How
easy is the property purchase process in the Philippines?
Foreign nationals cannot own land, but can own condominium units or
apartments in high-rise buildings as long as the foreign proportion
does not exceed 40%. They can also buy a house but not the land on which it is
built. Leases on land up to 50 years, renewable for another 25 years, are
available.
If a foreigner is keen on acquiring land, there are several
options. One, if married to a Filipino citizen, is to have the
ownership of the land under the Filipino's name. Another option is to acquire
land through a corporation. Corporations can only be, at the
maximum, 40% foreign-owned.
When buying new property, it is important to look for properties
backed by established developers and licensed real
estate agents/ brokers, especially in cases of off-plan or pre-selling
(the property is at the planning stages and non-existent during the time of the
sale).
In general, property can be acquired by simple agreement. After
deciding what property to buy as well as inspecting the premises and documents,
the buyer usually signs a binding notarized Deed of Sale.
Employing the services of a reputable sales agent is convenient
because they not only provide vital information regarding the transaction and
property, but also assist the buyer in getting mortgage loans.
Buying condominiums
A downpayment of 0%-30% is usually required. Ownership of condominium units is
evidenced by the Condominium Certificate of Title (CCT) but the
transfer of title is usually not executed until the property is fully paid.
Foreigners can own up to 40% of a condominium project.
Holders of Special Resident Retiree's Visa (SRRV), a non-immigrant resident visa, can get additional benefits aside from being allowed to buy a condo unit or lease a parcel of land or a
house and lot. The SRRV holders can reside in the Philippines
permanently, with multiple-entry privileges and zero travel
taxes.
Basics of Real Estate investing
The basics of real estate investing are as simple as any other trading concern,
namely to buy low and sell high. But as property values
fluctuate, and homes may appreciate as well as depreciate in
value, the investor will soon realize that there is more than just buying and
selling to property. The property must be maintained, developed, and
improved. The smart investor will consider how to maximize gains by
working with contractors to do the construction of a property, or the
development of a lot, in house. If one considers the savings involved with
buying a lot, purchasing the lumber and other construction supplies oneself
after heavily researching the market, negotiating the best rates with
contractors to do the construction, and then landscaping and decorating the
property oneself, the conclusion will quickly be that a 40% savings on the
retail market price of a new property will be found.
For those considering investment strategies in real estate for
retirement, college education funds, or other reasons, a smart analysis of the
real estate market both locally and nationally is required. Many real estate
investors limit their options to the local market, rather than considering if
the investment may be more favorable in another state or region. Vacation
rentals or beach front property is increasingly used as a retirement investment
as well as a second home. Another way to maximize the return on you real estate
investment is to buy a depressed property and to renovate or remodel it. You can
improve the property value of the house by doing simple repairs, painting,
landscaping, and decoration. Another time tested investment strategy is the
rental unit. Not only does the property continue to appreciate as you own it,
but the rental income should more than cover the mortgage payments to the bank.
Take Your First Step
Real estate is a formidable investment, as it can be difficult to acquire. The
initial investment that it takes to purchase a house anywhere in the country is
enough that many people never purchase a house in their lifetimes. If you are
fortunate enough to have a bit of money for a down payment and a good credit
score, then it would be a wise idea to start with your investing now.
There are several ways to invest in real estate depending on your
preferences. One way to invest in real estate is to buy a home to live in
yourself. People are always making babies, and those babies are growing up. With
people living longer than ever, room is not being made for the new generations
fast enough. There may be market slumps now and then, but as long as we continue
to have babies, there will always be a market demand for homes.
If you buy a home to live in, a great investment is to buy a
fixer-upper (a home that needs repairs). Fixing these minor problems over the
duration of your stay, especially if you can do the repairs yourself, will help
you to gain a great deal of value in the home before you sell it again for a
different home.
Some people buy houses just to fix them and sell them again,
never actually living in any of these homes. Indeed, in some parts of the
country, the market is so "hot" that people can buy a house, hold onto it for
three months and resell it at a profit without repairing a single leaky faucet.
In time, these people will be able to purchase several homes at once and
continue to sell them as they wish, or even let them out to renters.
This leads us to the third type of real estate investment. Buying
properties to rent is a great way to make a steady income as long as you are
willing to be liable for the premises and willing to be on call for the
residents should a problem with the facilities arise. The landlord is
responsible for all repairs to the rental building, however the renters are
responsible for not destroying your property. There is a tight legal line to
walk, and some people find this means of making money to be too much trouble.
For many, though, owning properties and renting them out is a great way to make
a second income in addition to their regular jobs, and the properties can pay
their own mortgages in many areas.
All of these methods of real estate investment require
significant initial investments on your part to start them off, and for the most
part they will also require a significant investment of time as well. This can
be time dealing with tenants, time repairing buildings, and even time that is
spent on acquiring the houses in the first place.
Real estate is a game that is played by men and women all across
the United States, and with the right investments it is a game that you can play
as well. Buying and selling homes a-la Monopoly� certainly feels like a game,
after all and it is a great way to make an income. You just have to be willing
to take that first, scary step.
The Fundamentals of Real Estate Investing
If you have decided to begin a career in real estate investing,
you will need to start out with the basics before you begin investing your
money. The fact is understanding the fundamentals of real estate investing is
crucial for you to become a success. The following information will help you to
understand what you need to do to become successful.
Why You Want To Invest In Real Estate
Generally speaking, there are only three reasons to invest in
real estate. The first is to get cash immediately. This can be done a couple of
different ways. This is done by purchasing a property at a low price then
selling immediately at a higher price, otherwise called flipping properties. The
second reason to get involved in real estate investing is to get cash monthly.
This can be done by generating a positive cash flow from the rentals you've
purchased as an investment. Of course, the third reason is to get cash at a
later date. These properties are kept for a time until they appreciate in value
and then they are sold. It is kind of like having cash in the bank that you can
not touch. Understanding why you want to invest in real estate is one of the
fundamentals of real estate investing that you must know before you begin the
process.
The Buying and Selling Process
In order to be successful in your investing, you must first
understand how the buying and selling process works. You need to understand what
steps to go through before you close on a property. This includes learning about
the purchases and sale agreement, contingencies, cash flow statement, and, of
course, how to negotiate as both a buyer and a seller. These things are the
fundamentals of real estate investing and must be understood before you begin.
The Real Estate Market
Understanding how to research the real estate market is also the
key to your success. Knowing where to go, such as the local registry of deeds
and town office, to research the history of the property can make or break you
in this business. If you do not have the history of the property, as well as
information on how properties are selling in your particular area, you may find
that you are lacking the fundamentals of real estate investing and find yourself
on the losing end.
Your Financing Options
One of the most important things to learn is what your financing
options are when investing in real estate. If you plan to finance your real
estate investments, you will need to understand the terms and conditions of your
loan. Without this knowledge, you may end up not making as much money as you
could with your investment.
When you set out to learn the fundamentals of real estate
investing, you will find that there is no one particular "right way" to begin
investing in real estate. There are many different methods to use and some will
bring you success while others will cause you to lose money. However, if you can
learn the fundamentals of real estate investing, you will find that you are
successful with your investments far more often than not. You will find there
are many real estate classes on the buying and selling process, financing, and
negotiating online, as well as held by local financial institutions. Take
advantage of the classes around you and you might be surprised in your success. |
