Thinking of buying or selling a property in the Philippines? As far back as the Spanish-American War, Americans have had an inexplicable fascination with the Philippines. More than seven thousand islands make up this country, which is surrounded by Taiwan to the north, the Pacific Ocean to the east, Indonesia and Malaysian Borneo to the south, and the South China Sea to the west. According to the Department of Trade and Industry, the number of tourists who came here in 2018 rose by 7.7 percent to 7.1 million.
Travelers aren’t the only ones drawn to this country. There is a sizable expat population in the Philippines because of the country’s many positive attributes, including its low cost of living, enticing beaches, magnificent flora and wildlife, tropical temperature, and friendly inhabitants.
The expat-focused publication InternationalLiving.com believes that a middle-class expat couple may live comfortably in the Philippines for $1,525 per month. This figure accounts for rent, utilities, groceries, and basic medical care. Budgetary resources are mostly allocated to housing. 2 While many expats opt to rent, buying might be a better financial decision if you want to live in the nation for an extended period of time. Although foreigners are not allowed to acquire property in the Philippines, they are allowed to own private residences. You have a few choices below.
It is illegal for foreigners to acquire land in the Philippines unless done so with a local partner under a ltd company, although it is not illegal for them to own a Villa, Apartment or home.
With Filipino ownership at least 60%, foreigners can own condos in the Philippines under the Condominium Act.
If you wish to buy a house in the Philippines, you might want to negotiate a long-term lease with a landowner.
Corporations are also acceptable means of property acquisition in the Philippines, so long as Filipino people make up at least 60% of the company’s shareholders.
Where, Where, Where?
Choosing a specific region inside your host country is one of the most important aspects of relocating there. There is plenty to think about before making such a long journey. When you go overseas, do you want to be in the middle of everything or far away from it? Or, do you long for a life free of responsibility and commitment?
Cities like Quezon City, with a population of roughly three million, are great options if you want to be in the thick of things. Manila—the capital city—with around 1.8 million, is one of the most densely inhabited cities in the world. Davao City, Philippines, with a population of over 1.6 million, is an important tourist destination. 4 In these and other large urban centres, you may find all the restaurants, bars, and entertainment options you’ve come to expect, plus more. Markets are abundant, and there is easy access to medical care. Keep in mind, nevertheless, that heavy foot and vehicle traffic are inevitable results of such conveniences.
You may have grown tired of city living and be looking for a change of pace. Travelers from all over the world flock to Tagaytay every year. A milder climate thanks to its location in the mountains has made it one of the country’s summer capitals. There are plenty of things to do, including golfing and other outdoor pursuits, and the population is over 71,000. In contrast, Dumaguete is somewhat larger with a population of almost 113,000. It’s a major port city with beautiful beaces, and vice versa.
Get Yourself a Condominium
Condominiums, a kind of ownership that combines elements of many models, may be the most convenient alternative. In the case of a conventional home, you would have full ownership of both the building and the land it stands on. However, condo buyers do not really own any of the underlying property. Under the Philippine Condominium Act, foreigners are allowed to acquire condos so long as Filipinos hold at least 60% of the total number of units in the building. 3
Buying a condo in the Philippines requires careful consideration of a number of factors. You will have monthly condo fees to pay, just as you would in any other apartment or house. The pool, gardens, and other outdoor common areas may all be shared if you reside in a high-density urban area.
What you should do instead is plan ahead rather than winging it. It’s important to do a thorough on-site inspection and walkthrough of the property before making any final purchasing decisions. After all, you don’t want to be caught off guard when it comes time to make a major decision.
Invest in Real Estate
Homes and other structures are lawful for foreigners to possess, but not the land they sit on. To avoid this, one option is to purchase a detached home and then rent the land on which it sits.
A foreign citizen can lease land from a Filipino owner for up to 50 years with the option to renew for another 25 years under the Investor’s Lease Act of the Philippines.
The price, of course, will vary depending on the property. The cost increases as one draws nearer to a big metropolis. An 1,200 square foot home in a major U.S. city would cost around $249,000 at the national average price per square foot of $207.50. 7 If you’re willing to move outside of the city limits, the cost of a home of the same size drops to around $119 per square foot, or about $143,300. The national average for a fixed-rate mortgage on a 20-year loan is now at 7.1%. 8
Prior to making any purchases, you may want to consult with a local agent that specialises in helping foreign nationals. This individual can act as a guide, ensuring that you make no blunders along the way. It’s likely to cost you anything, but the service might be well worth it.
