How is the Property Purchase Process in the Philippines?

How is the Property Purchase Process in the Philippines?

The Philippines takes pride in its pristine beaches and 7,000 islands. There are many islands uninhabited and are considered to be a great alternative to unwind, rather than other favorite hotspots like Thailand and Bali.

Each island offers unique picturesque, tropical climate, beautiful flora and fauna, inviting beaches, and warm locals. Have you considered investing in a residential property near the beaches like Burot, Tali, Bamboo, Halfmoon, or Malabrigo Point?

Wondering why you should invest in a beach house? Even if it’s previously foreclosed and you bought it, a beach house brings great ROI, a delightful vacation spot, and a dependable income flow. You can rent it during the peak tourism season. Tourism is increasing every year.

However, if you are a foreigner, then the property purchasing process is hard in the Philippines. Nevertheless, you can own apartments in high-rise buildings with 60% Filipino owners. This means the house can be purchased, but not the land it was built on. Once an owner, you’ll also need to consider how to modernize your condo or house.

Ways to own land

If you are interested in buying property, then marry a Filipino citizen. If you are fortunate you can obtain land via inheritance. The maximum area you can buy for residential purposes is approx. 1 hectare of rural plot and 1,000 sq. m of urban land.

When you buy new property, look for properties constructed by reputable developers and licensed brokers. It is necessary in cases of resale. Lamudi.com.ph is a platform that helps to connect property seekers with real estate agents, developers, and private owners. It doesn’t matter if you want a condominium, beach house, or property for investment purposes. You can visit their website to check on the listings.

Buy a condo

The easiest option for foreigners is to buy a condo. You own the condo, but not the land it is built on. Other things you need to consider while buying a condo is to pay the monthly maintenance. The amount will be based on the location. You will need to share amenities like common outdoor spaces, gardens, and pools. Make sure to have a look at the property before making a purchase, in order to avoid surprises later on.

Down payment of 10% – 30% is required, but title transfer is executed only when all the units are sold. If you hold an SRRV or Special Resident Retiree’s Visa, then you get extra benefits along with buying a condo unit.

Buy a house

As foreigners are legally forbidden to own the land, they can purchase a standalone home, but you need to sign a long-term lease contract with a Filipino property-owner. The initial period is of 50 years with a renewal option of 25 years. The purchase freestanding home price depends on the location. The rates are high in the central part of the city, while outside the city rates are significantly low.

After inspecting the property you are interested in, and if you like it, there will be a need to sign a Deed of Sale. Choose a reliable estate agent because they provide crucial data about the property and transaction. Besides, they even help you get mortgage loans. You will need to pay a commission, but it is worth it.

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