Why Retire in the Philippines

The Philippines is considered to be one of the premier retirement destinations for foreign expats who are looking for an exciting yet inexpensive tropical place where they can spend their retirement years.

With its warm climate (save for the occasional cyclones that regularly visit the country during the rainy season) and beautiful people, the country has indeed proven time and again that you can lead a fun, relaxing, and exotic lifestyle in any one of the country’s 7,107 islands – all for about $1,000 a month or less. As such, it’s easy to see how you can use your retirement savings, pensions or ongoing income to live comfortably in the Philippines. You can even hire your own domestic staff for as low as $30 per month so you don’t have to worry about the housework and all that.

By spending your retirement years in the Philippines, you get to enjoy your days in a variety of ways. You can simply laze away in the comfort of a hammock underneath a coconut tree and let the breeze cool you down, or you can lead a more active lifestyle and go swimming, scuba diving, boating, or fishing among its numerous beaches. For the more adventurous, you can go camping, hiking or off-road driving. Take your pick!

Now, if you’ve exhausted yourself with these stamina-challenging activities, you can always take a break and opt for a friendly golf session with your friends, or go to the movies at your leisure. You can also enjoy great bargains among its numerous modern shopping malls. Now, if you’re more of a night person, there are also some great bars and clubs that you can go to. How’s that for entertainment?

Owning a Real Estate in the Philippines

Without any doubts, the Philippines is a tropical paradise in its own right. And that is primarily why a lot of foreign nationals want to live here permanently. However, there is one catch – and a great one at that. Foreigners cannot simply buy real estate in the country. Existing Philippine laws restrict them from investing in houses and lot and condominiums in the Philippines. Only Filipino citizens, corporations with at least 60% Filipino ownership, and Filipinos with dual citizenships are afforded this right.

Naturally, this comes as a surprise to most foreigners, especially those of American and European descent, who are interested in investing in houses and lot and condominium in the Philippines. In their countries, nationality is not an issue when it comes to owning real estate properties. Anyone who can afford to buy real estate can do so without encountering any problems.

So, how can you or other interested individuals go about the problem? By law, foreign nationals can only own real estate in the Philippines if the property was acquired before the 1935 Constitution took effect, or if he or she is a legal or natural heir of a Filipino citizen.

Land acquisition is also possible if you are married to a Filipino citizen. However, please note that the title of the property will be in the name of the Filipino spouse.

Investing in houses and lot and condominiums in the Philippines is also possible if you have established a Philippine Corporation. The corporation should be at least 60% Filipino-owned and have a minimum of five (5) incorporators, including you. Once the corporation assumes a legal personality, you can now start investing in real property. Remember, you legally own 40% of the corporation. To be on the safe side, please consult a competent lawyer.

Alternatively, you can also enter into a lease agreement with Filipino landowners, and legally own the house (or any other building) that you will put up on that piece of land. Typical leasehold agreements may be made for an initial 50 year contract and renewable for another 25 years once the contract expires.

Retiring and investing in houses and lot and condominiums in the Philippines is possible. It may not be as straightforward a process as you may like but it is, without doubt, very much doable. Now, are you ready to spend your retirement years in complete bliss? Come stay in the Philippines! You will definitely love it.

Smart real estate agents know how to utilize the internet. They develop web sites that can showcase their properties for sale and they can capture leads to follow up on prospects.

Of course, we have our sellers that might want to liquidate their house into assets. You may sell houses on sites like this where you can post and talk to clients and negotiate a price for the house.

The age in which we live today is wonderful as it makes it easy for people like us, who don’t have much budget to go from place to place just to check out the houses for sale.

Post a property NOW!

If you’re a real estate agent, you can benefit by getting exposure when you add your properties. All individuals that wish to sell their properties are also welcome. It’s free and we don’t make money out of it. Just a way of giving back to the community.

I intend to share my answers and some actionable items, as inspired by the book “The 4-Hour Work Week” by Tim Ferris, one of the books that inspired me to take a leap of faith (more about this in a future post). Tim’s book has a number of “Questions and Actions” at the end of each chapter.
Beginning with this post, I intend to feature questions from readers from time to time as a way of helping real estate investors in the Philippines.
Of course I will not disclose our reader’s name and e-mail address to protect her privacy and her questions are as follows:
“Hi Jay. I am currently looking for properties and try real estate. (I was an attendee from the Nov. 21, 2009 TRP seminar.) However, most banks have limits like income if you are an employee you must have 25k + salary. I only have 12K. Or must have a steady business. Or must be 2 years or more in a company. How can I start early with all these limitations? How can I apply for a loan and thus finance my first deal? Thank you very much…” – Miss MJ
Thank you for the excellent question Miss MJ. Let me try to answer your questions to the best of my knowledge and also share some of my thoughts as follows.
Your capacity to pay
Assuming that Php12,000 is your take home pay, let us first try to determine what is the maximum loan amount you can get based on your capacity to pay. I believe most banks and lending institutions look at a person’s net disposable income or NDI to determine a persons capacity to pay and the corresponding maximum housing loan they can get.
The rule of thumb is the monthly amortization should be no higher than 40% of the NDI. In your case, If you have no existing obligations like loans, etc, and assuming Php12,000 is already yourtake home pay after taxes and monthly contributions like SSS, etc., then 40% of your monthly salary of Php12, 000/mo would be the maximum monthlyamortization that can be allowed for you, which is Php4,800.
Foreclosed properties you can afford
Using the payment terms from Unionbank as an example, Php4,800 would be more than enough as the monthly amortization for a foreclosed property priced at Php350,000 with a downpayment of 10% or 35K, and the balance financed with an interest of 15% per annum for 15 years. With these terms, the resulting monthlyamortization would be Php4,408.69, well within your maximum of Php4,800/month.
Obviously, there are other banks and lending institutions that offer lower interest rates and longer terms so you can definitely still get your first deal through bank financing. That is assuming you can come up with the minimum downpayment required.
How can I come up with the downpayment?
Yes, you will still need to save for the downpayment. I suggest that you start managing your money NOW! I believe learning how to manage money is a prerequisite to starting to invest in foreclosed properties. I would like to reiterate my belief that anyone who wants to get out of the rat race really needs to learn how to manage money and finances and this remains true whether you intend to invest in foreclosed properties or other investments.
Moving forward, let’s assume you manage to consistently save 15% of your salary each month or Php1,800, you will be able to save enough for the downpayment in less than 20 months. If you think 20 months is long, remember the requirement you mentioned that you must be working for a company 2 years or more in order for you to be able to qualify for ahousing loan?
Don’t bite off more than you can chew!
You might be asking why you should limit yourself to foreclosed properties worth Php350,000 and below? Well, I believe there is wisdom in starting small so that in case you do make mistakes (we all do!), you also make small mistakes and failures from which you can easily recover.
You still learn from the entire process but you start gaining knowledge and experience that would help you to get ready to take on bigger deals and bigger success.
What about Other People’s Money or OPM?
I know the subject of OPM is always in the mind in beginning real estate investors but I believe that if you are just starting with your real estate investing career, you should not even consider using other people’s money unless you are already able to prove your worth in managing your own.

How the heck would you be able to make good use of other people’s money if you cannot even manage your own?!
Your own money might be small but it should be good enough for one to start. As mentioned in Luke 16:10(NIV), “Whoever can be trusted with very little can also be trusted with much…”.  Makes sense right?!
Investing in foreclosed properties is a numbers game
Obviously, it may take some time for a lot of people to save enough money to start investing. I know I did as it took me 3 years before I was able to buy my first property. But that should never stop anyone from consistently analyzing properties to find deals worth pursuing.
You do not need any money to analyze deals as you are investing your time. So go ahead, start analyzing deals NOW, even if you still have no money to invest. Save money while  consistently analyzing properties and make the most of your precious time!
The more foreclosed properties you analyze, the sooner you will begin to see those deals worth pursuing. I’ve read a number of books about real estate investing that mention that on the average, you may have to analyze a hundred properties to end up buying one and I for one believe that these numbers are accurate. The key is to keep on analyzing as muchforeclosed properties as you can.
Don’t listen to the little voice in your head that may say “These numbers just won’t work… foreclosed properties are too expensive… I will never find one that is worth investing in… ” after looking at just a few listings or just a few properties. Remember, that’s the voice of the loser inside of you.
Just keep it up and you will eventually begin to see those great deals that you were unable to see before. When that time comes, I have a feeling you will already have the money to invest.
Happy investing

MANILA, Philippines – Robinsons Land Corp., one of the country’s premier real-estate developers, brings another irresistible proposition to families and forward-looking individuals in the market for a new address.

Added to its excellent portfolio of residential developments (Otis 888 Residences and Adriatico Residences in Manila, Gateway Garden Heights and Gateway Garden Ridge in Mandaluyong, and Woodsville Viverde Mansions in Parañaque, to name a few) is The Magnolia Residences.

Soon to rise in the heart of New Manila in Quezon City, this four-tower residential high-rise will be part of the acclaimed developer’s exciting master-planned Magnolia Town Square. The square will have a commercial component, specifically a specialty mall, that promises to not only address the lifestyle needs and interests of residents, but also reconfigure and re-energize the quaint pocket of the city.

“The Magnolia Residences will definitely have a modern look and feel,” says Robinsons Land senior vice president for sales and marketing Raoul E. Littaua, adding, “but without the coldness that one usually associates with modern architecture. Instead, it will exude warmth, it will be inviting, and the look and feel of the residential towers will be reflected in commercial component of this mixed-use development.”

To give future residents an immersive experience of living in this lovely new development of Robinsons Land, the company has signed Joy Adriano of Arkispecs to create a one-bedroom model unit that is now on view at the grand showroom of Robinsons Land’s various residential properties. The showroom is located at the ground level near the East Wing of Robinsons Galleria, Ortigas Center.

Do experience a new and exquisite way of living in this part of the metro by visiting Robinsons Land’s grand showroom at Robinsons Galleria. For more information, call (02) 397-1888, (02) 397-0101, or 0922-8380888, or visit www.robinsons properties.com.ph.

A Filipino financial planner in Australia believes that people who want to invest in real estate should start by doing what he calls “negative gearing”.

Alex Aranguren who is also an accredited mortgage consultant explained that negative gearing means borrowing money to buy an asset but treating the loss incurred from the loan as an income tax deduction.

Aranguren began negative gearing when he bought his first investment property in 2006.

He admits that just like other people he was afraid to be in such a debt cycle.

“Yung mga deductions na yan, maliit na portion lang yan. Ang pinakamalaking portion is depreciation noong binili mong property,” said Aranguren.

Aranguren said the process lowers your income bracket and allows you to pay less tax to the government.

He advises that as a property investor, one must have savings to pay for monthly repayments for at least six months in case nobody is renting the place. But because most Australians cannot afford to buy their own house, rental properties are in demand.
“Ang market dito sa Australia, there is only 2% vacancy rate sa nagpapaupa, so which means maraming humahanap ng rental property,” he said.

“Pagsinabing economic downturn ibig sabihin noon nasa bargain ka ngayon para bumili. Yung negative gawin mong positive. Yung mga iniisip nung tao na mahina ung market this is the best time to buy kasi mura ngayon,” he added. Report from Chito Javier, ABS-CBN Australia News Bureau, Melbourne

MANILA, Philippines – People usually buy houses for sale Philippines for residential purposes but there are those who wisely purchase a condominium unit, which can be rented out or sold in the future, as investment.

Buying a piece of real estate means that several factors have to be considered before even writing your first check. The first factor to be considered is location, so that transportation and communication do not pose problems. Secondly, it is best to choose a property that is easily accessible and near commercial and business districts, schools and hospitals.

Escalades at the 20th, a 1.4 hectare mid-rise housing development is located in the heart of Cubao, Quezon City, is a few minutes away from the Metro Railway Transit, Light Railway Transit 2 and EDSA. It is also very near Araneta Center, which houses Gateway Mall, Araneta Coliseum and many restaurants and shops and less than 20 minutes from schools and universities like the University of the Philippines, Ateneo de Manila University, Miriam College, among others.

“Property values in Quezon City, especially Cubao, are very resilient with potential for growth. Buying a unit at Escalades is definitely a good investment for the future,” says Marilu Alferez, Robinsons Land Corp. senior vice president and general manager.

“When buying real estate, always inspect the finished product to make sure that it is well made and constructed. Check if the condominium unit and building can withstand the elements and test of time,” she says.

Alferez adds: “Living at Escalades offers would-be buyers a chance to own a piece of property that’s unique in that it is like living in the suburbs in terms of open spaces and safety and security without being too far from the center of things.

A more relaxed lifestyle is attained with the family-friendly amenities available in Escalades at the 20th Avenue. These include over 70 percent of open spaces with a playground for children, a jogging path, a swimming pool for adults and kids, gym, a multi-purpose function room, picnic area with barbeque pits, Gazebo Luna, and an exterior circumferential road.

Escalades is designed by Robinsons Land with its professional design partners, following a method called green architecture where buildings are made to be energy-efficient, allowing more natural sunlight into each unit and hallway, and providing greater air ventilation. The studio units, which are well-constructed, offer 22 square meters of space, the 1-bedroom unit 32 sq m and the 2-bedroom unit 50 sq m

Each unit is hooked up to basic amenities like individual electric and water meter, cable TV line, provision for telephone line, opening for owner-supplied window-type air conditioner, sprinkler system and provision for washing machine connections.

Building facilities include a reception/security counter for every building, standby power generator for common areas and selected outlets in the residential units, automatic smoke detectors and fire alarm, drying cages on every roof deck, individual mailboxes and central garbage room.

In addition, waste water from the residential units passes through a Sewage Treatment Plant (STP) which filters the water and will be used to irrigate the vast open space of the development.

by PhilStar

High end property prices in the Philippines are expected to suffer a sharp downturn in 2009, especially in Manila, because of the economic downturn, it is claimed.

Industry analysts are expecting demand from foreign property investors and experts to fall and this will have a major impact on the real estate markets.

According to Christian Cruz, senior economist at Global Property Guide, prices of luxury units in Manila could be affected as expats are called back to their countries because of ongoing job cutbacks.

Colliers International research manager Ramon Aguirre said he also believes that there will be downward pressure on luxury unit prices. ‘So far, prices are still flat. Developers are still holding on to current high prices. But when demand dries up during the latter part of the year because of the slowing economy, they would have to lower,’ he said.

A lot depends on how much developers are willing to budge. According to Clara Cordero, head of research and consultancy at Jones Lang LaSalle Leeched Philippines, some will have anticipated weaker demand.

‘As early as the third quarter, developers realized that they could not count on buyers from overseas so what they did was concentrate on the local market. Local buyers can carry the market for the meantime,’ he said.

There is potential room for buyers with cash to consider investing in property rather than stocks and shares because of their volatility.

‘People with the money to spare are not investing in financial instruments right now. We could see a move back to basics such as property,’ Aguirre said.

Some developers said they are not planning to lower prices. ‘We even had a price increase in some of our luxury projects, where demand continues to be strong,’ said a spokesman for Eton Properties Philippines.

However some analysts are warning that while local prices remained cheap relative to the region, constitutional restrictions on foreign ownership make neighboring countries more attractive.

Cordero said investors may also choose to invest in other Southeast Asian countries because they have advanced real estate investment trusts, which makes the markets there more transparent.

But foreigners may still be attracted to property in Manila because of its relative low cost of living and political stability.

Before you buy a property or a house for sale in the Philippines, it is important to understand the basics, in order to avoid fraud transactions. Here are some tips that can serve as your guidelines, especially if it is from an individual seller.

Transfer Certificate of Title or TCT should be original or authentic. You can ask the seller to give you a copy of the title so you can verify it from the Registry of Deeds. This is the government agency where you can check the authenticity of the property that you are aiming to buy. Here in the Registry of Deeds, you can ask for a “certified true copy” of the land title of the property. In doing this, go to the municipal hall where the house or property is located then give them the name of the owner and the title number.

Availing a property or a house for sale in the Philippines requires careful research. In fact, aside from title verification, you still have to look at the history of the property owner.

Check if the property title is clean. This tip means you have to check that the property is owned by the seller. There should be encumbrances or claims on the property. So, how do you do this? Just look at the back of the title and see the heading ENCUMBRANCES. There should be nothing written on this part or page of the title. But do not be surprised or confused if some parts of the property description are written on this area. Sometimes this happens when there is no enough space in the front page; nonetheless, it’s perfectly fine.

The property description must match the property that you are purchasing. There are times, especially when you are buying a property that has no house number or street name. There are also cases that descriptions written in the title are not detailed. So, what you can do is clarify the descriptions or details from the Registry of Deeds or get the service of a surveyor or geodetic engineer. You have to take note that the exact location and size of the property are needed for the Transfer Certificate of Title.

When you buy a property or a house for sale in the Philippines or in any part of the world, you have to deal with the real sellers or owners of the property. It is essential so that you can ask details upfront or confirm some things concerning the property.

Know who you are dealing with. If you are buying from an individual property seller, it is important that you know his identity. If possible, request for identification documents such as license. Try to talk to the neighbors so you will have an impression of his history. This will help you in assessing his character, if he is trustworthy or not.

Verify if the annual tax of the property is regularly paid. As the buyer, you have the right to know if the seller pays his property tax regularly. You can do this by asking for proofs of payments such as certified copies of Tax Declaration and the tax receipts.

In buying a property, you just have to make sure that every transaction is properly documented. If you are still hesitant on making transactions by yourself, then it is better to have someone knowledgeable on this matter. Besides, you can always get the service of a real estate broker. These people are experts in terms securing you a good property with clean and legal documents. You have to remember that when you buy a lot or a house for sale in the Philippines, you have to be really cautious because it will cost you huge amount of money. It pays to search for good location and to deal with honest seller.

Sometimes there comes a time when you have to make the houses for sale. And to attract potential buyers, there are some key improvement tips you can do so to close the deal.

When the majority of homeowners purchase a home, they plan to live in it for a long period of time. A house is one the largest investments we make, so it is usually something we do not do until we are older, married, and ready to start a family. When we make this investment, we spend weeks looking at open houses, comparing costs, and trying to imagine what it will be like to hear little feet running down the hallway on a Sunday morning. Once we purchase the home, however, we do not always have the opportunity to stay there as long as we had planned. There might be a job transfer or the need to move closer to family and you will need to sell the house. In order to receive the best return on your investment, you need to follow these tips!

The most important areas and rooms to renovate are the entryway, the kitchen, and the bathrooms. These rooms often look the most outdated because new designs are always developed for these areas and the style of furniture changes as frequently as the seasons!

I recommend starting with the kitchen because it is very important to make sure that this room has the latest features and appliances. One of the hottest new elements in modern kitchens is a kitchen island or butcher block. These elegant features are wonderful for additional counter space, storage space, and dining space. Add a few barstools along one edge and you have the ideal place for breakfast and appetizers for dinner. You should also consider a stainless steel double door refrigerator. The shiny metal is an attractive and contemporary look.

The next feature that needs to be addressed is the flooring. In your entryway and your kitchen, you should consider putting in large tiles that are of a neutral tone, such as a tan, off-white, or a light gray color. Large tiles, approximately one foot by one foot, are very popular now because they provide a clean look that is elegant.

Large tiles also look wonderful in the bathroom because they make a small space look larger. However, if it is a bathroom that will be in constant use, you should consider slightly smaller tiles because the more grout, the material between the tiles, the more slip-resistant your floor will be. Try updating your sinks and faucets in the bathrooms as well. Shiny, new hardware can do wonders for an older bathroom! A new kitchen island, new tiles, and new bathroom hardware are just a few great ideas to ready your home for sale. You will be impressed by how much you can increase your home’s value with these few improvements.