The Philippines is known as a tropical paradise of some sort, with 7,641 islands. This country has beautiful beaches, good food, and courteous people. Its economy is slowly going up with a lot of foreign companies opening branches in major cities like Metro Manila, Makati, and Bonifacio Global City (BGC). It also has one of the best land registry systems in Southeast Asia, and it’s unlikely to have issues with the government or land office.
There are several established property developers that exist in the Philippines, such as FILINVEST, Megaworld, SMDC, and more. These real estate developers cater internationally branded residences such as Trump Tower and Westin Residences as well.
The Philippines has truly become a tourist destination, and with the cheap cost of living, it is no surprise that many foreigners are thinking of settling here.
Unfortunately, this is not as easy as it sounds as the Philippines have many rules in place, particularly for foreigners. It’s important to understand all the legal issues that could arise so that the purchasing process can run as smoothly as possible.
Hence, if you’re an ex-pat or a foreign citizen who wants to invest in real estate properties in the Philippines, this article is for you.
Here are some tips on how to invest in Philippines property as a foreigner:
Work With a Real Estate Broker
This is guaranteed as a must, especially as a foreigner. Since they have no idea how business and finance works in the Philippines, foreigners need to work with someone that does.
They also need someone who can help them find the best location while still staying cost-efficient. Having a real estate broker will give you all the options of whatever and wherever you wish.
Moreover, they will do all the work while you can just focus on choosing the property you want and how you’ll pay for it. When looking for the right real estate broker, it is essential to check their track record on closing sales and professionalism.
Consult With an Attorney
Like with a broker, an attorney is beneficial for foreigners as they are not aware of the laws in the Philippines. Buying a property won’t be that easy, especially if not a Filipino citizen.
With an attorney, you will learn how to invest in a property legally and not against the law. You will be protected at all costs, and they will help you with all your legal issues, as well as draft contracts and notarizing documents.
Research Online
This may seem obvious but it has to be said. Researching online may be the best option, especially when you’re not in the Philippines yet. With the world so technologically driven nowadays, we must take advantage of it.
Research on potential properties online and thousands of ads will pop up. You will have the chance to filter your preferred setup, and there will be images, descriptions, locations, and prices shown.
You should know the right ex-pat areas such as Makati, BGC, Ortigas, etc. These may be the options in terms of convenience, security, and many more.
You can also research possible fees and taxes, giving you an idea of how much of a budget you’ll need before signing the Contract of Sale. This will provide you with a headstart on what you want to do so once you arrive, you will just have to plan it.
Learn About the Different Payment Methods
This is vital as there are ways to make this process convenient for you in terms of finance. Whether it be getting a loan, going to the bank, or a brokerage service; there are different ways to pay for your property that matches your preferences.
Another option is to hire a certified broker to handle all your paperwork. You will learn all about mortgages, bank wiring, and many more. It is also possible to buy property as an individual or as a corporation.
In fact, the most convenient way for a foreigner to buy a property is to marry a Filipino and put the property under their name. Another common practice is through a long-term lease of the desired property.
A 50-year lease period is considered a long-term rental. After, a renewable lease agreement is set to follow. The estimate of renewable leasing could take around 50 years.
Check on the Developers or Owner of the Property
There’s no harm in double-checking, buying a property involves a lot of money, and you’d want everything to run smoothly. You’d want the people you’re negotiating with to be legitimate and professional.
Ask for an ID if you have to, you may also ask your broker to submit the registry of deeds and other documents of their ownership of the property.
Check if the Records of the Property Are Clean
This is why getting an attorney is so important; you have to make sure there are no legal entanglements with the property you are about to purchase. Things such as unpaid taxes, rent, and many more can be identified.
There are a number of ways that the bank can take down a property so you must make sure you will not be put in a bind.
Retired and Foreign Investors Must Apply for SRRV
This is a law in the Philippines for foreign nationals, who have intentions of retiring in the country. This was made possible by the Bureau of Immigration of the Republic of the Philippines.
This type of VISA can be deemed extremely powerful as it gives the VISA holder multiple-entry privileges and a right to reside permanently. It comes at a steep price of over 1,500 dollars which has to be renewed every year. However, this is the price to pay if your dream is to retire in the Philippines.
Determine Which Type of Property is Best for You
There are numerous options when it comes to knowing what type of housing you want to stay in. You have the options of a house, a condo, a villa, and many more.
You must make a decision first before consulting with your broker. This way, he or she will only show the choices of your preferred housing and destination. Condos have proven to be beneficial for foreigners as it is not hard to maintain.
They will be able to travel back and forth to their hometown and back, and they will just rent out the condo first. Condos have the option to rent or to purchase. When purchasing, the apartment must be at least 60% Filipino even to be considered. Regardless of which payment option they choose, it will still be their responsibility to pay for water, electricity, etc.
As for houses, foreigners will have the option of a long-term lease with landowners. Foreigners will also have the right to buy the house anyway, regardless if they have the rights or not.
Be Patient
This is the most important tip of all. Whether you are buying a property for yourself, it’s essential to stack up all the options possible. Don’t purchase the very first property you see even if you proclaim it as “perfect.” It is critical to evaluate everything carefully. Evaluate the neighborhood, the condition of the property, the former owner.
These are all important. Assigning the contract means there is no turning back, and you’ll be giving away a lot of cash. Consult with your broker and attorney before making a final decision; they may know some things you don’t. On the other hand, if you’re merely buying property as an investment, then it will take a lot of time.
Not everyone is on the lookout for a house or condo, so you will need to be patient. The most important thing is to stay positive and understand how investing is more of a long-term plan.
Final Thoughts
Buying property in the Philippines is definitely a good investment for yourself or others. The demand will only go up here as the country’s population is growing mixed with the resilient economy.
It is a bargain both financially and emotionally, the money you spend here is nothing compared to other countries and you have the opportunity even to have a more stable life here.
Manual labor costs very low in the Philippines, so it is ideal for retirees seeking guardians and medical attention. The country will only continue to develop as time passes by, so the time to invest is now.
However, it is vital to take note of the tips that were suggested. Do not get lazy and do your proper research before even starting looking for a property. By doing your research, you will be saving everyone’s time, including yours, from possible legal hassles and risks.
Hire a broker and an attorney so everything will run smoothly and save yourself from paperwork stress. Decide what kind of property you want so you will have an easier time. Read up on the possible payment methods for these properties and where it is located. If the location is good for ex-pats, then you have yourself a great investment. Just by doing these simple things, you would live in the Philippines in no time.