Buying property in the Philippines

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According to a survey by Global Property Guide the Philippines ranks in 3rd place with the best yields on property - with Jakarta and Lima (Peru) in 1st and 2nd places. The average yield for a property in Manila is 10.99%. I much prefer the Philippines for lifestyle reasons and because of a number of other reasons:
1. Greater regulation means restrictions on where you build - so prospect of restricted property development looking forward
2. Strong population growth - this country is growing at 2% per annum, that's almost 2mil people a year
3. Job creation - The Philippines is the preferred business outsourcing base because Filipinos are the best diplomats. Laxed work ethic aside, they have potential for more of this 'structural' shifting of jobs from the west.
4. Remittance - A great deal of money is flowing from expats abroad to the home country, as well as BFs sending GFs money.
5. Reform - The Philippines government on balance is getting its act together. Infrastructure is being built. The country could do with some ports reform, but is otherwise on a positive path. I note that they are increasingly building infrastructure for tourism around the country.
6. China proximity - The Philippines is close to some of the biggest and fastest growing countries in the world, so some of the benefits can be expected to rub off in terms of trade and tourism. There is a new airport flight from Lauag (Ilocos Norte) to China, and expect more of these links to draw tourists. Not just China, but Korea and Japan.
7. Tourist friendly - The Philippines is without a doubt the most tourist friendly country in the world. They are very diplomatic and engaging. Great sense of life, very personable. Gradually you can expect them to get their service culture in place, and a worth ethic. Better still - you can stay in the country on a tourist visa for 18 months without even leaving. Try doing that in Indonesia.

My advice is to check out some of the rural cities - as opposed to focusing on the Manila. My picks are Naga City, Vigan City, Lucena City and Davao City. If you need more info on buying property in the Philippines, I have written a 2 volume eBook "Buying Phililppines Property" on the topic. See my bookstore for more information. Currently updating the late 2008 edition - so I'm forwarding the 2010 edition to those who purchase the 2008 edition.