It is obvious that expats or locals should know a little more about the Philippines real estates before investing on any of those properties.
What expats need to know?
Expats can only own condominium or townhouse and not property (unless they have a Filipina spouse. Inheritance of property will go to their Filipina children).
Foreigners cannot own land, and can only own condominiums or townhouse with foreign proportion not exceeding 40%. They can buy house but not the land on which it is built. Lease on land is up to 50 years and it is renewable for another 25 years.
Transaction costs are very high. This means that the buyer needs to bear most of the costs.
Is this the time to buy yet?
The prices of the properties are rising again and the trend has been picking up these few years. Well, many buyers are optimistic on the Philippines economy. Philippine President Gloria Macapagal Arroyo has signed a new law for the regulation of all matters that are connected to real estate in Manila and in the entire country. The Real Estate Services Act (RESA) is said to have been enacted in line with the continuous growth of the country’s real estate industry.
What is the favourite property type in Manila now?
Condominiums in Manila have become the favourite of home buyers among the various properties in Manila. There are now more new development of high end condominiums to cope with the arising demands of locals as well as foreign buyers.
How about rental?
An expat or foreigner or foreign corporation is allowed to lease a land on a contract basis for a 50 years period. However, the leasing period can be renewable for every 25 years. Note that an expat can rent a lot and own the house on the rented land during the rental period.
