Would buying land and building a house in the Philippines be something worth doing?

Question

My husband is from the Philippines but he hasn't been there for over 20years and he's thinking of buying some land out there but before we do that I told him I wanted to get someone that's been there's point of view to see if that would be such a good thing to do.

Answer 1

Why not? A good neighborhood is Forbes Park in Makati, Manila.
cbmaclean: Your quote - "One thing else to inform you about: One person can own the land, and another person can own the house that is on the land. This is not the case in Canada or the US" is incorrect. Example: Trump owns the land the Empire State Building sits on - but not the building itself.

Answer 2

It is not correct that one person can own the land and another own the house. The Constitution stipulates that whoever owns the land has the right to all improvements upon the property. The person that said otherwise may have had friends that returned to find Squatters upon their property and that is something quite different.

Your husband can own the land since he is a Philippine Citizen you cannot if you are not a citizen of the Philippines. If the two of you should divorce the citizen in the relationship is going to be awarded the land and house regardless of what contract you have. If your husband should die the property would revert back to his children and if there are no children it would revert back to his Philippine family.

A foreigner can own a condo/townhouse if 60 percent of the Condo/townhouse Units are owned by a Philippine Citizen.

Other than Condo/townhouse property ownership for foreigners is not that great because there are so many risk. But, the Philippine market is booming and through out the Philippines condo's and subdivision are being developed. I have seen the market in the Manila and surrounding areas more than double in just three years. I purchased a condo for 2 million pesos early in 2005 and sold it late 2006 for 4.5 million pesos. Property in Davao that was selling for 4 to 5 million pesos when I arrived in 2006 is now selling for 6 to 8 million pesos.

There are ways a foreigner can form a Philippine corporation and purhcase land, but you had better be very careful because if it can be proven that the corporation was formed for the sole purpose of providing land ownership to a foreigner that contract can be declared null and void.

The average Philippine Citizen does not want foreigners to own land in the Philippines. It is only the developers and business owners that want to open it up to foreigners. I believe eventually the laws will change.

Some Real Estate Agents will tell you about a long term lease instead of purchasing. A property lease in the Philippines can be broken at any time if the owner can demonstrate in court that it is in his/her best interest to have the property back.

You also must be very careful that the property you purchase has a clear title that can be transferred to you. Do not do anything without a good lawyer that comes to you with a referal from someone you know and trust.

Answer 3

It would depend but my initial reaction would be to say no. Unless it is in your plans to retire here or do a 50%/50% in each country it may not be worth it.

Our close friends from the states who hadn't been here since they moved to the states (40 years), came back to visit and bought two lots in a developing subdivision in Bulacan (province just north of Manila). They have owned it for two years and have yet to build. While it is vacant, they are still paying association fees. In addition, the loan/equity line they will take to build the home will come from the states because the interest rates here are insane (obviously if you have the cash to buy and build, this is a non-issue). They may end up not building as their last trip here (3 months, over Christmas holiday), they realized they may not want to spend as much time as they originally thought and once a home is build they have to either (a) hire security to keep an eye on the home or (b) have a relative live in it.

Unless you plan to spend A LOT of time here, I would just rent a furnished condo for vacations here (there are thousands being built and the vacancy rate is huge). If you plan to spend a lot of time here, try an extended vacation before buying to see if you would really like to live here. We moved here six months ago (not retiree) and it is a lot different than vacationing.

If it is just for investment, I would purchase in the states as your return will be much, much better.

One last caveat, do not buy a condo. You will see thousands of flyers both in the states and here in the PI and at first we looked at a few. Buildings that are literally just a couple of years old are not maintained well and since so many huge buildings are going up, what could be a beautiful view this year could be looking into another building nest year.

Answer 4

We did. We built a modest 3 br 2 ba (aprox 2,100 sqft) single storey American sized ranch house on 600 sqm of land for the same price as a doublewide mobile home in the states (Aprox. P 3 mil. It's nice and quiet. Our neighbours are professionals and don't burn trash or keep fighting cocks in their backyards.

There are allot of challenges to buying land and building a house here, but I am sure your husband will know most of them.
I suggest you join the Yahoo Group Living in the Philippines 3 to get more current info. There are thousands of expats on that board that can give you good advice on the differant areas.

My wife and I have lived here for the past 5 years. I am retired and have no plans on ever going back to the states. Retirement here in the Philippines is great.

Answer 5

Of course buying land and building a house in the Philippines is always a worth doing. Philippines have its own beauty that no one can resist. Check out Lancaster New City Cavite it’s the best place for you to invest a house. It’s a FLOOD FREE and secured place. I know it because I live there.

So if you want detailed information visit the link below. God bless!

Answer 6

Why not buy a land or house in the Philippines, you will have good and nice neighbors,and buying a land and a house in the Philippines is worth doing.

Answer 7

I am a Canadian married to a Filipina and we have several friends who have bought property in the Philippines. They have a very different system there and nothing like our multiple listing service like here in North America, so it is really hard to compare property values like we can here. You never know if you pay too much or got a good deal. One of my friends bought a house there, and his wife's family lived there. When my Friend returned to the Philippines, he found out his father-in-law had transferred the property to his name, and my friend tried for several years to have lawyers transfer it back. It cost him thousands in lawyers fees and was very frustrating for him. The whole system is very corrupt. But there. It may be a good investment. But be very careful!

One thing else to inform you about: One person can own the land, and another person can own the house that is on the land. This is not the case in Canada or the US. There have been cases of foreigners owning the land, and then returning to find someone had built a house on it. This becomes a legal nightmare if the landowner wishes to build his own house.

Brock
Vancouver, Canada

Answer 8

Yes it would be a very good investment. Deal with reputable companies only. Or if buying from an individual, check that the title is clean.

Or try beach properties in Mindoro, Boracay, Batangas, La Union or Subic.

Or try the Tagaytay area for cool weather and it's near Manila.

Answer 9

Ofcourse it is a very good investment. Here in the Philippines, land property is the only one not getting low appraisal. Property (specially land) values always goes up. Check out laguna bel air, manhattan condo (in cubao,araneta), tagaytay and baguio too.. good luck.

Answer 10

yes of course. it would be a good investment as well as the philippines is a nice place to spend most of your vacations or even retire there..we're residing down under but still plans to go back there a few years from now.