A few days ago, I announced the big news on my other blog: We bought a piece of land on Samal Island, which is in the Gulf of Davao. We plan to build a house there and semi-retire there in the future. Our plan is to be there 10 years from now. Why 10 years? Because our youngest child will graduate from high school at that time, and it makes it more practical to live in a somewhat remote place at that time.
I don’t like to really duplicate content between my various blogs, and that is not what I intend to do here either. But, the process of buying land and building a house has many different angles. Firstly, since I am buying land here in Mindanao, it makes it a story to put on my Mindanao Blog. However, the process of buying land, going through all the hoops and building a house is something that fits more on this blog, because a lot of you who retire here or just come here to live have an interest in doing something similar. If you are like Feyma and I, you hardly have any idea where to start!
Making a purchase of land here, and building a house is a little different (or is it a lot?) than the process in the States. It’s kind of daunting for people like us who are unaccustomed to the process. Because of the differences, I am sure that a lot of you will like following along and seeing what Feyma and I do and the results. I am nearly certain that we will make mistakes, but it is my hope that we can learn from the mistakes that we make, and also help you avoid similar mistakes when you are ready to make the plunge.
Buying land here is something that I have often said I would never do. I changed my mind, though, which is something that I hope I won’t come to regret.
Some of the reasons why I had not wanted to buy land here:
- As a foreigner, I can’t own land in my name.
- If I ever decide to go back to the States, it might be hard to sell the land.
- If there is political instability, I can just pull up stakes and leave right away if I am renting. It might be harder to do if I have a land here.
- There is an element of fear when you enter the unknown, and I certainly know little or nothing about owning land here and building a house.
Why did I change my mind?
- Although I can’t own land in my name, my wife can own it in her name. We’ve been married nearly 17 years, and I have no doubts about our relationship. I know that I can trust her to have the land in her name.
- I’ve been here for 7 years now, and I really have no desire at all to return to the States. Heck, I haven’t even gone back there for vacation or anything, nor do I have a desire to do so. My long term plans are right here in the Philippines.
- If there were to be political instability in the country, I feel it would most likely affect Manila only, and not have big ramifications in the Davao area, so I am not overly concerned about it. I do feel that such instability is possible, I just don’t think that it will touch us here.
- I have a big enough network of friends and associates who can help guide me through the process and steer me in the right direction when I am clueless!
- We found a piece of land that was too nice to pass up, and also priced right!
So, as I weighed these factors, the right move for us was to buy this land, and start moving toward making the place our home. So, hang around, and follow along. This will be a long term project, but I’ll keep you posted as we make each move.
Bob Martin is the Publisher & Editor in Chief of the Live in the Philippines Web Magazine. Bob is an Internet Entrepreneur who is based in Davao. Bob is an American who has lived permanently in Mindanao since May 2000. Here in Mindanao, Bob has resided in General Santos City, and now in Davao City. Bob is the owner of this website and many others.
G'day Bob,
My name is Ikay, an Australian citizen although I was born and raised in Cagayan de Oro city, Mindanao. My husband and myself are planning to move residence into the Philippines. We both have contemplated about buying some farm lands but after reading the information you have given in your February 28 topic, I am now doubting the feasibility of the said plan. The reason being, I only hold an Australian passport which obviously in terms of the law, would make me a foreigner in the Phlippines. This can further mean I am not entitled to own land in my country of birth. Obtaining dual citizenship is an option although it can be a lengthy process so I was told. I am now in a position where things seem unclear. Would you be able to give me some light on this matter. Thank you heaps.
Best regards,
Ikay
Bob, I was just thinking about Ikay's comment about owning land, although she is an Australian Citizen, she may re-affirm her oath of allegiance to the Republic at the Philippine Embassy in Sydney, or other consular office in other Australian Cities, it puzzles me that Ikay gave up her Filipino citizenship to acquire Australian Citizenship, I noticed recently when Gina and I acquired property, the actual contract of sale is very cleverly worded Bob, and it goes like this:-
"Maria Gina Pedres Bennett a Filipino Citizen married to Peter David Bennett de dah de dah de dah xxxxxxxx will purchase said house and lot at xxxxxxxx"
Signed xxxxxxx Purchaser – Maria Pedres Bennett
Where is Peters name ? hahahha no where to be found on said land title acquisition.
Bob is right of course, the foreign spouse's name is on contract to sell, but very cleverly hidden in the preamble of such a document, and the foreign spouse cannot even sign the document, I myself have my own views about this, I find it anti market forces and disadvantageing foreing spouses, that they themselves cannot own land jointly with their Filipino citizen wife, and yet in our countries, the Foreign spouse can own land without let or hindrance from Government.
Whilst I understand the concerns of the Philippine Congress and Senate regarding inflationary pressures caused by foreign acqusitions of land, it does seem rather absured to marginalize foreign spouses, Im sure exceptions to this rule would be fair providing the marriage is subsisting, if the marriage terminated for any reason, then one could understand, anyway thats my view, and until that day comes, we will have to live with it.
Hi Ikay – I have a couple of things to add for you. First, obtaining dual citizenship should not be a complicated process. It should be relatively quick and easy. Secondly, I can assure you that when you go to buy land, they don't ask to see your passport, so I expect that you would not have any problem making the purchase.
Hi Peter and Gina – I agree with your feelings about property ownership for foreign spouses. It's too bad, but I doubt it will change in our lifetime.
Bob,
You may have already thought of this but here is my idea.
On your blog post the hi points of your adventure into land and housing.
At the same time write a more detailed book in perhaps PDF format that you could give away or sell as an ebook when you are finished with your house.
Dan
Nice idea, Dan. I'll keep that in mind!
Hello Bob,
I wan'na relate a short story in answer to Peter's question of why I gave up my Filipino citizenship. I am actually of a Filipino-Australian blood. Born in the Philippines but left when I was 24 to work for an international company. I am presently employed as a marketing manager in one of the top end hotel chains in Australia and I get to travel to other countries quite often each year. Travelling is one of my greatest passions. I have already crisscrossed the globe quite a few times even before I landed my current job. During my first few international travels, I found out that travelling overseas on a Filipino passport has some disadvantages; being placed under scrutiny by immigration and customs officers is high in the list. I had enough of being degradingly held back most of the times as if I was some kind of criminal. This is the main reason why I stopped renewing my Filipino passport before it expired during the early part of 1993. Please don't get me wrong, I haven't stopped loving my country of birth. The beautiful experience of growing up in the Philippines remains fresh in my memory. Life in the Philippines for me was quite uncomplicated and I can't help feeling nostalgic at times. Perhaps, this is the reason why I still feel there is something missing in my life inspite of all my achievements. I realized that to exist meaningfully in this world is not about allowing myself be a slave to the wages. This led me to decide I have to get out of where I am now, and what better option is there other than moving back to the country I love the most. I began looking for information on income prospects in Philippines and I came accross with this excellent blog. So there you go… this explains everything. By the way, a million thanks for the advice Bob. I just don't want to get in trouble with authorities.
Cheers,
Ikay
Hi again, Ikay! I agree with you, it is advantageous for you to have Australian Citizenship, it gives you a lot of benefits when you travel around the world. Besides, with the new ability to have dual citizenship here in the Philippines, you have the best of both worlds!
Good luck to you!
Hi Bob,
We bought some land on Samal earlier this year and we have started building too. We live in near Cabantian Country Homes in Davao so we take the ferry when we visit. The P540 round trip adds up after several trips. Our lot is on the east side of Samal near barangay Kanaan. Madale to be exact. That place name is not on very many maps. I started building just a balay kubo and decided that was enough for now. There is no building permit needed to build a native style house. Did you know if you want to connect to electric power Daneco requires you to attend a seminar in Babak or Tagum? Our house is mostly built and we are putting in the power connection this week.
It was suggested to me to keep in close contact with the barangay officials when building anything. Ask permission first. We are also building a fence out of native materials to preclude getting a fencing permit. If you are drilling or digging a well no permit is needed for household use. We wanted to keep it simple and after living/visiting there for awhile I feel that later when we need permits they will be easier to obtain if the barangay has known us for some time.
I look forward to hearing about your experiences.
Later,
Dan
Hi Dan Vander May – Thanks for sharing your experiences! We should definitely get together and compare notes! I don't know for certain where Cabantian Country Homes is, but I'll find out. Want to have coffee or something?
Hi Bob,
Just email me at my Yahoo address and I will give you contact numbers. Looking forward to contacting you.
Cabantian Country Homes is behind Buhangin and nearer the airport.
Later,
Dan
Thanks Bob & Dan for your comments about Samal Island.
My wife bought a Lot last year there on the advice of her relatives.
But we live in Colorado so we have to trust them. Personally I prefer
higher ground but I also like Mindanao too. So your blogs give me
some clues about what is going on there. james
Hi James – thanks for visiting! I'm glad that you have been able to follow along about Mindanao and about Living in the Philippines. Maybe someday you, Dan and I will all be living at Samal and meet up from time to time!
This is a very important post. Bob Martin made a short summary when he said it is ILLEGAL for foreigners to OWN land in the Philippines. That's true, indeed.
But the law doesn't prohibit a foreigner from ENJOYING the land whose title is in the name of the spouse for as long as they want.
Hi Carlos – yep! I can't argue with that! My only concern is this… (and I don't know the answer for certain). What if a foreigner buys land in his Filipina spouse's name, then some years later the spouse dies? I know that under the inheritance laws of the Philippines, the land would be divided between the kids. What if the couple is childless? Would the foreigner be able to keep control of the land until his death?
In that case, the foreigner will be given enough time (I think two years) to sell the land and collect all the proceeds.
It's interesting, Carlos. It's too bad that is the case. If the foreigner wanted to continue to live in the Philippines, contribute to the culture here, spend money that creates employment, etc. However, due to the fact that his spouse passed away, he is no longer welcome. That is indeed something that is a problem for people like me and other foreigners who want to reside here. Of course, I hope that my wife does not pre-decease me, but it's always something to consider.
BTW we love your blogsite! Wouldn't it work best if, the Filipino/a spouse at time of purchase leases the land to foreigner spouse for x number of years as a provision in case he/she preceeds the foreginer spouse? just my thoughts…. 🙂
Hi jd – I had not thought of that idea, but it's a good one. I am going to look into that!
Hi Bob,
I spoke to a lawyer friend of mine re this issue and she said the foreign spouse can own a portion (50%) of the land thru intestate, not willed, in the event the Philippine citizen spouse passes away. However, this cannot be willed by the foreign spouse to foreign heirs.
Additionally, a Philippine-born person holding foreign citizenship can still own up to 1000 sq.m. (this could be up to 3,000 sq.m. now, she wasn't sure) of residential land in the city and up to 3 hectares of rural residential land. Hope this helps…
Hi Tina – Personally, when it is MY money that was used to buy the land, owning 50% after my wife dies is not much of a comfort. It just doesn't make much sense.
I would say that a Philippine born person can actually own any amount of property they want, all they need to do is re-claim their dual citizenship, then they would be free to own any amount, I believe.
Thanks for adding your research to the pot, though. I do appreciate it.
hi bob,
think you can inherit the land when your wife pop's up.
try to check it out.
Thanks for your words of advice, aha. I appreciate it and will look into that.
In one of the forums I asked the members if foreigners are allowed to own land in their countries. The Americans and Europeans said YES as long as the foreigner can pay for it, it's perfectly legal. 🙂 One of the respondents even mentioned that he knew of two countries where foreign ownership is prohibited. These countries are the Philippines and Thailand.
Now, I understand why foreigners are so pissed with our laws on real estate.
Hi Carlos – Exactly! I promise you there are plenty of Filipinos who are not US Citizens yet they own lots of land and properties in the States! If foreign ownership of land was allowed here a lot of investors would come in, build up the economy and such. As it is now, you really have to think twice if you even want to buy a lot to build a house!
Maybe someday it will be legal.
Hi there Bob, and Feyma,
I have been living in Cebu for over 6 years now and will have been married to a sexy, brown, warm, loving Filipina I met in Hong Kong before moving to Hong Kong. You can read about this on my Blog. How I cam to be living here and how I afforded it, at age 47 with no job?
Nice Blog, Bob, well done.
Cheers,
David & Sha-Sha
Hi David – Thanks for visiting! By the way, I moved here when I was 38. 😉
Bob,
'came across your blog when browsing the web as am currently negotiating to buy a property in Kanaan and Aundanao (have no idea how these locale looks like). Anyhow, the interest to buy/acquire a piece of property in the PI is to have a rest house in a natural setting during winter here in the US. Samal became the choice. Your blog caught my interest and here I am letting you know that the infos I gathered from your respondents are very helpful.
Keep the blog rolling/steamin' and best of luck to you and Feyma….
Hasta luego/ c u latah….E. Tee
Hi E Tee – We'll practically be neighbors! Aundanao is a very beautiful area, you should be quite happy there! It's a little remote, but nice! 😀
Bob/Feyma,
E. Tee again. Be in Davao the week of Jan. 28, 2008 with my wife. We'll be looking around (aundanao/kanaan). Reading names like Dan, David and Peter makes me more excited about Samal. Could you tell me more about Kanaan/Aundanao areas. Hopefully we could close the deal on one of these properties during this trip. How far is Kanaan from the airport and Aundanao? Need a place to stay close by to save time, your suggestion is appreciated. Make sure the coffee is brewing but don't worry, I'll give you a e-holler before I stop by. Merry Christmas to you all and a Happy New Year too. Wish for the blog's continuing success.
Peace. . . . E. Tee
Hi E. Tee – Aundanao is really a peaceful, quiet and relaxing place! I don't know that much about Kanaan, although I've passed through the area. Feyma knows plenty of land for sale in that area. If you are looking for a place, contact Feyma through her contact form on her section of the Magazine, and she will be happy to help you.
Airport to Samal is maybe 30 minutes or so, I guess. If you want to stay on Samal there are lots of resorts there, and my recommendation is for Chemas by the Sea, it is a great place.
See you soon!