Buying a condo in the Philippines is possible for overseas investors, but you can’t simply turn up and hope to complete a deal. There are several things that must be done before the sale is finalized. Before we start on these, let’s take a look at one important piece of information.
International buyers are not allowed to own more than 40 percent of a single condo building. This can be an issue if the project you want is in high demand. This is not unheard of for units in the high-end market segment. With that out of the way, here are four things foreigners must do before buying a condo in the Philippines.
1) Find the right property
There is no shortage of condos in the Philippines. Real estate is location driven so it should come as no surprise that this is paramount when searching for a good investment property anywhere in the country. However, what constitutes being in a good location can vary.
In Metro Manila, properties situated near key business districts, such as Makati or Bay Area, can provide strong capital appreciation along with potential rental returns. In Cebu or Davao City, business areas are okay. However, you might be better off investing in properties that can take advantage of the tourism boom.
2) Transfer money into the country
You are going to need to transfer foreign currency into the Philippines. The amount should be at least equal to the purchase price or deposit of the condo you want. No property transaction can be completed until you prove that you have enough pesos for the purchase. It is recommended you do this ahead of time in order to avoid delays.
3) Hire a lawyer and/or agent
Buying a condo in the Philippines requires you to hire real estate professionals who are able to assist you with issues you may have no knowledge of. These include taxes, fees and contracts. Some international property buyers have tried to do this on their own, and a few may have succeeded, but these cases are few and far between.
4) Complete due diligence
The Philippine real estate industry is reputable for the most part. That being said, you’re still going to want to research the developer to see if they have a good reputation as well as who is managing the project upon completion? If you plan on renting out the unit, check to see if there are rental management programs offered by the developer. Many leading firms now offer this to investors.
