What is the safest way to buy Real Estate in the Philippines?

By June Myrrh Duenas
September 4, 2023
Comments Off on What is the safest way to buy Real Estate in the Philippines?

Answer

When it comes to buying Real Estate in the Philippines, there are several factors to consider to ensure a safe and successful transaction. Here are some recommended steps and options:

Research and Due Diligence

Before making any purchase, thoroughly research the real estate market in the Philippines. Understand the local laws, regulations, and restrictions that may apply to foreign buyers. It’s important to be well-informed about the specific area where you want to buy property.

Engage a Local Agent or Lawyer

Working with a reputable local real estate agent or lawyer can provide valuable guidance and assistance throughout the buying process. They can help you navigate legal requirements, verify property titles, and ensure a smooth transaction.

Consider Indirect Investment through REITs

One of the easiest ways to invest in real estate in the Philippines is through Real Estate Investment Trusts (REITs). REITs allow investors to indirectly invest in a diversified portfolio of real estate properties. This can be a more accessible option for those who prefer not to directly own property1.

Buy Through a Corporation

Foreigners can purchase property in the Philippines through a corporation, provided that 60% or more of the company’s ownership is held by Filipino citizens. The corporation must be registered with the government Board of Investment (BOI) for permission to engage in real estate transactions.

Consider Condos or Flats

Foreigners are allowed to buy condominium units in the Philippines, subject to certain restrictions. This can be a viable option for those looking to invest in real estate.

Consult with a Local Lawyer or Real Estate Specialist

If you are determined to own land in the Philippines, it is advisable to consult with a local lawyer or real estate specialist who can provide further guidance on the steps and options available to you.

Perform On-Site Inspection

Before finalizing any purchase, it is crucial to conduct an on-site inspection and complete walk-through of the property. This will help ensure that the property meets your expectations and is in good condition.