Seeking Advice: Moving to the Philippines and Exploring Real Estate Options

[Felix]

Hello everyone,

I hope you're all doing well. I'm writing to seek some advice and guidance as I plan a significant move in my life. By August 2024, I'm planning to relocate to the Philippines, specifically considering settling down either in Bohol or Cebu. However, before making this transition, I'm keen on exploring the real estate market, particularly with regards to purchasing a building and renting out houses, partitions, or bed spaces.

A bit about myself: I'm a foreigner, already married to a Filipina. While I'm excited about this move, I must admit that I lack expertise when it comes to the Philippine real estate market. My wife, though incredibly supportive, isn't well-versed in this area either. Hence, I find myself turning to this community for valuable insights and advice.

Here are some specifics:

1. Location Preference: As mentioned, I'm torn between Bohol and Cebu. Both have their unique charms, and I'd appreciate any input on which might be a better fit for my real estate investment plans.

2. Budget: I have a budget of around a million PHP to work with. While I understand that prices vary depending on location and property type, I'm hoping to gain a better understanding of what my options might look like within this budget range.

3. Investment Strategy: My goal is to purchase a building that I can then rent out, whether it be as whole units, individual rooms, or bed spaces. I'm open to various property types and rental arrangements, but I'm particularly interested in understanding which option might offer the best return on investment.

4. Legal Considerations: As a foreigner, I'm also curious about any legal considerations or restrictions I should be aware of when it comes to purchasing property in the Philippines. Are there any specific steps or processes I need to follow to ensure a smooth and legal transaction?

I would be immensely grateful for any advice, tips, or personal experiences you can share regarding real estate investment in the Philippines, particularly in Bohol or Cebu. Whether it's recommendations for trusted real estate agents, insights into local rental markets, or warnings about potential pitfalls to avoid, every bit of information will be invaluable as I navigate this new chapter in my life.

Thank you all in advance for your time and assistance. I look forward to learning from your expertise and hopefully making some informed decisions as I embark on this exciting journey.

Warm regards,

Felix

[Old55]

Welcome to the forum Felix. Pleased to have you join us. 

As a non Filipino citizen you may not own land with a few exceptions. 

If your wife is a Filipino Citizen she can own land buildings and could rent rooms or apartments.

Real estate in Philippines is somewhat difficult and higher risked. Land Titles are often faked or "weak". After a legitimate land sale sometimes Filipinos will go after the land saying they have an ownership percentage that was overlooked or other similar claims. Sometimes these claims are fraudulent others do have some legal claims. Finding a trusted lawyer is not easy. Specific steps are best found working with a Filipino lawyer. 

One million pesos is a very small budget for property. Individual rooms and bed spaces could fit your budget and are not a bad way to go especially as a beginner.

Our family has a number of bed spaces and a dormitory. They are located near a large noodle factory in Cebu. These simple buildings have provided modest steady income for many years. Locating simple rooms or bed spaces near to a collage or factory is very helpful.

 

[GeoffH]

Welcome to the forum. 

1 million peso won't go far in Cebu or for that matter almost any sizable city if you want something decent with clean title, unless that's your deposit and you're looking at co-signing a loan with your wife for the balance in which case it's doable IMO.

Having said that I would strongly emphasize renting for at least a year until you get the lay of the land so to speak, there are few ways to make money in the Philippines but many many ways to lose it.

[craftbeerlover]

5 hours ago, Felix said:

Budget: I have a budget of around a million PHP to work with.

To buy a building or house with the plan on renting out rooms, you are going to need a lot, repeat a LOT more than a million pesos.  

[GeoffH]

45 minutes ago, craftbeerlover said:

To buy a building or house with the plan on renting out rooms, you are going to need a lot, repeat a LOT more than a million pesos.  

We looked at something similar near a new factory on the outskirts of Cagayan De Oro a few years back, ended up not proceeding with the build, land was 500k.

Architect was 100k, Build cost ; concrete ground floor to be fitted with box AC units and wooden second floor fan only for 20 sq meter units was estimated at 20,000 per square meter (built to local standards) total of 4 million peso plus landscaping, entry way, motor parking and fences at another 1 million peso.

That's 5 million pesos for 10 basic 1 bedroom studio apartments well outside of Cagayan De Oro and this was 5 years ago... you wouldn't build it for that now.
 

We ended up not proceeding simply because the rental return didn't justify the cost (might as well leave it in the bank for a similar return without the risk).

When you add in that you're thinking of Cebu... and those were pre Covid costs... well... it's going to be LOTS more than that.

Edited May 31 by GeoffH

[MotorSarge]

Welcome to the Forum Felix,

You came to the right place to get some questions answered.

Some answers may generic depending on your scheme of location, work, business, family, etc.

Many total years of experience from the crew here.

You came to the right place.

 

    

[hk blues]

You could get a very 'minimalist' property here in Iloilo for 1m php - but really only a simple boarding house and not really a place you'd want to live in yourself as a family home. 

My SIL rents a room in such a place and pays, I think, about 3k pesos a month.  

[craftbeerlover]

1 hour ago, hk blues said:

You could get a very 'minimalist' property here in Iloilo for 1m php - but really only a simple boarding house and not really a place you'd want to live in yourself as a family home. 

My SIL rents a room in such a place and pays, I think, about 3k pesos a month.  

yeah you could buy some land and get something built for 1 million pesos, but the land would be pretty fricken small and the 'house' could be blown away by the big bad wolf.  Nothing like what he was thinking in the original posting.  1 million pesos really is not that much here.   Out in the middle of nowhere obviously the money goes further.  

[Guy F.]

I can't add much to the good advice already given.

Prices listed on the internet are highly inflated in comparison to boots on the ground prices. One million pesos is not nearly enough. You need at least 5 million. If you find a place you like, visit several times at all hours. The difference between night and day can be radical. Make sure your chosen place includes a right-of-way formalized legally on paper. Many people have bought property and later been blocked from accessing it.

[Jack Peterson]

5 minutes ago, Guy F. said:

Make sure your chosen place includes a right-of-way formalized legally on paper. Many people have bought property and later been blocked from accessing it.

 We have seen it and wrote about so many times, Buyer beware and Boots on the Ground, I thank you.