Making the decision to invest in property is a big step in securing a financially stable future and if Philippine houses have long appealed to you, then we are going to give you all the help you need to make a final decision! Real estate agents will always be a great source of knowledge, when it comes to buying property and can advise you as to the best styles of homes and the premier locations to be looking at, but before you start asking for professional assistance, how about learning a few of the basics for yourself? Naturally, you'll know how many bedrooms you want and how much you have to spend, but let us give you some insider knowledge to see if a Philippine house really is the right choice for you.
Still relatively under developed, in terms of investment real estate, you should be thinking about your target market. If you want to ensure a good return on your investment, the Makati and Taguig areas in Metro Manila are a good bet, as this is the capital region and property prices always seem to increase. For tourist potential however, you might like to consider more coastal areas, such as Palawan, Boracay and the fabulously upcoming Siargao Island.
This is one of those 'how long is a piece of string' questions! With continuous growth throughout 2016, you can't pick uo something as cheaply as you once could, but as a guide, you would be looking at between 106,000 and 202,000 Philippine Pesos per square metre, depending on location and construction, for a three-bedroom condo.
There will be certain properties that, as a foreigner, you simply are not permitted to buy, so before you set your heart on a particular home, be sure to enlist the help of a local real estate agent, as they will be able to help you prevent disappointment. You will also need to be sure that your property ownership rights are fully protected, but again, this is a job for the professionals. When embarking on a foreign purchase, you need to be sure you have a really good handle on the market and don't get caught up thinking that you will get a lot more for your money, as you could be disappointed.
Absolutely! If you decide to buy a house in The Philippines, you need to be prepared for a slew of fees. These will most likely include Capital Gains Tax of 6% of the selling price. The seller normally pays this, but buyers can be liable in some circumstances too. Documentary Stamp Tax will need to be accounted for, which is 1.5% of the sale value or a fair market share, whichever is highest.Transfer Tax of 0.5-0.75% of the final selling fee will be applied and finally, a Title Registration fee, which is usually 0.25% of the sale value, but this is liable to change region to region.
So as you can see, there is a lot to think about, but will that put you off investing in a property in The Philippines?
For more investment advice, take a look at this Ideabook: Choose the right house for you.