- Can a American/European purchase property in the Philippines?
A Foreigner can not own the land however Foreigners can own the House and/or any improvements on the Land and can also control the property with a “25 year Lease Agreement” with any Filipino Land Buyer. There are many other techniques but this is the simplest and most straight forward method.
- I am married to a filipina, can I own property in the Philippines?
Your wife can buy and outright “Own” the property and the land title will include the name of the spouse/husband. If you would like additional agreements pertaining to the land use in the Philippines a qualified attorney will explain and write and register those documents for you.
- I have a fixed budget, Can I buy a House/Land with Payments in the Philippines?
Yes, there are a couple of ways to buy property with Payments. Banks in the Philippines will make loans for approx. 50 to 60% of the home value but often at rates up to 12% interest and are more short term, usually made for only 5, 10 and 15 years. Many Property Developers & Builders will offer “In House” financing for land and/or new home purchases. Most require a 20% initial payment and interest rates usually increase with longer terms. “Owner Financing” can often be secured if the owner is motivated to sell, the property has been on the market for an extended period of time, and lastly if a large enough initial payment can be made which will encourage the agreement. Owner financing is usually less expensive, more flexible and without all the “Red Tape” involved with banks. We can always check with the property owner about “Owner Financing” if this is an option you would like to explore.
- What is the process to purchase property in the Philippines?
After you find a property that you want to purchase we suggest having the property surveyed and the Property Deed reviewed by an attorney. The attorney will examine the Deed for any Liens against the property, legal ownership, right of way problems, etc. After the Legal Review of the property is completed and satisfied the lawyer will have the Selling and Purchasing parties sign a Contract. The attorney will then register the signed Contract at the Register of Deeds. The transfer of purchase payments should only be done in the presence of an attorney.
- What are the most common problems with buying property in the Philippines?
One of the most common problems with buying property in the Philippines is not securing a legal Road or before purchasing the property. Buying property without a legal “Right of Way” often results in you having to buy a “Right of Way” from the adjacent landowners at inflated prices, additional legal fees not to mention the “Hassle Factor”. Another common problem is buying property in a filipino’s name and not securing a “Special Power of Attorney” agreement giving you rights to the purchased property. Buying property in a filipino’s name without first securing a proper “Special Power of Attorney” agreement basically gives you NO Legal Rights to the property.
- I was born in the Philippines but I am a U.S. citizen, can I own property in the Philippines?
Yes, if you where born in the Philippines you are legally allowed to purchase and own 1,000 square meters of land (including a house) no matter what country you currently are a citizen of.
- What is the Cost of Property Taxes?
The Bureau of Internal Revenue in the Philippines states the Annual Property Tax Rate in the Philippines at 0.75%. In practice the actual rate is usually substantially lower due to under-value property assessments. For example: a house purchased in the Philippines for $100,000 (US) dollars would cost approx. $250 dollars (or less) in annual property taxes. Real Estate: Is the Philippines a good Real Estate Investment? Yes. Many foreigners have been buying Properties in the Philippines for both Investment and as a Retirement Destination. Rental Properties offer a good source of Retirement Income while Buying & Selling has been profitable for Patient Investors. In recent years the amount of American, European & Foreign investment has grown substantially in both Business and Real Estate.
- I am looking for Beach Front Property, What is Available and How much does it Cost?
Beachfront property is generally more readily available and much cheaper the farther you go outside from the main city/town. Available Beach property is very hard to find near the City of Dumaguete. Much of the prime beach properties are already foreigner owned and this has been driving the price up and the availability down. Prices range from a low of $50/m2 to $100/m2.
- Can I buy “White Sand” Beach Property?
Yes, there are powder white sand beaches available at some of the surrounding islands. Most of the desirable beach properties are already owned by many foreigner residents. Many times it is easier and much cheaper to purchase a beach lot which already has a house especially if that house needs major repairs.
- I would like to buy a property with a view of the Ocean, Is there nice ocean view properties available?
Yes, there are many great Ocean view properties available and often very cheaply priced. Unlike beach properties, buyers have many purchase options when it comes to Ocean view properties. Ocean View and Beachfront property is generally more readily available and much cheaper the greater the distance from the main city/town.
- I would like to build a house, Is it difficult and expensive?
No, it is not difficult to have a house built but you should expect to wait 4 months to a 8 months until final completion. Construction time can be compressed if the house plan is followed without many customer changes during the construction phase. There are many good local builders that work well with American and European customers and are used to building American and European designed homes. Home construction and property costs are generally substantially cheaper (50% to 65%) than in the United States, Europe and Caribbean Islands.
- I want to live in the Philippines, should I rent or buy?
We generally advise most people to first rent/lease a home in the general area that you are interested in first before committing to purchasing a house or property. This is especially true if you are not familiar with the area. Renting allows you to get a feel for the area without making the financial commitment especially if it is your first time in a particular area.
