Condo Ownership Rules In The Philippines

[Mr Lee]

First the condo rule as I understand it is that 60% of a building has to be owned by Filipinos and no more than 40% can be foreigner owned. The problem usually does not come in to play when a person buys a new condo because most of the units are being sold to Filipino investors who rent them out. The only problem could possibly come into play if a person like myself were to want to sell our units down the road and at that time there happened to already be 40% foreign ownership in our building, then we would be forced to sell only to a Filipino and that would no doubt put them in a bargaining position if they knew about it, but up until that point it is the building owner/developer who is responsible to make sure that no more than 40% get sold to foreigners and not something a buyer has to worry about. In our case our units are in my wife's name first and then mine so while jointly owned they are technology sold to a Filipino since she has dual citizenship and the units are for her future and not for me anyway, so I really did not care. That was my choice and not hers and she forced me to put my name on them in case something happened to her even though I did not wish to because our home in the states is also jointly owned but is my responsibility to take care of, and anything we have in the Philippines is her responsibility to take care of and manage or I would end up on overload since I only have a pea brain and I cannot handle too much stress.I personally do not see that many foreign investors buying up condos and I do see or hear of Filipinos who have bought up blocks of units and are renting them out. There does not seem to be any safe place for a richer Filipino to put their money that will earn them income except buying rentable homes or condos and while land is also a good investment vehicle for their future generations, it does not bring in immediate income while also growing in value which condos usually do for both Filipinos and foreigner investors. The other problem with land is that once it is sold, an investor is back where they started with a bunch of pisos/pesos and no safe place to put it. So to the foreigners, if you wish to buy a condo, only do so full well knowing that if you want to, or have to sell it right away then you will no doubt lose money because the builders can, and does offer terms of up to 5 years interest free with 30% down that you would have a hard time offering and then collecting your money if you leave the country might also be a real problem, so do not buy unless you intend to keep something for a number of years before even thinking about selling it, or just keep it and rent it out and let a reliable rental agent handle it and go about your life or do not buy it at all and rent.

[FlyAway]

Driving around Global City in Manila I saw all sorts of high rise condo's going up. In the malls people are pushing the sales of them. I look at them and think, "what do you actually own"? The prices they are selling for and the per sqm is ridiculous to me. They sure try to lure the OFW into buying.The framing of the high rise condos may be sturdy but I was looking at the way they filled in the walls. Hollow block without much reinforcement re-bar. One good earthquake would make a big mess.We will save up and buy a piece of property.

[Genius]

Where can rich filipinos invest ????How about a/ abroad b/ stockmarket c/ a business ??Rental investments in the phils does not seem to be a very good business to make money. Its an ok place to store money but as to making itI do not think so.

[Mr Lee]

Where can rich filipinos invest ????How about a/ abroad b/ stockmarket c/ a business ??Rental investments in the phils does not seem to be a very good business to make money. Its an ok place to store money but as to making itI do not think so.

From what I have been told, richer Filipinos often have a hard time getting their money out of the country in large quantities. I of course do not know the laws and have only brought money in and never tried to get any significant amounts back out. So those who I know and have spoken to invest in their own country as well as in other countries when they can, at least that is what they tell me and who knows if they tell me the truth. I know that if I was not married to a Filipina and not living part of the year in the Philippines then I would keep my money in the USA and I suspect that many of the richer Filipinos might feel the same way about keeping their money in their own country, yet the very rich who travel often probably have property all over the world.As for earthquakes, that is a real problem in many parts of the Philippines yet Cebu so far seems to be safe from major earthquakes. I do not tell anyone what to invest in, but some people have asked me my advice and my opinions on how to get sort of safe income while living in the Philippines, so I have shared my idea with all instead of just a few and with the idea that they are but only my ideas and what I think and who the heck am I, no one but someone just trying to feel my way long like the rest of you. I also tell most people to keep their money working for them at home in their own home countries.

[FlyAway]

I could see condos as a place to store money. I wonder if one could start some sort of time share business with them?

[Mr Lee]

I could see condos as a place to store money. I wonder if one could start some sort of time share business with them?

They already have time share type condos in Mactan and I understand from a friend who is into a time share group that he can stay at a number of places in the Philippines that are within his time share group but I do not remember which ones it was when he told me about it. I personally think long term (1 year at a time) rentals are better and that while no way is perfect, owning some not too expensive condos might work as an income producing product for our wives futures, while also growing in value. Our units have almost doubled in retail price which really means nothing IMO in saleable price, should we have wished to sell them.

[Genius]

I could see condos as a place to store money. I wonder if one could start some sort of time share business with them?

They already have time share type condos in Mactan and I understand from a friend who is into a time share group that he can stay at a number of places in the Philippines that are within his time share group but I do not remember which ones it was when he told me about it. I personally think long term (1 year at a time) rentals are better and that while no way is perfect, owning some not too expensive condos might work as an income producing product for our wives futures, while also growing in value. Our units have almost doubled in retail price which really means nothing IMO in saleable price, should we have wished to sell them.

Still doubling in retail price is good. Over how long a period did that take to happen. I am from the UK and the economy outside London is atrocious now.I feel UK is the third world now.

[Mr Lee]

I could see condos as a place to store money. I wonder if one could start some sort of time share business with them?

They already have time share type condos in Mactan and I understand from a friend who is into a time share group that he can stay at a number of places in the Philippines that are within his time share group but I do not remember which ones it was when he told me about it. I personally think long term (1 year at a time) rentals are better and that while no way is perfect, owning some not too expensive condos might work as an income producing product for our wives futures, while also growing in value. Our units have almost doubled in retail price which really means nothing IMO in saleable price, should we have wished to sell them.

Still doubling in retail price is good. Over how long a period did that take to happen. I am from the UK and the economy outside London is atrocious now.I feel UK is the third world now.

Almost doubling on the units we are living in.I guess we bought at a good time and I only wish we had bought even sooner and beaten two more increases they had within 6 months prior to us buying, but I also know the economy was going strong back then because the time they jumped in price was only during just before we bought and the 2 years after we bought and they stopped growing in price in the last year, so the builder has had to come up with a bunch of different schemes on financing them to keep the selling and they were still not selling as fast as they were back when we bought. The price of construction material such as rebar and concrete has also gone up quite a bit which is another reason for the increases in price since I am sure the builder wishes to at least get what they would have to pay for material to build the next building, since there will eventually be a third building.When we bought they offered 30% down and 2 years no interest and we bought a third unit that way, and I was told before we left in May of last year that they were then offering 30% down with 5 years no interest and also rent to own and longer terms with interest and I was also told that they had converted some no interest loans to longer interest loans when people had a hard time paying so I guess some builders are willing to work with people rather than take back units and have to sell them all over again.

[Ferdzter]

First the condo rule as I understand it is that 60% of a building has to be owned by Filipinos and no more than 40% can be foreigner owned. The problem usually does not come in to play when a person buys a new condo because most of the units are being sold to Filipino investors who rent them out. The only problem could possibly come into play if a person like myself were to want to sell our units down the road and at that time there happened to already be 40% foreign ownership in our building, then we would be forced to sell only to a Filipino and that would no doubt put them in a bargaining position if they knew about it, but up until that point it is the building owner/developer who is responsible to make sure that no more than 40% get sold to foreigners and not something a buyer has to worry about. In our case our units are in my wife's name first and then mine so while jointly owned they are technology sold to a Filipino since she has dual citizenship and the units are for her future and not for me anyway, so I really did not care. That was my choice and not hers and she forced me to put my name on them in case something happened to her even though I did not wish to because our home in the states is also jointly owned but is my responsibility to take care of, and anything we have in the Philippines is her responsibility to take care of and manage or I would end up on overload since I only have a pea brain and I cannot handle too much stress.I personally do not see that many foreign investors buying up condos and I do see or hear of Filipinos who have bought up blocks of units and are renting them out. There does not seem to be any safe place for a richer Filipino to put their money that will earn them income except buying rentable homes or condos and while land is also a good investment vehicle for their future generations, it does not bring in immediate income while also growing in value which condos usually do for both Filipinos and foreigner investors. The other problem with land is that once it is sold, an investor is back where they started with a bunch of pisos/pesos and no safe place to put it. So to the foreigners, if you wish to buy a condo, only do so full well knowing that if you want to, or have to sell it right away then you will no doubt lose money because the builders can, and does offer terms of up to 5 years interest free with 30% down that you would have a hard time offering and then collecting your money if you leave the country might also be a real problem, so do not buy unless you intend to keep something for a number of years before even thinking about selling it, or just keep it and rent it out and let a reliable rental agent handle it and go about your life or do not buy it at all and rent.

Please refer to the highlightedNot really the case here. (Unless there are builders offering terms of 5years and buyers can occupy the place).Here's why:Downpayments usually signals that the buyer can now occupy the property, unless it is still being built.This means that banks usually loans out 70-80 percent to a buyer and pays the developer that 70-80.Developers/Sellers need to have the DP 20-30% completely paid before occupancy, it serves as their leverage and control of the property. That 5 years interest free 30%DP, means at the end of the 5th year only the buyer can occupy the place. Developers usually have the downpayments spread for as long as it is less than the turnover date. Now if we consider the condo is up and running and a foreigner plans to sell it, he can sell it right away with a motivated buyer w/o fear of competition from the 5years interest free 30%DP.... because whoever buys his unit, means that buyer can occupy that place right there and then, whereas those buyers availing of the DP spread out can't occupy the place until DP is fully paid.Its easy to sell for condos ready for occupancy?1. its ready for occupancy - a lot of buyers are into it.2. after paying the DP, the seller can have the balance bank loan out against the buyer. Banks pays the seller upfront once the buyer is approve. Seller gets the DP as a whole from the buyer, likewise gets paid whole by the bank. The foreigner now can move out of the country completely paid.

[Sampaguita]

First the condo rule as I understand it is that 60% of a building has to be owned by Filipinos and no more than 40% can be foreigner owned. The problem usually does not come in to play when a person buys a new condo because most of the units are being sold to Filipino investors who rent them out. The only problem could possibly come into play if a person like myself were to want to sell our units down the road and at that time there happened to already be 40% foreign ownership in our building, then we would be forced to sell only to a Filipino and that would no doubt put them in a bargaining position if they knew about it, but up until that point it is the building owner/developer who is responsible to make sure that no more than 40% get sold to foreigners and not something a buyer has to worry about. In our case our units are in my wife's name first and then mine so while jointly owned they are technology sold to a Filipino since she has dual citizenship and the units are for her future and not for me anyway, so I really did not care. That was my choice and not hers and she forced me to put my name on them in case something happened to her even though I did not wish to because our home in the states is also jointly owned but is my responsibility to take care of, and anything we have in the Philippines is her responsibility to take care of and manage or I would end up on overload since I only have a pea brain and I cannot handle too much stress.I personally do not see that many foreign investors buying up condos and I do see or hear of Filipinos who have bought up blocks of units and are renting them out. There does not seem to be any safe place for a richer Filipino to put their money that will earn them income except buying rentable homes or condos and while land is also a good investment vehicle for their future generations, it does not bring in immediate income while also growing in value which condos usually do for both Filipinos and foreigner investors. The other problem with land is that once it is sold, an investor is back where they started with a bunch of pisos/pesos and no safe place to put it. So to the foreigners, if you wish to buy a condo, only do so full well knowing that if you want to, or have to sell it right away then you will no doubt lose money because the builders can, and does offer terms of up to 5 years interest free with 30% down that you would have a hard time offering and then collecting your money if you leave the country might also be a real problem, so do not buy unless you intend to keep something for a number of years before even thinking about selling it, or just keep it and rent it out and let a reliable rental agent handle it and go about your life or do not buy it at all and rent.

Please refer to the highlightedNot really the case here. (Unless there are builders offering terms of 5years and buyers can occupy the place).Here's why:Downpayments usually signals that the buyer can now occupy the property, unless it is still being built.This means that banks usually loans out 70-80 percent to a buyer and pays the developer that 70-80.Developers/Sellers need to have the DP 20-30% completely paid before occupancy, it serves as their leverage and control of the property. That 5 years interest free 30%DP, means at the end of the 5th year only the buyer can occupy the place. Developers usually have the downpayments spread for as long as it is less than the turnover date. Now if we consider the condo is up and running and a foreigner plans to sell it, he can sell it right away with a motivated buyer w/o fear of competition from the 5years interest free 30%DP.... because whoever buys his unit, means that buyer can occupy that place right there and then, whereas those buyers availing of the DP spread out can't occupy the place until DP is fully paid.Its easy to sell for condos ready for occupancy?1. its ready for occupancy - a lot of buyers are into it.2. after paying the DP, the seller can have the balance bank loan out against the buyer. Banks pays the seller upfront once the buyer is approve. Seller gets the DP as a whole from the buyer, likewise gets paid whole by the bank. The foreigner now can move out of the country completely paid.

I am not sure where you are getting your information but my husband and I just assisted a friend to make a purchase where the builder financed the unit but in this case since sales are now getting stronger in Cebu again the terms were lowered now to only 3 years with no interest with a 30% down deposit and our friend was given the key to the unit as soon as the papers were signed and he wrote the 36 post dated checks and one check for the 30% down and he can now start occupying it immediately. Possibly not all builders may offer this and we (my husband and I) do not think it is a good idea to buy in a building that has not been completed in case the builder goes bankrupt as I believe was the case of Tower Palace in Cebu which was now taken over by Avalon and is still not completed. In our friends case the purchase was made in Winland Towers in Cebu City, so we can assure you that this scheme is available at least at this development and we have heard of others who offer similar terms. Bank financing is usually not possible for a foreigner so since that is what you are referring to maybe you are correct if that is the scheme, since the banks here probably wish to be extra careful and therefore possibly not allow occupancy but we have not seen the scheme you wrote about in the develpments we looked at.