Buying A Lot, Or Maybe Not!

[colorguy]

My Filipina wife and I are seriously considering buying a lot somewhere on Cebu island.  One of our most important questions is about cost of land.  I have done some browsing on sulit but it seems that there are very few plain (no subdivision) lots for sale.  I have a hunch that what is available on the Internet is not necessarrily a good indication of what is available in real life.  Am I right or wrong about this?

 

Let me give you a more concrete example.  For the sake of argument let's say that we would like to spend under $10,000 and would like a lot that is 2,000 square meters or more.  Now if I was in the midwestern USA this would be extremely easy and the supply is plentiful.  On Cebu, this seems almost impossible.  Am I missing something?

 

My wife has a notion that land should cost about 400 pesos per square meter.  Is this realistic?  My wife's family will live there at some point so I think having good cell service and Internet available are really important.  We own a business in Thailand and it is hard for my wife to keep in touch with her family since where they are now both cell service and Internet are a huge challenge.

 

Any and all comments welcome!

[Americano]

Its possible to buy a 2,000 sq meter lot for $10,000. on Cebu island.  That would be P200 per sq meter.  The only problem is the lot may be far away from a city which has high speed Internet.  Near a city with high speed Internet land may cost you close to P1,000 or more per sq meter. Cell phone shouldn't be a problem because its in most places now.

 

Most of the land for sell on the Internet just like houses are way over priced.  And, most of the land for sale is not listed on the Internet. The best way of finding land for sale is word of mouth, which means you need to be here in person.

[JJReyes]

You need to differentiate between "raw" land and "developed" land. One reason why subdivisions and gated communities cost much more is because the developer had to spend money for infrastructure such as access road to a national highway, electrical lines and security fencing. There is more or less an assurance that you have a clear title when purchasing from a reputable development company.

 

Undeveloped land is scary. You maybe buying from the presumed owner only to find out later that a relative is claiming the land as theirs. A smart lawyer can help, but it will cost money. The case may take many years to resolve. In the meantime, you remain uncertain whether to build a house or not.  

[colorguy]

Thank you for the information!  Right now where my wife's family lives near Giloctog which is not far from Barilia- cell coverage is horrible and they have no internet available.  I know that allegedly "Smart Bro" is available everywhere but I have a friend who bought it for his Filipina gal and it sucked badly.  I would just like my wife to be able to call her family normally, or chat on Skype for hours on end with no worries.

 

As for raw land being risky- I would have to agree.  I see half- built houses out in the provinces and I have heard of lots of disputes over land.  I am just wondering though- if I see a title with no encumberances, and I check with the local government where the title is filed and the documents agree- and I also hire a lawyer to check the paperwork- isn't that enough due diligence to give me peace of mind, or am I delusional?  I don't want to go into this thing thinking like an American and get a big smack-down by losing a bunch of cash.  LOL.

 

By the way, how much should I budget for a lawyer?  Where can I find a good one who will actually do good, honest work and is a stickler for the details?

 

Oh my gosh JJ I just saw you live in Honolulu!!!!  Aloha!!!!!  Hahhahhaa.  I lived on the Big Island for a couple of years.  It was an incredible experience and I still miss it!!!! 

[Jollygoodfellow]

I would just like my wife to be able to call her family normally

 

My wife climbs a coconut tree at the beach when in the province for phone reception. Seems normal to me  :lol:

[colorguy]

I would just like my wife to be able to call her family normally

 

My wife climbs a coconut tree at the beach when in the province for phone reception. Seems normal to me  :lol:

 

LOL- there is a hill near my wife's family and on the top of the hill is a school.  I have climbed the 60-odd steps in the past in order to make phone calls.  :(

[JJReyes]

By the way, how much should I budget for a lawyer? Where can I find a good one who will actually do good, honest work and is a stickler for the details? Oh my gosh JJ I just saw you live in Honolulu!!!! Aloha!!!!! Hahhahhaa. I lived on the Big Island for a couple of years. It was an incredible experience and I still miss it!!!!

 

We own a real estate company in Honolulu. If someone is selling and they want our company to represent them in the sale, my wife or son would request for a "Preliminary Title Report" from an escrow & title company. It's usually free because the escrow & title company wants your business. Any problems will show up in the report like non-payment of taxes; unpaid condo assessments; or a former spouse is still on title.

 

In the Philippines, you need a lawyer. My fee negotiating tactic is to state in writing the services needed and ask, "Can you do it for P10,000?" If the response is, "No." then ask how much. You now have some idea about market pricing. You can then ask several other lawyers for verbal quotations.    

 

Over the weekend, I had lunch with our group's expert in constructing quality bamboo bungalows. He is from Puna on the Big Island. The trip was planned weeks ago and the passport was mailed to the Philippine Consulate in Honolulu for the extended stay visa. The passport never got back to Puna. Yesterday morning was spent trying to trace the missing passport. I did get a brief email from the departure area that he was on his way to Manila for a connecting flight to Cebu. No additional explanation. Probably someone from the Consulate forgot to mail the passport.  

 

I like the Big Island. A Pilipino group from Canada purchased a former farm and they are dividing the land into one acre lots for friends to build retirement homes. The group as Canadian snowbirds. Their plan is to winter in Hawaii. The problem is the good hospitals and medical specialists are all in Honolulu. If they need MediVac by private plane to Honolulu, the cost is $30,000 and up.

Edited February 5, 2013 by JJReyes

[Americano]

By the way, how much should I budget for a lawyer? Where can I find a good one who will actually do good, honest work and is a stickler for the details? Oh my gosh JJ I just saw you live in Honolulu!!!! Aloha!!!!! Hahhahhaa. I lived on the Big Island for a couple of years. It was an incredible experience and I still miss it!!!!

 

We own a real estate company in Honolulu. If someone is selling and they want our company to represent them in the sale, my wife or son would request for a "Preliminary Title Report" from an escrow & title company. It's usually free because the escrow & title company wants your business. Any problems will show up in the report like non-payment of taxes; unpaid condo assessments; or a former spouse is still on title.

 

In the Philippines, you need a lawyer. My fee negotiating tactic is to state in writing the services needed and ask, "Can you do it for P10,000?" If the response is, "No." then ask how much. You now have some idea about market pricing. You can then ask several other lawyers for verbal quotations.    

 

Over the weekend, I had lunch with our group's expert in constructing quality bamboo bungalows. He is from Puna on the Big Island. The trip was planned weeks ago and the passport was mailed to the Philippine Consulate in Honolulu for the extended stay visa. The passport never got back to Puna. Yesterday morning was spent trying to trace the missing passport. I did get a brief email from the departure area that he was on his way to Manila for a connecting flight to Cebu. No additional explanation. Probably someone from the Consulate forgot to mail the passport.  

 

I like the Big Island. A Pilipino group from Canada purchased a former farm and they are dividing the land into one acre lots for friends to build retirement homes. The group as Canadian snowbirds. Their plan is to winter in Hawaii. The problem is the good hospitals and medical specialists are all in Honolulu. If they need MediVac by private plane to Honolulu, the cost is $30,000 and up.

 

How can someone living in Hawaii give advice about buying land in the Philippines when the process is completely different in both countries?  Its very evident from your comments that you know very little about buying land in the Philippines especially where Coolguy's family live in Barili.  "You can then ask several other lawyers for verbal quotations."  How many lawyers can he ask in Barili?  Just one because he's the only one in town.  How many can he ask in Carcar which is the next closest city?  Just one because she is the only lawyer there.  I know because I live here and use both lawyers for different things.  What do you know about this area living far away in Hawaii? 

 

It always amazes me how some of the so called experts on the Philippines don't even live here.  This is very true on other forums too.

[JJReyes]

How can someone living in Hawaii give advice about buying land in the Philippines when the process is completely different in both countries? Its very evident from your comments that you know very little about buying land in the Philippines especially where Coolguy's family live in Barili. "You can then ask several other lawyers for verbal quotations." How many lawyers can he ask in Barili? Just one because he's the only one in town. How many can he ask in Carcar which is the next closest city? Just one because she is the only lawyer there. I know because I live here and use both lawyers for different things. What do you know about this area living far away in Hawaii? It always amazes me how some of the so called experts on the Philippines don't even live here. This is very true on other forums too.

 

It is correct that I don't know Barili and Carcar specifically, but I do know Philippine real estate. This includes personal ownership of investment properties and farmland. Two large parcels of the family farm are jointly owned with my brothers and sisters through inheritance. A smaller adjacent parcel is solely in my name. Total size is more than 45 hectares planted to tropical fruits. Fil-Ams are limited as to the size of an urban or rural land they can purchase. Since the purchases or inheritance occured while I was still a Philippine citizen, my properties are exempt.

 

My current project is to market retirement villages to global retirees who need assisted living and skilled nursing care. The Philippines can offer healthcare services at prices that are 50% to 70% lower than similar facilities in the United States. My involvement requires meetings and business planning with several large property developers, and knowledge about ownership issues.

 

Our Hawaii real estate company is authorized through developer agreements to market projects in the Philippines to Fil-Ams in the United States. Philippine law also permits us, as a licensed real estate company with the National Association of Realtors, to buy and sell properties in the Philippines under the license of a Philippine real estate firm. We hesistate because the Bureau of Internal Revenues wants 35% of our commission. The large developers have marketing subsidiaries in the United States. The commissions are paid by the US subsidiary. We pay federal and state taxes in accordance to law, but we are not subject to the 35% BIR tax.

 

Maybe I am giving away too much information about my business and background. Yes. I do have some knowledge about Philippine real estate. My next trip to the Philippines requires visiting Cagayan de Oro to look at a 250 hectares property. I may stop in Cebu and visit Carcar. I am interested in looking at the old Spanish era architecture and taking photographs.

 

By the way, a good lawyer will research property ownership through muncipal and provincial records, which are not available at the barangay level. They will also research court records to determine if there are any adverse claims. For agriculture land, the lawyer needs to also research the Department of Agrarian Reform to determine if the property is on the list for potential seizure. At our family farm, all caretakers are salaried employees to avoid agrarian reform. I went ballistic when an in-law, whose is separated from my niece, was permitted to live on the family farm. After one year, he could have filed a claim with the DAR. My first cousin sold his inherited farm property for $650,000. The DAR ruled that the tenant farmers were entitled to receive $260,000 or 40% of the proceeds.   

[ibemarshall]

My wife climbs a coconut tree at the beach when in the province for phone reception. Seems normal to me

 

...my wife climbs on my shoulders for that sweet spot of a signal....she says the extra 2 meters makes a different...who am I to differ!    :morning1: