Slide 6-1 ASIA/PACIFIC & INTERNATIONAL REAL ESTATE 7. A Look at the Philippines Page 129

Slide 6-2 Geography Page 130

Slide 6-3 Philippine Diaspora 12 million Overseas Filipinos (OF), Overseas Filipino Workers (OFW) Workers’ remittances $20.1 billion, 13% of GDP 2nd largest Asian-American group in U.S. California, Hawaii, Illinois, New Jersey, New York, Washington, D.C., Texas, and Florida Median household income of $78,000 Page 131

Slide 6-4 Philippine Economy Exports to: China, United States, Singapore, and Japan  Agricultural  Industrial  Mining Infrastructure impedes development outside metro areas Tourism potential Page 133

Slide 6-5 The Big Story Business Processing Centers Overtaking India English-speaking workers Service attitudes Low wages & office rents Makati City, Manila, Quezon City, Cebu City Driving office space, residential, retail development Page 133

Slide 6-6 Two Trends Seat leasing Turnkey Fully equipped call center operation base Company only needs to supply the workers Serviced offices Furnished office spaces All expenses non-rent expenses included May furnish support staff Page 134

Slide 6-7 BERDE Building for Ecologically Responsive Design Excellence Philippine Green Building Council Local green building rating system Patterned after LEED Page 135

Slide 6-8 Foreign Ownership of Real Estate Cannot own land Condos okay if no more than 40% foreign occupancy Single-family home okay but not the land Foreign natural heirs of a Filipino citizen may inherit, cannot sell to foreigner Corporations less than 40% foreign ownership may acquire land Page 135

Slide 6-9 Homeownership Influx of expatriates and retirees keeps market active government encourages return of expatriates, those with family ties Citizenship Retention and Reacquisition Act Special Resident Retiree’s Visa Page

Slide 6-10 Rental Property Luxury condos  2–3 month’s rent deposit  Rent paid in advance, post- dated checks Standard rental  2 month’s rent deposit “Customs of the place “ Page 136

Slide 6-11 Real Estate Professionals in the Philippines National licensing Challenge to develop the real estate management skills Chamber of Real Estate and Builders Association Page 137

Slide 6-12 Doing Business in the Philippines Beyond the Basics Names Initial Contact and Introductions Business Cards Negotiations and Decisions Demeanor Social Etiquette Page