Buying Properties in the Philippines: Things to know
We all know that going to new places or even purchasing properties in the Philippines can be a bit daunting. For those who would want to invest for the first time, it can be a bit hard because the experience can be a bit frightening.
Since we all live in a highly technological world, people usually try to search for the things they need to know more information about by opening their laptops and searching the Internet. While there is nothing wrong with this, in any case ask your friends for recommendations on possible real estate agents that have good track records. You would need the Internet though to search for other information.
I would also be best to speak with people who know a lot of information about these things. Some of the people you could speak with are bankers, lawyers and real estate agents. You would need to learn more things about investing and the proper things that you can do to invest in certain properties in the Philippines
Do proper research before buying Properties in the Philippines
Remember that the people you would ask about these things will give you varying answers. You should not be surprised about this because they all have different perspectives. Remember that if there are different people that you will ask the same question, you will still get different answers.
For instance there was a time when we asked a real estate agent in Davao if it would be possible for a foreigner to open a bank account in the Philippines. The real estate agent said that it is possible as long as the foreigner has a valid passport. But when we asked another person if a foreigner can open a bank account in the Philippines, the person said that the foreigner would need to present an ACR-I card. Only foreigners with residence status can acquire this type of card.
Questions you should ask
Aside from the bank account there are question you should ask. There are still other questions that you would need to ask to get more information. Some of these questions are the following:
- Which places have the nicest neighborhoods in the area?
- Which neighborhoods are still being developed?
- How much does a property cost per square meter? It would be best to compare this with other neighboring locations or countries.
- Where are foreigners usually residing?
- What are the types of properties that foreigners are usually buying?
- Are foreigners purchasing properties in the Philippines for personal use or for investment purposes?
- Active rental markets are available? Are the rental available for both short term and long term use?
- How much would the property cost?
- Ask the real estate agent, where would he or she purchase a property and why.
- Ask the direction of the market so far or the trend of the market.
Aside from all these important questions, it is essential that you would need to know more information about the government and economy of the area you are interested in. It would be best to gather information about the current leader or mayor of the place. It is not really for political use. You would just have to ask to know more information. Ask about taxes and how much you have to pay.
At this point you would surely be amazed with the variety of answers that you will get. However remember that conflicting answers mean that there is a wide market that you can explore and know more about.
Some more questions to ask:
Once you are already set on investing, it would be best to meet up with more than one lawyers and ask several questions about the properties you are interested in. It would be best if you ask the following questions:
- What are the transaction costs for purchasing and selling properties. Some foreigners have made the mistake on investing on some things because it is cheap but then it’s too late when they realized that it would be harder to sell the properties. They would be losing money in the process.
- What is the buying process that foreigners would have to face? You would have to know what are the documents that would have to be prepared. You would also have to know if there are some discrepancies with the properties that you are planning to invest in.
- This is an important thing. You would have to ask if you would be encountering any problem in case you would like to take out your money and bring it elsewhere.
Remember that even though it would be best to ask questions, there is always a possibility that the information you will get are not 100 percent true. It would be a good idea to do your own observation yourself. Make sure that the place you would like to invest in has an active economy.
Choose a place with strong economy
The reason why you should choose a place with a strong economy is because if in the future you would decide to create a business, you will be able to sell your items well. If the place you choose only has a small population, you will get limited sales.
In Davao for instance, you would be able to see that a lot of people are always doing something. There are shopping malls around the area and there are several tourist spots as well. When people are always busy and shopping, it is a sign that the economy of the place is doing well.
Davao is actually one of the cleanest places in the Philippines. There are some places in the Philippines with garbage on the sides of the streets. It is not very attractive. Also, the infrastructures in Davao are okay. There are some areas with long, cemented roads. There are different buildings as well.
Remember that you do not have to invest in something that you like right away. You always have the option to choose the place where you would like to place your investment. You have the option to explore all the possibilities because in the Philippines, the possibilities are endless. Make notes on every property that you will view.
Check every relevant property and list down all the pros and cons of all the things. Once you have already made your decision, decide on the people you would like to give you help throughout the whole process. Compare the responses that you will get from people as well.
Before you may buy properties in the Philippines rent first in the possible area and take the time to do your proper research.
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