It is the #1 Question of Foreigners
Can I own Land in the Philippines?
Philippine Real Estate, it is a prime topic of foreigner conversation. In this article, we will address the hottest topic out there in terms of foreigners living in the Philippines. The ownership of real estate here.
Let’s have a look at ownership of Philippine Real Estate.
In short, you cannot own land in the Philippines unless you are a natural-born Filipino Citizen. But, if you want more detail, read on, we will be covering this in detail.
Can you own a house in the Philippines?
A lot of readers write to me and ask about buying a house here in the Philippines. Be careful, though. If you are no a Filipino, you cannot own Philippine Real Estate. This is a provision in the Constitution of the Philippines. Unless you are a Philippine Citizen or a Former Philippine Citizen (already naturalized in another country) you cannot buy land here, PERIOD. A couple of points to consider on this, though. First, if your wife is a Citizen of the Philippines, she can own Philippine Real Estate here. However, it cannot ever be yours or even part yours. For example, if your wife dies, you cannot inherit the property, it will go to one of her other legal heirs (children, siblings, etc.). A second consideration… if you or your spouse are former citizens, your Philippine Real Estate ownership rights are limited to only a small parcel of land.
Do you like Condo life?
Here is another thing that you can consider. If you really want to own your home is that, as a foreigner, you can own a condominium. Condominium ownership is limited to 40% of a complex, though. In other words, if there are 10 condos in a development, only 4 can be owned by foreigners with a balance of 6 only saleable to Filipinos. So, the rules really limit foreigners from owning even condos.
One reason that I write about this is that you must be very careful about this. People here selling real estate will try to sell it to you, even though it is illegal. Then, if somebody files a complaint, you will lose everything. There are ways to monkey around with the system, but it always leaves the foreigner vulnerable. For example, dummy owners will be set up, where the foreigner puts up the money and some other name is put on the title. This is dangerous, don’t do it! If the lawyer or other people who set this up wants to, they can pull the Philippine Real Estate right out from under you. There is always a strong possibility that you will end up on the short end of the stick.
An Easy Way to buy Philippine Real Estate?
It’s pretty common knowledge. at least among the readers here of LiP (they do tend to be of well-established intelligence and awareness) that foreigners are NOT allowed to buy Philippine Real Estate (land) here in the Philippines.
This does tend to irritate many among the foreigner community, and of course, it’s easy to see why. The laws in the two countries are completely different. For example, a Filipino can come to the USA and buy any piece of property he or she desires … no issue at all.
Philippine Law
But the current law of the Philippines, the 1987 Philippine Constitution (also known as the “Cory” constitution specifically restricts any “non-natural born” Filipinos from own Philippine Real Estate (land). Foreigners can buy property in the legal form of a condominium (that is where the land under a dwelling unit or units is owned by a Philippine corporation (at least 60% Filipino owned, but the foreigner can not own the land itself.
This little fact of life has probably caused as much whining. dissent, outright anger, and schemes to defy the law itself as any three aspects of living in the Philippines, bar none.
Do you want to defy the law?
Foreigners try to openly defy the law by any number of ill-advised schemes. Most common that I have seen are:
- Dummy Corporations: That is the foreigner will pay Filipinos to set up a corporation (the foreigner can legally own up to 40% of that corporation), and the corporation will take title to the land, supposedly letting the foreigner occupy the land happily. Of course, setting up a dummy corporation in itself is a serious breach of the law and even if that little detail can be overcome, the Filipino members of the corporation still own at least 60% … and last time I checked, 60% outvotes 40% every time.
- Another really popular scheme is to get a girlfriend or other close acquaintance to secretly take the foreigner’s money and then buy the land in a regular real estate transaction, the foreigner’s name appearing nowhere in the documentation. I really shouldn’t have to say how risky and unsound this seems to me, but a lot of foreigners line up, year after year to put their money into such schemes. Not recommended.
- The last “trick” I want to mention today is an old, old scam and troublesome area of the law here … the Open Title gambit. Thousands and thousands of Filipino citizens themselves fall into variations of this film-flam themselves every year, so little wonder that many of us foreigners do as well.
Think you don’t have to follow the law of the Philippines?
I know in advance a lot of people won’t care for this article. They have this idea that they, somehow, are not going to have to subject themselves to following the laws of the Philippines and they often get really annoyed when some “upstart foreigner” reminds them that the law is the law … or in more flowery language … dura lex sed lex … my free, non-legal practitioner’s definition of that is, “The law Is Hard But It Is The Law.”
I can sum up my personal opinion of the foreigners (and Filipinos as well) who fall into the “Open Title” scams in a way my daddy would have described it.
How do you learn?
There are basically three ways men learn how to get through life:
- Some men learn by reading and studying what others have written.
- Some men learn by carefully observing and copying what experts do.
- The rest? Well, they just have to learn for themselves by pissing on the electric fence until they figure it out.
How Do “Open Title” Scams Work?
Basically, it’s quite simple. A person looking to make a fast buck notices some land .. often building lots in desirable subdivisions, prime units in retail areas and such. The scam artist then makes the representation that he or she either owns the Philippine Real Estate or is a licensed real estate agent, offering the Philippine Real Estate up for sale. Often the asking price is way lower than one would think the asking price should be … a real “steal of a deal” and who can miss out on that, eh?
Then, just as if you and the scam artist were ‘fated” to meet, you just happen to get together and then the story unfolds.
Philippine Real Estate Scenario
There’s sickness in the family, someone has to go off to college in the USA, something is happening in the owner’s life that puts the owner “over a barrel” so to speak. There he or she is a great big fat tuna, in distress, just waiting for a foreigner “sushi chef” to come along and carve out the prime “belly” cuts really cheap. A deal too good to pass up.
And then the scam artists springs the best part of the “velvet trap” scheme.
When you buy Philippine Real Estate there are a number of taxes and transfer fees that have to get paid. Often this adds up to quite a bit, can easily come up to 12%, 15% or more of the purchase price.
But Guess What?
Your new-found friend has a great solution for you. 0% tax, zero paperwork at all, the transfer can take place as early as tomorrow, or next week, or whenever you the “mark” .. I mean new owner, can produce the cash. It seems your friend already has the title in hand, and the name on the title is someone like that of his paternal grandfather, or his mother’s great-aunt Tillie or some such “voice from the past”. You see these people, being smart, “tipid” Filipinos, never bothered with all those outrageous taxes and fees and paperwork. They just passed the title, with the “sellers” information filled out and signed, and the “Buyer’s Information” left “open”.
It’s So Simple
It Almost Sounds Too Good To Be True
Ummm, maybe perhaps because it is? Let’s review this procedure for a sanity check, shall we?
- Knowing that you are trying to do something illegal, you press on anyway, because you “want To”.
- Knowing that proper recording of the title is the only true, legal possibility of proving the title over the years, you choose to ignore the facts.
- You dig deep and pony up hundreds of thousands, even millions of Pesos in cash to someone whom you don’t really know.
- Knowing that buying a forgery of a title is ridiculously easy, you chose (apparently) that the one your new friend has found for you happens to be real.
- Knowing that under the law, the way you are proceeding, with no rights or recourse under the law is the right thing to do.
- With no true legal holding in the Philippine Real Estate, you perhaps even go out and spend millions on a building project which you can never actually own.
- And then you kind of hurt yourself, contorting your shoulder to enable yourself for being so much smarter than those “sheep” who actually follow the law.
- And, especially after a few drinks, you routinely tell how you are carrying this phony title around in your pocket, not even caring (or knowing) who else knows your secret.
Ridiculous Situation?
When this is all laid out in black and white, doesn’t this look like a ridiculous position to be in? I think so. Yet I see time and time again. The same people who are way too smart to, say, buy shaky looking stock, who would never play poker for high stakes, who won’t even drive recklessly or smoke cigarettes because that’s dangerous, will reach right into their bank accounts and hand over money for “Open Titles” and even brag about how they “beat the system”.
Don’t do it, folks. Trust me, you can take my word for it. Peeing on the electric fence will sting like you can’t believe. You really don’t have to try it for yourself … unless you enjoy pain.
Philippine Real Estate Purchase? Need a Mortgage?
In my years of living in the Philippines, I had never heard much about banks giving mortgages. So, I assumed that they were quite rare. If you go to local banks they have lists of houses that have been foreclosed on for sale. Because of this, I knew some mortgages were being issued.
Can I obtain a Mortgage?
Last week, I got an e-mail. The fellow who was asking if he could obtain a mortgage to buy a house for his girlfriend. Here is what he had to say (names have been deleted to maintain privacy):
Hi Bob. My Filipina girlfriend is pregnant for me and I want to buy a house her. I work in London. However, I am not rich and but would like to buy a three/ four bedroom bedroom house. Maybe I would need my girl friend to take out a mortgage. I want the house to be situated in a nice safe neighborhood. But a neighbor for foreigners or for the rich. My main requirement is that the area is safe and clean. Can you help with prices? Is it cheaper to build? Or is there a house now that I can already pay down on. I would really appreciate your help. Thanks
Difficulty ahead?
Well, my first reaction was that finding such an arrangement would be quite difficult! Like I said earlier, I thought that mortgages were quite rare here. However, since I was not sure, I sent an e-mail to Lea. Lea is a local Real Estate agent that I use to handle inquiries that I get through my website. I contacted a Philippine real-estate expert named Lea.
I asked a Philippine Real Estate expert
Lea’s response to my e-mail kind of surprised me! It turns out that mortgages on properties indeed can be obtained. Here is what Lea had to say:
Getting a bank loan in the Philippines is very difficult. But it can be done. We just have to lengthen our patience. 🙂 The fastest approval period is 5 days. But releasing of the money takes almost a month due to paperworks. Let me explain the procedure. After submission of the documents, the bank will appraise the Philippine Real Estate for a fee of Php3,000.00. Approval is 60-70% only of the appraisal. In most cases, that’s 50% of the total selling price. Hence, you have to prepare 30-50% as downpayment. That’s how conservative the banks are.
After approval, the bank will issue a bank guarantee to the owner of the Philippine Real Estate. Then, we start transferring of the title to your name. (We will do this after paying the owner the downpayment and giving them the bank guaranty which will serve as full payment. So the owner will sign the Deed of Absolute Sale and give us the title. ) Once the transfer of title is done, (usually takes a month) we will give the new title to the bank so the bank will deposit the approved amount to the owner’s account. As you can see, it’s very complicated and the process is real slow.
I would need the following documents:
* 2 valid id’s
* marriage certificate (since you’re not married, i’m afraid that she won’t be qualified.)
* financial documents ie:
bank statement for at least 3 to 6 months
income tax return (for 3 years)
* Certificate of Employment if working
* Business Permit (if in business)
* Latest payslip (if working) at least 3 months
Now we Know!
OK, with that information, we can see what the Philippine banks are looking for with a mortgage application.
With this information in hand, I still have some questions, though. Maybe Lea will stop in and leave a comment. Here is what is on my mind:
- What if your income is from abroad? Will the bank consider that, or is it a problem because it is harder to verify?
- What about foreigners, would we qualify for a mortgage? I understand that we are mostly married to ladies from the Philippines. However, what if our wives are naturalized in our home country?
- Can you tell me what kind of interest rates banks in the Philippines are getting these days?
- Do you know how long the mortgages are for?
Philippine Real Estate Follow-up
I did get a follow-up note from Lea with some very interesting information too. She said that if you don’t qualify for a mortgage from the bank, there may be another option. In many cases, the land developer in a Subdivision will self-finance the house for you. They are often much more flexible in accepting those who are refused by the bank. There is a catch, though…. expect to pay interest rates of 14% to 18% on the balance! OUCH!
Hello Bob,
My question is that you are in Internet cafe business right? So who own your business, is it under your wife? Thank you for this website…it's full of informations
Hi Patrice – actually, no I am not in the internet cafe business. I used to be years ago, but I have not been in that business for about 5 years now. I am in a business that is US based, but I can operate from here by using the internet.
If you want to set up some kind of business that would be based here in the Philippines, yes, you would need it to be owned by your wife or some other Philippine citizen, since you would not be able to own it under Philippine law.
Glad you are enjoying the site!
Hello Bob I love all the comments here definitely learning a lot about the way it works in the Philippines concerning land ownership. The question that I do have has not been addressed and that is this if I own an American corporation here in the United States can I use that corporation to buy businesses or prerty in the Philippines and do itlegally. Just wanted to see if this was a possible avenue to take. and. I am. Am American
Hello Bob,GREAT JOB you're doing here! I'm Joe & am married to a Filipina. We've just had a beautiful baby girl this year! I've been to the Philippines five times already & love it ! We'll be going back this coming oct. or Nov.. My wife's family is in BayBay,Leyte (Beautiful country). I've tried to arrange a long term rental there,but can't seem to find anything on the Net. I'm retired & own a very nice place here in Maine(very cold right now!). I'm interested in staying the winters in the philippines & the summers here. The best of both worlds I guess. If you know of any contacts in the Leyte area,it would be a great help ! Keep up the GREAT JOB with this site(it's the most informative i've found yet!) Looking forward to hearing from you! Happy New Year & Salamat ! Joe
Hi Joe – thanks for visiting the blog and leaving your comment. I'm glad to know that you've found the site to be useful!
Regarding rental property – don't go for anything you find on the net! When people here put properties up on the net, it is usually at about three times the price that they really expect to get. Wait until you are here, then do a little looking around for something. As a matter of fact, the best thing to do would let your wife or her family do the shopping, and don't let people know that you are involved in the deal. That will deep the price down. But, always remember that the internet is the last place to look for property in the Philippines.
Thanks for the info.,Bob ! I'll take your advice & wait till I get there. After all,I do have the time. Keep up the great work! Joe
I CAN'T STOP MYSELF PRAISING U .WHO WILL REQUIRE A BOOK OR SOME GUIDE FOR SUCH A VALUALE INFORMATION.U KNOW WHAT HAVING THIS INFORMATION IS REALLY A NEW PERSPECTIVE.I FEEL SAFE AFTER BEING AWARE OF THE REALITY.QUESTION IS NOT OF RIGHT OR WRONG .ITS JUTS IS..AS IT IS..I LIKE UR ATTITUDE AND HOENSTY OF SHARING THE BEST OF THE BEST FROM UR EXPERIENCE.ALL THE BEST BOB AND UR WIFE..SPECIALLY NOW TO UR WIFE FOR EING UR STRENGTH AS INSPIRATION FROM SUCH A LONG TIME..LOVE U BOTH AS WELL AS UR LIL KIDS..THNX
Hi Bob.
A foreigner can not own a piece of land in phils. how about apartments or condos?
Hi Damian – yes, a foreigner can own a condo unit. There are, however, still laws that must be followed. One that I am aware of is that no condo building can consist of more than 40% foreign ownership. For example, if there are 10 units in the building (all of equal size), only 4 can be owned by foreigners.
Bob,
I truly appreciate your advice. I have read your blog very carefuly. If I only knew it about your website before. It took a lot of time, few visits in philippines and a lot of observation and internet research to get an idea about life in philippines and i can nothing but completely agree with you in all aspects. will come back anytime i need advice. your website is a great resource. it goes way beyond lonelyplanet.
thank you.
Hi Damian – Thank you for your compliments! I would be happy to assist you anytime, if you have some questions. Just e-mail me or leave a comment any time.
Hi Bob
Love your site, lots of great info, I clicked all your ads.
We're going to retire there in a couple of years.
My wife is a balikbayan who now holds a canadian passport.
You said we are limited to only a small parcel of land
do you know actual size limits
I was hoping to buy a hectacre
Thanks
Hi Alan – If your wife is a former citizen of the Philippines, I believe that you can indeed buy 1 hectare of rural land. If you buy land in the city, I believe that the legal limit for you would be around 250 square meters. It might be a little more than that, I don't recall exactly. But, it is far less than a hectare.
Your best bet would be for your wife to claim her dual citizenship when she returns to the Philippines. Once she has that, you can purchase as much land as you want, and she will retain her Canadian citizenship too.
Hi Bob
If my wife gets her dual citizenship we can buy as much land as we want, but then she has to pay taxes in two countries, correct?
Hi Alan – not necessarily. Does she work in Canada? If she works in Canada, she may have to pay Philippine taxes. I don't know Canadian tax law, but in the USA, the taxes that she pays in the Philippines would be deductible anyway, so while she would pay to two different countries, the amount of taxes would be the same amount.
Hi Bob,
Per info circulated by the Phil. Consulate in NY, someone holding dual citizenship (US & Phil) will pay US taxes only for income earned in the States. Only income earned in the Philippines, if any, will be paid to the Phil. gov't. I'm not sure, though, if he/she has to pay US taxes for income earned in the Philippines.
Hi Tina – Sorry, but I believe that the information that the Consulate gave is really incorrect. The United States and the Philippines are actually two of the only governments in the world that tax their citizens on worldwide earnings. For example, US Citizens are responsible to pay US Taxes on income earned in the USA, in the Philippines, or on the Moon – Anywhere! Same for the Philippines too, unfortunately.
Hi Patrick, an American Corporation cannot own property in the Philippines, only a Philippine corporation could do that. In general, a foreigner can own up to 40% of a Philippine corporation.
Hi Bob
When we retire from canada she wants to start her own small business in the philippines which she will pay taxes to the philippine government, I wondered when her canadian pension kicks in if she would have to pay tax to PI on that income? Since it's already taxed in canada, that would be twice..
Hi Alan – it would be my understanding that she would not be taxed on foreign derived income.
Hi Bob. I am a Filipina and was thinking of entering a small business with a fellow Filipino friend. I was wondering if you knew whether it's possible for a foreigner to also invest in this small business (my partner is British and currently finishing his studies in the UK though would like to move here afterwards). Incidentally, would you also know about the mechanics involved with respect to a foreigner moving to the Philippines (i.e. legal requirements, visas, etc)?
Thank you for your help!
Hi Alex – Your foreigner friend could own as much as 40% of the business, not more though. Moving here would not be an easy thing to do if he is not married to a Filipina. If he is married to a Filipina, no problems! If he is not, his best bet would be to just come on a tourist visa and renew every 2 months, then at the end of a year leave and come back. For a full run down on visas and such, just click on the category "Visas" on the right side bar, near the top of this page.
hi BOB! my boyfriend is a US ciitizen and is planning to move and live in the Phils. Does he need to file any legal papers to live here?
Hi Tin-tin. I hope you don't mind my input. I'm a Filipino-American living in the Philippines. My wife is a Filipino citizen. In the states, I'm her sponsor. That's why she's able to get her immigrant status. It works the same way in the Philippines. I received my ACR (Alien Registration Certificate) because she sponsored me. I can own properties here as long as I'm married to her. And like Bob said, I never have to worry about her leaving me and dissolving our marriage.
As far as buying properties, my suggestion is do the shopping yourself. Don't put too much confidence on real estate companies that sells property in the Philippines to U.S. citizens, from thousands of miles away. You run the risk of being disappointed. Fly over her and do the shopping yourself after you gain the legal rights to live and own property here. Till next time….
If your a foreigner and is not married to a local, you will not be able to get a bank loan from a local bank, you will need to pay cash for the Condo.
Hi tin-tin, as your boyfriend, he does not qualify for anything but a tourist visa, I'm afraid. He can come on a tourist visa and renew every 2 months, but must also leave the country once per year. If you were to marry, he could then apply for a 13(a) visa and reside her permanently.
I would fully agree with you on that, Dave.
Bob living here how can I get one of your books believe the title is 49 plus ways to do buisness I the Philippines
Hi Juergen – We serve the world! We offer it in both eBook and paperback format, and can ship it to you anywhere in the world. No problem on that.
Check it out here:
https://www.liveinthephilippines.com/product/49-ways-to-make-a-living-in-the-philippines/
No…Banks now are open to Foreigners lending money for the balance of Condominiums up to 60-70% payable in 5 years max
I have read that the one exception is that you can buy a condo. Not quite the same, but at least in your name. However, there is even a stipulation that only 40% (?) of the units can be owned by foreigners.
It is my understanding that even some of the long-time foreigners living in the Philippines choose to rent.
Hi Tom – You are exactly correct. As I said in the article, no LAND though. Condo units are a different thing. But, as you pointed out only 40% of the condo units in a development can be foreign owned too.
Hi Bob,
What do you think of these long-term leases on land. I understand that some are on the order of 25-50 years. Most folks wouldn't need more than that! 🙂
Tom
Hi Tom – I think that those long term leases can be decent. I have also heard of deals where they were really against the interests of the foreigner. So, I guess, it just depends on the agreement and how it is written.
Last year, my ex-navy buddy that lives in Angeles City was going to buy land in Subic and he told me that there was paperwork being drawn up that would give him a 40 year lease on the land. He was going to purchase the land in his girl-friends name and lease it back from her. There were several other ex-pats who purchased land and built homes in the same area using the lease, so he felt comfortable with the lease language.
Ultimately, the deal fell through because the bank decided to up the price at the last minute, even after my friend had agreed to buy the land at the advertised price.
I just read yesterday that one problem with a lease is that you cannot lease from your wife. So, if Gary ends up marrying his girlfriend, doesn't that present a problem. I can't imagine what they would do in a situation where it was legal (not married) and then illegal (after marriage).
At least that was my take on my reading.
Hate to post so much on one topic, but something popped into my mind as to why Bob should/could buy real estate with this wife and why many expats should not. Bob has a long-term marriage with this person. He has built up the amount of trust necessary.
I have exchanged emails and talked with so many folks who are willing to buy real estate with a girlfriend or with a brand-new wife. The mind boggles. Yes, you want to trust the person, but trust builds over time. This is particularly true with a girlfriend. You have no legal connection to this person.
Hi Bob
It is true that a former citizen can own a small amount of land. However any former citzen, now naturalised in another country, can apply to their local Philippine Embassy and become a dual citizen of The Philipines again. My wife is about to do this, she then will have all the rights, including possesion of land, as any other Filipino citizen. You are right in what you say though, never trust a short term partner with the title to land, you will lose it!
Keep up the good work
Malcolm
Very true, Malcolm. Even though the cost of the land is significantly less than most areas, it still represents a real investment of your resources and, in some cases, a sizeable chunk of your retirement.
Tread cautiously!
Hi,
I think there is a way to purchose a house land in the Philippines after all. I was talking to an australian fellow who told me he did just that. What he did was very simple. His girlfriend parents bought the property on their name and at the same time he draw a mortage document with a solicitor that prevents the parents to sell the land unless they pay back the mortage money. The mortage money and the interest on it grows faster then the value of the land, so there is no incentive to sell. He told me he did plant few fruit trees and have chooks, and has another girlfriend now too. If he wants to sell it he will pay the parents of his former girlfriend some commission.
Philip:
Not sure about the RP, but a fair number of countries have laws against foreign companies or other foreign interests writing mortgages. Some do it for reasons of protecting local lending and lenders, while others due to title issues.
The only recourse for non-payment of a mortgage is foreclosure – which results in the land title being transferred into the the name of the foreign company or interest. Of course foreign companies or interests may not own land in the RP, so that presents a problem.
I’m not saying the mortgage route is or is no legal in the RP, I’m not qualified to speak to that, it just sounds extremely suspect.
Hi Bob and all,
Glad I met you again yesterday via email, it's been many years since we chatted. Came over to chekc out your blog an "bang", there's the very same question that was numbe rone six or seven years ago when we used to hang out in the same Yahoo! group. Let me say this. I'm not a lawyer … US or Philippines. But I have read the law … more folks should do this, unlike the US law you can find the applicable sections of Philippine law on line and they are often fairly simple reading. The basic tenet all those tempted by schemes and drams should keep in mind is that the current Philippine Constitution (1987) says foreigners may not own land. So any plan or "work around" dreamed up by some opportunist is going to eventually run up against constitutional reality.
Unlike the US, contracts (a lease is a contract) between husband and wife are not enforceable. Under the Philipine Family Code a husband and wife are not separate legal "persons" … they can not contract with each other outside the marriage settlement (contract).
@ Philip: The scheme you described is not ptoperty ownership .. it's mortgage banking. The property belongs to his in-laws. He holds a mortgage on it. To own the property he would have to foreclose on the mortgage and then "bang"! Up jumps the constitution again. The court can not transfer the property to him becuase it is against the constitution.
There are many great advantages to living here in the Philippines. Owning land, however, is just not one of them.
Hi Guys! Wow, this is generating some quick comments!
Gary – unfortunately, any kind of lease or any other kind of contract between a husband and wife would be unenforceable in the Philippines, so that would not work, regardless of the purchase price.
Tom – I believe your thoughts about being in a long term trusting relationship are very wise.
Hi Malcolm – Your statement is totally accurate regarding your wife obtaining dual citizenship. I have written about this many times here on this blog. It still doesn't solve the problem of you putting up your money and having no ownership, though. If you are in a long term relationship, though, like I am, this is still a good solution.
Tom – In many instances, land here is much more expensive than land in the USA! If you are buying out in the boonies somewhere, you are correct, though, it's quite cheap.
Philip – I don't think that is a good solution. Everything would be unenforceable in Philippine courts. If it went to court, the court would say that he can't legally own the land and throw the whole thing out. Your friend would be left with nothing. Of course, if it doesn't go down that track, it can work, but it's too "iffy" for me.
Hi Dave – Nice to have you aboard! It's good to be in touch again. Maybe we can hook up someday since we are both living here now.
Hi Bob and the rest of the guys who are interested in this thread, I recently completed a house building project with my Filipino citizen wife, when I spoke to the developing company, as Bob has emphatically made clear, foreigners may not own land, however, as in Bobs case where he has a clear trust situation with his wife, it is the only real way for a foreigner to make a purchase of a house and lot, or lot independantly, however, the Filipino authorities are very aware that the funds to build properties and purchase lots comes generally from the foreigner husband, in fact it appears to me, they try and ensure that the husbands name is on the contract for work, I noticed on our own contract of sale that it says the following : xxxxx A Filipino citizen married to xxxx a British Citizen will agree to blah blah blah, at the end of the contract it shows the final purchaser as xxxxx Filipino citizen for Lot no xxxx.
Bob is right, trust of your filipino spouse or girlfriend is a very important factor in using your own funds to purchase a house and lot, as if it all goes sour, you have no rights whatsoever, you would loose everything, its no point in trying to enforce anything in a Filipino court, FOREIGNERS CANNOT OWN LAND.
Quite interesting, Bill.. I had never thought about that before.
I am also in a long-term, trusting marriage. But what happens in a situation where the home owner, my wife, passes away first?
In other words, what will happen to me, concerning the house?
Hi Peter – Right on!
Hi Bill – Now, that presents a problem! It's a problem that Feyma and I have talked a lot about. I expect that I will pass before she does, but you never know, do you? If you and your wife have kids, the land will pass to them. If you don't have kids, I have been told that you will be given some time to sell the property. Another thing that could happen is that your wife could will the property to a sister or brother or another family member, and hope that they let you stay. I wonder myself, would it be possible to put together some kind of lease in advance that would read something like "In the event of Maria's death, the property is willed to Sarah. Upon Sarah's inheritance of the property, the property will be used by Bill until such time as he dies." I have no idea of the legality on that one, but it might be something to look into.
Hi Bob, I hate to be the materialistic weasel of the bunch, but are you advocating that my wife should get pregnant at the earliest opportunity, because if so, we need to move on this, time is of the essence if you know what I mean, I was under the impression, that in Bills situation as in mine at the moment, the husband is given time to dispose of the asset, however if the Filipino wife makes a will in favour of a close living relative to own title but not to occupy, providing that is done by affidavit I dont see why that cannot be a legal instrument in such cases as Bills and mine.
I am sure this is a matter my wife and I will take up with our attorney during our next visit to the Philippines this year, hopefully unless anyone comes up with a legal intepretation of the law, I might have one to offer in about 3 months time.
Hi Peter – keep us posted! In the meantime, at least you can get in some practice toward the pregnancy, just in case! 😉
Hi Bob,
I agree with you wholeheartedly. The value in learning where and what you like and don't is worth ten times the amount of rent paid. I used to work for a real estate development company which transferred a vice president from Cleveland to our Phoenix office. He was the consummate real estate professional. Yet instead of buying or building a house, he and his wife rented for the first year or two that they were in Phoenix so they could really get a feel for where exactly in the metro area would be best for them, as well as the architectural style and features that would work for them.
I expect that someone will challenge your financial analysis with the counterpoint that if you purchase a house you get the gains from the appreciation in value of the real estate. To that I say, yes, but much of that gain is offset by maintenance and repair costs, and it still is not worth it if you prematurely design your house without features you don't yet know you want, or if you place your house in an area that turns out not to be the best spot for you.
Hi Kevin K. – Only problem on the "appreciation" argument is that if you build the kind of home that most ex-pats on this list would be looking for, it really doesn't appreciate in value! Maybe over a LONG period of time it might, but slower than the inflation rate (which means it loses value). Several people (especially Louis) have mentioned on the comments on this blog that an existing house of the same quality and size can be purchased for way less than the cost of building the house. Fact is, that when you get to a certain price point, it is very hard to find a buyer for that house here in the Philippines. You end up having to dump it for whatever you can get. Because of that, I do not believe that the "appreciation" argument holds water.
Good thoughts, Bob. This mainia for buying … and thinking of a house as an investment … is not always what it is cracked up to be. Just look at the current foreclosure rates in the US and the number of houses for sale in the Philippines that have bene on the market for years.
When you find a place you _know_ you want to live, fine, then buy when you are sure you know what you are doing … but the Philippine real estate market is _not_ the US real esate market an dno matter how clever you think you are when you arrive, you'll just be another babe in the woods like the rest of us newbies 😉
Hi Dave Starr – Thanks for your comment. So far, I have been quite happy with renting, but I admit that I do look forward to custom building "just what I want" on our land in Samal! The thing is, though, I've paid the dues, learned through my experiences and I feel that I am finally at the point where I can build or buy a house with my eyes open and not make a mistake. Well, maybe not a big mistake anyway! 😆
I decided to buy because I found an excellent deal on a house in a nice subdiv. I've said it before, I'll say it again… houses don't appreciate in value over here, land does. The amount of wear and tear a house goes through in the tropical environment over here makes certain that there are no old houses over here. A shame really, I grew up in a house built by the Hopkins family (Johns Hopkins Hospital) in 1840. You don't see that over here. I certainly suggest going with the rental before settling down. I might have bought the townhome I live in now, but it's pretty much falling apart and the landlord refuses to work on it. You just have to look at the pros and cons:
Home Ownership –
Pros:
-You own your home and your wife owns the land
-possible Value appreciation on the land
-Ability to expand the house if you have enough land
-No rental costs
-maintenace and land taxes are much cheaper here
Cons:
-Not easily sold unless in prime condition and in a good subdiv
-Maintenance, major repairs (The roof isn't going to last forever)
-You as the foreigner don't actually own the land
-House depreciates over time (Can't think of the house as an ATM anymore)
-Home loans carry higher interest rates
Renting:
Pros:
-You don't have to pay for maintenance
-You can move when your contract it up
-You can try out several areas before settling down
-You can rent fully furnished houses
Cons:
-If you move out before your contract is over you forfeit your sec. deposit
-Landlords who don't want to do improvements on their rental properties
-If the Peso get's stronger your rent goes up in relative value of your home currency
Hi Bob,
I read your article with great interest. As you know, I recently moved to San Diego, purchasing a condo. I am also in the process of selling my house near Fresno.
I agree with you about renting first and familiarizing yourself with the area. That was our original plan as well.
We narrowed down our list of cities to move to based on weather, likability and our finances. The two cities were Austin, tx and San Diego. In the end, I could not fathom living so far away from the beach (its ingrained in me). The weather and cultural climate was just perfect as well.
Next, we decided that like you, the best way was to rent and know the city first. But the current real estate climate offered many good deals. We did our research (both buying and renting) and the place we bought was just perfect for us in every way. Sometimes, a little luck is good to have.
Now buying while just moving into a different country. There's so much risk involved. My advantage was that I've been in the US for a decade now (having rented and owned all over California) and I was somewhat familiar with SD and California from past visits. If we had decided on Austin, I would have rented first, no doubt about that. And that's just a state!
Hi Bob,
Speaking of custom building, I know concrete is the way to go, have you seen the Dac Art system of building with concrete? In this system the concrete gets colored when you mix it, and then it is poured into foam molds. The foam molds can be customized to any shape. The advantages are, several. Because the concrete itself is colored you never have to paint, even if something chips off a bit. Secondly, you end up with kind of like Lego blocks that you just drop into place. This means you don't need workers with extra high skill levels in order to achieve extremely high quality work. Third, you can build in the rain. Fourth you can achieve a look that I think is very, very nice. Here's the link: http://www.scrapbookscrapbook.com/DAC-ART/dac-art…
That web page (as you scroll down) shows what the building method looks like. Near the top of the page are links showing the individual steps a husband/wife team did in building their house with this system. The reason I am sending this link is they do some pretty amazing things with their concrete floors for their front porch that would cost a fortune in labor costs in the states. Since you are in a low-labor cost place you could do something similiar without spending a fortune.
Hi Bob,
The comment I made a few minutes ago that probably got kicked out to "moderator needed" because it had a web site link. In the comment I mentioned that you might want to look at how they did their porch floor. Just in case you don't spot the link right away, here's a little more direction. In the boxed in section near the top that is entitled, "See our Dav Art Construction Journal" near the bottom of that section is a link entitled "concrete acid stain floors". This made me think of the Philippines because of the artistic talent that is available there, and the creativity employed by this guy. He used Rice Krispies cereal to make his floor non-slippery! The cereal dissolved, but the impressions it left in the concrete achieved the effect he was after.
Hi Kevin K. – Hmm… rice crispies! After they have the desired effect on the floor, can you eat them? 🙂
Thanks for the tips!
Hi Macky – I agree with your decision. You've been in the States long enough to know what you are looking for.
Hi Bob,
You're a very smart businessman, that I know. Don't know if you've read Robert Kiyosaki's "Rich Dad, Poor Dad". In that book, he mentions that owning a home is a liability, because it is not an income-generator but rather an expense-generator. Unfortunately, the appreciation of real estate in the Philippines is nothing compared to the States, especially in the metropolitan areas, where property values have quadrupled in the last 10 years. Buy or build a house in the Philippines because you want to live in it for a long time, not because you're looking to invest. So, it has to be in a location that you know you'll be happy with. Like they say in real estate – location, location, location. I know that you and Feyma found the perfect location on Samal. How many more years till the house warming, Bob? 😀
Hi Bob yes speak good for me your advice help to me very much
many thanks before I thinking I fix one house in philippines and after if I read your blog I change plan I am thinking it's better I will rent house in philippines. But you tell me only 5%
if you take it's too little gain I am thinking 30% or 40%
it's good gain.
Bob,
One thing I forgot to ask amidst the rambling was how you and Feyma feel about having your ex-landlord as neighbors again. I know you guys were not in good terms and it would bother me to have some sort of tension just next door. I normally would not revisit the hassle of living close to someone I have a problem with. Just curious.
Hi Macky – Actually, it is no problem. You see, the house is actually managed by the son of the owner, and he is in Manila. He is the one that gave us a hard time when we lived there. The person who is local is the daughter of the owner, and she was actually kind of on our side when all that happened, but her brother was in control. There were some minor hard feelings with the sister, but that has all been ironed out and we are on good terms with each other. The house itself is still sitting vacant at this time, so it remains pretty peaceful!
Hi Zois – Yes, when I said 5% return on the investment of the money that would be used to buy a house, I was being VERY conservative. I don't know about 30 to 40%, but certainly 10 to 15% has been possible in recent years.
Hi Tina – Can't say for certain when the house warming will be….. gotta keep earning some money before I can see our plan come to fruition! Don't worry, you and Ken will be invited, though.
Hi Bob- Your advice is sound and I would encourage anyone who does not know so much about living in the Philippines to adhear to it. In our case we wanted to stay in an area that has no rental properties of a decent standard available. Already owning the land it was relatively inexpensive for us to build on our lot if you compare what you would get for the same money in the UK. We never built to make a profit but rather to enjoy our retirement in a place of our choosing in a property of a simple design and therefore easy to maintain. Whatever happens to it when we are gone is not an issue as either our children will use it as a vacation house or rent it out or sell it on as the land will be worth more than the property in time.
I would not like to be elderly and renting a property and have to leave it for whatever reason and move to another to start all over again. I think this type of life style maybe OK when you are younger but not when you get on in years.
Hi Jim – I understand what you are saying. Your situation and mine are different, so our solutions would be different too. That being said, you already have a long history of visiting Talakag, and you know the place. You have done the research, and are ready to build the house! No problems there!
Hi Bob,
Hmmm, an interesting article.
We thought about renting, hard and long, but then decided to buy. Why?
well the price was good, the area is good, " being about 30-40 kilometers from Manila ", it has decent weather, so floods are rare, and it is fairly well protected from typhoons, the area is well known for its resorts, and not to put too fine a point on it, I wanted Myrna to OWN something there.
It is costing us very little, and there is already the foundations for, I believe, a 100 sq mtr house, " to be confirmed ".
Whilst it is costing very little, it does offer us more, by way of, giving us something to call our own, and giving us a firm base. Our circumstances dictate that we have a kind of a bolt hole, to return to.
Of course, as per usual, we have a contingency plan in place, so that, if we find it isnt the " perfect place " for us, we can then rent a place, leaving the farm lot to be run by one of Myrna's brothers, and be used, by us, whenever we want a break.
With relation to your estimate of the interest which you can get there,
I too, " when making my calculations ", used 5% as my guide, knowing that I could get 9% just about anywhere, and maybe as high as 20% with certain banks.
£100,000 @ 92 peso to the pound = 9,200,000 pesos, 9,200,000 X 9% =828,000 pesos a year, more than enough to cover our expenses.
Added to this, the finances which we would leave behind in the UK, which would earn approximateley 5%, and as you can see, we should be ok, I emphasize, should be!
In the end though, it is up to the person I think, everyones circumstances are different, all I will say is, be careful, make a contingency plan, and watch the pennies.
Ian
Hi Bob yes you speak exactly for investment I forget to explain
you for store for foods. I have one asia market (store) for
asia foods in greece in athens I have foods from philippines
thailand from china from indonesia from malesia from brasil mexiko
colombia santo domingo etc. I have this store 10 years about
but I close last year 2006 because because I pay to much tax
for greek government and also come one big supermarket open
nearly of me slow slow take my customer. If have gain 40% it's
good for me but after I make gain 20% I can't keep this store
and I close the store.
Hi Bob, I know we have discussed this very subject before, and you know my position, actually Bob your advice is sound and is the best way for most people, there will be situations where perhaps we cannot always agree on this, I had a number of reasons, suprisingly Ian has kind of taken the words out of my mouth on this one, oh though perhaps not intentionally.
I am the same, you might find this a bit morbid, but I wanted Gina to own something just like Myrna from Ian, to be honest Bob, I thought if I fall off the perch, or kick the bucket, guys my age and build drop dead every day, (stop LOL you lot, I kow what youre thinking). then at least My widow would have something from me, we bought the land fairly reasonably priced, about 250 square metres.
I remember telling you once before that the price of land actually seems to be rising faster than I had first thought, our circumstances see to be similar to Ian and Myrna's in that we kind of wanted a back up home for the future, actually at the moment Bob as you well know the house is tantamount to a holiday home.
I have no problems with investing alot of my life savings in this project, I cant see my wife and I ending our marriage similar to the British-Filipino couple you mention, my comments are like this "Silly Boy" if he cannot keep his flirtatious ways repressed.
And its a word of warning for any other couple who do buy real estate in the Philippines, as its conjugal property it would become difficult to dispose of if one person wants to retain it, secondly, as many of you have pointed out, real estate does not appreciate the same as it does paticularly in our country the UK, where property is the very cornerstone of our economy demand outstrips supply, hence high appreciation, as Ian says, everyones circumstances are different, but Bobs advice is as always sensible and renting is the preferred method.
Hello Bob, if you've continued staying at Woodridge, we could have been neighbors, and will get a chance (in future) to pass by at your house for dinner more often :lol:. Anyway, absolute agree with your advices on renting first especially if its d same case as yours. Goodluck on your Mansion at the Samal Island!
Bob – What are your thoughts regarding the prices of building materials? The asawa fears the rise in those prices, and wants to start building as soon as our feet touch ground later this year. We have the land (yes, it's in my name, too, as spouse! 😀 ) but I sort of want to look around for another bit of land that may be better suited for our "retirement bungalow"!
Of course, the asawa will rule regardless of any info received here, but I need to guage whether I'll need to add more time to the pre-retiring employment phase of my life! 😆
Hi Paul – I am not the type to go for the "we gotta do it now, because prices are going up" talk. Generally speaking, when it comes to inflation, not only do prices rise, but wages do too, so in real terms, the cost to you is generally about the same. I'm like you, I like to take time to look around and make sure that I'm laying bricks in the right place!
Hi marygrace – oh, it won't be a mansion! But, it will be home, and that's what counts! 🙂
Hi Pete – I understand your thinking, and wish you good luck on the house! I'm sure you'll enjoy it.
Hi Zois – Sorry to hear that your store was not making the profits that you needed and hoped for! I'm sure you'll find the right formula for success!
Hello Bob, got up early today and catching up this LiP blog before leaving to office. Good luck to you & Feyma. Have a nice day to all of you!
Hi marygrace – I hope that you also have a great day! Don't work too hard at the office!
Hi everyone,
Bob, whilst I agree with Pete, ( I have replied to your post Pete), and am sure we have both done the right thing, (for our wives, who we love dearly ), I must admit, the renting thing came a close second with us. We were actually in negotiations with someone, to rent their house, when Myrna saw the farm lot, she absolutely fell in love with it….hahahaha.
However, as usual, your advice is based on your, and Feyma's experiences, and is good advice for anyone contemplating moving to the Philippines. It is always worth while, to just sit back for a while, ( in rented accomodation ), before making the decision to rent, or buy.
Ian
Hi Ian – I understand your situation. I wish you nothing but the best! 🙂
Bob,
Have you considered building your house in stages ? Start with something small (suitable for a weekender) so that if you decide to sell you won't be stuck with an over-developed mansion.
If you're happy with your location then you build stage 2 i.e. extension outwards or upwards.
The original plan would provide for the future extensions required in stage 2 in order to minimise cost.
Hi Laurence – Yes, we do plan to follow that strategy to an extent. It fits in with our strategy of making sure we like the place, and also makes it easy on your budget too!
Bob
Yesterday and today has been a good summary and scenario of how things have gone and they have worked for you and your family and are a good blueprint to follow. Some good advice and some interesting topics about the practicalities and the economics, some points i have not thought of before like rents v's investment income and like Louis emphasised the differential between investment land and investment in property, all very interesting.
I have not followed your advice (i may well have done if i had read your blog first) and have bought a place in bangkal central park, it is not as convenient as your place but we like it and think we will be happy there, we certainly hope so. And i don't have really a plan B or C, but anyway at the moment i am happy with our plans, you have made me think, but there again we have made our decision lets hope we are right.
We also considered Samal as our location and i have been there quite a few times, mainly to the resorts, and a few years ago went on an exploratory trip of the island to see if i would like to buy / build there. It is as beautiful place but it wasn't for me. Don't get me wrong, for the right situation, as you have deeply considered it, it would be perfect but for me was a bit too cut off and inconvenient to get to and from the city and not enough facilities for me. However it is a dream location and very beautiful, hope it goes well for you and like you say you have a plan B, which i am sure you wouldn't have any trouble renting out, certainly not with your contacts but i hope and am sure because you have thought about it so closely it will work for you. We will though this blog, find out, you may be fed up of us all by then Bob. Cheers………………
Hi Rick – I used to have an office in Central Park (actually I rented a house there and used it as an office). I like the area a lot, it's clean and nice. Only drawback for me, as you say, it is not as convenient to the City. But, I am sure you will be quite happy there. We'll practically be neighbors! 😆
Bob
I would like to meet you when we settle there next year but you are so busy with your family and your business, sure you could manage time for a coffee and it would be good to meet in person. You have helped me a lot, some of the topics here i know some or parts of what is discussed but then to get some other commenters experience and to look at things from all sides, well the information has been invaluable. thanks again
Hi Rick – Oh, I have time (well, sometimes I do!) to meet you! I'm looking forward to it.
I moved to the PI in 1988 and built a 5 bedroom house in Leyte. Over the years everyone but us moved out. So we moved a first cousin in it and went to Cebu and rented. I completely agree with you on renting, I have simplified our life and we can move anywhere we want too.
Hi Dick – Wow, you've been a long term resident here, almost 20 years! Congratulations on making it for the long run! I do believe that in *almost* every situation, renting first makes sense.
Hi Bob
I first visited the Philippines in 1990 just before getting married. My wife Connie brought me to see her place in Misamis Occidental, she also hadn't visited there for years as we were both working overseas. The minute I saw it I loved it. What was it??
Just a big overgrown field with nothing but some coconut trees in it.
I said yep this is for me and we built and have been happy there ever since, but there's a massive difference between then and now, she has grown fruit trees and done a whole lot more there, I still love it.
Hi Jack – The place sounds wonderful! Like you, my first visit to the Philippines was in 1990. Maybe we traveled on the same airplane! 😉
That's cool Bob, both of us Irish (ok decended but still Irish), both our first visits to Phillipines was at the same time. One comes East and one come West. I like it.
Ah so it's the Marco Polo you swim at, I kinda figured because I have gone past your subdiv a few times and know the Marco Polo is not far.
Hi Louis – I usually swim at Marco Polo, but occasionally at other places like Holiday Health Club, Apo View and even Insular Hotel sometimes. Mostly Marco though. 🙂
I have been reading this particular thread with interest as I've been approached many times to *invest* in Philippine real estate (Metro Manila area). The idea is that even if I decide not to live in the Philippines I could use it as a holiday home or rent it out to vacationing balikbayans or rent out long-term to expats.
As I'm not too savvy with the situation there, I've held off. Some of my cousins though have succumbed to the pitch and have bought in an Eastwood project still in development. I'm not following anytime soon because it's just not a market I'm familiar with. For one, I *hear* that the development takes 5 years to complete but the payments will already start. (My question, does it really take that lonnnggg?? I guess I'm used to US pace where sometimes in weeks I'll see a building go up and completed in no time…). Another unique concept (unique to me at least) is as I was told, the buyer/owner is responsible for the interior layout?? I have difficulty assimilating this idea into my brains. I don't know if I'm not understanding it well or my cousin is not explaining it well. All the more it makes real estate investment in RP scary to me. Of course, I can probably call directly and ask for a sales agent but I'd rather not be pressured by a direct sales pitch at this time.
It could be that my cousin got it all wrong (in explaining). But he's bought a unit as he plans to rent it out to vacationeers and hopefully retire in it in the future. Meanwhile, he's got plenty of time to mull over his intentions, if the development phase alone takes 5 years. 🙄
Has anyone here look into any of the Eastwood development in MM? Would love/appreciate to hear some direct feedback
Thanks much.
-Angie
Yeah the insular is where I usually go, although I'm spoiled now. The Waterfront hotel in Cebu has a much nicer pool.
Hi Angie,
I dont know if its the same Eastwood, but we looked at buying a place in " Eastwood Residences ", and i think, if im not mistaken, that we found it through a website called bahay.ph.
Im trying to remember what it was about the place that turned us off it. It could have been one of 3 things, it may have been prone to flooding, or the building practices might not have been to a high standard, or it could have been its position, Im sorry, I just cant remember……..:oops:
Anyhow, if you take a look at the site, Im sure you will find something.
Ian
It's Eastwood Parkview, a highrise condo in Metro Manila. Construction is still ongoing. That's where my cousins bought theirs. I think it's close to Greenhills. Is that the same Eastwood that you looked at? Are there other Eastwoods? (I have no idea if there are, so pardon this innocent question.)
I haven't seen the pool at Waterfront in Cebu. Is it nicer than Marco Polo?
Hi Angie,
Nope, sorry, I dont think it is the same place.
If you can wait a little while, I will ask Myrna though, she is into condo's and may have looked at it, ok?
Ian
Hi Angie,
The place we looked at is in Quezon City, is it the same place? I dont really remember it, though Myrna does, apparently, it all boiled down to price and size, " we couldnt get it cheap enough, or of a size for the 3 of us. We have looked at real estate for about 3 years now, trying to find " a perfect place ", but I am afraid condo's arent for us.
It seems that this farm lot is as close as we are going to get……..:grin:
Ian
Ian,
That might be it. Apparently, Eastwood has several projects completed and it seems more are in construction. They're all called Eastwood something…
So I think we are talking of the same Eastwood. Yes, from what I understand, it's apparently pretty upscale. I got some promo materials my cousin brought me when he got back (just a couple of months ago). I think it's the Parkview project that he bought into.
Thanks Ian. Hi to Myrna, James.
Hi Angie,
we usually have some materials, either printouts, or brochures, but not in this case, sorry…..:sad:
Myrna and James say Hi back……..:lol:
Ian
Hi pete, I have replied to your post on semi retirement, there are some things there for you, and anyone who wants to read them.
Ian
Hi Angie:
On #32. Are you only interested in MM area ? How about Mindanao like Cagayan de Oro, Davao or Bukidnon ? Ayala Devpt had a recent groundbreaking for it's high-end subdivision in CDO. If you want a developed area, there's Xavier estates and Pueblo de Oro. I'm sure you will love Mindanao. Just a thought…
Helloy Guys!
I am 56 and an insurance executive. I would like just to mention that I like this site.
Regards:lol:
Hi Eddie – I'm glad that you are enjoying our site! Keep visiting, and participate in the conversation!
Hi Bob and Feyma. I am considering a move to Samal Island. We have a great lot overlooking the city. I have acouple of questions hopefully you can hep me with. 1. The property is mostly hard rock.coral limestone and is it possible to build on this a pool and house. 2. I would like to join both a gym and golf club. do you have any recommendations and are these relatively easy to get to from the island. 3. How is the diving and fishing off of Samal and is the water clean. 4. roughly how much per sqm to build a qulity finished house. thanks
Hi Corey – It should be quite possible to build a nice house and pool on that property. The limestone will make for a good foundation, I think. I know of no gym or golf club on Samal, so you would have to come to the City for that. Diving and Fishing off Samal are great! Sorry, I can't help on your last question – too many variables.
Is it the Marco Polo where you are paying $155.00 for annual membership. If not then what Gym is it and would gym would you reccomend that is modern and has a pool, free weights, circuit machines, sauna, steam, etc…. nice showers, locker room, thanks again
Hi Corey – Yes, I have a membership at Marco Polo.
Hello, great thread. I hope I can help a few people out here and I will give links to the Philippine Law. 1. a foriegn can not own land (real property) one exception If the wife dies the Foriegner husband will inherit the land, he can own it but can only sell it to a Filipino National. (so you do not need to worry if your wife dies.) Your children can Inherit the land from you when you die. You are allowed a 25 year lease with the option of a 25 year extention. http://www.lawphil.net/statutes/presdecs/pd1974/p… Here is the link to the law pertaining to leasing land for residential use.
Unless you plan to buy over 5,000,000peso woth of property for comercial use the 60/40% ownership rules do not apply to any one buying land for personal use. http://www.jftc.go.jp/eacpf/02/philippines_r.pdf this is a link to the Law on owning commercial property in the Philippines (investment property/condos the whole building not a single appartment).
A lean/mortgage is the same as purchasing property, a foriener can be a mortgage holder but you end up paying all the taxes again as if you bought the property a secound time, but you can never own the property outright.
I have learned most of these rules because of going through a divorce and I have hired an atorney in the Philippines he is one of the top Attourneys in his field but even at that I have had to show him some of his own laws there have been a lot of changes in the past 20 years.
http://www.cfo.gov.ph/handbook7th.pdf Here is the hand book for Filipinos that live over seas and want to return to the Philippines and or own property it is a 177 page book but well worth the space to down load to your computer and read if you have a filipina wife and you are thinking of retireing with her in the Philippines covers the max amount of property she can buy and how long you can legally own it before occupying it, but all she has to do is swear an oath to the Philippines and pay her $50.00 and she can own all the property she wants again. Hope this information helps.
I only know this because of a divorce and I have a 25 year lease with a 25 year extension.
Martin [email protected]
A little info that may be of help. First, remembering this is my opinion and thus worth exactly nothing, it would be a big mistake to buy a house as an absentee owner, especially for someone you are not married to. feel free to bookmark my message and then read it in five years. It is a much, much better idea to save up/earn extra money for the future while you rent a house, economically for your bride to be. Financial difficulties are the prime source of divorce as it is, doing it long-distance with absolutely no property rights seems very risky to me … it cost you more much more than the price of a house.
Which brings us to point two. Rents versus purchase price are all out of whack here in the Philippines. I don't know the current UK rules of thumb but in the US is 100;1 … don't pay more than 100 times the gross monthly rental … bsed on prices here in Luzon and many others I see, houses are overvalued by 4 or more times that … in otherwords landlords are not recoveing their investment. (the other sid eof this coin is, rents are about 1/4 of what they should be … which is certainly to my advanatage). You're not planning to rent? Of course you aren't … but life it what hapens when you are planning somehting else … and the resale market here is bad … so buy a house today and you may have no choice but to rent it in the future to try to keep your head above water.
Bob's advisor sounds like she has her head screwed on straight but remeber … her business is not to give advice, but to act as the employee of the owner and get the house sold ,,, period. She is prohibited by law and the real estate this code from acting for the benefit of anyone else except her employer, the seller who will pay her commission. Angain, so far as I know she is honest and forthright as the day is long, but by law she must lo9k out for only one side of the transaction.
Who will be representing your side?
I suggest you read Bob's post here: http://liveinthephilippines.com/bobm/2007/12/01/t…
and perhaps mine here: http://philfaqs.com/them-thats-living-there/land-…
I know you are aware of how many people are moaning over the prices of real property in the UK … I have a number of English friends, all hurting, and the US is really much worse off than many think. The house I sold in Colorado Springs in 2005 for $130,000 (which was almost at a loss for me) is now on the market more than 6 months, no sale at $75,000 … I hate to sound like the oice of doom, but entering into marriage, children, a new family, a very new culture, etc. is a big stress in itself … why "load the dice" by going into debt for a house which may be a bad deal?
Bob, we got our house through Pag-ibig (or HDMF) housing loan. If an expat has a filipino partner who can apply through Pag-ibig it might be a better deal. Usually applicable for low cost housing (meaning the lot size is small and the house design the same as the others) but if you have the funds you can get two or three lots and redo the house. Pag-ibig is giving out good deals now. Milper pays only Php 1,800 per month. Hope that helps!
The cost of mortgages are very high in the Philippines. Other than the pride in ownership I don't see any advantage of homeownership in the Philippines. There is no tax incentive and the property value does not increase significantly. If you have to resell your property it may take a long time(years) for it to get sold. You are most often under the mercy of the buyer.
Hi Bob- I have a different slant on housing. We bought the lot and built a house fortunately not needing to borrow money to do so. The way I look at it is, its for our enjoyment as a family its our retirement home and when we are gone our kids can enjoy it or give it away to their cousins if they wish. Our house is modest and cost the same price as a double garage would in the UK (£21,000.00) 2million Peso but its more than adequate for our needs in retirement. If you wish to make money from a property in the Philippine look only long long long term.
Bob / Jim
Like you say Jim, it is not JUST about making money, i think we would all agree here but good advice all round
Bobby said
The cost of mortgages are very high in the Philippines. Other than the pride in ownership I don’t see any advantage of homeownership in the Philippines. There is no tax incentive and the property value does not increase significantly. If you have to resell your property it may take a long time(years) for it to get sold. You are most often under the mercy of the buyer.
———————–
Bobby do you think thats the same for the Condo market in the Philippines?
Not to get off track here but one thing I've noticed is real estate in the philippines in way over priced compared to Thailand. This baffles me because thailand has a much better infrastucture / more stable (?) than the Philippines by far. I have to agree with Dave on the rent return of the landlord/ owner in the PI. very low returns are norm there. Usually a rent rate of at least 1% of the value is average in the USA or 8% on your money as a minimum. CAP rates in the PI are …pathetic.I often wonder why anyone would build there !!
Brian
Just down to personal choice, i have bought, (rather than built) 4 years ago and am very happy with my purchase, i know renting would have been more flexible, but for security and a sense of belonging, seemed to be the right thing to do and thats the way it still feels 4 years later. Mind you i am a brit and we do like to own rather than rent our places, i know other nationalities feel differently
Wasn't all down to finances. I agree with you, infrastructure in thailand is much better than the Phils, stability, not quite so sure, on a par i would think, they had a coup there and currently have a military dictatorship, but it was bloodless and so must have been supported by the Thai monarchy, whereas in the Phils, well a shakey democracy still rules, 50-50 i would say
Hi Bob
Not really a question of mortgage, just a bit of info if anybody is looking for a Letter of Credit (LC) to be opened here in Philippines (this is for an individual, not a corporation).
An LC is required by suppliers for equipment which must be specially imported to the Philippines (also other countries) for them. The money must be lodged in your bank account (currency of the purchase) and the LC must be confirmed, irrevocable and without recourse made in favour of the supplier for the time required to manufacture, ship etc. The money will be released to the supplier on submission of the shipping documents etc or whatever agreement made between you and the supplier.
If a bank loan is required to cover this LC some kind of real estate will have to be put forward as collateral which will take some time to be appraised, approved etc, then tax returns, financial statements and other documents will be required.
When cash is used it still takes some time. It's better to have all documents in the name of the Filipina wife, not so much paperwork is required then (18 different forms are required). A pro-forma invoice from the supplier signed by both parties will be required to start the proceedings. It will take about one month for approval.
Hi Bob . Weseemto have been down this road before.Iam a big beliver in putting money into property, in fact i own quite anumber of houses . But davao thats abit different. While i really enjoy Davao i would much rather rent for awhile before i bought propertythere.To buy aproperty not aproblem. But if you buy the wrong property in the wrong area. Well you could have it on your hands for ever.No short cuts here as you could lose your shirt.
Hi Frank- Let me say a house in the Philippines is first a home and a long way second an investment as we know it in the western world unless you own a Condo in Makati on Ayala Avenue.
So before you buy or build you must accept this principle or do not go ahead. On the other hand if you come to live in the Phil's to retire and are lucky enough to live for 20 years or more the amount you would pay on rent will finance your own build.The other advantage of owning a house only the utilities will increase and you have control to some extent over this cost by how much you use. Rent is in the lap of your landlord and you are beholding to him/her. Additionally if you have a family they will inherit it from you, I know family friends of my wife who's family homes have been in the families posession for 50 or more years.
Houses therefore are a longterm project in the Philippines I'm afraid.
Hi Dave Starr – I agree with what you are saying. Rental prices here, in my opinion, are much more attractive than purchase prices. A lot of people always say that by renting you are throwing away money, but that is not true. If you take that same money that you would use to purchase the house, there are lots of ways that you can make more money than you would have by avoiding the rent.
Hi Cathy – Wow! P1,800 per month! That's much more affordable than I thought it would be!
Hi Bobby – Your thoughts are right in line with mine!
Hi Jim – I also agree with you fully. If you are looking at the best money advice what Dave Starr and Bobby are saying is very true. However, for a quality of life perspective, if a person wants to own their own place they should do that too. It's just not an investment situation, as you say.
Hi Rick B – Right on!
Hi Graham – I personally do feel that it is the same for the condos too.
Hi brian – Interesting. I don't know anything about Thailand, so it's interesting to hear that.
Hi rick b – I was thinking the same as you… Thailand is currently under a military dictatorship.
Hi Jack – Thanks for your thoughts.
Hi Frank – That is my feeling too – if you are going to buy or build, make sure it is where you want to stay for a long long time, because selling can take forever!
Hi Jim – Very longterm! 😆
Hi Bob,
Please see replies below:
1) I have had clients working abroad who applied for a bank loan. If the wife is in Davao, then she can sign the documents provided that she has a special power of attorney signed by her husband. (SPA should be notarized at the Philippine Embassy where the husband is.And please do not forget the red ribbon.)
If they're both abroad, we will need a qualified co-borrower who lives in Davao. Qualified means, the co-borrower is working or has business and pays tax. This is just for record purposes and for the bank to have someone to talk to in Davao incase the payments are late, etc. But the income of the principal borrower is where the bank will base the approved amount.
2) The wife should get dual citizenship. You have to be a filipino citizen to apply for a bank loan. Therefore, foreigners are not allowed to get a loan.
This is out of topic, but the real estate law here does not allow foreigners to own a land in the Philippines. One can inherit but can never buy a land. Only the 40% share of a condominium. Or if you have a corporation which is 60% owned by a filipino.
3) Interest rates range from 9.75% to 12% per annum.
4) The term of mortgage depends on the bank where you're applying a loan from. Some banks, maximum term is 10 years. Others have, 15 years to 20 years. This is mostly based on the age of the principal borrower.
If principal borrower dies during the loan term, the loan is automatically paid by the Mortgage Redemption Insurance which the client pays upon approval of their loan.
Hope this helps. Thank you and God bless!
Lea
3)
Hi Ma’am Lea,
Have a beautiful day!
I have a question.
I was married to a foreigner and unfortunately separated 3 years ago (but not legally). We have no contact anymore, We have a farm, in which of course on the title indicates i am married to him, since my former husband was a foreigner, can i qualify to get a loan on the farm as mortgage?
Thank you so much.
Regards,
Irene
Hi Lea – Thanks so much for this additional information! The thing that I found most interesting was the fact that the age of the borrower makes a difference. In the States where I am from any kind of Mortgage insurance is optional, and the estate of the borrower would pay off the balance of the mortgage if there is no insurance. Also, if the estate is unable to pay off the mortgage, the house could be foreclosed and the proceeds of the sale of the property would pay off the mortgage balance.
Interesting information! Thanks again for your input!
Hi Dave,
I was only asked if a client can get a bank loan in the Philippines. I said, it can be done but it's like shedding blood and tears. 🙂 The desire came from the client per se. Therefore, I gave my opinion to share what I have experienced.
I do not gain anything out of it. I have helped several clients who did not buy the property through me and yet, I helped them get a bank loan. I have been in Real Estate business for almost eight years. That's why over the years, I've made friends which made my clients' life a lot easier. As most of you probably know now, getting something done in the Philippines takes forever, so to speak. Therefore, getting help from the right places, makes it easier and lighter.
I mentioned earlier that sometimes I help my clients for free, the reason of which is: I am married to an american. So I knew how he felt the first time he came to the Philipines. Accepting my country as it is was not easy for him because of what he's gotten used to. I am sure, a newcomer in the Phils, would somehow feel the same way. So I try to help the best way I can to make it easier for others as well. Now, my husband does the same. He goes out of his way to help.
That's the reason why God has blessed me with more clients that I can handle. 🙂 Monetary reason isn't everything. It's all about helping both parties. Even if the seller pays me, if I believe that it's not what the client wants, then we move on. For me, my clients' needs come first.
That's why most of our clients have remained our friends to this day. 🙂
Thank you and God bless.
Lea
Great discussion here. And Lea's responses further prove to me she is both knowledgeable and honest, traits that are often sadly lacking in real estate sales in the Philippines and in the US, for sure.
Also was glad to see Pag-IBIG mentioned, anyone looking to buy should certainly sjop and compare .. they have long term finacing for Filipino purchasers in the Philippines and outside the Philippines. they also have some intersting tax free, government insured investment bonds.
As someone with a lot of experience about co-borrowing/co-signing for loans … Lea dismisses this as a admisistrivia function but let me assure you .. a co-borrower has the responsibility to pay the loan if it defaults .. s/he is not just someone for the bank to converse with … and, in some cases a co-borrower can gain control of the property. Be very, very careful about ever being a co-borrower or ever having one … you _need_ a lawyer … your own lawyer, independent of the property owner/sales agent before entering into that kind of arrangement.
and @ Brian and many others who make the statement that owning gives you a sense of security … I'd honestly like to know how you mean that term? I rent. I made essentially no investment and pay a month by month rent that is about 1/5th of what a loan payment to by this same house would be. The downside to renting is, the landlord can tell me he wants me out. You "bought" and feel much more secure? Yet you have _no_ ownership rights and could be told to leave at any time as well … examples, marital difficulties, pre-existing owner files a claim (there is no title insurance here), national government orders foreigners to leave, local government exercises eminent domain, etc. I really can't see how you are more "secure" than I am …but I'm open to learning.
Hi Dave – One other note regarding your statement about a sense of security. As foreigners we all need to remember that we live here and stay in the country at the will of the Philippine Government. Say or do the wrong thing, and you can be "asked" to leave. I have known a number of people who have been deported for various reasons. Some of the reasons were, in my opinion, not very serious too. So, if you own a house and get deported for any reason – you have no choice but to walk away from it.
Another thing to consider is the stronger Peso. I bought a property in Samal Island when the exchange rate was P56 per $1. Now the exchange rate is P41 per $1. If one has a mortgage ones monthly payments will also increase. A condo is also a good alternative but "buyer beware" choose a reputable builder because your condo might never get built or finished. Although they entice you with a low downpayment and a low monthly payment. There are sometimes a balloon payment at the end of each year or 2 year period. Inquire also about the cost of ownership and other hidden cost like management fees and insurance. It might be cheaper to rent. One more item. The condos in the Philippines are not centralized airconditioned if you leave it unoccupied and all the doors and windows closed for extended periods of time. Items like rubber garters on clothes and furnitures might get damaged beacause of the heat.
My mother passed away a in 2003. Even before she was buried the BIR (internal revenue) was already knocking on our door with the bill for the inheritance tax. It was for a large percentage of the half the value of all our properties. You must have enough savings for this contingency if our of the spouse dies. If your property is worth millions. Your bill might also be in the millions.
Hi Jim i have afriend who rused in and bought a house in Quezon city.He liked the house and itwas at agreat price .So in the goes feet first did not reseach the neigbourhood or nothing . So after he moves into his new home he suddenly realises.That his neighbours consistof a house of illrepute and one of the local gansters. Jim what i am saying is really grt to known thearea inside out before you buy .Or end up like my friend in Quezon city who cannot give his house away.
Hi Lea Walker Wehave never met (LUCKY YOU). When last in Davao in august my you were selling a huose for my good friend Frank B anks.Recently i lost my dairy containing a lot of phone numbers including Franks .I would appreciate if you could send me his mobile number via Bob Martin.Ifnot i understand. if you would many thanks . Bob if you passit on to me Iwill pay for the coffees end of next month.
Dave
Just down to personal choice, thats all, mistakes can be made but there is merit in both, be happy with your choice, no need to try and convince everyone they should follow your path and that is the correct way
Hi Frank,
Just had dinner with Frank and Polly last night at the gallagher's in Las Terrazas. We will be meeting for christmas party soon also. I'll inform him that we corresponded through here.
RE: phone number, will email it to Bob.
Thanks and God bless.
Lea
Hi Bobby – Wow, the BIR is as efficient as the IRS is in the USA! 😆
Hi Frank Fealey – Very important to check every aspect before making the purchase! I bet your friend in Quezon City realizes that now!
Hi rick b – I think that Dave was just giving his reasons for what is best in his opinion. The nice thing is that we all get to do that, and we are all equal in the discussion!
Hi Lea – I'll be happy to pass that along to Frank for you.
Hi Bob,
I'd like to share a little input on Home Development Mutual Funds, most commonly known as Pag-ibig Fund.
Members have a chance of getting a housing loan through them. You have to be a member of at least one year. Meaning, you've paid the whole year's membership fee. And of good credit standing. That means you pay the membership fee on time and no existing salary or any other loan with HDMF.
As of the moment, they have more or less a hundred foreclosed units that everyone can buy.
a) Cash Purchase: (outright cash or one year installment)
* one does not have to be a member to buy from them
b) Housing Loan:
* as explained above plus you have to submit the requirements which
is more or less the same with the bank loan.
* As a member, the downpayment is: minimum of 5% of the total selling price. And maximum of 20% of the TSP. Term of Payment: max of 25 years. Rate per annum: 9 to 12% .
The price range from Php180,000.00 to 400,000.00 depending on the location and the lot sizes.
John and I bought a house and lot package last year to remodel and sell again. We bought a 120sqm lot in Emily Homes for Php300,000.00 . Pag-ibig took 2 to 3 months to evict the people living in the said house. By the time they did, the house looked like a skeleton. 🙂 Which was ok with us because we're tearing off the old house anyway. I'm sharing this for everyone to be aware that most of these foreclosed assets have people living in them. These were the original owners who did not pay their amortization for at least 5 years. And most of them are not friendly.
That's why, it's cheap. 🙂 There's a risk you have to take.
Thanks again!
Lea
Hi Lea – Thanks for the primer on Pag-Ibig. I knew of Pag-Ibig, but didn't know many details about it, but have learned a great deal from what you have written here.
Hi Frank- I could not agree with you more the last thing you want to do is buy anywhere that has a low reputation. What I was trying to say is your own property brings peace of mind in the long term as usually there are dependants left behind when you eventually go. But the initial descision is made by circumstances and personal choice not what other people think or say.
Anyhow this has been an excellant discussion for those about to make that descision.
Hi Dave-In reply to your question regarding a sense of security, I personally much prefer to own my home. If I live to be say 70 or more God willing, I don't want to be worrying about some landlords future plans as if he passes on what about his families needs etc.
Call me old fashioned if you like but I have a good wife and great kids and what I do I also do for them as they share my life with me. Maybe I'm lucky not to have doubts in my mind about being cheated by in-laws or such hence my genuine reasons for owning "Our" property with a big emphisis on "Our" we are a family unit through and through.
I hope that explains at least in my case what is meant by security.
>> real estate law here does not allow foreigners to own a land in the Philippines. One can inherit but can never buy a land
my lawyer told me this is false. The RP has a series of definitive Supreme Court rulings which hold that the Constitution means what it says. No loopholes or tricks will pass the "smell test" in front of a judge.
Davao City has a number of reliable lawfirms which can assist a foreigner in acquiring beneficial control of that which you want to control. Many many of wealthy "filipinos" are in fact foreign nationals. For example – the Ayala family. The process works. The process is not free. There is no free lunch.
@ Lea,
Thank you yet again … indeed I don't know why Pag-IBIG's light is so often hidden, they have a number of programs and also excellent, government secured investment bonds. It is certainly a source to consider, and I learned things from your outline. Appreciate it.
@ Jim,
If you're happy, I'm happy, just one more case of a word meaning something different to different people I guess, thanks.
@ Rick B,
I fail to see how you construe honest discussion as an attempt to enforce my will on others. I merely would prefer that people not use words with meanings they do not hold. Be hapy and do as you wish, I have no dog in this hunt.
@ Alan B,
You may be right … I am not a lawyer nor an expert. i will say that all the foreigners that I know of factually who got into land ownership issues did so under the advice of some attorney or another who "had a way". A "beneficial interest" is not specifically ownership … although it may indeed serve as such if it suits the one who holds it. Godspeed.
To all, as a sign off from this discussion … there _are_ legal ways for foreign investors to own land in the Philippines. The ones I am familiar with are not suitable to what most people are thinking of in terms of an individual piece of property and a family home, but it is certainly possible under current law.
Also remember a great deal of large land holdings (and the owning families) predate not only the present Constitution, but even Filipino independence and in the case of certain families go back to Spanish land grant times … so what a family might own today has no bearing on what an outsider can buy today, and has also been correctly pointed out the law specifically allows a foreigner to own land which s/he inherited. I am aware of American citizens who own land that their American Citizen parent's owned prior to 1946 and their title to the land is legal under past and present law.
Be well, all.
Thanks Lea and Bob in receipt of my friends phone number. Ohh shooks i have been sucked into buying the coffees again.
Hi Frank Fealey – To keep it easy on the pocket, I'll drink instant! 😆
Hi Bob,
I would like to share with you and the rest of the group the Law governing Land Ownership in the Philippines. This is very long but please bear with me. People would come up to others and say yes , there's a way for a foreigner to own land in the Philippines. I am hoping that through this, everyone will be guided accordingly, to avoid trouble in the future. Please be aware also that some lawyers and judges have failed the Real Estate Licensure Exam. Therefore, there is a possibility that not all lawyers know the Real Estate Law here.
WHO CAN OWN LANDS IN THE PHILIPPINES:
Only Philippine Nationals can own land in the Philippines.
WHO ARE CONSIDERED PHILIPPINE NATIONALS (R.A. 8179)
1)Filipino Citizens
2)Corporation Organized under Philippine Laws, 60% of the capital stock outstanding and entitled to vote is owned and held by Philippine citizens;
3)Corporation organized abroad and registered as doing business in the Philippines under the Corporation Code, 100% of the capital stock outstanding and entitled to vote is wholly owned by Philippine citizens;
4)Domestic Partnership wholly owned by Philippine citizens;
WHO ARE CONSIDERED FILIPINO CITIZENS (Art. IV, Sec. 1 1987 Constitution)
1)Those who are citizens of the Philippines at the time of the adoption of the 1987 Constitution;
2)Those whose fathers or mothers are citizens of the Philippines;
3)Those born before January 17, 1973 , of Filipino mothers, who elect Philippine citizenship upon reaching the age of majority; and
4)Those born in the Philippines of foreign parents who before the adoption of said Constitution had been elected to public office in the Philippines.
REASON WHY THERE IS A NEED TO ELECT PHILIPPINE CITIZENSHIP WITH REGARD TO THOSE BORN BEFORE JANUARY 17, 1973 OF FILIPINO MOTHERS:
Under the 1935 Constitution, a child born is considered a Filipino citizen only if his Father is a Filipino Citizen. If born of a Filipino mother but an alien father, the child has to elect Philippine Citizenship upon reaching the age of majority, (which at that time was set at 21 years old.)
EXCEPTION TO THE RULE THAT ALIENS CANNOT OWN LANDS IN THE PHILIPPINES:
ALIENS may own lands in the Philippines only under the following circumstances:
A) Former Natural born Filipino citizens.
LIMITATIONS TO OWNERSHIP AS PROVIDED BY BP BLG. 185:
1)The land shall be used by him/her as residence; and
2)The area shall not exceed 1000 square meters if an urban land or 1 hectare if a rural land;
3)If the former natural born Filipino citizens already owns urban or rural land for residential purposes, he may still be entitled to be a transferee of additional urban or rural land, provided that the total land area owned by him will not exceed the allowed maximum limit.
4)In case of married couples, one of them may avail of the privilege herein granted provided, that if both shall avail of the same, the total acquired shall not exceed the maximum area fixed herein;
5)He/she cannot acquire more than two (2) lots;
6)If he/she acquires two lots, the same must be situated in different municipalities or cities;
7)If he/she has already acquired urban land, he/she shall be disqualified from acquiring rural land, and vice versa.
LIMITATIONS TO OWNERSHIP AS PROVIDED BY R.A. NO. 8179:
Land acquired under this act shall be primarily, directly and actually used by the transferee in the performance or conduct of his business or commercial activities in the broad areas of agriculture, industry, and services, including the lease of land, but excluding the buying and selling thereof. (Section 5 , Rule XII of RA 7042, as amended by 8179).
The area shall not exceed 5,000 square meters if an urban land or 3 hectares if a rural land.
In case he/she already owns urban or rural lands for business or other purposes, he/she shall still be entitled to be a transferee of additional urban or rural land for business or other purposes which when added to those already owned shall not exceed the maximum areas allowed.
In case of married couples, one of them may avail of the privilege herein granted provided that, if both shall avail of the same, the total area acquired shall not exceed the maximum area fixed herein.
A transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. However, if the transferee has disposed of his urban land, he may still acquire rural land and vice versa provided that this will be used for business or other purposes.
B) If the foreigner acquired the same through succession as one of the legal heirs of the deceased:
C) Dual citizenship under the Dual Citizenship Law (RA 9225 effective on Sept. 17, 2003). Filipinos who had lost their Philippine citizenship by acquisition of citizenship of another country may reacquire their citizenship under this law without renouncing their foreign citizenship. This reacquisition of Filipino citizenship shall grant full civil and political rights to the Filipino dual citizen, including the right to own private lands and properties in the
Philippines, without limitation other than those normally imposed on Filipino citizens.
D) Foreigners can acquire condominiums but up to a certain extent only;
E) Lands acquired by Americans prior to July 4, 1946 (vested rights)
F) Lands acquired by Americans before July 3, 1974 provided the following requisites are present:
1) They are formerly Filipino Citizens OR who on May 27, 1976 had continuously resided in the Phils. for at least 20 years OR have become permanent residents of the Philippines; and
2) Had acquired private residential lands not exceeding 5,000 square meters for a family dwelling (P.D. No. 173)
Thank you and God bless. Merry Christmas!
Lea
Hi Lea – Thanks for sharing that. I don't know if this issue could ever be cleared up, but let's hope! 😆
Hi Bob,
I have here 2 storey house, 5 bedrooms, with parking area and have a nice and friendly neighborhood. But the House is for Sale with clean Title.
Hi ludwig Melgazo – Good luck on the sale of your house! I hope it all works out for the best for you.
Can i ask a question Lea
Can a foreigner own a Condo if he has just a tourist visa? 21 day entry renew every 2 months
Also if he bought several Condos and rented some of them out
would he have to have a business visa?
many thanks
graham….
Hi Graham,
Yes, he can buy a condo. Foreigners are allowed to buy the 40% share of the entire condominium project.
No need for a business visa also.
Permits are only applicable to filipinos who owns townhouses and apartments for business. Condo and houses do not fall into that category since it's a residential dwelling.
Thank you.
Lea
Hi Bob ..Phil here When we built our home i took out a small loan here in the states my wife hired a small time carpenter and we built our home for 120,000 pesos encluding land ..and it fits in with the neighborhood …
Hi Phil – Wow, just P120k? Not bad!
I was born an American citizen because of my Dad's citizenship. I guess it would really be impossible for me to buy property in the Philippines. Looking back, I was also denied my RN license after passing the Philippine RN boards because of my citizenship.
Well, we can't have everything we want. At least, I can practice my profession and buy property here in the USA.
Hi Shirley – If your Mom was a Filipino citizen at the time of your birth, you should be able to file for Dual Citizenship, and then you would be able to buy land here, and also practice your profession. That law is just a few years old, and probably was not in force at the time that you were declined before.
Dave, I have searched your philfaqs website for your budget but, for the life of me, I can't seem to find it. Can you post the link? Thanks!
Hi Gary- I have added a link to Dave's article.
Dabg! Now that's what I call editorial service, Bob! I got an email notification of Gary's comment and by the time I shifted screens to com eover here and answer it, you were alrady on top of the issue. Thanks. feel free to deduct the extras effort from my next paycheck 😉
Hi Dave- No problem, happy to assist!
Hi Atong – OK
Or, as they say in SM, (ding, ding, ding, dong, clap, clap, clap sound effects) followed by, "Happy to deserve you" LoL
Thanks guys!
Dave, is that what they are saying at SM? I always thought it was "happy to serve you" but I think you are probably correct.
The only thing I am sure of is that I got tired of hearing the song they play over the loudspeakers…"At SM, we've got it all for you." I still shiver when I think about that. LOL
Ha ha no, Gary, they do say "Happy to Serve You!".
But I kbnew Bob and others would get a kick out of my young nephew's translation. he and his brother are, of course, big SM fans … and now, even at home, all you have to do is clap three times and he will usually pipe up with "Happy to deserve you." (with a "Joisey" accent, I have no idea where that could have dome from)
Always good for a laugh … and most of us, especially these days, don't do enough of that.
Hi Cidy – Thank you, I'm glad that you like the site!
Dave: My father is moving to Ecuador for much of the reasons you listed. Bad investments, upside-down mortgage, over 70.On Social security and self employment, he can live comfortably, but not luxuriously.
My cousin, retiree from San Francisco, still lives like a King in Marinduque for about $1000 per month. Good article, Dave! Cheers!
@ John. Interesting. I wish your dad well. If I weren't "married" to the Philippines I might very well be in Ecuador or Costa Rica … or Japan for that matter. The main point is, things are not good for seniors in the US any more … the major reason I won't live there any more is the rotten way the US takes care of seniors and military vets … and I am both. Oldsters should not complain, they should vote with their feet and with their skills as well and empower their retirement … or so I opine.
Hi Luz B. – Thank you very much. We just had a small dinner last night with a couple of friends. It was a nice birthday, and Feyma prepared a delicious dinner.
Hi Atong Estrada – Ha ha…. I need to make a sign that I can put on the blog that says "slowdown" in case there are too many comments that I didn't respond to yet! 😆
@ David, thanks yet again for your faithful readership and always useful comments. Marinduque seems like a good plaxce, I know of a few US expats who have settled there and been happy, my wife and I have it on our list of Philippine destinations we must see.
Even though I promote Bob's book … and indeed heartily recommend it … I still have trouble with the 'live like a king' phrase though. I guess it is ok as a shorthand for living happily and well. I doubt there are many 'royals' who would be happy in our modest little house here, yet on the other hand, I doubt there are many who are as happy as we are either, so perhaps I 'live like a king' (a slightly frugal one) 😉
For those who doubt the comfortable living price, though, David's cousin's report virtually paralell's mine …and the reason behind this article. I've always been opposed to promoting the Philippines soley because it's cheap living here … but in today's world there are a lot of people who are hurting. They _thought_ they had their retirement all mapped out and then found they had sailed off the map.
For those in that 'lost boat', cummon over, you can indeed live comfortably and enjoy it also.
i built a house in talasay an i stayed in it for 100 dollars a week …we r 3 hours from mall in cdo close enuf for me …Phil R.
Dave,
Thoughtful blog as usual. Moving to the Philippines might also save a person from being forced to withdraw from their 401K or IRA while the market is down. By the way I commented on the article on your site about enting, but apparently my comment didn't go through. Thanks again.
Hi CRIS – Thank you. I wish Philippine license was 10 years!
Hi Dave, good article. I hope it shifts some viewpoints that paper gains and losses are not reaized gains and losses. I think, for those who are buying real estate here, they have a hard time in differentiating whether the house is an investment or a home. This is the reason why they keep on doing this mental calculations of opportunity "gains and losses". I just wonder if they will ever find contentment in their lives.
Hi Danny – 😆 Yes, it was a comedy, that is for sure!
Hi Allan Kelly – Ha ha… actually, I don't find Philippine traffic dangerous at all!
I sold my house in a townhome community for $450,000 at the height of the market. I can assure you that if I go back I can more or less buy my (a similar) house back for $225,000. I don't think my purchasers will be liking that or thinking anything less than they are $200,000 plus dollars in the hole especially if they wanted to sell. They crtainly won't be happy for me or anyone else for that matter buying at this new lower price. However, hopefully they are intelligent people to realize that they bought the house to live in and with their financing that $450,000 will end up costing over $800,000 ion in the end of that mortgage.
@ Ellen … yep,perhaps the most important lesson that a majority of poeople never learn is, mobney does not equate to happiness or satisfaction. not that I'd be happy being poor … I'm not poor and I have no desire to become poor, but I am one long, long way from being rich, and aside from the usual passing fancies of owning toys like this: http://tinyurl.com/6syv56 I have no aspirations.
Most people need a roof over their head to make them feel comfortable. But that 'roof' should be looked at as a famly's focal point and place of refuge, not an investment. There's a lot of ways to make money in the real estate game, some of them even work, but buying way too much single family house with way too much mortgage attached is not one of them.
@ Richard … The way things have timed out has made me look pretty smart … so I'll just sit back and let people think that I am … no sense destroying their illusions.
Mainly because we were planning to move to the Philippines as soon as my wife's US citizenship was granted, which should hav ebeen in 2005 (it doesn't happen in the expected htree years of US residency, folks ;-)) we decided to sell our home in Colorado Springs. We even made a small profit. Praise the Lord.
The fellow who bought it invested a non-trivial amnount in a big fencing project, a lot of redecorating and "upgrades" and it has been for sale several times since (marvelous thing, the Internet). As of the last time we saw it listed the asking price was half what he paid in 2005 … and so far as I know it isn't sold yet.
Massive over-supply of houses coupled with these unregulated mortgages that shoot up enormously in the third or fourth year have really taken the 'shine' off the real estate market in my view.
Dave:
Further to your comments, I see many half-finished or gigantic, out of proportion, homes up in Cagayan sitting empty, waiting for a buyer. In the RP, considering a house as an investment is wishful thinking in the provinces. Build a home to live in or house a business, but thinking that you can "flip" property here is unrealistic at best. (As a side note… Most of those empty houses were built by foreigners thinking they could simply sell them quickly at a profit if they needed to leave).
Rebecca looks at property as something to invest ON, rather than IN. Build a shop, plant rice, whatever… But USE it rather than hoping to realize a gain. We just bought some land near a university to open a dormitory for students. We will use the land. If the dorm fails, we tear it down and plant rice, fruit, etc. We could also use the buildings for storage / warehousing. Point is, the land itself is not the investment.
Hi Steven – Hmm.. We already do have a LiP Forum! I started it a month or so ago, and announced it here at that time. Perhaps you missed out on that? Or, is there something I don't understand about your request?
@ John Miele … thanks for the personal observations, John. Indeed this really happens all too often. Whay we as foreigners esp[ecially need to guard againts is the almost unconcious attitude all of us at one time or another seem to suffer from … kind of summed up by the words, '"after all, being from the US (or whatever country) I am, after all, smarter than 'they' are."
Well on a person versus person basis, everyone of us is smarter than someone and not as smart a sothers … but our home-country based knowledge is very often flawed when it comes to doing things here in the Philippines. There are a thousand and one jokes about Filipinos in the US FOB (Fresh Off the Boat). What we have to guard against … and believe me I am not preaching from the pulpit here, I've trapped myself more times than I like to think of … we Westerners are all FOB for long after we arrive here.
Got to take 'baby steps' until you really learn the ropes and you have to remember that the Filipinos were here, running things their way and making things happen in their country long before the USA was even the 13 original colonies. And the Chinese … a large proportion of Filipino ethnicity … had a very advanced civilization already back when European countries were living in mud huts and communicating with grunts.
There's a lot to learn here, for people who are open to learning.
Can an american go live in the phillipines for any reason? Do I need any special reason to go there?
Hi tim scott- Sure, you can come for any reason you want, or no reason at all!
Hi Carolynn – thank you! I'm glad to hear that your experience at the LTO went smoothly.
Hi Scott, you heard it first from the real source … you need no reason at all. Feel free to contact me direct if you have any specisl questions, but absolutely you need no reason to come here at all except a desire, a passport and teh air fare. TThanks for dropping by, reading my column and leaving a comment … hope to see you again.
Hello Dave,
I found this wonderful site a few weeks ago while reseaching what to expect when I moved there. Now I just go in and read the older blogs and this time I thought I'd at least say thanks to all the contributors. I will be in Davao City to be with my fiance for the second time in January. And also to look at some houses. She is very prudent and I told her this time we should just rent a house that was furnished instead of a western hotel downtown. Well she found us a house for only p12000 a month. And I just told her it had to have hot water. She said yes and refridgerator and stove. In disbelief I sent her the money and she reserved it for us. Oh her sister and two little girls will stay too. Now next day it seems the hot shower is in the form of portable shower that I have to buy. hehe Is ok though because when we leave it was agreed that we could take and she has no hot water at home and I will experince REAL live in the Philippines, Thank you again for your site.
@ Andy … Thanks for reading and for your comments. Yep, things are different here. Most Ameruicans have trouble with two issues you have already faced. Rental housing is hard to find, short-term furnished rentals eve harder, and landlords in the Philippines epect tenants to do more for themselves … even things like hot water.
Hot water in the Philippuines is normally provided via individual 'flash' wate rheaters at the tap where the water is needed. Actually, many new energy-efficient US homes are being built this way too, as the individualk jeaters are way, way more energy-efficient than the 'normal' methpud of heating a 40 gallon tank in the baement and then piping it to reach outlet. It's common practice to buy an individual heater at harware or builder's stores, connect to the shower and then take it with you when you leave, so rerat assured you are getting good advice.
This will _not_ be the strangest thing you'll encounter here I am pretty sure … but take them is stride and you'll probably be glad you did. Happy Holidays.
LOOKING TO MOVE TO THE PHILLIPINES VERY SOON. MY WIFE AND I ARE IN OUR FIFTIES. JUST MARRIED LAST YEAR. I AM A RETIRED SHERIFF DEPUTY. WE WANT TO LIVE HERE TILL WE EXPIRE. LOOKING FRO A HOUSE RENTAL. I WANT TO LIVE HERE BUT ONLY HAVE 1000.00 A MONTH U.S.D . PLEASE GIVE ME SOME ADVISE THANKS ROB AND MARY…????
Hi Rob and Mary. Thanks so much for commenting. As far as your questions, I can only give some general answers. First it makes abig difference (I think) in ypour living costs if one or both spouses are Filipinos/former Filipios.
Second, I'm not sure where 'here' is. Are you living in the Philippines now, or planning to move here which is what your first sentence seems to indicate.
Third, depending where you live in the Philippines you might6 squeeze by on $1000 USD per month but a great deal depnds on you medical care requirements. If you have medical coverage that works in the Philippines, you should be safe enough, but you could be put in a very precarious position if you have a medical problem and have to foot the bill out of pocket. Medical care is typically on a cash basis here, one the "everything down and nothing per month" plan.
Also with health care consider this. Many US plans factor in Medicare when you reach 65. In other words at age 65 they expect Medicare to pay first and then they pay what Medicare doesn't pay. The problem is you can't use medicare in the Philippines, so you muight be in great shape until age 65 and then discover a huge gap in coverage.
Summary advice? You can live in the Philippine son $1000 USD per month but you won't live very comfortably. Number two thought is, if I had obnly $1000 USD available I wouldn't be living here. The US is a much better place to be poor than the Philippines, it's a great life here if you can pay cash.
Bob,
We were ready to build our house in Digos but we changed our mind and have decided now to live in Davao. We would have a nice house in Digos, but I'm not sure that location would be the best for our growing family.
We've decided to move to Davao and rent for a while to see which location best fits our life style. I want the kids to go to a good school and I think Davao is better for my science/ESL teaching/online business. Jaycee wants to build a rest house on Samal for us to visit and we think that's a good idea. I think living in Davao and visiting Samal for some scuba, swimming, and quiet time is the our future.
Hi Kevin – I think that you are making the right choice to rent at first and see how things go. It's hard to make a living decision without being here. I know that when we lived in the States I had my heart set on living in GenSan, but after moving here decided that Davao was a better choice for me and my family. What is best is different for all of us, but we also should keep an open mind. Good luck!
hi! i have read a little about what you say about own some in philli, i wonder if me and my lady is married in philli, can i have a chance to have % in our investment there in a legal way
Hi stefan – Nope.
I disagree with the above comment, i prefer not to comment on why and what and maybe other than it to mention it does behoove one to understand the dummy corp concept, I am not so proud however to proud to be proved wrong, unable to find this 5 million commercial thing?
Foreign Ownership of Land in the Philippines
Real Estate Ownership in the Philippines
Philippines real estate law does not allow outright ownership of real property by foreign nationals. Filipinos and former Filipino citizens and Philippine majority owned corporations (Take note of the Anti Dummy Law) are permitted to own land, buildings, condominiums and townhouses. Foreign nationals may buy condominiums units in Philippine condos (shares in condominium corporations) as long as not more than 40% of the units in a project are acquired by foreigners (Republic Act No. 4726, otherwise known as the Condominium Act).

Under Philippine inheritance laws, they cannot will the land 100% to your children. They must divide the land between THEIR children, and can leave a small part of it to your children too.
There are no mobile homes in the Philippines, you would have to have it shipped in from abroad. 😉
John;
Very good, and so correct, my wife has the “Rights” to the land that my (her) house sits on. (Title forthcoming, and forthcoming, and maybe someday!) After it was purchased we went to City Hall, and paid all back taxes with a separate receipt for each of the 14 years it was unpaid (less than $100.00). All was fine until the house was almost built, then Mr. I really own the land shows up. His claim was on carbon copied papers and loud talk. In the middle of this multi-person discussion I noticed my wife was missing. Ten minutes later I see her and our Barangay Captain coming up the street, with the gentleman I purchased the land from.
Prior to any work being done I was at the Barangay Hall paying for permits to build the wall and house and obeying all local laws. Also I sponsored the Barangay Basketball Team, paying for all the kid’s uniforms, the Christmas prior I dropped a case of Brandy at the Hall to help with the Christmas party. (I still do it every year). My wife and I were also sponsors of the Captains, Daughter at her wedding. (A very nice time)
The man claiming to own my wife’s land departed within 20 minutes never to return again, and during those twenty minutes I said not one word, so to reiterate what you said, “Foreigners; get to know and respect your Barangay Captain, and your life will be most pleasant in the Philippines!”
Great article John, I hope people heed your advice.
Paul: it really doesn’t even require donations…. Just a smile and an introduction.
Hi John – I second (and third) all that has been said. I’ll enjoy a rent-free life with my landlord wife and just not worry that much about it.
The Kapitan is the most important political figure in our lives – more so than the mayor (both are related to us). We make sure that all we do is in harmony with the barangay and has the Kapitan’s blessing as well as that from the Barangay Kagawad (Counselors) and, in some instances, the Chairman of the Sangguniang Kabataan (Youth Council).
We’ve found out that land purchase and squatter problems aren’t the only property-related issues that may need the Kapitan’s input. Property inheritance is a major source of problems in many extended families. Inject one Kano into the mix, and problems increase. In poorer, agricultural areas, wills are not the norm so public law steps in to say who gets what. It sometimes takes the Kapitan to straighten out who is and who isn’t in line for a share.
Along with the popular sponsoring of the barangay basketball team and barangay holiday perks, we also make sure that we have pasalubong for the Kapitan and Kagawad whenever we travel. They provide excellent security for out place while we’re absent.
Hi, John- I have a continuing land ownership problem very similar to Rebecca’s, but my involvement, because of my being here in the States, is conducted through my cousin in Salaza whom I have granted Power of Attorney to act on the family’s behalf. I maintain possession of at least 7 Deeds of Trust to various family properties in the province and in Manila that were left to us by my deceased parents, some of which, like Rebecca’s date back to the Commonwealth years.
In one property, displaced Aeta families from the Mt. Pinatubo eruption were allowed to settle by my Mom and were made to sign a notarized agreement that they can live on the property for 15 years. No problem with that. The Aetas honored the agreement and left after 15 years.
The one bothersome problem currently involves a relative farmer who refuses to give up the farm that he had been farming for the past 40 or 50 years. He farms a riceland belonging to the family in the outskirts of Salaza. He was permitted to grow rice on the property by my Mom on the condition that he paid rent in the form of x number of cavans of rice annually. However, the permission given to him by my Mom some 40 or 50 years ago was made orally (I suppose it was because he is a relative). There were no legal written instruments that says he can be evicted at any time by the heirs. After all these years, he must have began to feel that the land was legally his; afterall, we never inquired about the land in almost half a century. We all live in the States and cared very little about our family properties there. I didn’t even know that the land belonged to the family until my cousin to whom I have granted the Power of Attorney reminded me about it recently.
To cut the story short, my cousin referred the matter to the Barangay council, this after numerous relative-to-relative requests made by my cousin and interceded by other relatives that stretched for a number of years. The Barangay captain, or council, however, ruled that my cousin is in no position to order eviction, her Power of Attorney notwithstanding. The heir to the property, according to the Barangay Captain, have to be physically present before the Barangay council to lodge a complaint before the eviction process can be initiated, if at all.
Thanks for a great article, John. It’s an accurate description of the powers of the Barangay Captain and the pitfalls of landownership in the Philippines.
John: thank you… In these types of situations, most foreigners would not even have a clue as to what to do. As the saying goes,”you are not in Kansas any more”
sorry you had to deal with this, but it really is not uncommon.
been there an done it to . I could write on this subject for a month … we bought 2.7 hectors for a farm business ..so how did you do with the BIR …Phil n Jess
Hello John,
I always enjoy your articles and this one is just another reminder, even though I have never lived there but after hours of reading articles about the Ph. that I know personally myself I would never think about buying land there. And this is OK with me because my plans are yes to move to the Philippines and live there I hope for the rest of my life but also have my home here in Texas to come back to occasionally. I am only waiting for my other land to sell.
I know that you and R
John,
Sorry, I don’t know what happened or what I did to make this forward before I was through writing.
But the point I am trying to make is any Expats dreaming of moving to the Philippines better be finacially stable and have a home to come back to occasionally.
As I was saying I know that you and Rebeca live there and that she is from there and has her legal rights on the land, but the squatter thing seems to be true with other countries of the world also and is sad but true from what I’ve read.
Yes, I couldn’t agree with you more on any body thinking that they can go there and buy land for any reason legally.
Thank You,
Dale
Bill- I think you might want to read some of the previous posts here about the illegality/unenforceability of leasing from a spouse in the philippines
I strongly recommend that yu talk to a competant lawyer
We got diverted from my original question, Bob, which was, are there restrictions on land ownership by those who have re-acquired Philippine citizenship like me? Again, my understanding is that as a dual citizen, I have the same rights and privileges on land ownership as a Filipino citizen without restrictions. Of course, I can get this answer straight from the Philippine Embassy here in D.C. when I renew my Philippine passport in February 2010, but if you or others have the accurate information on this, it would be good to post it here in LiP for the benefit of other readers who may be interested to know.
John: Though she can hold dual citizenship, there are additional restrictions on land ownership for those who reacquire it.
John Reyes: You’ll need a real estate attorney for your case. One out of six power of attorneys needed is not a majority vote. However, since you are the only one with a dual citizenship, your attorney can file a request to the court to appoint you as the administrator for your mother’s estate. The estate tax can be a very huge amount – as your mother passed away so many years ago. You can check the amount owed via the Bureau of Internal Revenue office (BIR) in your province for the final amount. With the penalties (it can be as much as 20% value per year), are you ready to shoulder the expenses? Also, check the property physically. Do you have squatters in the property? This can cost you a huge amount for eviction due to court fees and attorney’s fees.
see not that it matters John but i was under the impression that i could if i ever needed to own a condo can’t own land true but can own structures its all a mystery thanks for writing this John
Hi John in Austria – Thank you so much for reading.
In our family we just do the 9 days on the first year anniversary. The following year and so on just pray there at the grave on the date when the person died. Then go home and have a celebration at the house. But I think some families will do the 9 days prayer every year.
Thank you for stopping by. Take care!
Yeah, under Philippine Family law, your spouse cannot legally lease property to you.
hi jonh, i love your article. just wonderring if you know the defference between declairation and title. my husband and i bought a house and lot a couple of years ago in the beautiful tiny island in cebu. my husband is american and i was still a filipino citizen when we bought it. we only hold a declairation. we paid lots of money for it. i’m sorry this is a little of topic but any suggestions will be very appriated. thank you! ele
Tom: Monggo is a type of soybean… In Cagayan, they boil it as a type of vegetable "starch" side dish. The fish feed is commercially made, mostly of fish meal, I believe.
Dale: correct… The main reason I wrote this was in a cautionary role. In our case, I made a promise to Rebecca to ensure her family’s security…. It is the reason we moved here and started the fish farm. That being said, my expectations were realistic (none of this was really a surprise). Actually, my biggest problem with the squatter is thAt Becky bought the land with money she earned working… This woman acts as if charity from us is her entitlement. Though I cannot legally own the land, there Are ways to protect me should Rebecca die before me…. All of which involve an attorney. At least it would be dificult to legally removee fr the land or leave me homeless. However, I can never own the land.
Hi Ann – Hey good start for you then. 😉
It's okay you can copy it. Good luck and have fun…
Take care my friend.
Hi,
I’m in a similar situation, we’ll aware of the rules and rights pertaining to me. We’ve had our rights home for 5 years and the wife just received a letter stating the back taxes are due and are already late!
The letter is asking for the occupants of the houses to share in the payment of the back taxes of the actually owner? My question is are we to just do that, will an opportunity come out of this to claim or demand title? It’s not a lot of money but a bit of clarification would be nice. What questions and of whom, the BC or owner should be asked?
Thank you.
Gerald
Very valuable education you’ve given us, John. After having paid over P$80,000 to remove squatters from the first property “we” bought, I told my wife not to buy anything until the paperwork had been scrutinized & ONLY if there were no squatters. On one of our Samal properties, development has stopped recently, as I am not willing to continue the development without a 50/75 lease in my name. Let’s be honest; what may be a marriage made in heaven for many years, anywhere in the world, can become a financial nightmare in short order. While my wife is convinced that her family(beneficiaries) would allow me to remain, should she pass first, I would prefer some insurance. At least with a 50 year lease & option for 25 more I will be able to sell the lease, should I wish to. Wouldn’t it be great if, one day, The Philippines goes the way of Panama & opens up ownership to foreigners.
Mike
Bill: Agree with Ian and Bob here… You need to have a lawyer look at that arrangement. If your own security is an issue, then an extra-judicial ammendment or addedndum to the title will help secure you. However, my concern with the leasing deal is this: If your right to occupy the property was ever challenged, and should your wife pre-decease you it may very well happen, the court may view such an arrangement as an attempt to circumvent the law, and you may lose everything.
John, you say in your article “So, you are in a stable relationship and you and your spouse decide to buy a piece of land and build a house. Fine. You do not own the house. Your spouse owns the house. If you are OK with that, then great!”
I agree that a foreigner can not own the land, but I disagree about them owning the house. On several websites, it is clear that a foreigner can own the house.
An example would be if I leased some land, then built a house on that land. I am clearly the owner, and fully within the law to build and own that house.
And Bill, I may not be much of a speller, but please make sure the lawyer is COMPETENT ! LOL
Lots of poor legal advice floating around for the unwary.
ave: I saw those guys in Thailand… Interesting!
John a very well written article. My question deals with ownership. I always read about Chinese and Koreans owning property. I would assume the constitution applies to everyone equally. Should I just assume that any foreign owned property is really not owned by them but used by proxy through a Filipino or marriage? For example I would read about the new owner of a restaurant from Australia, etc….. Thanks, Ron
Hi John: Nice, informative article. However, not all BC are as young, efficient, knowledgeable as the one in your baranggay. The one currently in office in this baranggay where we have propertybelongs to the old political system, i.e. he can be bought. According to the lawyer I hired to decipher the legal stuff,if the BC is not doing the proper job, or being an obstructionist for no reason, one can always move one step up for assistance.
My family’s experiences is similar to yours. My mom left us a piece of property in central Luzon. The original title goes back to the Spanish era, under the name of my great grandparents, in Spanish! To get our title done, we have to go through each generation, working our way down to the great grandchildren.
Alex: Thank you for the link.
Great article.
Can you tell me how long the Capt stays in power??Is he elected or chosen?
How does someone decide to be a Capt …is it a prelude to climbing the political ladder within the province???
Even though I have NO INTENTION of having ANYTHING to do or say about Philippine politics…I would like to understand the structure of the political system. I know it is a Republic but it is like no Republic I know of.
I really would like an education on this subject by someone
Thanks in advance for educating me!!!!
Elected officials. But sometimes, if the postion is vacant, the government puts in a local resident as an OIC (Officer in Charge.) As for future election plans, it can be a stepping stone, but so far of all BC’s or ex BC’s I’ve come across, no one has made the move after BC. As for tenure, there are term limits, and I know they can’t be lifers in the position. From the couple of BC’s I got to know, the job is like 24/7 and you have to know your stuff. Money wise, it isn’t much.
I have some limited experience with this. My Philippine born wife is now the owner of her family home, and some farm land in Gamu, Isabela, even though she is now a Naturalized American Citizen and living in Indiana with me. Last Christmas, the property tax bill came to the house while we were there in Gamu, in her name and she paid the bill in person at the cith hall. Usually on of her brothers does it for her.
A question comes to mind. Since my wife is a Naturalized US citizen, and has full citizenship rights in the US, Is there a way for any of you to achieve the status of a Naturalized Philippine Citizen, with rights to own property, vote, etc? I would think that some of you who are long term residents there would wish to do so.
Very good article John
My wife has a couple small parcels of land in the Philippines and we have been running into the same types of issues. One of the biggest problems we ran into was some land that my wife’s family had inherited. Before my wife and I were married a distant relative filed a case to grab the land from my wife’s family. They thought since my wife’s family was poor they would not have the ability to fight the case and would simply get the land though default. Now that my wife has a kano for a husband she can fight the case but it has been very difficult. But our problems are minor compared to a friend of ours. Our friend (who we will call Cathy for sake of this story) married and moved to the US. Knowing that some day she wanted to retire back in the Philippines Cathy bought some land and built a house. To make things easier she put the land in her brother’s name. After the house was built and she decided to move back to the Philippines Cathy’s brother told Cathy the house was his and she had no rights to the house. To add insult to this story Cathy’s brother is a Barangay Captain. It has always amazed me how relatives, friends and normally upstanding people can turn on you when property is involved.
Bob,
Thanks for the info., I didn’t realize that my wife couldn’t lease me the property. Yup, that’s one big problem! I knew about the 25yr/25yr lease, as it was when I lived there, but I thought that it had changed to 50yr + 25yr. So, I’ll have to have a lot of trust in my in-laws if I am going to commit to this investment. Wow, earth-shattering news! Still, better I learned of this, now. This also raises interesting questions about the true ownership of Dayang Beach.
Mike
Ele: I’m not certain, but I think you may hold an extra judicial ammendment, which is essentially a title modification. Those are common here, hence the confusion with titles. You really need to consult with an attorney on this… Perhaps contact feyma on this board. She is a real-estate broker and may b able to help or point you in the right direction. I would hate to give you bad advice because I’m not cpletely sure.
Elle: A tax declaration is not enough to hold on to your property. You need to obtain a “True Copy” of the property and see if there are any liens or claims to this property. The Register of Deeds is located in the center of Cebu City, not far from the Capitol Building. Ask for examiner, Amelita (Millet) Tigley. Be ready to pay for the paperwork to obtain the final document (Transfer Certificate of Title). This will take time and persistence. The line in the Register of Deeds is long, so be patient.
John: Rebecca must be very persistent in pursuing this matter. However, good manners and respectful approach are of extreme importance. Follow up with the uncle is very important. Rebecca must educate herself and must be involved in barangay matters so that she is considered a very important person in the community. One strategy is to befriend an important “Kagawad” that can exert ifluence with the current barangay captain. Perception is very important in the Philippines, especially with regards to the immediate barangay. One word of caution is that if this uncle is not paid as your attorney, Rebecca’s case may not get as much attention. I am an American-Filipino and is fully aware of the time-line of the American sense of urgency vs. the Filipino time-line. Access to the internet has made educating oneself very possible. We retain attorneys outside the family circle so that we can also get impartial advice. You must be vigilant with relatives as a cautionary measure. Do post Rebecca’s progress in your site as her case would be very helpful to others.
Jawz: Unfortunately, that is often the perception here… Something you both have to get used to… Just be yourselves.
Larry: Egads, what a mess! Hopefully, you can get him to leave, but it will be a tough road.
Tyleen: Honestly, I’m not certain if it’s the same everywhere, but in QC, the term is concurrent with the mayor’s (6 years). I stay out of politics too, but next year, when the new BC takes office, Becky and I will probably bring them some bibingka or something and introduce ourselves (If it’s someone new)
Hi John
This is totally unconnected with your article here but it is kind of likke a little follow up to your article on snakes earlier in the year. I was watching a documentary on Snake boxing in thailand and I heard the narrator mention that these boxers take regular dosage of a plant root extract that supposedly neutralizes all Snake bite venom, the program through the aid of some anti-venom labs in thailand seemed to conclude that the extract did indeed work! well the reason I am informing you of it is it might be a good idea for some readers to buy some of this root and grow it locally as not everywhere has anti-venom close by and though I would hate anyone having to use it, it could be a saviour to have the root on hand (it is also supposed to be cheap to grow) its name in thailand is WAN NGU grown locally in bankok.
Hi Mike – There is a bit more info that I did not tell you… 😉
Here is the good news. There is one way that you can own the property. Firstly, when you purchase it (I think you already did, though – just go to an attorney and have the title modified), you need to have the title written with the owner as “Mrs. Mike X (sorry, don’t know your last name), married to Mike”. I could be off on the language, have a lawyer handle this for you. Then, if you get a resident visa (not live here on a tourist visa, but get a bonafide resident visa), and stay here for 5 years minimum, in the event that your wife passes before you, the property will pass to you, and you can hold it until your death. But, remember, you MUST have a resident visa, live here for 5 years continuously under that visa, and have the title written properly. If you are not 100% on even one of those, you won’t be able to hold the property.
Remember, I am not an attorney, but I have been advised of this by an attorney and by the BoI. I may be mistaken in some way, but this is my understanding. For something of this magnitude, please get an attorney to help you, as it is cheap, and would be done properly.
Leasing land in the Philippines on a long term basis is an option for foreigners or foreign corporations with more than 40 percent foreign equity. Under the Investor’s Lease Act of the Philippines a foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years renewable once for an additional 25 years.
Big Thanks John one of the most informative articles i have read on lip if that does not put to bed some expats thoughts on owning land in Phil then nothing ever will.
Hi, John- I am not aware of any such additional restrictions on land ownership for those who have re-acquired Philippine citizenship, can you tell me if you know what they are? I am under the impression that as a dual citizen, I have the same rights and privileges as a Filipino citizen on land ownership.
It’s important for me to know what those restrictions are, if any, as I am in the process of having the titles of real estate properties in Zambales and in Manila under my deceased parents’ names transferred to the heirs’ names collectively after we have settled the outstanding inheritance taxes and penalties that have been accumulating yearly since Mom’s passing in 2001.
I wonder if even that is possible since I am the only one among the heirs who has dual citizenship while the rest are American citizens, and therefore not eligible to own real estate property in the Philippines.
Alex: I think our BC only earns a few hundred per month. There are other perks, though. He does a pretty good job and I think he tries hard to do his best.
Alex: As with anyone, you could have good or bad people in the job. I’ve met and had interactions with a number of BCs, and they were pretty conscientious about their jobs and took them quite seriously.
Ron: My understanding is that they do this through business ownership… I don’t think they actually own the land. Most cases it is long term leases.
The “Filipina who has a Kano as lover is living in luxury and is rich” thing ticks me off.
You must hire a real estate attorney, a reputable one, to evict tenants from your property. My father fought through the Filipino court system to evict squatters from his property. A neighbor was selling property lots that belonged to my father to various individuals who built houses in the properties. This cost my father a tremendous sum of money in addition to the extensive time spent on court proceedings. My father won in all the lawsuits with much effort. (My father had all the squatter houses bulldozed immediately and fenced off after the court rulings.) It is advisable to ask referral of lawyers from the Department of Deeds in your province. My father took time to visit the Director of the Department of Deeds often. My father used to visit the Director of Deeds just to say hello with mangoes from his brother’s farm (his brother accompanied him in his visits). This is considered a friendly visit. When my father passed away, we visited the same Director of Deeds. He was very helpful to us with the referrals as he remembered my father and his brother’s visits with their mangoes. This connection helped us with the the transfer of the land titles. In addition to the visits, my father was a great contributor to projects and donations to the barangay. These acts also helped us greatly with subsequent transactions to preserve my father’s legacy.
With regards to foreign nationals, married to a Filipino citizen, one method to protect one’s interest is to form a partnership or corporation. Before doing so, obtain the book entitled: The Corporation Code of the Philippines (Annotated) by Hector S. De Leon. This book is published and distributed by the Rex Book Store, 856 Nicanor Reyes, Sr. St. Tel Nos. 736-05-67 (Manila, Philippines). This cost about $15 in U.S. dollars. I obtained my copy from a bookstore in Cebu. This book include materials on cases relating to succession, sales, cases on property, partnerships and corporations. You will need an attorney to form your partnership or corporation, but be informed and educated before jumping into the fray.
Bob
Can a Foreigner buy a car or motor scooter can they have the title in their name and have full ownership of the vehicle.
Ed
Bob
At what age can property be placed into a child’s name? i would assume if one were to put the property into a child’s name and the parents would control the child’s property until it reached 18 or so? I was just wondering about that to protect the Kano’s.
Bob,
I saved this thread and will take your advice, rent. Everything is becoming more clear, I will probably end up in Cebu. Thanks for the advice.
John
Hi Bob,
I would like to know why every foreigner the first thing that comes out of their mouth when I or anyone say’s I’m looking for property in the Philippines is (Foreigners Can Not Own Property In The Philippines)??? I’m guessing they just don”t trust the Filipina they have married. I dont care if i own it or not because it will eventually go to our children. I don’t think they make caskets big enough for me to take my house and property with me so i can leave my wife and children with nothing. I often wonder about foreigners who state this immediately (what was their true intentions when marrying their Filipina??) I want to make sure my wife and children own or have as much as i can possibly leave them.
Hi Bob,
I just discovered and am enjoying your website. I lived for five years, until 2006,in Mindoro. We had to leave the PI for a while for work reasons but are now planning to return, this time to Davao. I saw that you have children in school. I have two boys in elementary school, can you recommend several schools for me to investigate for them to attend in the Davao area? I am already familiar with Ataneo (sp?).
Also, can you recommend a real estate agent, or better method, for the purpose of finding a house rental?
Any help is greatly appreciated.
Kind regards,
Doc
Hi Doc – Well, without a doubt, Ateneo is the best school. Also, check Davao Wisdom Academy, Holy Child, maybe Christian Colleges of SE Asia.
For finding a place to live, I recommend that you connect with my wife, Feyma.
Here is a situation that might be possible, at least from what I have heard. My ex was born in the RP, and I had three children with her. Her parents are still alive, live here in the US and I trust them. Can I give them the money, they buy the land then will it to my children? Will that stand up in court? Thanks!
That’s the answer, Bob. Buy a massive mobile home – it’s a vehicle so an alien can own it (and live in it).
Thanks Bob! C’est la vie. I will just rent and get this out of my head…
Bob
Sweet article and it couldn’t have come at a better time, 64 and a “Wake Up”
I am proud of myself, Bob. i have done my research well over the past few years. Nothing in your article came as a shock to me. i was already aware of these things. I did not know,however, that filipinos returning to their home country are limited to the amount of land they can buy. it doesnt apply to me though. good informative article.
That’s great TLaff, I think that taking care of your family is a good move.
You’re welcome John. Good luck.
I was born in Cebu city:)
In the final months of the previous Philippines government there was a movement among a number of politicians, including our then Speaker Davao’s Nograles, to allow among other things aliens to own land/property (no sure if it was one or both) – that would have solved a lot of problems for us. Our current President does not want to see the Constitution changed.
Dear Bob
if i buy a land and i put it under my flipna wife and i write a papaer with the Lawyer that i am the only one can sell and do what i can with the land without going back to my wife , can this happen and is this ok with the law ???
These are similar rental rates that I am seeing in Cebu. And yes, you can expect to pay more in the city, say near Ayala.
Hi John Leick – Good to see that we are not paying higher rent here than there in Cebu. Yes rental in the city is more.
Take care!
Hi PapaDuck – If you feel that the place soothes you and the family why not buy then. Good for you. We are good. We are located in a flooding free area. But my laundry lady was not spare from it. Feeling sorry for her and her family.
Always good to see you here PapaDuck. Take care and God bless!
What is the advantage of living near the city center? More pollution, more noise.
If the purpose is to be near the shopping mall, you can also look for places near a newly opened mall outside the city, where the rents have not been jacked up yet.
Speaking about a newly opened SM, for whoever is interested, we have decided to put Orchid Park in Consolacion on the market this year, unless a good tenant finds us before June. (rent 70K/month-1 year contract).
The average salary in davao is 15k. How can anyone other than foreigners afford homes that are so expensive?
Hi joop – I guess the advantage would be near to everything. For us it’s near the school for our kids. We really like to live in a quiet neighborhood, far away from the noise. But we have kids to think about right now.
Rent in the city that’s near to the malls and all other conveniences were also high. Anyway, good luck to your place. I hope someone rent that place right away.
Have a great day!
HI FAYMA
A GOOD POSTING OK
in the last 12 years that i have been going to the php i have rented homes there and am right now buying a place in lugona lol i hope the spelling it right it is about 2 hours down south out off manila city and it is for me a dream ok to have this little home as here back home i would be livng on the street as home here at way out off my way we are paying about $20.000 to 25000 for it in the php but here it would be up to over $ 200.000 and for me rent here is not cheep as it was 10 years a a go and there in the php u can rent a little place for $100 a mouth with with out stress as i am still renting there too asi must do that for my wifes kids who live about 9 hears from us up nouth with joys mom who looks after them there so u can see i know about the two ver well there…..peter martin tassie
Rick, most of the Philippine population is very poor and couldn’t afford such houses, but there are also quite a few very rich people who certainly can, and in Davao, a growing middle class which has arisen in the last ten years or so…just look at all the Toyota Fortuners etc. driving around the place for evidence of this. The average salary might? be 15k, but lots are earning much more than that….the average is driven down by the sheer number of people who earn very little.
Hey Rick,
Jim is exactly right on when he mentions a growing middle class and the fact that there are SO many poor that it keeps the average way down. In places like Davao, Filipinos with more cash are buying homes, renting nicer properties, etc…but the average takes into account the millions of jobless Filipinos throughout Mindanao.
I live in one of the nicer subdivisions in Davao and while there are a higher % of foreigners here than you might see around town on average, it’s still comprised of 80%+ Filipinos that are quite well-off financially.
I read a recent gov’t article that although as a whole the per capita GDP (PPP) of the Philippines is around US$ 4,100.00 national GDP), it’s per capita GDP is about US$ 14,000.00. The same is true for Cebu City, Makati (where it is almost US$ 20,000.00/capita).
Hi peterjoy – Good for you. I’m sure you will be happy living the good life in Laguna with your lovely wife.
Hopefully you will be retiring with them soon. Good to see you here again mate.
Have a good day!
Hi Michael – Try to come here and see the place first. Have you been here before? As we always said here on LIP it is way to different to live here and to visit here. Try to read this site, we have lots of info here. Go to the previous post of all the writers here. You will see and learn from it.
To rent a condos range from 15k-20k studio type unit already furnished.Condos 2 bedrooms unit ranges from 23k-45k fully furnished. Houses rents from 10k not furnish. Some houses were rent furnish but you have to pay higher too. It really depends on what you want and also depends on where would you want to live here. Some place might be lower, and some place might be higher in rent. I know for sure Davao is one of the safest place in the Philippines. When it comes to visa you can ask Bob for that.
If you have more questions feel free to email me. Good to see you here. Good luck to you.
Have a good weekend!
Hello I’m 26 years old almost 27 and I was wanting to move to the Philippines and live there, I have a friend who is a native of that region she lives in San Miguel village I’m guessing near sipalay city or something but I was wondering for advice on jobs, like how hard would it be to find a job there and what not
Renting, as you have said, can be a problem. I’ve seen it here, as well as what you’re saying in the Philippines. While you may be renting, and paying your landlord each month, they may NOT be paying their mortgage. Some people here in the U.S. have been evicted because their landlord didn’t pay the mortgage, and the house was foreclosed and they were forced to move. While not a huge loss, it is certainly a HUGE inconvenience to the renter. 🙁
You are alone, Michel from Canada. I am considering the move some time in the future myself but also like the idea of try-before-you-buy! If you would like to discuss the matter look me up on facebook under Lee Bolger, Australia. Have a good one everyone!
Mrs Feyma,
You don’t have to worry about paying monthly rent or dealing with a landlord if you buy a house. To me thats why buying is the best option for me. Take care and stay safe from the floods.
Ooops. There’s a missing phrase in my reply above:
Davao City’s per capita GDP is about US$14,000.00, if you extract the city’s contribution to the national GDP.
Hello
My name is Michel and I’m from Canada. 60 years old, retired. No more cash ex-wife take everything but I heard so many good things about Philippines. If I want to go and try to see If I would like to live in Philippines, can I do that? How much it cost to rent a 2 bed rooms condo or a house for 3 to 6 months? Is it safe? What kind of visa do I need to do that?
Thank you for your answer.
Hi Scott Fortune – I can see you you are talking about. Luckily we never experience that yet. I hope never though. Like what you have said it is really a hassle then. We are so lucky that our landlady owned lots of houses and other properties here in the city and other places in the Philippines that’s for rent. So I don’t have to worry about that. I’ve been dealing with my agent and I never heard her mention something like that kind of problem. I didn’t say it never happens maybe I just didn’t hear it yet. I will post here if something like that happening here.
Thank you so much for stopping by!
Thank you for your answer. I lived for 6 months in Manila, travel a bit to the beach place like Borocay, Puerto Galera, Laguna, Tagatay. I was working in Manila at that time but did not check the price everything was furnished for me. But you are right I will go first and have a look.
Thank you for the information.
Interesting to get a glimpse of property costs in Davao . Here in Cagayan de Oro costs would seem to be a bit lower but probably not suprising given the smaller population sample . You can rent a 2 or 3 bedroom , 1 & 2 bath here if you go outside the city proper 5 – 6 K for 5 – 8,000p . Inside the city probably looking at 10 – 12K . More upscale from 20,000 – 50,000 . Lots of new Condos going up now with some promo offers for studio types as low as 8,000 – 10,000 but suspect you would not get lease beyond one year at the promo rates . Apartel type lodging runs around 10,000 + a month for clean and comfortable but not extravagant . Malls are being built at a frantic pace but infrastructure upgrades move at a snails pace .
Just one view from your neighbors to the north ..
Hi Josh – If you are interested in living in the Philippines, but you need a source of income, getting a job here is generally not the way to go. Firstly, most companies are not looking to hire foreigners. Secondly, you probably won’t want to work for the kind of wages offered here, usually only a few dollars per day.
To help out people like you, I have written a book called “49 Ways to earn a living in the Philippines” and I cover ideas of all sorts on how you can earn a good living while living in the Philippines. I have been earning my living here since 2000, and I earn more money now than when I lived in the States. So, I know that I can help you do that too!
To check out the book, go to:
http://expatisland.com/49-ways-to-make-a-living-in-the-philippines/
As a special offer to you, I am going to offer you $10 off the book, but the offer is good for only the next 24 hours. During checkout, just enter the coupon code – 10discountToday – and the book will be $10 off the regular price. But, remember, the discount expires after 24 hours.
Check it out today, I am sure that this is what you are looking for, if you want to live in the Philippines!
Probably a bahay kubo. LOL I’m just kidding!
She wants to open a restaurant we are abit more than online friends but I just want to make sure all my bases are covered before making a big life changing decision I will be getting your book in the future and honestly it’s hard to find honest people willing to help so Ty very much
Anne, the bahay kubo has been and always will be THE Philippines in my mind. Without it and the jeepneys, the Philippines will have lost its appeal for me.
Looking for a place to rent in Davao. What can I get for 8,000 to 10,000/month?
Thank you, however I may be going to visit my friend for maybe a month or 2 before returning back to the states, was just wondering living expenses for those few months
Sir John Reyes,
my bahay kubo is free from flood but it is a haunted house lol….hik..hik..hik
alot of paniki and duendes too, it is free….. for all those want to stay. WATCH OUT THE OPENING SOON NEAR YOU.
I am happy to help you, and I am honest. Good luck, I hope everything works out well for you.
Dear Bob
Found your site to be quite informative. Had a query for Bulacan area Malolos to be precise, just in case you have any information on that.
I have already visitied Malolos a number of times and have seen a property in Camella Provence which is near malolos crossing on Mcarthur highway. Its house and lot of 110 Sq meter lot and floor area is 81 Sq meter, the price is around 3 M.
The query is :
Is the price reasonable ?
Would it be a good buy considering the value appreciation?
Any thing i need to check before parting with money ?
Do you suggest i get a lawyer to look into the deal or Camella is reputed and trust worthy
Regards
Karan
Ha ha.. it’s an old article, Neal, but I’m glad that you found it helpful! 😉 See you soon!
Hi Feyma,
We’ve been renting a one bedroom house in Calbayog City for 4000 a month. It’s small but got all the conveniences and it’s just outside the city proper. Of course the Province doesn’t have all the amenities the city does but it doesn’t have all the problems either.
Hello Bob,
I have a question. my wife own a property in the philippines and she is getting to file her us citzenship and there after she will be applying for dual of philippines and our question is that if she owns that house in the philippines. do we have to pay property taxes on that home that the usa will tax us here. its our second home for vacation ect. it’s 100 sq meters.
Hi Donna – Glad you enjoyed the article. Returning Philippine Citizens have no limitations on land ownership, but if the Filipino has relinquished his citizenship to the Philippines, then he is limited to owning only up to 1,000 sq. meters in the Philippines. Of course, he can always apply for Philippine Dual Citizenship in order to eliminate that limit!
Bob…love your site and have learned a lot of things I did not know or considered. My wife and I have been having fun dreaming and planning about making the move to the Philippines when I retire. Mindanao, is when we’ll be heading.
We’ve been searching the internet for homes. And you are absolutely right. All of those homes we see listed are astronomical in cost and I was thinking, there’s no way that home should be worth anywhere close to what we’re seeing. And it wasn’t just a home here a home there being out of sight price wise, it was all of them.
My wife kept telling me…Tom, we can build a nice home for a lot less money to what we’re seeing here. She also echoed what you said for me to stay out of the picture and let her and her family do the wheeling and dealing. She said as soon as they see me they see American…rich…money.
One of our plans is not to stand out. A nice home, but we don’t want to look like we’re wealthy. I don’t want to become a target.
Bob….I’ll end it here but I have a lot more questions I’d like to pick your brain with. When we make the move I’d like to have jumped over as many hurdles as possible and make the transition as smooth and trouble free as possible.
Later, bro.
Tom
Hi Karan – I have no specific knowledge about Camela, although I have heard of them.
1. Is the price reasonable? Could not answer that without seeing it and looking it over. It is a personal thing, whether you think there is value there. Look around the area and see if other similar homes are a better value or not.
2. I would not be looking at a home purchase in the Philippines as an investment. Consider it a place to live, and not something you will make money off of.
3. Yeah, check everything, as you should with any item that you spend that kind of money on. Particularly check that the title is clean.
4. Absolutely, you need a lawyer to review the transaction.
Excellent Site
Yes, you must pay property taxes in the Philippines. The USA cannot tax that home, as it is not in the USA.
Gday bob, your a legend! Look mate I,m 36 yrs old from Aussie, I,m planning on living in the phils, in the near future, I,ve got a fiancé there in Leyte , look I plan to move there with about 150000 au dollars, I,m pretty familiar with the cost of living there, but I really need some way of making a small income, I,m interested in your book! It is a big sacrifice as I,m selling my house, anyway I just wanted to establish a connection with you for now, as I might appreciate your knowledge , about visa,s and other things at a later date, cheers mate!
Hi Craig – Nice to meet you! Good luck with your pending move to the Philippines! It must be an exciting time for you.
Given your situation, I think that my book, 49 Ways to Make a Living in the Philippines would be perfect for you. It will show you many strategies on how you can supplement that nice nestegg that you are starting out with. Anything I can do to help you, just contact me, and let me know.
Hi bob great and interesting website especially info on land and property ownership- I’m British married to Filipino in Dubai and applying for c13 visa believing we could jointly own property hmm now reconsidering what to do – I do believe I can own 40% or 50% of a business so could the business own the property?
Thank you Martin. Glad you like the site.
careful about buying a lot with only the “tax declaration” title and not complete title. the true owner can take the “tax declaration” title owner to court and be awarded a large sum of money for the complete title.
NEVER NEVER BUY WITH TAX DECLARATION.
Scott,
We will be renting for a few months while we look for a house to purchase. We will be buying a house already built in a subdivision. Don’t want the hassle of having to surpervise the construction.
Scott;
When buying a house and lot, there are so many things you must check out.
Will it (the rooms) be big enough for you to be comfortable in?
Will the master bedroom have a bathroom attached?
Will the land be bigger than a postage stamp?
The floor plans in local built houses will be different than what you are used to. So unless you can find a house that was built by a KANO, you might be renovating from day one.
Transportation will find you, no matter where you live, the Trike will just show up, and the Jeepney’s won’t be far away.
I rented first, and then built a house a few years later. There will be people that will tell you to just rent and never buy or build.
You decide what is good for you, and let others decide what is good for them.
But as you said, look around first before you jump into anything.
Paul,
I’m am astounded at the small size of some of the lots for sale! The smallest are even smaller than the smallest apartment I’ve rented. I couldn’t imagine having an area to park a vehicle, AND have a house. Let alone a tree or two.
You are right, I need to try some places, and wait and then decide what is best for US. 🙂
Renovating… I don’t mind doing it, as long as the estimated are accurate. Thankfully, I know a great worker(my brother-in-law).
I have seen MANY with a tax declaration only, and keep right on looking. No title, no chance for me to even look, let alone consider it as an option!
Hi Scott,
The best I recommend is to rent at first. As you mentioned it gives you a chance to move around and check out different areas. I have lived here in Angeles City for almost 6 years now and I am happy here. If you would like get my E-Mail address from Bob and send mw a note. I will give you my Vonage USA No. and you can call me. I can give you a lot of advice that it’s too long to post here. Whatever you decide Good luck with your move
Scott,
An estimate is just an estimate or quesstimate, a quote is more accurate than an estimate.
In the PH throw all that out of the window coz everything there is a guesstimate and will ALWAYS cost you more than the guesstimate you are given. 🙂
Thanks for reading the article. I’m not in too big of a hurry, I was really just trying to see what was available. I’ve since heard of sales in the area for much less so I know that I can find deals for much less than I see on the internet. But, it’s still fun for me to see what is out there, even if the prices are inflated. 🙂
Scott, others may disagree with me, but I will state the following:
All of the research you are doing online is a complete waste of time.
I tell you this for the following reasons:
1. Unlike in the USA where real estate listings are frequently updated, I would guess that 90% of the Philippines listings are out of date. I mean way out of date. This can mean a huge difference in price / cost.
2. Many of the listings I see online are simply bogus. There is very little in terms of consumer protection here regarding pricing. What you see advertised is rarely the real price.
3. Until you actually see the property and know the area, it is an exercise in futility. For instance, what does “close to transportation” mean? It means something different to you than me. Remember, people tend to walk more here than in the USA. When we rented our house, I asked where was the best place to get a taxi… Was told “very close… at the corner”. Not the corner close by, but a corner a fair distance away.
4. Real estate here is done in person. Most listings are never posted online. Word of mouth.
5. The postings that ARE online are usually more expensive, targeted to expats and OFWs. Unless they are by Ayala or something, they are not even good for deciding a budget.
John is exactly correct Scott.
It is really a total waste of time to try to find any worthwhile properties on the net.
I disagree with those saying the Tax Declaration Title is always a no-no.
Essentially there are 3 legitimate ways to gain title in the Philippines:
1/ Buy a fully titled property with tax receipts, in survey which matches the survey of the original title. (recommended for security, but much more expensive than the alternatives- which do not have to be a disaster.)
2/ Buy a property with a Barangay ‘Right of Occupancy’ certificate. To turn this into a proper title, you need to have a recognized survey done by the municipality. You can then register (your wife of course) to either begin paying the property tax, or with the help of a lawyer- pay 15 years of the property tax in arrears. With 15 years receipts and the survey, you can then have full freehold title.
3/ As in 2, but don’t back-pay taxes, just begin paying them and wait the 15 years to convert from Barangay to freehold. This is the cheapest option.
Be aware that if your wife has achieved dual citizenship, she will be restricted in how much land she can own.
I have friends who have done all of the above methods successfully. There have been plenty of cases of an apparently freehold title being completely fake, so beware of scammers in every circumstance.
It can’t be stressed enough that you must be there in person to have any real idea. Land prices are very often half off the books, half on- for tax avoidance purposes. I find this really bizarre, that people will give 2 receipts for property, one for the real price and one for the amount the government is shown. This is tax fraud and could land the seller in jail for 10 years- but it happens all the time. The buyer could also be prosecuted for failing to declare the true value of the sale. Tax fraud is totally rife in the Philippines.
I can tell you for sure that if you want to buy property, the only way to get a real bargain is to be there with rapid access to cash. Don’t go around ‘house hunting’; just rent in an area you like and put the word out you are looking for a ‘very very cheap’ house and lot- then wait. People do sell property with title, all legitimate- very very cheaply- in emergencies. I have seen house & lot sell for under 200,000 peso several times, simply due to a desperate seller needing money immediately. A family in my street recently were approved for US residency under the family program- they sold their Spanish era house for 2 airfares to LA; with zero advertisement- just put the word out through the week then sold on the weekend to the highest cash bidder.
Around the fringes of Pinatubo there are several estates which were built as replacement homes for those who lost theirs in the eruption. Many of these were never occupied as the people moved back to the land as soon as the dust settled and started again. Check out Castillejos in Zambales, near Subic. Some very cheap house & lot there, plenty of expats around, near shops, not far to beaches. You won’t find anything online there worthwhile, but there are heaps for sale and cheap.
The term ‘Due Diligence’ is always important in real estate anywhere- in the Philippines multiply that by 10 then double it.
My wife and I went house hunting in 2009, my nephew drove us around showing what was available. All sucked. We went back to my brother-in-laws house and I got on sullit.com. We found our dream home there. So it isn’t all bad. AND we got a title!! You can see the house on the website I enclosed. 45 min from Angeles, or 25 minutes from Olongapo.
Yes Scott careful… I know your anxious to look for something but, doing it via the internet IS NOT the best way (unless it from someone you know such as Bob and Feyma’s contact for land)… Much of what you will see are inflated prices for those kano ro foreign buyers or are scams. Not to say that there are not legit ones out there but it is difficult to weed through all the listings and tell them from the others. Luckily while my wife was awaiting immigration to the US she found a house and we bought it. This is going to really serve as our baseof operation when we get to the PI and beging really looking for our ideal location and house and lot… I have been advise by several Filipino relatives that the best way to find a legit house and lot there is to simple wander around look at signs posted and ask people in the area of interest. I would sugest the kano no be present but rather allow the asawa and her family search it out in person. Reason being that it would almost be a given that if the kano was present the property value will magically increase. And definately go to the local govt office (tax, register of deeds, etc) to ensure that the owes offering the lot/house have the legal authority to sell the property. Far too many times I have heard of people buying property only to find out later that it did not belong to them cuz the seller had no right to sell it or that outstanding taxes were owed that the new owner got stuck with paying and sometimes the title was not proper again a cost that the owner incurred.
Don’t rush it, live with the fam while you search it out, have asawa mo hunt and take pics for your review, and check to ensure all documents and taxes are gtg. It really shouldnt take too long to find something suitable, depending on how picky you are. Good luck to you both and I wish you well. Happy hunting
Pita Mike,
Good to know good things CAN come from the internet searches! 🙂
Thanks for understanding Chas.
actually you can buy a lot with tax declaration and apply for real title. can take up to 20 years, and actually not that expensive, even with an attorney. this is how mayors have become rich, they have access to all titled lots that show no taxes paid in many many years and they start the process of purchasing that land by pay the tax and applying for the title, then of course they sell it at huge profits.
If you are a local expat in a town of under 50,000 people in the Philippines, everyone knows who you are within weeks- there’s not much point trying to hide. If you don’t feel like a local expat after renting for a year or two in a place, it’s not the right place. It’s totally normal for your wife to take you on a drive by, do the first inspection and basic haggling, then have you make the final decision. If you follow this protocol you won’t have so much issue with ‘Kano tax’.
I have many friends doing the ‘slow conversion’ of title method, it can work. If it does work for you, it’s a very good long term retirement plan. You have to be around, have legal advice, have more legal advice, then some more. The number 1 thing you have to be there for is to ensure there are no squatters involved at any point in your land dealings. Make sure initial occupancy is free and clear. If you allow people to occupy land your wife owns, make sure to have a written lease arrangement and keep proper records. If you leave a lot unoccupied for any period of time, without a caretaker, someone will squat on it and you will have hell to pay to get them out.
Be wary of the paranoid advice. You really need to spend at least a year in the Philippines, in a place you are comfortable and your wife is fluent, to get a proper feel for what really is possible.
At all costs, avoid being henpecked into staying at home all the time and not having a life of your own. Get out and about, meet some folks and get a range of ideas that apply to the specific area you want to live. Make friends. There are some freaks and trippers in the expat scene but there are also gentlemen galore, some real gems of men. Find the right beach, the right shopping place, the right access to everything you want, a few expats around capable of a conversation- the rest will fall into place.
Gypsy,
“Be aware that if your wife has achieved dual citizenship, she will be restricted in how much land she can own.”
Republic Act 9225, AKA the Citizenship Retention and Re-acquisition Act of 2003 allows dual citizens to reacquire full citizenships and all rights, including owning and purchasing land without limitations. It is easily filed, and my wife did it in San Diego when the consulate visited.
It sounds like you made out pretty well Ron. I’m happy for you.
Gypsy,
I read your post, and agree that my searches online are at best, fun, and will most likely provide NO helpful information other than for me to see what types of houses, lots, etc are listed on the web. I also know that it, by no means, lists everything that is available out there on the market. I know that property is sold, very often, by word of mouth. Which is why I plan on talking to people when we arrive there to find a rental home, and then while searching for a home to live in permanently, when that time comes.
I agree with you Queenie. 🙂
For Queenie and Chas,
I disagree with you. I read all the feedback, albeit lately a little slower than usual due to personal issues. If you’ve read some of my other posts, I’ve even thanked posters for bringing to light my poor choices of methods in handling situations with family members. I have no problem taking and accepting criticism, and am sorry you don’t think that I am reading or responding to your posts in a timely manner. Some responses I try to handle in one response when the comments are all on the same topic, in this case, the uselessness of looking online for property, and the general feeling that I am wasting my time.
I am aware, from posters, and through the guidance of Mindanao Bob that the effort will probably provide nothing more than entertainment for me. But, I don’t feel it is necessary to respond to every person that has the same feeling on the topic.
I also refuse to get into arguments on topics, as that too would be fruitless. We as a people, the human kind, are all different. We all have different perceptions of reality, and what is good or bad, or a waste of time. I personally have plenty of time on my hands, and so I enjoy looking a things in the Philippines. it makes me feel a little closer to BEING THERE, when I am so far away. Also, I look at all the photos provided for houses for sale, and take away ideas that people have used to incorporate them into a house that I personally would like to live in. A “dream house”. Something that would be the ultimate retirement home, for example.
I like Mindanao Bobs bbq he had built. Something like that is on my list. I saw some houses with a small pig building that looked nice to have on a small piece of land, as I want a couple of pigs and some chickens. Another house had a really nice outdoor covered porch that would be nice for sitting on in the evening or early morning with a cup of coffee. While others still, had fruit trees, or a nicely built car port or garage. Where you or others might find my searching the internet for houses a waste of time, it gives me ideas, and more importantly, an incentive to come to the Philippines.
And while I might not agree with you on certain things, that does not mean that I am not taking your thoughts into consideration. It simply means that I am going to use your opinions when I arrive to see those houses and my experiences as you see them and then I can decide if I agree with you or not. For I can not make a call on something that I know nothing about! 🙂
My articles are written, as always, from my perspective. From what I see. I don’t claim to be right, especially when I know that I am probably wrong. I bring my point of view, as an outsider trying to move there, to this site, and looks for insight from those that are there. Whether or not I respond to each personal posting, I can assure you that I appreciate the responses. And more importantly, other readers do as well. For it is for them, that I write these articles in most cases. To tell a story, and sometimes, to ask for guidance.
It is, after all, what LiP is all about. Helping others with information about our own personal experiences and try to help THEIR move easier, and relatable.
Scott
But then you have to evict people, and we all have read here on LiP how difficult to impossible that can be. 🙁
“Fools rush in where wise men fear to tread”.
Take your time Scott, play the waiting game.
Negotiation is the way of the East.
Hi Scott,
It’s probably a fun pastime for you, but I agree with the others that you’re just “spinning your wheels” hunting for land and houses on-line. As JohnM and Bob said, they are probably out of date or now non-existent. There are so many factors mentioned by many here too that could come into play. You mentioned a small yard area–some houses and lots in the province don’t even include property access to the main road, so having a vehicle would be out of the question. Also, what kind of running water or well water is available? Are there nice trees on the property that could add value? Do you have neighbors and if so, who are they and how close are they to your property? How about flooding in the rainy season as mentioned by others? Are you close to the town proper or out in the boonies? Do you want to live in the residential neighborhood or in a sub-division?
Being new to the country, I think you’d be best to rent first and look around for possible areas and other islands first, before you even think about buying. You might not even ultimately like the area or climate or weather, politics of some places or the people might not seem particularly friendly to you. There are so many variables that might be of interest to you.
Once you and your wife make a decision, and live in a place for a while, do as Gypsy suggests–get out and make yourself known. Eventually get the word out that you have cash, and that you’re interested in a certain type of house or lot. If you’re well liked and trustworthy, people will come to you with many potentials that you can check out. As always cash is king, so offers will come if you’re ready.
We’ve built two houses in two different but nearby towns, one on a family parcel left to my husband by his parents, and one on land that we were approached about by the seashore and we then purchased. We also purchased a small parcel of land that offered us various fruit trees and land to garden on. That one we keep unoccupied but fenced in and watched over by a caretaker who shares the fruit with us. Cebu is our first love, but yours might be a different place altogether based on your wants, needs, circumstances and budget.
Take your time.
I can see where people could become quite rich in land by doing this, but being an outsider, I definitely do NOT want to paint a bulls eye on my back. 🙂
I’m in no rush, have talked with Bob about land and house hunting, and am taking his advice to rent a while, adjust to everything, and then once settled in and used to the culture more, find something that will be good for us.
Good idea for an article and great feedback. My husband and I are also keeping an eye out for properties and trying to learn more about all the processes involved. We are half a world away so for us the internet is the only way at the moment for us to get some sort of idea of what’s out there. Unfortunately, my relatives in the Philippines are far away from the area we are interested in.
certainly do not buy a lot where people are already living on tax declaration, scott. but we did buy our 2 hectare on tax declaration and after 20 years we do have clear title. just be prepared for long term processing.
Gypsy,
I’ve read a lot about squatters, and have NO intention of ANYONE living on our property other than ourselves. A rental agreement is a good idea though!!! But, I don’t think it would help much for me.
I’m planning on keeping it simple and renting for a while, adjusting, and then deciding what we will do.
The Tax Declaration/ Barangay Right of Occupancy Deed- doesn’t exist in the USA or any other first world country, so it’s a bit hard for westerners to understand. However it does exist in the Philippines and is a legitimate basis for transacting. It is also seriously cheaper than the full title option. From what I have seen expect a 75%+ discount on a per meter basis.
The friends I know are in this strategy have bought their home with clear & free title, then bought farm lots on Tax Declaration. They gain rent whilst waiting for the investment to mature, often a share of rice or other crops; so it’s not a dead money situation for 15-20 years.
I like Queeniebee’s metaphor- ‘spinning your wheels’. I think we all go through something like this when getting ready to move to PI; it’s not easy to listen to the ‘voice of reason’ coming from the old timers- settle down, take a deep breath and accept that to do this move well you need patience (patience grasshopper!).
Personally I have no interest at all in living where there are large numbers of expats. I like the climate way up in the hills and right on the coast. I could not live in Angeles City- too much crime, too many guys there just to mess about with women, too hot & polluted. My recommendation for central Luzon would be to meet up with Paul and do a tour of his part of Zambales- it’s beautiful, lots of variety in lifestyle options and price, SBMA for American goods etc.
I don’t like waiting a year for my trip to the PI, there’s no way I could wait 20 years for a title! 🙂
Titles take a long time to get, even “regular” titles. It can be years, even for a “clean title”.
I am no fool, usually, but I have made some mistakes in my life. As, I am sure, we all have.
I am planning on taking my time in determining where we will live and what we need for our home. There are so many things to look into, that I know I simply cannot achieve while sitting here in the U.S.
Being in the Philippines is a must for me to decide anything.
Thanks for the advice. 🙂
i understand, scott, we were told only 2 or 3 years when we purchased the property (paid only P12.5 per square meter and researched the records thoroughly for persons paying the tax and was the same family for more than 100 years). if i knew then what i know now, might not have bought it. it was a risk that paid off.
Now, if I saw something like that, where there was the same people paying on the taxes for 100+ years, I might think about it. But, I think I’ll try the word of mouth stuff first, research ownership, and go from there. 🙂
I know Queeniebee, but being retired and bored, it does give me something to do and to dream about. I love looking at the pictures and thinking about what I like and don’t like about the houses listed. Doing so gives me ideas for what to do when we finally decide to get our lot or house and lot to settle down into. 🙂
yup, this was word of mouth, did the research, talked with many many people in d.n.r., city hall, courts, family etc. no one living on the property as it was only maguay plants growing there (used to make abaca) and a few coconut trees with lots of different types of limestone. but with 75 meters of beach front, i couldn’t pass it up.
Wow. Lot’s of beach front!!
Maria,
Thank you. It is difficult being so far away to try and find something when you can’t physically see it. But, to me, seeing SOMETHING, anything helps me to understand what is there, even if the prices are not accurate.
Hi Scott,
I noticed in this and previous posts that you are very selective in who and which feedback you respond to. I’m surprised, because in my opinion there is always so much for all of us to learn from each other, no matter whether one is a newbie to Bob’s site and the Philippines, or if one has a different experience and maybe some more input to share. Do you only care to respond to the posters who might agree with you and reinforce your way of thinking? You might be selling them and yourself short on possibly acquiring and learning something new that you and all of us can mull over and use in our own experiences in the Philippines.
I appreciate all the writers on Bob’s site because they are pretty patient and are willing to share what they think with others, whether you might agree with them or not. It all helps to contribute to the general discussion and helps to share ideas and concrete possibilities for us all. I would think that the writers in the process must also gain some insights from their feedback received, that they themselves can use along the way.
I liken a tax declaration property to a mechanic’s lien on an abandoned motor vehicle. If my understanding of a mechanic’s lien is correct, a vehicle that is registered and titled to someone but is abandoned on public property, anyone can claim it his own legally by applying for a mechanic’s lien on it with the appropriate state motor vehicle department.
rocky shore, but sandy bottom and nice coral reef offshore, nice view of leyte, beautiful sunrises
I’m in a similar position as Scott so I have no advice or insight to offer. My girlfriend and I recently made the decision to move to the RP, ( move back, for her) and want to build a house where she grew up in Pangasinan. I’ve visited twice, and we are going back this coming Feb for a month long visit. When we were there the last time we found land that we would like to buy in the Barangay that she grew up in. Keeping in mind the comments about living too close to the relatives I’m still very interested. But as mentioned in this discussion the process is very different in the RP than in the U.S. I can understand Scott’s excitement and the idea of looking online for properties, or as I have done looking online for properties to compare. We met with the woman who is, or claims to be representing the owner on our last visit, and she gave a price of P800,000. This seems expensive to me but when asking my girlfriends family and friends I didn’t get any info that would give me a starting point for determining what it could be worth. So this coming February when we visit again we will be going to the proper government offices to find that starting point for determining value/negotiations. I guess what I’m really saying is thank you all for the valuable experience contained in your posts, your insight is a very helpful resource.
I saw some properties where someone was selling a tax declaration property. I was thinking about it but It kind of didn’t make sense to me to buy something that a person was living on but they didn’t own. You’ve just confirmed my suspicion. Thanks. Can I ask how you found the property? Was it just a word of mouth kind of thing?
Yes, I’ve talked to many people that have done the tax declaration too, and they have no apprehension to doing it. But, they are Filipinos, and used to that sort of business style. It’s scary for me to think about investing my savings into land that I might not ever be able to actually live on. So, I prefer a safer method. Now, maybe once I have a house to live in, buying some land for farming on tax declaration might be an option for me, but I would have to be there a while before I made a decision like that, and would probably need to know the seller pretty well too.
Gypsy,
I am usually on top of responding to posters, but I have had a lot of personal issues in the last month or so. Numerous people I have known have died recently, and there are other health issues going on that required my attention. I have spoken with Bob about this, and he understands. However, if you all feel I lack the time to respond in a timely manner, please request Bob pull me as a writer. I will not stand in the way of his progress.
I agree with you all on this topic. It scares me, and makes no sense, and yet so many people do business this way. I don’t like it, and do not intend on doing this myself.
Title only for me.
Check The Tax Records On The House!
My wife and I bought a 1,500sqm back in 2002. It turns out no one had paid property taxes on it since the 1970s or something. Also, the person on the title died like 2 months after I bought the land… and I hadn’t gotten it through BIR yet. I had to pay the “capital gains/inheritance tax” for the broke children before I could transfer the title. I was a 22 year old soldier in the Army and didn’t know how to do any of this stuff. Had to learn a pretty expensive lesson.
I just found this website, so I don’t know if anyone has mentioned taxes and title matching yet. Just wanted to make sure everyone knew about it.
You will probably be alright with a subdivision, but a rule of thumb is that if bank won’t give a mortgage for a house and lot in a development… then you don’t want it. That goes for high rise condos here too.
Usually Bob makes sure his writers make an effort at responding to comments on their articles. My guess is he has tried here too. What’s up Scott?
One thing I try to keep in mind is that the same word, in this case ” House ” may have an entirely different meaning than the image you come up with in your mind ( as a Kano ) for something being a house. A few years ago I went with some Filipino friends who were buying houses in a brand new housing development, still under construction at the time. They asked me if I might be interested in one and of course I told them foreigners can not own real estate there. Come to think of it, I don’t even know if the property these ” Houses ” were situated on even included the property LOL. I saw the completed houses after my friends each moved into theirs. Yes, by all means by Filipino definition they are houses. In my own mind, and not to be disrespectful, my definition would be a larger sized garden shed whit a very nice exterior. One of them even had the kitchen sink outside on the back of the house, with no sink inside at all. By USA standards, I don’t own a big house myself, but those that I saw in that new housing development, even if I could buy one, I know I would not be very comfortable in it. I would like to take the time on one of my visits to really look into some residential areas, or at least in my mind what I consider a residential area, just to get a better look at what kind of houses are there. At the moment it is not something over significant to me and my time there seems to go by so fast. From what read like so many complexities in buying a house in The Philippines, even if you can actually buy and own it for yourself, even though here in the USA I prefer to own, I agree with what so many say for The Philippines, best to rent, at least for a start.
Looks like Scott might be busy so anyway to continue…
The main points covered are:
1 You have to be on the ground in person in the Philippines to:
a. know the real market
b. ensure bona-fides and vacant possession
c. to negotiate
2/ There are more ways to buy land for a Filipino citizen than we westerners have access to.
The tortoise definitely wins the race.
3/ Expect slow processing of deeds, from 2-20 years depending on mode of purchase.
(I would like Ron Perry to tell us what his beach block would sell for now? My be is you are way ahead, even if it took 20 years…)
My apologies for slow responses to this article. Personal issues have caused my response time to be much slower than usual. I apologize to all readers, and am happy to bow out from LiP as a writer, if that is the wish of the readers and posters. I do this for fun, and entertainment, and make no money from this whatsoever. I will still continue to read the site however, as it provide a LOT of useful information.
Scott:
One of the main reasons I stopped writing was, in fact, the amount of time it takes to respond to all of the comments (I tried). On an article with a lot of responses, it does take a bit of time to think up and write a coherent response. One time, one person had gone into a tirade against me after one day delay on a response (I was on a business trip).
Don’t let it get you down… People have lives and things happen. If someone doesn’t like what you write, they always have the option of not reading it. If writing on here makes you happy, and Bob happy, then you should keep doing it.
Thank you John. I appreciate your support, as I respect your opinions and your writing. I’m sorry you too encountered unhappy readers.
I’m going to stick with it and see how it goes.
Good luck with your business dealings, and personal life as well. I hope your family life is great!
Please do keep writing Scott. I am benefitting from reading the experiences of those who are in the process of making the move. I think it is obvious that you are not planning to commit to any of the properties you see online. The benefit is having a bit of an idea of what you may see when you are house hunting in person. Mitigating the culture shock, if you will.
Seeing these criticisms reminds me that I also don’t respond to every single comment. I notice that some other writers do, if only to say “thanks for your comment”. I’ll likely adopt that, and also mention commenters by name when one response serves to answer multiple comments.
Sorry to hear of the deaths and sickness in your circle. I’m pulling for your success.
Take care,
Pete
In my observation, there are only two current LiP writers who respond to each and every comment regardless of content. However, It is perfectly understandable if a writer chooses not to respond to a smart-ass remark or a negative criticism. In the same vein, I have read some insightful comments from readers who responded to the recent article, “Gays in the Philippines”, that inexplicably went unanswered.
I cite comments made by Myra Rose Ilisan, JennyRyane Bulatao, Isabel, Rebecca Ferry, and, particularly, Toti, whose comment, I thought, was an outpouring of her heart’s content. A simple acknowledgement of having read the comments would have sufficed, but to completely ignore these readers’ comments who took some time off from their busy lives to read the article out of respect for the writer, and then respond with passion as Toti had, is downright rude, in my opinion.
I appreciate that you can understand that it is difficult to respond to every comment John Reyes. I am still trying to get used to the new system, and the personal issues and deaths of friends. My time has been spent doing other things. I do, however, feel I am now able to respond in a more timely fashion, and hope that I can meet expectations of both the readers, commenters… and Bob.
Thank you Cowboy. My intent is for someone, anyone, to get something out of my writing. Be it for entertainment, or for information purpose. If that isn’t being achieved, then I’m not doing what I’ve been asked to do, nor what I am trying to achieve.
I am glad that you can take something away from my articles.
Scott, I appreciate the effort and time you take to think of an idea and write an article. Sometimes it’s not easy to keep on top of everything especially since you do this voluntarily. I know because I’ve written my own blog as well. I would never presume that you must acknowledge each and every comment. Please keep on writing.
Hello Sir,
I am Filipina divorced to Japanese national wants to sell my house and lot in the Philippines. I am just wondering if I still need to ask a waiver of right from my ex in order to sell the property?
The name on the title is example “Maria Tamaguchi, Filipino, of legal age, married to Taka Tamaguchi, Japanese”
Thank you,
Maria
well about owning land in the philippiness many canadians own land there , so why do you say you can not if they can and none are married to philippnes women .
I’m defi I do have one question is it possible to create an American corporation here in Americ that will give an American the ability to buy lan or create business is over there in the Philippine. than thank you
Hi ron – People can do lots of illegal things. It is not legal for a foreigner to buy land or own land in the Philippines. The constitution says that. Sorry, but no foreigner can legally own LAND in the Philippines.
Take care.
I am not an attorney, but since your ex cannot legally own property in the Philippines I see no reason why he would need to sign anything.
Hello Bruce – Yes, it is possible to set it up where a business owns the property, and you can own a minority share of the business, but never a majority of it.
I 100% agree with you Bob. Even me as a Filipino woman, I am a little bit cautious about buying a property in the Philippines because;
1. I don’t trust the government there, they are corrupt!
2. I don’t want to pay tax every year and some other documents & requirements to build a house ( I prefer to build a simple timber house) they will charge you ridiculous amount of money( I’m sure the tax payers’ money will go to the lazy asses government workers!)
3. Most of the carpenters and builders they don’t follow simple instructions! Poor design! The plumbers they don’t know what they’re doing etc.
4. Most Filipino people specially women when they had the money they would build a big modern luxurious house because they want to show case their financial status in society!
WARNING: To all the foreigners out there who are married to a Filipina woman be careful in buying a house/property in the Philippines. By the time your wife will decide to leave you. It’s YOUR lost! You CAN’T own the property that you worked hard for….(My English Father in-law got killed in the Philippines 20 years ago, he owned a beautiful beach resort in the Philippines. His wife filipina wife had an affair with one of their filipino gardeners and she got pregnant. He decided to divorce her, and because he was a very clever and smart person, his wife killed her so that she can get 100% share of the resort(she wants the whole cake, not just a slice) her father was a police officer at that time. I have a feeling that she hired someone to kill him or probably her father did.
-NOT all Filipina women are like that but they are some.
Thanks for your kind words, Tom, I am glad you found this article and my site to be helpful. There are a few pitfalls when you move to the Philippines, but they can be avoided, and you can have a happy life here. I know, because I am quite happy here.
My biggest recommendation in the way of homes, it to rent here for the first few years. If you purchase you are tied down, same if you build. If you rent, you have a lot more flexibility. In 2 or 3 years after moving you will have a lot more understanding about what it is like to live here, and that is when you are better able to purchase a home.
Good luck.
very amazing what does happen a lot in the Philippines. when I first was there with my wife I cant remember how many people came up to me to “sell” me some land. but to be honest I wasn’t looking to settle down in that area anyway. but my wife and I have gotten our house my name is on the deed along with my wife but I know its only there because our home loan would never have been approved without me having a job. and I know that if my wife dies God help me if that happens before me it will pass to our children. But it was worth every pain to make our dream come true. The laws are really tough on us foreigners listen to dave and heck all of the writers here on LiP they have been there done that. I know I do and someday soon I will be able to live in the beautiful house my wife and I have gotten. I know she has been going crazy getting everything just right.
Your name on the title probably has nothing to do with a loan. We bought our house outright and my name is on the title.
there is no easy way……actually no way at all
Thanks for the “words of warning”!
I am happy enough to rent. I would hate to buy and get stuck in one place. With the terribly loud neighbors I have right now, even my girlfriend is seeing the sense in retaining mobility ha ha
Most foreigners/expats would rather rent..maybe here in Manila. For Filipinos, owning a house/lot is a must and top priority.
absolutely right !!!!!!i dont understand why a foreigner should buy a lot in phils…..the only reason i can find is if he likes to help his philippino relatives…..but of course a marriage is never permanent….so ?????
I to am curious, but I have already accepted that it will not pass to me but my wifes children first.
I think one of the easiest ways is to get a dummy, and make sure that dummy won’t run away with your money.
One of these days I am going to check on minutes of the deliberations of the 1987 Constitutional Commission. I just want to see what was in their minds when they drew up the pertinent constitutional provisions.
Under the Philippine retirement act a lot residential is allowed and a place of business non retail. It’s clearly defined. Land can also be leased 25 years renewable for another 25 years. Longer in special investment zones epza. Admin has info BID for retirement law. There are limits on size I think residential and business not to exceed 1500 Sqm in rural areas less for highly urbanized places. Pls check I did a story on that a few years back after SC upheld validity of that law.
There are no limits however or restrictions on condominiums or town houses covered by condo certificates of title for foreign investors.
‘Do Not Piss On The Electric Fence’. Words to live by 😉
I also bought a lot in a subdivision with my wife, and my name is on the title. So how does that play into this article. I see that a few others have done the same thing here. In your experience Dave, what do you think?
You can buy a land and own it if you have a company or a Filipina wife.
dummy if found is punishable by law
well lol u can buy ur gf @ least 35sqm.land for 150,000 php for a lifetime if it doesnt hurt your pocket which is@least kind..LOL then tell your girlfirend to finish first her school so she can support her family &no need to drain you 1st before getting married ..LOL..peace..haha..but@least find a filipina heart..haha!..rather than renting in a condominium just to please yourself lets say least is 10,000 php for 30sqm+minimum 5,000php utility+minimum3,000 building maintenance due…
if your married w/filipina it doesnt mean you cant get back your money or the value of your money upon buying the land everything will be in due process & conjugal…As soon as you put it in conjugal ownership your wife cant just sell it without you consent…though its little bit tricky because under the law as soon as you foreighner commit fidelity&proven ..then you automatically easily lose your ownership thats why usually heard of foreighner kicked out of his own house &pay divorce(= But incase the wife died&you have children it automatically inherited by your children.If you dont have children?you have all the right to sell the house because you cant own it.
Does anyone know what the regulations are if my wife owns the land and she dies?
FYI, MANY countries have similar laws banning land ownership. At one time in Indonesia (until now?) if an Indonesian married a foreigner, the Indonesian lost the right to own land for ten years.
Dave,
I built our house for cash, my name is on the title, but I knew that was just a kindness as our daughters will get the house after Mayang passes, If she passes before me I really don’t think my daughters will put me to the street, so another worry under the bridge. If we divorce Mayang will get the house, just like ant wife in your home country so again a moot point. As our friend and fellow writer Paul K, often says, his wife owns the house but let’s him stay their.
And who else would I want to have the house other than my wife and daughters?
To the renters, leave your family enough money to pay the rent after your gone.
Dave,
Well said !
The question I want to ask is what if you’re not married?
The easiest way to avoid the hassle is to spend time understanding the Condo Market in the Philippines and play the game right.
There are some amazing condo deals to be had on the repossession market.
You don’t need to spend 10 million pesos on a 50m2 condo in Makati greenbelt.
Sleep easy, buy a condo.
Bob I got married this year 2013 to a Pilipina In manila I’m moving to manila 2014 I’m retire, we want to buy a house my question If one of as die will the other keep legal position of the house If I’m the one to be a live will I keep the house also I will get my legal visa at Inmigration dept. the cost 20.000 pesos however you said 13-a can be obtain I’m thinking wish will be a better choice. Thank You for your advice
Planning Bob 🙂
Good luck with that, Tootsie Bina Sonia.
built a one bedroom one bathroom house (more like apartment) onto my in laws house…very cheap and the work that was done was great, I was very pleased
I’m glad that it worked out for you, Bob.
This is a good article. Practical and necessary advice
Thanks, Della L. Vank Tyrrell
An interesting read and very detailed – It appears by everything I read that business/trading in the Philippines is difficult and presents many challenges. I do notice the Chinese do well here, but they can get away with paying 100php a day to workers and are tolerated for their sharp practices. Most foreigners just can’t get away with trading like the Chinese. An unusual competitive advantage they have I guess. The Philippines were the 138 most difficult country to do business last year, now they are about 100. So they are improving. I love the Philippines but they don’t make it simple to trade with low risk. Even locals say if you open a business you will work out the downsides pretty quick, Lol.
I’ll try Bob, hopefully.
I agree that a highly personalized involvement in all phases of the construction from beginning to end has its advantages, that is, if you are knowledgeable about the various qualities of building materials and their knockoffs, and are familiar with the culture of the building industry, the suppliers, and workforce in the country. Yes, a regular presence onsite could, among other things, discourage short cuts on the part of the foremen and workers, and, possibly, theft as well. LOL Many expats, however, are not as knowledgeable, nor have the time to show presence onsite for one reason or another, hence, are more likely to buy the packaged house as a result. With that said, how do you compare the final cost of your dream house as a result of your heavy involvement throughout the construction with that of a packaged home, similar in size and community, built by a reputable builder?
Considering the junk built right down the hill from me by “reputable builders and developers” which i will not divulge any names but they are publically traded companies, my cost was 1/2 of what it would have cost me, with TWICE the quality. You arent normally going to see US type fittings, hardware, toilets, faucets, door stops, etc in any of their units, also you are not normally going to see Spanish tile either.
My build cost ended up at about 28,000 PhP per square meter, all in, thats including the lot. If i was going to give a range, you can do what i did for a range of 18,000 to 35,000 per square meter. For those folks that use square feet (which is not used here) use a factor of sq feet divided by 10.2 roughly to get square meters or google it as xxx sq ft to sq meters and it will come up for you.
Yes i know folks out in the province can build houses very cheaply, don’t get me wrong and that is all up to you what quality you want. If you are building something US quality in a decent community in Metro Manila OUTSIDE of town but reasonably close for commute, i gave it to you based on real world experience. I will post photos soon so you can see what i am talking about as far as quality.
Great idea, could be a challenge in execution:
The major problem would be that you are handling a specific geographic area. Remember the Philippines has 7107 islands, and about a million “contractors”…. everything from a single person with an empty toolbag to Multi-Billion dollar developers. So ensuring quality and geographic coverage are two major challenges. I’ve dealt with pretty much the whole gamut in my professional life here over time and bigger is not necessarily better, nor is small cheaper haha.
As far as managing on site, remember that housing / logistics can be an issue. Suppose someone is on one of the outlying islands, you may be working from a hammock on the beach… bring lots of Mosquito killer haha
Given those challenges, and knowing the quality of contractors, one could work with specified contractors one TRUSTED in a specific area. I have found repeatedly that “word of mouth” advertising from relatives and friends has been dicey at best.
A true qualification method of watching them in action, and seeing the true quality of work before, during and after the project, is key. I know of friends that their relatives recommended some vendors, with disastrous results… so trust no one till you see them in action and judge for yourself.
Of course if someone wants something built in Tagaytay, Nuvali / Santa Rosa Heights Area or ETON, drop me a line. I can give consultations for that area for sure if someone is trying to get their hands around what to do, buy, build, rent, punt…. haha
A must read !
Thank you, Keith, glad you found it helpful.
For me, Keith, I am happy renting here. But I also understand that we all make our own personal choices.
I like the freedom of being able to just move anytime if I feel the need or desire.
Very good and informative article but, I would say that any foreigner that attempts to do a baptism by fire with buying and building real estate is quite insane unless they do extremely detailed research. I came here in 2005 and since then have had the benefit of relationships with many, many super people with great knowledge of real estate, construction and so forth and have had only wonderful experiences. We have acquired properties all over the Country both with Title and some only Tax declaration (which can last for decades before title is issued). Only once in all this time did someone try and pull the wool over our eyes. It was an unreal/fantastic beach property, but ended up having about 12 different owners and good luck trying to bring them together. Anyway, my suggestion is pretty much based on common sense and logic. When you are looking at a place to settle TALK to the people who live there. Find out about prices, quality builders, where to buy stuff, etc. and your experience can be quite seamless. This is not rocket science, but will be frustrating for sure. Hopefully you have a good woman with a good head on her shoulders that can aid you in this endeavor as I have been fortunate to have.
Very good.
I second that Bob, renting rather than owning gives me peace of mind….my own personal opinion of course..
Thanks Bob!
And Clean means actually checking at Land Title Office, no word of mouth or statements however notarized. Don’t trust anyone other than them and your own attorney!
Thanks, David Taber.
Bob, I have three properties in PH Butuan City and I am selling one of the vacant lot. I’d like to post in your website, any fee?
On our real estate part of the site, we charge P1k per month to post such listings, Tootsie Sonia.
Okay! How long the due per posting?
I don’t understand your question? It is 1k per month of listing.
Oh, I don’t know how to say it, LOL! In short, 6 months, One year?
not sure of all the legalities, but it does sound like an expat with experience could serve as a paid job consultant and do all the overseeing for those without the expereince, ability or time.
I know some folks that have used friends, but imagine if someone set up a consultancy for all the expats that think they want to build their own house.
Myself, I would not buy or build, but for the others that want to…..I would think it would be an excellent deal for both sides. Expat gets what they need and the other expat makes some money making sure they dont get skinned.
with close to 300 thousand US Citizens in country, then add in ALL other expats from other places and the possibilties are there for a nice business.
It is one month for 1 thousand pesos. If you want another month that is another 1k. Each time you pay 1k, you get one more month. It is 1k per month.
Okay! Sorry I confused you Bob, LOL! Maybe I’ll try one to three months? I will ask my family to take pictures of the property and then, I’ll go to your Real Estate site.
1K per month x 6 months = Php 6,000.00 ;-p
We live in one of the Avida Residences model home (when I’m in the Philippines) and have been very happy the way Ayala manages the subdivision. My husband is so very happy and satisfied that he doesn’t want to consider building our retirement dream house unless it’s an Ayala Managed Property! 🙁
Ive got a friend living in that area too. Seems to be starting to boom with the college and some shopping going in down along the exit on SLEX.
Very interesting that you live in Ponderosa Leisure Farms, I came across their website when I was looking for some information on Lakewood City here in Cabanatuan City. It’s one of the other development we are considering for our retirement dream house. Is Landco a good, solid company?
Yep Landco is fine and well managed. I would say that the property title transfer process was a bit slow and i had to get involved to get the title transferred over in a timely manner, but as far as property management they are excellent and tend to have fairly well thought out developments.
If i was going to rank property companies in the Philippines I would classify them in the following order, based on my experiences. Of course you pay a premium for the top tier companies. As you move down tiers, the quality of furnishings, size / footprint of properties and
Top Tier – Have developed great properties in different price ranges, have lots of amenities close by, have great property management but can be pricey per sq/m. However they tend to have the best locations and as we know, location plays a lot into what people want. Kinda the Lexus of property guys.
Ayala Land
Rockwell Land
Mid Tier – Maybe not the best in facilities, but ok companies to deal with. More like the Honda or Toyota of property guys. Dependable, but not quite a Lexus.
Landco – Many resorts, a few property areas like Ponderosa, do a pretty good job.
Filinvest, SM Development Corp – Cheap, but small units – Still learning.
Robinsons Land – A little bit yet to learn on what amenities are.
Wanna Bees – Cheap developments, but learning about how to develop properties and have a ways to go yet. Kinda like a Kia, you know it gets you down the road, but dont expect it to be a Lexus.
Eton – Slamming properties in but not well thought out. Why build a complex with Lakes in an area with high Dengue levels? Egads
Others – Its kind of like the call center business. Just because you hang a shingle on your door saying Call Center, doesn’t mean you can actually operate one.
You see lots of 1m PhP, 37 sq/m developments, normally backed by some doctor or lawyer that wants to get rich with high density, low quality developments. Better to build your own in the Barangay than just settle in. Lots of drama later on when your neighbors start having fights, or as Bob says, why not rent? At least you can escape the misery.
Thank you for the information! I’ve been doing my due diligence and still have ways to go.
being both an engineer and a broker, i find the article interesting and informative. i do hope to read similar blogs on construction and real estate, coming from the point of view of buyers and end users.
Thanks, Allan. Would you be interested in contributing any articles coming from your vantage point both as an engineer and a broker? I think that would be interesting and also informative!
yes I have built a house on Siargao island. a complete pain in the rumpus. No hardware stores on the island. had to go over to surigao city and thank God cityharware showed up. labor skills on a low population island are suspect at best. they are carpenters if they own a hammer and saw. well diggers if they could shovel sand. on and on. ended up finishing the build myself with the help of 2 labors, one of which I am putting thru college. finding efficient and quality work can be very very hard. quality tools can be very expensive. and so on. Not sure I would ever put myself thru that much stress ever again. to anyone reading this the article is very good and informative and pay attention. I am not trying to be negative. but almost all that we know in the west is devoid or absolutely very hard to find. especially in a secluded area. Good luck.
Scams in the Philippines? No way!!
I would not build at any cost here or for that matter ….own…just too much red tape involved and you never know what is good or bad untill the hammer hits you in the back of the head…Too many problems that can arise…I agree with Bob You rent and be happy and content…And have your important freedom at hand…
Agreed! I’d like to hear some of those viewpoints! Might hear of the pain in the process of dealing with a client that can’t decide on what they want, but could get into the engineering and plan development process, which a lot of people in the US won’t understand. Its always a love-hate relationship with a builder.
Talk about what goes wrong in communication, dreams vs reality. We all come to the table with the idea of a dream house, kinda like an imported beer taste, but Beer Na Beer budget! How do you trade off dreams vs budget?
Over here, the guy that builds your house most likely would bring in their own architect and engineer to structurally design it.
The detail of that process and how it works “Its an ART more than a SCIENCE” will end up with truly functional spaces. My designers worked with me hand in hand till i ended up with living spaces that make sense… and wasn’t wasted space. That sort of discussion would be great for the readers i think!
Glad you picked up some things from my trials and tribulations. Don’t worry, Ati Atihan festival is a while away, i can flagellate myself till then on my mistakes haha
Building a house in the Philippi9nes may not be easy but in my area of Northern Mindanao lots of expats have built their houses with satisfying results except for one who did not own the land between his house and the road. Just make sure you have a good relationship with your wife since it will be in her name with you listed as her husband. By law you have a 50% financial interest in the house. Perhaps the most important aspect of building a house in the Philippines is finding a good,experienced foreman who understands English. For me, and many other expats living in the Philippines, owning a house gives us a better sense of belonging here and having our own place in the sun.
I’m trying to buy land (I’m married to a Filipina so no problems there), but everyone says ‘be certain the title is clean’. I’ve also read this in many places. But can anyone actually explain what is meant by the phrase ‘clean title’, and how do I get this checked out and by whom?
Sorry Lenny, but you are incorrect. The process here is no worse or complicated than anywhere else in the World if you have a good head on your shoulders and know how to play the system. I have friends that are making oodles of money building sub divisions and investing in properties or condos. For example, condo prices in Makati alone have gone from about 50,000 sqm to over 140,000 in four short years. Sounds like a good return to me. Land prices have gone up three and fourfold in prime areas like overlooking and beach. No different back home. You buy in places people want!!! people want overlooking and beach for one thing. people also prefer to have western style amenities so I would build to that market with sub division homes . There is a veritable FORTUNE to be made here and it doesn’t take a rocket scientist to make it.
Clean Title – Not fake, not a forgery, not contested, etc. etc. etc. Have it checked out by an attorney or somebody of that nature, but somebody that you trust.
Good article – you are lucky with your sub division – The majority of expats in the Tagaytay area cant wait to sell and move out of their sub division – no maintenance, poor security, no control of neighbors etc etc
We have built 3 houses now in the Tagaytay area all in a Barangay – usually land outside of a sub division is 75% cheaper .
We designed , and contracted the villas ourselves , only using an architect to to the drawings for building approvals . Buying materials your selves will ensure the quality you want and no mark ups for the contractor
We have 3 great villas, 2 of which we rent out for weekends ( with pools )
Good luck
Great article. We built our house in one of the areas mentioned in the article (Binan Laguna) and are very satisfied. We do live in a sub-division in a model home and have no complaints. Of course with a new construction there are little things but my advice is make sure while your house is under warranty, usually one year get everything fixed and be there when the work is done. If I had it to do again I would probably build in Nuvali or Tagaytay also
From most of what I have read about acquiring property in The Philippines ( notice I said ” acquiring ” ) sounds in many situations like a game of ” Real Estate Roulette “.
Excellent and well written article! My husband and I are retiring in 6 months and going back to the Philippines in a year. Right now, we have an interim retirement home at Avida Residences in Cabanatuan City, Nueva Ecija. We would like to build our retirement dream house someday soon.
Since Avida Residences’ lot are sold out, we are looking in possible buying in another Ayala property, Avida Settings right across our current subdivision. Price per square meter is high and I can not talk my husband in building outside a gated community. He doesn’t want to build our dream house and then be surrounded my shacks and nipa hut. As they say in real estate, location… location… location.
I came across Nuvali and was wondering if you have any inside information regarding this development?
Your article is very timely and very much appreciated. I am going to print it and file it so I can refer to in the future. Thank you!
Good work!!!
However, here on Palawan you could build the same for considerably less money on much more land but it would be considerably more hassle. If you are properly located, you don’t even need A/C. The constant breeze does the job. In my house, the average temperature tend to be around +27C. At night it’s +24C. That is very comfortable.
My electric bill is mostly below P 4000 per month! We use propane for cooking.
Very good article Richard, I have been looking all over trying to find articles of expats who have built in the Philippines, but have not had too much luck finding very many so far.
I have built quite a few houses here in the US, for us, and for a few clients over the years, but I am not very familiar with the different building techniques and materials used there, compared to here, so was glad to see your article here on LIP.
It sounds as though you did reinforced concrete walls, rather than filled block. I have read that cinder blocks there are of very poor quality, unless you make your own, which it sounds as though many there do. I would want to do concrete walls and some of the roof sections also, but I have little knowledge of vertical concrete construction other than the way we pour basement walls here, and I sub that out to a guy that specializes in only basements. Do they use aluminum forms there for above grade walls like they do for basements here, if not, how do they form them there?
The inverter aircons have still not really become very popular here except on some remodel jobs, but there they seem to be the most popular option or else a wall or window mount type. So from your picture, you installed at least 6 of them for only $7,000.00, that quite a good deal it sounds.
Did you have a well drilled, if so do they have drilling rigs there, because all I have read about so far, is hiring a couple guys with an A-frame rig and a little gas motor and it taking quite a few weeks to drill a well.
I wont ask you all the questions I would like to ask, because it will bore everyone else reading your article, and I also dont want to be a pest either.
But I did enjoy reading your artice.
To answer a few questions on the subjects you brought up:
Indeed, most hollow blocks are of very poor quality. In my area they range from 8 pesos to 16 pesos per block, and even the 16 peso blocks are not even equivalent to grade C in US. Beware, they crumble like dust if you even look at them haha. Most suppliers do their own job of making their own and “bake” them in the sun for a day or so before delivering to you.
Now on solid concrete walls, yes the few companies that do it use aluminum forms. I would say that for the small overall cost of getting decent forms that havent been stressed and best out of plumb, buy what you want in US and ship over a container full of them, along with wall tie kits. You will be assured of plumb and flush walls, especially window openings. To me, solid concrete IS the way to go here!
If you go the hollow block route, they will use undersized rebar for fill in the vertical risers in hollow block walls, which a few shakes down the road, after they lapped on a heavy coat of plaster to cover their lack of masonry to begin with, you will have small cracks appearing in your inside plaster at best. At worst, you might have a wall give way, which i have seen happen. Foundations arent normally build deep enough or have properly sized rebar. There is local rebar, and you want it. They can bend to suit for saddles and grids no problem. DO NOT use China rebar. A recent sampling of rebar by DTI and the Philippine Steel Industry revealed about 50 percent to be substandard.
Most times you can hit water at less than 500 feet with good quality. However water here has a high lime content (Hard Water) and it does take a toll on piping and faucets. Put a good inline filter and save yourself grief later on.
Thos inverter aircons ARE the way to go. I have anywhere from 1ton to 2.5 ton units in that row and they work like a charm!
Glad you liked the article. More to come.
My run cost for a 1.5 ton for my bedroom, which i use every night at 27C, is about 50 USD per month. Of course I have units zoned by room in every area of my house, which i can turn on as required and turn other units off, so very seldom are all units are on at the same time. Saying that, and not knowing how large your place is, if we compared a window unit doing one room compared to my bedroom, which is pretty large, including cooling my master bath, that would be a 150 to 200 USD a month savings. ROI then would be about 8 months on a comparable unit.
Your AC supplier can calculate the exact size you need. Recently i did some shopping on this and for example a 2 Ton Panasonic was running around 70,000 PhP installed for the split outside unit and the inside blower unit, all plumbed in. Smaller units, smaller price. Abenson seemed at the time to have a pretty good price line on these and run them on sale from time to time. In Alabang PowerAir was who I bought mine off of, there are a few vendors in the south side of Manila however out in the other parts of the country established consumer companies like Abenson have distribution and service facilities for most folks. As usual here supply in the province is always a hit or miss proposition. The Panasonic Philippines website has a listing of service by geographic area to help you find out who can support you.
For those of you that have those standing type AC units trying to cool one big room in a corner of a house very inefficiently, those eat about 3000 watts when running. When looking at split units, read up on the Energy Efficiency Ratings or EER. The old window units have very poor EER ratings, normally in the 5 range (higher is better) The inverter units are up there in the 15 to 18 range. Mine is 18 and is Green Certified so it gives you an idea. Some vendors like LG have units, but people that have used them found they weren’t as reliable, and cheaper wasn’t quite as good in their case, much like their TV’s.
In the US the EPA is really pushing to regulate the window units out of existence due to them being so inefficient. More power wastage means more power plants, which is why they are cracking down on this, in case you wondered why.
Hope this helps.
Abenson has some deals on that stuff. Check them out. Samsung seems to lead the way in the inverter washer/dryer and refrigerator market. Panasonic is close behind. LG is behind them and not as feature rich as Samsung products in my opinion.
Nah, Randy, not quite. My goal is to give my wife one of the best vacations in her life, and, hopefully, change for the better her impression of the Philippines so that she will be more open for future visits. I get tired of pretending I am in the Philippines whenever we cruise or vacation in the Caribbean and Mexico.
Btw, I’ve been looking at the spa at the Farm at San Benito in Lipa, Batangas, in lieu of the hot springs in Laguna for my wife. Do you pass by there when you and Ann go to her farm?
$300,000 for Obama’s one night stay at the Sofitel? I hope Paul Thompson doesn’t hear about it. He’ll hit the roof! LOL
Several ways commonly done:
1. Barangay Method: No Hot Water. Tabo is fine and a bucket. Find nearest ocean, river or stream, even fire hydrant. Heat up if chilly on propane burner. Cools you off in a hot house. Used by millions of Filipinos everyday!
2. Spot Solution Water Heaters. Plumb cold water line into room, attach this in line with mixer to faucet. Tank heats up water with pressure sensor that senses flow when you open Hot Water handle on Mixer. Panasonic, AEG and few others make these. One step above Tabo because the pressure switches get messed up over time and either dont turn on or off, or worse yet, you use some cheap Chinese Junk and / or do a bad wiring job and get electrocuted in your shower!
3. Put a central conventional hot water tank. Now you have to decide how much hot water you need for your house. And how much power you want to use to keep it hot. Timers burn out here because of power fluctuations, so its on all the time, but you only use it about 6 to 8 hours a day. 3000watts for an Ariston 40 gal water heater like mine to turn on and make hot water when it does. These are available in 20, 30, 40, even 60 and 80 gallon models. All up to you what you want to invest (and pay to your electric company later)
Any time you can limit power consumption its a good thing, and after your electric dryer (required in Tagaytay many months of the year) and your hot water heater, is all the electrical appliances, which would normally total up to the big 2 listed above.
4. Solar Hot Water Heater – Solahart from Australia makes a decent one. Cheap ones with glass tubes from China will clog up with lime deposits in short amount of time and / or break if something falls on them. Solahart model has closed tank and 4kw backup heater in tank if cloudy day. 2 sizes, large one is 4000 USD, Small one is around 2000 USD. Im using one of these soon as a test on the roof of my Jacuzzi area (article to follow) and if it fares out, then convert one in my house to the larger model for dedicated hot water. (I like long bubble baths and my kids use the shower incessently) 🙂
Hope this helps.
Welcome.
I hope you start soon, rainy season is around the corner and that can delay the process.
Good luck with that house!
Barangay Ulat, turn where it says CB Retreat when going down the hill toward Nuvali on Santa Rosa / Tagaytay Road, just about a mile down the hill from the market, small road. Go down it over the next 5 km and you will see plenty of vendors along both sides of the road. Purok 2 has the best prices btw 🙂
Larger shrubs, take National Highway toward Manila from Rotunda at Tagaytay. On beginning of Silang bypass vendors with larger shrubs in there.
Huge trees are on Santa Rosa Tagaytay Road below PNP academy, Mother Earth Gardens, some good finds but prices will be high because age of items you want to buy. Larger they are, the higher they are, which makes sense. Some haggling but not much there.
Hope this helps
Yea, I wonder what the size of that 3d printer was haha.
Ditto that – We just moved here too!
Had Pergo and Laminates in Miami for years and it did just fine
Forget Google or the yellow pages. You can probably find the artisan you are looking for if you have connections to the rich and ostentatious of Manila society and some prominent political figures like General Fidel Ramos, Manny Villar, or Miriam Defensor Santiago. These folks built their homes with one thing in mind: to impress and outclass one another in one of Filipino high society’s favorite pasttime called, “bonggahan”. If they are too snotty to respond to your inquiry, you can always contact Manila’s leading architects. Leandro Locsin’s architectural firm easily comes to mind. Locsin, now deceased, was a MASTER OF CONCRETE, having designed many famous landmarks in Manila, including the Theater of the Performing Arts of the CCP, and Sofitel Philippine Plaza on Manila Bay, one of the two 5-star hotels in Manila my wife and I will be staying in December.
Miriam Defensor Santiago’s house:
http://www.youtube.com/watch?v=FmQrXbCFULE
Yes John ,, What a time to be alive 🙂 ,,, I’d had enough of the cold after 3 winters and returned to Aussie in 70
Thanks John,
What is it about Filipinos and Chandeliers? That one she has hanging above the table in the room is especially hideous. Note the large house and small back yard, typical for big houses here. All house, no lot left. I bet the lot alone was 20 million PhP.
Panasonic dimmers cost me about 400 PhP when i bought mine. Old generation LED were hot, newer ones are a lot better and like i said, very little loss over time. If you have cove lighting and adjustable tilt rings (Wilcon has those) then you can adjust it where you want it. With that article posted about Philips dropping their prices I would use their units to get it exactly where you want it, and they literally have 100s of ideas for lighting needs, from overhead, to sconces to colored systems…. real cool stuff. I have even seen lighting controls with a sensor and a free IPhone app. (which i will be doing for my AV Room I am building)
The old days of LED are seemingly past us, this will be standard 3 years from now at the rate it is happening. And a good lighting vendor can do some lighting tests in a space and tell you exactly what you need and where (for free). Trust your vendors, they tend to be more on top of recent advances than you may think.
CFL is so Britney Spears pre rehab haha
John,
I see Obama also stayed at the Sofitel for his abbreviated stay in the Philippines. He had the Presidential Suite at a cost of 300,000p to the taxpayers along with the other rooms that were purchased for the Presidential Delegation. I assume you will be going all out and spending that kind of money for your stay in Manila lol.
John,
I’ve never been to the Farm at San Benito, but it is really nice. The Kris Aquino morning show was there in March so I got a good look at it. I’m sure your wife will love it. The menu is organic vegan. She would really enjoy the spas. It’s pricey, but like you said you’re trying to impress her and that would really help. If you need some info about it, next time we’re up that way we can stop by. Paul would hit the roof if it was $300,000, but its 300,000P.
Great tips Richard for who ever is thinking of building a house. We did a lot of the things that you did when we built our house in Southern Manila. The only thing that I could add is that we designed our house using a free internet design program, gave that to our architect (second cousin naturally) who developed the blue prints and got all the needed permits. We used a construction crew that he recommended and like you I purchased ALL the materials. Foreman gave me a list daily of what he would need and I bought it and oversaw the delivery. We (the wife) also handled our own payroll. Advance pay every weds. and paydays Saturday.
It took a lot of effort on our part but in the end we got exactly what we wanted. Good article.
Where can I get those units? 7,000 PHP you say? I’ll need to look into that. I’m using a standard (in window) aircon that cost me like 12,000 and uses electricity like a killer. 12,000 bill. The all meta and single pane classic Filipino windows don’t help either. (70’s windows in the US I assume)
For any other LED ignorant people like myself, this article might help –
http://www.cnet.com/news/are-efficient-led-bulbs-worth-the-price/
google it and you will find
Gerald, I think you mean “insulation”?
Strange. Most of the uPVC windows in the Philippines, seem to come from Oz!
We had ally windows in the UK back in the early 70’s as well and they were of a reasonably robust construction.
The Ally windows here were of poor/cheap construction. Each one, that was not fixed, could be easily lifted within the frame and removed which I didn’t consider very safe. The locks were rubbish and rarely worked. We tried to add more secure locks but could only do so much. Also, the small rollers which would run along the tracks when opening, disintegrated after a few openings.
One of the ally sliding doors served as the main entrance to the house. We replaced that with a wooden door after only about 6 months due to the lack of quality and the rollers turning to dust. It should never have been used for a main entrance.
The worst thing though was the construction of the large picture windows that we have at the front on the house. With the house being a Swiss Chalet style the window has a large triangular shape to it. Within this shape was a door. When the door was opened over a period of about 18 months you could see that there was no real mechanical strength to the whole set-up. The PVC windows provide that strength due to the thickness of the frames etc. If we had a tropical storm pass over I believe that the window would have given way.
It’s a shame really as the house is a beautiful design but we didn’t expect to replace so much in such a short time.
I don’t recommend fiberglas core concrete forms here because of two things: Pest infiltration and mold/mildew/ seepage due to the harsh tropical climate.
As far as ceilings, i have seen several blogs where people have done this in ceilings, however if you build proper air exchange into your house design, it will breathe and no hot air buildup.
Remember, you don’t have to protect against cold (unless you are up in Baguio or high elevation area), you do have to protect against humidity buildup, especially in showers/bath areas. Mold can explode in a poorly designed space.
So folks, I have a question re this black-out issue? A black-out is different to simply switching the lights off, then back on again later, in what way? Is it that the voltage, when restored spikes way up above the nominal 240v?
Just interested!
The This Old House series in the US has videos on You Tube showing concrete form wall construction and how it works. Where i got a lot of ideas when i was researching. I settled with 6 in outer walls, 18 in slab, 4 inch inner walls and my house doesnt get hot on the walls.
Themal mass takes a lot to get hot in my case. It was 34C / mid 90sF the other afternoon and i tested it, cool as a cucumber. However beware that if you don’t have proper ventilation, you can have inside mold problems so make sure your ventilation through eaves is properly designed.
Also, of houses still standing in Tacloban, the ones with well designed hip roofs with low angles and concrete construction survived. The windows will blow out with 200 mph wind (no one makes a window that will handle that unless you put in hurricane roll down awnings on that but i would not want to be in any building with that kind of wind. At least you come back to a place where you can mop it out and start over, not looking at an empty lot.
Hehe. I was in RAF Marham, Norfolk in the 60’s. Exactly where in Tagaytay do you recommend for shrubs/trees?
Here’s a good price reference for you –
https://ph.news.yahoo.com/philips-philippines-implements-price-reduction-led-lights-210434110.html
Service….Philippines….hehe!
Like someone said, the hollow blocks here are of poor quality. But I’m sure they have a lot of cavities in them. I feel they would be MUCH more insulating than solid concrete. Solid concrete would be like the old storage heaters back in the day. They heat yup in the daytime sun, then give off the heat all evening!
Those “cells” in cinder blocks in tropical climate are not going to fill up with cool air, since none is available though. Lousy quality blocks to begin with, and then if you were to not put rebar and fill them with concrete, I wouldnt want to be in the house in a cyclone or even a small earthquake, I think they would just crumble into dust. Thick concrete walls are far superior at keeping things cooler. Some here in the US are starting to build exterior walls 12″-14″ thick even, rather than the standard 8″ walls.
I also want to change my ref and washer to inverter.
Don’t get me wrong, if the house is in low land, you’ll need A/C.
Our low electric bill is due mostly to the fact that we pay P 12 per kilowatt here.
Combine that with beachfront (windward side) or high hill location and you have the best for natural house cooling.
HaHa i could use that price, but that total was in US Dollar, not in Peso.
Hi Richard ,,, Very informative article ,,, I’ve been involved in the industry for a long time ,and looking forward to my visit to the Philippines in a few weeks .
AHH i see. Yea they are about $1k. I wonder how much it would cost to run 1 everyday for a month. My window unit costs about $250 – $300 at least to run all day for a month.
Good article Rick!
I liked the bit about the LED lights but alas in Davao we have daily brown outs so I would probably spend more time replacing them.
Your part about the materials also got my attention. We moved into a new build house in Davao in 2008 and have had to replace a lot of the fixtures and fittings due to cheap materials used. The list includes – all lighting, aluminium windows (now have PVC), doors, 2 toilets, one vanity sink. Most of this was done in the first three years!
Look forward to some more about the house.
Cheers
AJ UK
I recently did a design for a jacuzzi up on the hill behind my place. Upcoming submission so you can see how it looked.
I used an internet design program for a hip roof with CPAC on top, worked out beautifully.
One caveat on internet house designs. Remember to check it meets code with local government officials. As an expat you can be used as an example and yes they can make you take it down if you didn’t get a proper building permit and find it erected. Its in the code online, suggest you all should read it.
Thanks for the comments.
Hi Rick. I notice you’r rating the AC units in “tons”. I’v never heard that before. Is that how they are rated here now. Before it was always HP.
You mean you were in Marham? Where are you now?
….and I had it in London!
Most don’t consider insulation against the heat here! Cut your AC cost!
Tons are an industry term for determining the amount of energy used to cool a room.
From an abstract of the definition of Air Conditioning, related to power consumption, in Wikipedia (the whole article is way too long to copy and paste here)
“Air conditioner equipment power in the U.S. is often described in terms of “tons of refrigeration”. A ton of refrigeration is approximately equal to the cooling power of one short ton (2000 pounds or 907 kilograms) of ice melting in a 24-hour period. The value is defined as 12,000 BTU per hour, or 3517 watts.[17] Residential central air systems are usually from 1 to 5 tons (3 to 20 kilowatts (kW)) in capacity.
In an automobile, the A/C system will use around 4 horsepower (3 kW) of the engine’s power.”
Hope this clears this one up.
I’m saving the article for when I build our house. Thanks.
Rick
You should have waited a while, you could have done it a lot quicker –
http://www.bbc.com/news/blogs-news-from-elsewhere-27156775
Made in China!
Agreed. And you are lucky with that electric rate. Im sure US viewers are rolling their eyes paying 6.5 cents in California, we pay upwards of 20.5 cents here so you have a bargain, for how long in the future i don’t know. Palawan is becoming very popular and as everywhere else, demand exceeds supply, then they gouge you instead of fixing the supply problem.
I only need AC about 2 months out of the year but im sweating averse, so why not build it in efficiently from the beginning? Last week we were in the 31 and 32 C range here (low 90s US) while down the hill at Nuvali they were 3C or 6F hotter. In Manila around all that concrete people were roasting!
Thanks for the comments.
In buying property over here the key to good pricing is not showing your FOREIGN face. When looking you can and you should be alone when doing so, but when it comes to making a purchase have your Filipina partner do the actual negotiating and her alone acting as a single person. Personally, I would never buy in a sub division except in perhaps Manila. Prices in general , thanks to foreigners and of course OFW’s, are becoming a huge rip-off and extremely overpriced. Case in point….One lot we own was purchased for 1300Psqm and is now worth 15,000Psqm. I am sorry, but even though I am happy of course that is still a ridiculous appreciation in only 5 years. Look around and you will find lots from motivated sellers no matter where you look. Just two years ago we found a gorgeous overlooking the sea (1500’ above sea level) 3 hectare farmland with a road up for only 30P sqm. The point I am making is there is so much land in this Country everywhere to be had at good pricing so just spend the time looking. As for building I would look and spend time talking with other expats who have built houses and then consider using their contractor. Generally there will be a contractor in every major area of the Country familiar with the idiosyncrasies of foreigners and they can build to our QUALITY specs at prices under 25-30ksqm. Of course you still need to stay a little hand on, but your stress levels will be normal to very slightly elevated at most. Most importantly look for forums and articles like this before doing anything. Too many foreigners come over here all excited about things and get taken for a ride. Study and do your homework on the net with the many sites and forums. LIP is obviously one of those good resources.
For the moment, there is a brown-out once a week for one hour average.
Internet connection is much more of a problem.
It goes ON/OF several times per day. It hurts Internet cafes and other businesses as well.
Contrary to what people believe, there are relatively few tourists here. Except for PPC, there is no overcrowding yet.
Plenty of hotel vacancies everywhere. They seem to be operating at 20 % capacity. Some are really hurting because of too great expectations Many small hotels/resorts are for sale.
Price per room is seldom more than P 1000 per night for two. I am talking about a nice recently built hotel.
High quality rice is P 40 per kilo.
Fish is really cheap at P 100 per kilo on average.
Premium gasoline is P 63 per liter.
A bottle of beer SMG in a hotel is about P 70.
One cappuccino, P 80.
A good carpenter gets P 300 per day, plus food.
Good writeup for US folks that this is all new for in their market.
Fear of change is a big thing, and thats what they are addressing.
Two things in that article to note:
1. The computations were done on 10 cents US per KwH, here its more like 20 cents per KwH, so double the savings for here.
2. While this is all relatively new technology in the US, remember they finally banned the incandescent bulb only like last year, so the pace of change there is slow, and certainly the fittings for the new bulbs are retrofits for old designs, mostly screw in replacements for traditional lamp sockets.
Here in Asia I think they are light years ahead of other parts of the world in LED technology. They are now on 3rd and 4th generation LED lamps, and you dont need a lot of wattage to make a difference. Small will do most of what you want to do, with some planning. You can also get T4 and T5 flourescent ones, which i have behind mirrors in my bathroom, pinlights of different wattage,and screw in models for outside lights. There are a number of options available in Wilcon and MC Home Depot here. Philips has some nice fixtures too, but expensive. I found some OEM manufacturers that have equivalent ones for 1/2 the price tag.
However I don’t recommend dimmable ones from my experience. Either the dimmer (Panasonic in my case) fails and sends an overvolt to the bulb, or the bulb couldn’t handle a consistent rise and fall when you turned the switch on then rolled it down to a lower light setting, that’s when i found they popped.
They are getting cheaper and cheaper to buy, with higher and higher quality. Most of the 3 and 6 watts will do task lighting fine. In fact i have 6 in my bedroom in my cove ceiling and lights up the room quite nicely. True, if you are running them in a constant space as stated in the article, use larger bulbs and payback is enormous.
Pinlights will do in most cases. Large ones will do in large spaces but i find being able to control lighting via task lighting over certain zones, then use what i need and turn off what i don’t need accomplishes the light i want, the ambiance i desire and the lighting i expect.
Your mileage may vary. Be brave, its a new, greener lighting world out there.
A Filipino powerhouse is not complete without an imposing chandelier. Hers, though, is not only hideous but hanging too low, but since most Pinoys are short anyway including her LOL that’s not a problem. Many Filipinos in the upper strata have delusions of grandeur, and the chandelier seems to be one of the symbols of grandeur.
AO Smith also. Local distributor here: http://www.amici.com.ph/
Yes Rick. In UK, the two big selling points for a house, are the kitchen, and the garden. It would be almost impossible to sell a house there with a garden like they have here. Even in supposed “high end” subdivisions, you can look into your neighbour’s bedroom window, never mind his back garden! Miriam’s house? Yuck! So OTT! Similar to what arabs do in London.The more fancy and ornate ‘stuff” you can pack in, the better!
Yes. I also wondered what most people do about water heating?
Wait till you see ones in Manila haha.
Roger,
Go to Batangas on the other side of Taal and the prices are whole lot more reasonable.
Yes, I thought they were a bit cheap!
Or build solid concrete construction. My R values are like R48 in walls haha. They dont get hot inside on a hot day. My friends houses all sizzle from the hollow block heating up on a sunny wall in the afternoon, nice to look forward to in the evening when you are trying to cool off.
Funny about those China Made Tiles LOL. Try the ones from Turkey as they are excellent and not that expensive. I personally like STAINED concrete. This is taking cement and doing a color treatment (almost anything is possible) and then putting on a sealer. You can make stained concrete emulate ANY tile and it will last longer and be much cheaper. You just need to find an expert in this field. Also, look at Pergo or laminated wood. Its a nice look and very durable as well.
I noticed you did not mention installation, do the use the high density foam (1″=R19) in walls, ans fiberglass in ceiling?
Hi Rick ,,, Lolol,, no snow here ,,, We had a cool Cloudy day here last week ,, it was 24c ,, that was the first day under 30c since the beginning of last November ,, most of Dec. and Jan. was close to 40c ,,,, something cooler would be great ,, 🙂
The perfect time to come over! Of course its never like this in Oct/Nov but still better than cold, rainy or snowy parts of the world 🙂
Interesting article Rick. Thanks. But it’s obviously not for everyone. I’v been in construction most of my life in England, so I’m sure I could handle it, but not everyone could. Carrier air con? I don’t think you can say that about any brand of any product. They are used extensively in commercial projects, so can’t be too bad. I have Panasonic, because I think they are better, as they should be when you consider the price! I think you’r being optimistic about the time you will recover your investment in led lights. Especially at todays prices, but prices are coming down. Of course it depends inn usage. I use LEDs for the lights I keep on all night, but not foe those used only occasionally. I used some Mariwasa tiles in my old house, 11 yrs ago, and I’v seen them recently, and they are still fine. One thing I miss here, is using wood, but it seems it’s a no go here because of termites. I know it can be treated, but…
I wanted to have uPVC windows, but everyone said they were not suitable for this climate, because of the sun. I wish I had ignored them! I’m sure it’s just the Filipino thing about change! “This is how we do it, so it must be right”! My water pressure is low, so I will take your advise,. and get a pressure tank and pump. Same brands you recommend. You really got me interested in land prices! I’m in San Pedro, Laguna. Thanks again.
Hi John ,, All the top air/cons are pretty much equal in quality ,, We buy air/cons based on availability of service ,, although that wouldn’t be an issue in the Philippines ,,,
ps I learnt to lay bricks in Norwich ,, I was a brickies labourer for 2 yrs,, the bricklayer use to put the corners up and head off to the pub ,,, I’de run the walls in,,, the boss turned up 1 day and asked me if I could handle it,,,, I said I could so he went down the pub and sacked the brickie,,, I absolutely loved the U K in the 60’s ,,, 🙂
Thinking more about it you could well be right Rick.
I might try the downstairs and see how we fare.
Good suggestion thanks.
Laminated wood looks fantastic, and Pergo is one of the best. But I would not touch it in this humidity. I had it in England, and had to be so careful about water spillage on it.
I really looked for stained concrete guys here in Manila and never had any luck. It is a wonderful thing if you have seen it firsthand (I have and some patterns you can do are gorgeous). If anyone knows of anyone that specializes in this let me know.
Interesting! I could never understand why my things seemed to fail so quickly here. Things that would last for ever back home.
I was asking about where to buy plants in Tagaytay. Got my answer 😉
Do they have voltage stabilizers there?
I have 3phase in my shop, and had voltage spike once and it burned out 23 of the multi-volt electronic ballasts I have, in some of the ceiling lights ,at a cost of a little over $100.00 ea. to replace them .I asked our electrician if he could recommend anything that would safe guard all the machinery and lights in the shop, from voltage spikes or drops. He installled a voltage stabilizer, on the floor next to where all our electric panels are, and have not had any problems since then, and we had a lightning strike right beheind the shop last spring, and it burned up the electronics in both the 2 meters (free electric for 2 days, but I didnt find out in time to take advantage of it) and the had to replace both of them, but no damage at all in the shop, so am thinking maybe it did help, it just a big metal enclosure filled with a lot of real big capaicatators, and long heatsinks on top to dissipate the heat.
I have read from almost all sites I read, that there are lots of spikes and drops there all the time. If they are not available there, guess I will be toting one of those over when we come. Sounds like in Manila though, that almost anything can be found.
OK. I’v used Silang a lot. I will have a look at the other next week. Thanks.
great article but the lot prices there are crazy high!!!
Which is what i did repeatedly and came up empty handed. Thanks Corey for helpful comment.
As stated before, if anyone comes across one of these mystery companies that does stained/colored concrete and is here in Luzon, I would love to talk with them. The ones that “claim” they do it either have broken links, are out of business or go “we do that???” when we talked with them. Yes and this was communicated in Tagalog and English if anyone wondered there was a communication breakdown. Wait till you talk to companies that claim to do concrete construction…. 99 percent can’t spell it, much less do it.
There are lots of companies in the US doing it, but Im not flying them over here for a flora and fauna tour to get it done, hence why i had to skip it before.
Next house, its on my list… if i can only find one that actually exists.
Such a great tips! Thanks for the info Mr Richard Lowe. This will help me when we build our home at Camemma Homes soon.
Im not kidding about Carrier and i know the country manager too, I have done projects with millions of dollars in various hardware over the years, Carrier, Trane, York, Panasonic, you name it. Here the Conception/Carrier products are just not up to par, and ive used them extensively.
As far as residential, Panasonic has been trouble free for 3 years so far. I had someone recommend it to me and it was a great choice, so much im now going to outfit my Refrigerator, Washer/Dryer and other appliances to DC Inverter types.
Come by and see my LED setup sometime. Im a firm believer in ROI and have measured electricity usage of a similar size dwelling in Alabang and here, and i get much more bang for my buck out of my LED than CFL and stand alone aircons there for sure.
Think i’ll stick to one ready built, less hassle, lol.
Hi Bob,
My wife and I are thinking of moveing to the Philippines within the next couple of years. She is a natural born citizen of the Philippines but is now a U.S. Citizen. Question is, can she buy land in the Philippines under her name.
She can buy only a very limited amount of land. However, if she applies for Philippine Dual Citizenship and re-acquires her Philippine Citizenship, then yes, she can buy land in her name, in a much more generous amount.
Hi Randy,
If you want to move to the Philippines, there are many things to find out about, and to do in preparation for the move. I have come up with a series of electronic books that will provide you with all of the information that you will need to make the move easy and smooth. There are a total of 31 eBooks in the set, you can find out about each title at my website: How to Move to the Philippines. http://HowToMoveToThePhilippines.com
I have a special deal that I want to let you know about, though. The books are $7.99 each, but that can add up if you want the whole set. Because of that, I have a special package that includes all of the books, 31 titles in all. You can get the entire package, which I call the PH Pro Package, for just $49. I can offer you the PH Pro package for a special discount price of $10 off for the next 24 hours though. When you are buying the books, just use this coupon code during the checkout: Move2PH10 Keep in mind, though, this coupon code is only valid for the next 24 hours for your purchase.
You can find the PH Pro package here:
http://expatisland.com/how-to-move-to-the-philippines-ph-pro-all-in-package/
I really believe that this package of books will give you all the information you need to make it a successful move. If you have other questions that you don’t find answered in the books, though, you can e-mail me any time for a personal response to your question.
Bob
Also I would like to know if there are certain things that I have to go through to live there, such as taxes, medical exam, or anything else. Also, being an American Citizen, are there any restrictions on how long I can live there. And would it be better if my wife stayed a U. S. Citizen or have a dual citizenship or have her go back to her citizenship.
Hi Richard – I have some reservations about LED lighting outside of the increase expense involved in their use.
Heat has been a major concern with LED lighting systems. Heat dissipation can be a big problem, especially with LED lighting fixtures recessing into the ceiling. Without mitigation, the heat generated can cause the bulbs to burn out early, increasing the cost of maintenance. In severe cases, the fixtures themselves may suffer damage and possibly worse. Getting rid of that heat is a little problematic as well. Some higher-lumen bulbs come with cooling fins attached. Still, there’s no guarantee against early burnout.
Focus, unless you specifically want it, is another thing that makes LED lighting a little troublesome. LED lighting, as opposed to other types, is more focused. Its use is great for highlighting or spotlighting, but tends to “not do the job” of providing area lighting.
Dimmers – don’t! You may pay more for a capable dimmer system driving LED lighting than you pay for, say, an entire room that’s to be lit.
Other than that, I’m fine with LED lighting! 😆
By the way Rick, you said you used A.O. Smith pressure tank, and 1.5hp pump. What brand pump?
Great article Richard, very informative with a lot of answers to questions I’ve had for building our home. There is one thing that I’ve wondered about as far as the availability and expense of solar power in the Philippines. It seems that with the cost of electricity it may be a viable option but I don’t see much written on the subject. You’re obviously well versed on construction methods and cost analysis, did you think about this option?
Steve
Dear Rick Reading your article was like manna from heaven for me. I have no experience in construction and have been trying to figure out these things on my own. You can guess how far I was getting. I have read and reread and bookmarked your article. Boy it is a Godsend for me. Have you thought about putting together a book or pamphlet. Bob has many available on his website. Your knowledge and experience is invaluable and would help a great many people. Let me know if you do. I will buy the 1st copy. I can not thank you enough for the fine article and your many helpful answers. What a blessing Thank you again very good and very helpful article. John Reiter
Hello Bob,
I am a former Pilipino citizen, and got my US citizenship about 7yrs ago. I bought a house and lot in my province, but it was not a big property. My question to you. :
Is there a specific limit oh how big the land can I buy?
And both me and my husband name is on it.
I would love to hear from you when you get a chance.
Thank you very much for your time.
The only way a foreigner can obtain land is inherit it from his Filipino spouse if she passes away before he does but he cannot sell it he must offer it to his children or next closest relative.
WOW Richard!
Why did you have a stupid attack and built a house knowing YOU will NEVER OWN IT? WAIT! you are one of those nice guys who will give it to your wife and when you die she’ll have a younger guy live with her! Of course she will receive your SS as long as she doesn’t marry the guy and EVERYTHING is fine on the Pinay side!
AHHH! Love is so sweet and irrational! would have been better off RENTING a nice house without the worries about upkeep!
Good luck Richard and I hope you wake up soon from your dreamworld!
Wow Heinz
Are you trying to push a hot button on me or speaking from personal experience?
Last time i checked, I can’t cash out my real estate or pay rent in heaven. So why all the pain directed at me?
Did your results vary from others? There’s a lot of happy people married to Filipinas that live in houses here, so what’s all the negativity about? Do you live here, or are you basing your reality on things that happened to you in your home country?
Be happy and enjoy life.
Been 3 years since your post, but impressed with how you handled that, Rick. As someone who married a Filipina late in life (not that far from my age) and knows I am building this for my family, my “hot button” could easily have gone off. We’re not far from you, back north at the CalTex station, and just now in the early throes of construction. I’ve already lost my mind, screamed, and I think these chunks of hair are from my own head. Still we are excited. I wish we have the benefit of all you learned. I will read this again and again, but meanwhile, if I am not on the job site checking everything, things seem to get built to a plan I’ve never seen and don’t want. So off to the next…battle? 🙂
I suggest you watch the construction if possible. I have multiple properties here in the Philippines (Dual citizen) as well as a property on the beach (not finished yet). Property near the beach needs constant maintenance. Salt water is not your friend when it comes to maintaining things you wouldn’t think need to be watched such as your light fixtures. Don’t believe anything anyone tells you about warranty, I’ve had 4-5 companies approach me offering 50 year warranty on a roof. Those don’t exist no matter what assurances they give you.
Like I said, you should oversee the construction. Even if you are using a contractor you need to verify rebar is the correct size, the gauge of your wiring is correct and to spec. I oversee all construction that I’m paying for, if you walk through your finished house and don’t know where the wiring in the wall is or the plumbing comes through at then you might just be asking for trouble. I’m not saying not to trust people, but when people try to take you for a ride in the U.S. you think they don’t do it better here?
Good luck with your project.
PS: Do everything in hollow blocks and concrete especially on the beach. Flat cement roof if you don’t want to change out a metal roof every year or so.
I really didn’t know how to interpret the comment you made Heinz. Sounds like Richard had $100,000 to blow on the people he loves to me. Hes going to live in this house as long as hes alive. I don’t see the problem. He isn’t going to know who the hell is living in his house after he dies and I doubt when he goes through the pearly gates hes going to give a damn either. Sounds like you let a lot of things get in the way of your own happiness.
Maybe your mixing up your “marry a Filipina and bring her to the states” stereotype with retiring in the Philippines. Obviously you can’t do what you want to do with the place you rent nor enjoy it as much as you would a house of your own. It seems you didn’t think your comment through very much nor have much of an idea of how it is to live here in the PI.
Dreamworld? He lives in a paradise with the people he loves. Maybe you should wake up and realize a lot of us would rather live here than anywhere else. Stop insulting people especially if you don’t even know them. It makes you look vacuous.
Wow, I saw this comment yesterday when it hit my email and didn’t know what to say! Everyone has a right to their own opinion I guess and I’m going to continue with my own stupid attack. My girl and I have a three year timeline and we have started working on the basics for our house in the province. God willing I’ll be the first to go and I frequently think of her future when I’m gone. I would hope that when the time comes that she will continue to have a good life. I wouldn’t want her to have a terrible time of it and if I can do anything to help her be comfortable as she gets older I will. And if a younger guy does live with her in what use to be our house then so be it.
Sounds like an unresolved resentment rearing it’s ugly head, not a good way to live for me.
Oh, and my house here is really owned by the bank!
SteveC
Hi Bob!
Got a question, my Filipina Friend is now divorced to her Dutch husband and she wants to sell the condo she purchased when they were still married. In the title, it says “Mila dela Cruz married to Thomas Rooks”, does she needs her ex husbands signature in the Deed of Sale to dispose the condo? Your immediate reply will be highly appreciated.
Thank you.
Miguel
Thank you so much for taking your time to read my message. I just read this message tonight, very busy lately. Yes my husband is a US Citizen. Yes I’m thinking about getting Dual Citizenship. It’s so nice of you that you help a lot of people. I do appreciate it a lot. God Bless you and your Family.
Maricar
I am one who can attest at how ones life can become a nightmare rather than a Dream in the Philippines.
I’ll try to speak only on the important details which have led to our current situation.
After moving here to my Wife’s ancestral land one year ago we found the Barangay had surrounded the land (former rice field) on three sides. Effectively blocking drainage. People including the Barangay had been using the land to dispose of garbage. Soil had been taken to build up the neighbouring Basketball Court.
We decided to turn Lemons into Lemonade and I dug by hand Tilapia Ponds and drainage/irrigation canals. In doing so alleviating flood issues for some neighbours.
Meanwhile, our property has been vandalized on numerous occasions, I’ve been assaulted by someone with a weapon, we have had dead Dogs thrown behind our House…. Plants stolen….. The list goes on and on.
Unfortunately, an example of the Barangays appreciation of having a Kano spend countless thousands of dollars employing locals here had been to enact tax on sand, force me to have it brought in from a remote place paying 18 pesos / 20 litre pail.
Effectively halting any further building.
Our Barangay Captain send 0 Tanod to respond to someone throwing rocks at our house despite it being witnessed by more than 100 people during a basketball game.
He and 6 others however confronted my wife demanding she fill our Tilapia ponds with dirt because they have the “potential” to Harbour Mosquito Larvae. This while I was away working abroad.
When she reported that I had been assaulted by a Drunken Man with a weapon the Barangay Captains response was that “I probably just saw a Ghost”
Don’t for a moment think that as a foreigner you will receive fair treatment in the Philippines…
Personally, I am going to continue being myself, I don’t believe in rewarding those for their unprofessionalism. That said, perhaps my time here will be short.
Salamat…
Hi Rick. Great article! Can you give any recommendations on the brand of electrical breakers, sockets, and switches?
Thanks,
Jim
Hi Rick. I must say that I find all your assertions regarding brands, is a bit like me saying that you should only buy a Ford because mine has been so good, also my friend’s. Then my next door neighbour says that he has always had a Toyota and would never buy any other car. Carrier are used extensively here in commercial buildings, where reliability is so important. If they were as unreliable as you suggest, they would very soon go out of business. I built my first house here, 14 yrs ago. It was just a holiday home, so my budget was very limited. I was not here while it was being built, and I was not particularly impressed by the contractor. Im sure all the materials were local, yet after 14 yrs everything is still fine. The only things I changed very early was the flexible hoses, and valves. I’m now in my 2nd house. Again built the “traditional” Filipino way. I don’t understand all this talk about undersize steel etc. My house has no undersize steel. It is 235 sq mts floor area, 4 bedrooms, and my Meralco bill is now less than 3,000. As my wife and I are the only occupants, it’s much too big for us, so we will start our new house very soon. It will be a two bedroom/three bathroom house, again built in the “traditional” method, but with a flat concrete roof.
I like the OCT with the United Stated of America in it. I never see a title that old.
although our town is just adjacent to your town (Luna), we are already in a different province (Apayao)
I am proud to say though that the Province of Apayao is what makes Abulog vibrant.
Correction to the 40% rule on condominium ownership: whereas it is true in the Philippine constitutional laws that a foreigner may own a condominium outright. It is worded that a foreigner cannot own more than 40% of a condominium complex. Meaning that he alone cannot purchase more than 40% interest in such complex. This has nothing to do with a group of foreigners that do not know each other or are not formed as a corporation. There are numerous condominium complexes that are nearly completely foreign owned units in the complex throughout Manila metro. Because they are owned individually.
Bob, I really appreciate your enthusiasm in answering all kinds of questions.
Though I am not yet married to a Filipina, my Filipina gf has been insisting that I should build a house in Philippines. After watching these discussions. I feel, it would be a foolish act on my part if I invest my hard earned money in buying a house in Philippines.
If I get divorced and leave Philippines, my wife and her family would be enjoying the property as a free gift. And some greedy relatives of my wife can even kill me to get the property entirely in their control!
Bob,
I’ve just started to get into your articles because it’s obvious you are well informed and a mine of good info for people just like me. My Filipina wife and I work in Dubai and I’m looking to retire to the PI in maybe 2 years or so, I’m around the 60 mark (and Brit, FWIW).
We are just about to take over a (paid for) one-bed condo unit in Manila, partly as a daily-let / investment, and as a cheap base in the city when we visit. I’m saving like crazy here, with a view to buying a retirement place proper in Ilo Ilo, where my wife could find work, and I’d have the opportunity to teach English to (mainly) Korean students, for a bit of spare cash – my retirement income will be ok, but relatively modest, perhaps a bit over 2000 US per month. I’d be leaving Dubai/UK with maybe 100,000 US in the bank.
Regarding the pitfalls of house ownership, I’m not bothered because my wife and her family are cast iron upright people who I adore, and they would never shaft me.
The question is then, from your experience (and others), would I be better off taking a big chunk of my pension pot and getting a small house / condo and living rent-free, modestly – or sitting on my cash and renting? I guess the attraction of renting is that if Ilo Ilo doesn’t work out then we have got the flexibility to easily move on to somewhere in the PI.
If anyone else has an input on living in Ilo Ilo I’d love to hear it. We visited earlier this year and it impressed me – but we were only there for a week. My wife likes the place and has no qualms about it. She’s from Boracay and thinks I’d find it far too quiet and rural there, but Ilo Ilo is a nice mid-sized city.
Thanks again Bob, and all the other contributors, I’ll be watching this site closely from now on.
Roy
It’s interesting to read everything her, and how the topic in the end really just needs to be changed to what people searched into a search engine to find themselves here, “How to buy a house in the Philippines”. I’ve been to the country a few times now, and I’ll admit that renting is very inexpensive as compared to what I’ve seen Filipinos pricing their homes for. Certainly, there is little to no profit in being a landlord in this country, but that’s the way everything works there now, people chose sustainability over a dog eat dog society. Population explosion is also what prevents then from having anything, when you are already sleeping 2 families in one bedroom, and this is happening all over, the value of owning another home goes way down, we are used to being crammed like sardines, and we have dine it so much to the point that having another house wouldn’t help much. Might as well just keep moving people into the one that’s already tight fitting. That’s not meant as an insult. However, income is much too low to make loans feasible. I’ll be 80% of Filipinos make no more than 800 pesos per day (most of which are under 500), because the available resources, divided out among the available population calls for that. However, because there still is a wealthy 15%, and because the global economy places demands on land, people still price their homes for what no filipino within the 80% could ever even hope to afford. I was looking for websites that explained the process of land contacts in the Philippines abs ebbed up here. I’m not picky, I’ll move to the Philippines with my fiancé into a 300k peso home I’ve seen on OLX, abs I won’t worry about my neighbors too much because Filipinos are rather neighborly people comparing to any other nation I’ve observed. You might have some questionable characters on the block, but everyone knows what’s going on in the neighborhood all the time anyways. However, I did see some houses with commercial property attached that I’d be interested in, and I’m online ring to learn about possible land contacts in the Philippines, as if I have 500k to put down, it seems the guy offering a great deal at 1.2 million might work with me, but I have no idea how people make those kinds of transactions happen in the Phillipines. I’d be willing to do a quick payoff once a deal is made, the problem is, I’m like many people. While I have 500k pesos worth of usd in my hand, I need to get something done with it, and am not good at saving. I like to see the fruits of my labor after a year of working for this money, and that’s quite patient enough. So, if someone who has something ultimately better for me priced at 1.2 million can’t find a way to get me started with my 500k then I’ll just buy the 300k home and work at burger machine. Because I dint give a hoot about money, I just want to come home and embrace my powerfully spirited girl and get her heart into my soul for some good old fashioned style healing. So it matters little to me, but as for the 1.2 million pesos, I’d definitely be good for it abs pay that fortress off in less than 6 months because once I’ve made such a decision, I’ll put my heart into it and commit. Yet, in this case, it takes someone of greater assets to help me make said decision. Either a bank, or an owner that is willing to go on faith with a good down payment. Problem is, I can’t find anything informative about land contacts in the Philippines.
Is there anyone who can translate a document if I send them a scanned copy of a letter from a land bank
hi bob im a british and i just want to ask you i just want to know… If I become a retired citizen. Can I own and register property in my name without getting married ?
Great article. Are the solid wall concrete forms available in the Philippines? Also are your ceilings solid concrete also?
Thanks for the info. I have never had a house built so please pardon my lack of knowledge. You mention shipping the framing materials from the US. Are you saying i would need a 20′ container full of the forms and wall braces? You also mentioned details about your water system. You have a well and stainless water tank with pump and pressure tank. Do you pump from your well into the stainless tank and use that as a holding tank?
Hello again. I just ran across the Solidcon Construction website. Is that one of the contractors you used? Their “Waffle Box” prefab construction technique looks pretty interesting. My wife would probably want a little more finished interior than the base design. 🙂 Their website lists some base prices but not sure how up to date it is.
Rick,
Is there anyway I could email you with all of my questions at once and not bog down your blog here. My email is “[email protected]”.
Hi, Bob i am an american citizen and i have a girlfriend who is a Philippines citizen, she brought up the idea of me purchasing a house for her in the Philippines. I do plan on moving to the Philippines eventually but for the time being, Can I purchase a house under her name, while i live in the US and send her money to pay the rent?
Sure, you can give her the money and she will purchase it. Remember, she owns it, not you. You have no right to it at all. You have no rights to the money the house is worth, it is hers and hers only.
If I were you, I would not walk away from this deal. I would run.
This is a godsend, Rick – I’ve been researching on how to build my beach house on my property in the Philippines and this means I really need to have someone trustworthy watching the construction. Would you be kind enough to share the estimated total cost vs size of the house in sqm so I can countercheck how much I can legroom I can work with my contractors? My email is [email protected]
And btw, for those people like that bloke who commented negatively about marrying a Filipina so they can live off your pension as an expat – mind you, there are people like me who built their career abroad in a corporate environment and have their own money to blow. ?
Bob,juzt moved 2 pp,s.i bought a townhouse in my girlfriends name 2 months ago.we plan 2 get married in 2 months time,can she sign the townhouse over 2 me when married.also will i have a problem getting a permanent residence visa?thanks vincent
Hi Vincent. If the townhouse is legally part of a condominium complex, you can have it put in your name if she wants to do so.
Once you are married there should be no problem getting a resident visa.
Hi Bob
Thanks for sharing such great advise through your website.
I am European with a Filipino girlfriend, and as a future plan I’ve started to think that if we get married we could set up our business consisting in buying and managing a hotel/resort in the Philippines. According to what I could read through your comments:
1. I better not look for properties online since prices are probably significantly bumped up. Better go there and do deep research and ideally letting my future wife handle the deal.
2. As I understand, by Filipino law my future wife will need to be the owner of our properties. Now, I do trust her, but I am aware that anything can happen in the future and in case of divorce, I need to protect myself from going broke and leaving everything to my wife and her family. Perhaps signing a prenup agreement, stating something like “should we divorce we will sell the properties and split the money” (defining which amount) will be safe enough for both of us?
I would very much appreciate your feedback on this.
Thanks again and keep up the great work!
Cheers – AJ
Hi AJ,
To be honest, I have been married for 28 years and have never even considered divorce. So, this is not something I have ever looked into. Perhaps somebody else here will chime in with advice, but I don’t feel I can offer you any advice of value. Good luck to you.
Hi Bob,
I was a little confused at first because of the term “Natural-Born Citizen.”
My son who was born here in Davao is certainly a natural-born” citizen. But my daughter was born in Tacoma, WA. and immediately registered with the SF Consulate and given a Philippines passport.
As the Philippines follows a Jus sanguinis system for citizenship, I believe that means that my daughter is indeed a “natural-born” citizen and can own land here in the Philippines.
Even though I am often an “electric-fence-pisser,” I always appreciate your experience and advice.
On another note: When my wife and I bought our first piece of property here, our lawyer put my name as one of the buyers on the Deed of Sale and assured us that was all right. But when we went to transfer the title, we were told we had to get my name taken off that Deed of Sale before anything could be done.
Mike
It is possible for a foreigner name to be on the title, but in a way that it is basically meaningless.
Hi Bob – For what it’s worth: As explained to my wife and me by the Municipal Fiscal and a Provincial Court justice, I (as a noncitizen of the Philippines) can inherit land owned by my wife upon her passing. I won’t inherit all of her land, just the portion ascribed to me by law as her widower.
The 1987 Constitution of the Philippines, Article XII, Section 7 addresses ownership of land in the Philippines through inheritance.
Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.
Republic Act No. 386, Book III, Articles 712 through 1155 discuss the different modes of acquiring ownership of property to include inheritance either by estate (i.e., via a will) and intestate (i.e., no will) succession.
Through these numerous, relevant articles, the methods of accomplishing this widow’s/widower’s inheritance are spelled out. The amount of land that I can acquire through succession, however, differs in amount based on whether or not a valid last will and testament is in force that identifies me as an heir.
Whether I was properly or ill informed will most likely be decided in court. ?
Side note: A noncitizen of the Philippines can own a house and lease the land on which it sits.
Better check on that, Paul. The Supreme Court ruled that you cannot inherit property through a will. You can inherit if your wife dies intestate, but only if you have no children, which I know you do. Your son will inherit. If your wife dies intestate and you had no children then the law lays out who inherits. If there are parents or siblings of your wife alive they will inherit half. You CAN inherit half too, but only if your wife dies intestate. Good luck.
https://lawyerphilippines.org/2016/03/28/can-a-foreigner-inherit-land-in-the-philippines/
It is a great shame that we have this idiotic law here. Under the guise of patriotism, it only serves to protect the rich Filipinos, since the poor can hardly own land anyway and/or put up a sizable business.
The oligarchs knew that foreigners have money to buy land here and put up businesses. And that would eventually destroy the economic monopoly that has been keeping the Philippine economy from taking off for so long. So Cory and her crony oligarchs amended the constitution in 1987 barring foreign business competition as well as real estate competition.
The 1987 Amendment has been protecting the rich here, but killing the poor masses because of lack of good paying jobs. Duterte has been trying to repeal it, and hopefully he will succeed. If so, the floodgates would open up, and the Philippine economy would finally take off!!!