas that are not slummy, eg. Legaspi City
5. Areas penalised by terrorism threat, eg. Cagayan de Oro City - its a deepwater port so expect greater industry here in future

Of course the problem with the Philippines is the disorganised, corrupt development, that makes a mess of the place. The lack of respect for zoning regulations also tends to depress land prices despite the strong population growth and strong economy. The fact that the government does not spend on infrastructure makes them reliant on private schemes by property developers, so its hard to benefit from any develppments after they are announced. You need to anticipate development in future.