Philippines: OFW Guide on Owning Real Estate Properties

This is for our fellow countrymen who have made their careers abroad but wish to start investing from the different real estate properties in the Philippines. This guide includes summarized Real Estate Philippines Laws which are organized for your convenience and education.

For Pinoys who have renounced their Filipino Citizenship, they have to apply for dual citizenship.

Steps:

• If you are in the Philippines, file a “Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225” at the Bureau of Immigration (BI) and for the cancellation of your alien certificate of registration.
• Those who are not BI registered and are overseas should file the petition at the nearest embassy or consulate.

Requirements:

• Birth certificate authenticated my the National Statistics Office (birth certificate from the NSO can be requested online and mailed to you)
• Accomplish and submit a “Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225” to a Philippine embassy, consulate or the Bureau of Immigration.
• Pay a $50.00 processing fee, schedule and take an “Oath of Allegiance” before a consular officer.
• The Bureau of Immigration in Manila receives the petition from the embassy or consular office. The BI issues and sends an Identification Certificate of citizenship to the embassy or consular office.

If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail of the Dual Citizen Law, he or she can still acquirePhilippine land based on BP (Batas Pambansa) 185  & RA (Republic Act) 8179 but limited to the following:

For Residential Use (BP 185 – enacted in March 1982):

• Up to 1,000 square meters of residential land.
• Up to one (1) hectare of agricultural of farm land.

For Business / Commercial Use (RA 8179 – amended the Foreign Investment act of 1991): 

• Up to 5,000 square meters of urban land.
• Up to three (3) hectares of rural land.

In terms of investing in Philippine Condominiums, there is no limit as they would be purchasing them using a Condominium Certificate of Title (CCT). Even Foreigners can own Philippine Condominiums.

[source: manilaphilrealestate]

PRE-SELLING vs FORECLOSED vs SECONDARY PROPERTIES

For those living on a tight budget, whether it’s a million-peso figure and/or a monthly budget based on income, how will you know which of the three suits you best?

This table might help narrow down your selection.

	Pre-Selling	Foreclosed	Secondary
Quality	BRAND NEW	Usually Plenty of repairs to be done	May have minimal or many repairs
Availability of Use	1 to 5 years, depending on type of property and developer reputation	After Repairs (unless it needs none which is very very rare)	MOST READY due to minimal repairs
Price per Sqm	Lower than Units Ready for Use	LOWEST and CHEAPEST	Brand New = Expensive.  Older = Cheaper.
Payment Terms	BEST – Very flexible depending on buyer’s capabilities = Either High down and Low Monthly, or Low Down High Monthly (sometimes even NO DOWN)	Good = Usually 10 – 20 % down and the rest of the balance in bank loan for Monthly’s. Low Down, High Monthly’s	Mostly Cash or Bank Loan of 50 to 70%, which means Down of 30 – 50% = High Down, Lower Monthly’s
Best Traits	BRAND NEW, BEST TERMS	CHEAPEST, can do RENT-TO-OWN	READINESS FOR USE
Worst Traits	Have to Wait before using it	Tons of Repairs, time needed	Sometimes Expensive, rigidness of Payment Terms

Those highlighted in GREEN means an advantage.

Home Loan Rates

Housing Loan Application

With so many banks and lending institutions out there, it has been a challenge to identify which bank has the cheapest mortgage rates (and whether it is better to get a loan from a bank or Pag-IBIG). Also, the application procedure is very specific for each institution. You will need to fill out an application form and provide further documents such as identification and proof of income. Make sure that you declare all your finances, income, credit cards and expenses to get approved fast!

Lending Institution	Interest Rate	Min Loan Amount
Pag-Ibig	4.5%	P400,000
Philippine National Bank (PNB)	5.25%	-
BPI Family Savings Bank	5.50%	₱500,000
Eastwest	5.50%	₱500,000
UnionBank	5.50%	₱500,000
BPI Direct Savings Bank	5.50%	₱400,000
Chinatrust	5.75%	₱500,000
Metrobank	6.00%	₱500,000
PSBank	6.00%	₱500,000
Allied Bank	6.00%	₱500,000
Chinabank	6.50%	₱500,000
Maybank	6.88%	₱500,000
HSBC	7.50%	₱700,000
BDO	7.75%	₱500,000
Security Bank	8.75%	₱500,000
RCBC Savings Bank	10.00%	₱300,000

Payment and Interest Rate

The home loan interest rate is usually fixed over a certain period and is subject to change after the end of the fixing period, depending on the general interest rate movements. When taking out a housing loan, banks are willing to lend you up to 80% of the actual property value. Over the agreed loan period, you will have to pay monthly installments, including interest and repayment.

6 Important Requirements for a Real Estate Loan in Cebu

What everyone needs to have beforehand;

• Valid IDs

         This usually requires at least one (1) government issued ID.

• Proof of Income

         Can be photocopy of Payslips (if employed), or Financial bank Statements (if business or self   employed).

• Income Tax Return (ITR)

         This is usually required for business people applying for loans.

• Job Contract / Employment Certificate

         It is an important reminder that the salary and years of tenure is indicated in certificate since bank often use this as reference for approval.

• Marriage Contract

         Automatically the bank wants to know just in case what happens is there someone who can take over the mortgage.

• Signed Contract to Sell, Signed Reservation Agreement, Signed Computations, and etc.

         Often this are documents required by the Real Estate Developer, in which the financing institution also ask for copies.

• Notarized Special Power of Attorney

         If the main borrower (person applying for a real estate loan) is not physically available, financing institutions also require SPA’s or person trusted by the borrower to transact with them. They often prefer the spouse or blood-related SPA’s.

- Valid IDs
This usually requires at least one (1) government issued ID.
- Proof of Income
Can be photocopy of Payslips (if employed), or Financial bank Statements (if business or self employed).
- Income Tax Return (ITR)
This is usually required for business people applying for loans
- Job Contract / Employment Certificate
It is an important reminder that the salary and years of tenure is indicated in certificate since bank often use this as reference for approval
- Marriage Contract
Automatically the bank wants to know just in case what happens is there someone who can take over the mortgage
- Signed Contract to Sell, Signed Reservation Agreement, Signed Computations, and etc.
Often this are documents required by the Real Estate Developer, in which the financing institution also ask for copies.
– Notarized Special Power of Attorney
If the main borrower (person applying for a real estate loan) is not physically available, financing institutions also require SPA’s or person trusted by the borrower to transact with them. They often prefer the spouse or blood-related SPA’s. - See more at: http://houseandlotincebu.com/6-common-requirements-in-applying-for-a-real-estate-loan-in-cebu#sthash.KySgh0tz.dpuf

FOR SALE: Townhouse in Kalawisan, Lapulapu City for P5k/month

Astana – Kalawisan, Lapu-lapu City

Property: Townhouse
Bed: 1 Bath: 1 Garage: 1 Floor: 2

Total Contract Price: 1,260,000.00
Reservation Fee: 10,000.00 Pesos Only (deductible to the total price)

Option 1(Pagibig):
Downpayment 50,000 Pesos only payable in 10 months zero Interest
    Monthly: 5,000 Pesos/Month (Faster Move-in)
Loanable Balance to Pag-ibig up 30 years: 6,217Pesos/Month

LIMITED UNITS LEFT FOR RESERVATION!

Option 2(Bank Financing):
Downpayment 125,000 Pesos only payable in 10 months zero Interest
    Monthly: 12,500 Pesos/Month
Loanable balance to bank up 20 years: 9,827Pesos/Month

Features and Amenities:
24-hour security, Gate and Guardhouse, Perimeter fence, clubhouse, streetlights, Parks and Playground, Street Signage, Convertible court (basketball, tennis, volleyball), underground drainage system, sewage treatment facility/lagoon, MCWD water system, concrete roads, MECO electricity system

Reasons why choose Astana:
1. Very very very affordable monthly equity only 5k/month
2. Move-in your house with only 25k as downpayment plus move-in fees
3. Along the road of Kalawisan Lapu-lapu
4. 10 minutes from Schools, Groceries, Sari-sari store, banks, commercial offices,
5. Very near MEPZA II only 10-15 Minutes drive



For a FREE site tour, contact:

Jeffrey Juban
Property Specialist
Basic Land Realty and Brokerage
F. Ramos Street, Cebu City
09234642116

Special Resident Retirement VISA (SRRV)

Special Resident Retirement Visa (SRRA) is a privilege granted to foreigners who would like to have a permanent resident status in the Philippines. For investing in the Philippines, foreigners can enter and leave the country as many times and as long as one wishes, including family members. With a Special Resident Visa, a holder can live, do business, study in the Philippines indefinitely.

Requirements for Special Resident Retirement Visa

Principal Applicant:

•     Application Form
•     Passport with valid entry to the Philippines
•     National Bureau of Investigation (NBI) Clearance or Police Clearance (to be authenticated by the Philippine Embassy)
•     Medical Clearance (if applicant is abroad, this clearance must be authenticated by the Philippine Embassy)
•     6 pieces 6" x 6" pictures
•     6 pieces 1" x 1" pictures
•     Bank Certification from an accredited bank of the Philippine Retirement Authority of bank deposit (US$ 50,000 for 50 years old & above, $75,000 for 35 to 49 years)
•     Processing fee: US$ 1,500

Spouse / Dependent:

•     Application Form
•     Passport with valid entry to the Philippines
•     NBI Clearance or Police Clearance (to be authenticated by the Philippine Embassy for 18 years old and above)
•     Medical Clearance (if applicant is abroad, this clearance must be authenticated by the Philippine Embassy)
•     6 pieces 6" x 6" pictures
•     6 pieces 1" x 1" pictures
•     Marriage Certificate (authenticated by the Philippine Embassy) for spouse.
•     Birth Certificate (authenticated by the Philippine Embassy) for dependents.

In Lieu of Marriage or Birth Certificates:

•     Family Register (for Koreans)
•     Household Register (for Taiwanese)
•     Certificate of Relationship (for P.R.O.C.)

Fees:

• Service fee of $300 each for spouse or dependent (up to 3 dependents)
• For families with more than 3 dependents, additional $ 15,000/dependent

Immigration conversion fee:

•     Php: 7,600 for spouse and children 16 to 20 years old.
•     Php: 7,350 for children 14 to 15 years old.
•     Php: 6,850 for children 13 years old and below
•     PLRA ID card ($10) for spouse and/or dependent
•     Immigration express fee of Php 500 per person (elective)

Note: The required investment money (US$ 50,000 for 50 years old & above, $75,000 for 35 to 49 years) to avail of the Special Resident Retirement Visa (SRRA) must be deposited in a bank accredited by the Philippine Retirement Authority. This deposit can be withdrawn after 6 months but must be invested in the Philippines. It can be used to buy properties (condominiums) stocks, securities, etc.

Dual Citizenship Laws on Real Estate Ownership in the Philippines

Dual citizenship means having two citizenship and passports from two different countries.
1) Former Filipino citizens born in the Philippines, but that have immigrated to another country and obtained citizenship of that country.
2) A foreign spouse married to a Filipino citizen.

Dual citizenship allows the citizenship holder full rights of possession of Philippine real property. Currently this is a new law stating that there is a limit of 1,000 sqm for residential house & lot ownership while for condo ownership remains no restriction.