How to Buy Properties In the Philippines?
1.) Who should I contact to visit or purchase a property?
Call Mark Anthoony "Doni" Donadillo (fb,linkedin) at 09068488895 for immediate assistance. Will give you detailed information and availability of the properties for sale, give you a free consultation, and explain the acquisition process, and arrange a visit to the property.
2.) Can foreigners own properties in the Philippines?
According to Republic Act 4726, The Condominium Act of the Philippines, foreigners are expressly permitted to acquire 100% ownership of a condominium unit; provided not more than 40% of the total units owned in the condominium project are owned by the foreigners. The 60% of the condominium corporation of the project must be owned by Filipinos.
3.) Can locals, foreigners and corporations resell the property?
YES. Locals, foreigners and corporations resell the property to either locals, foreigners and corporations alike. Same taxes in selling apply to local or foreign sellers and buyers.
4.) What are the taxes and fees involved:
1. When buying a condominium?
Upon hand-over of the condominium unit, together with its remaining balance (if applicable), the following taxes are due for transfer and titling fees: Documentary Stamps Registration Fee Transfer Tax Real Estate Tax Miscellaneous Fee Meralco Bill Deposit (electricity) In total, it is estimated to be more or less at 4%-5% of the purchase price. The documentation and legal works are processed by us, as our after-sales service to our clients.
2. When selling the condominium unit after it is titled?
The Capital Gains Tax (on the contract price) for selling and the broker fee of 3% (standard rate of the industry) is levied on to the seller.
While the taxes and transfer fee, of approximately 4%-5% of the contract price, is levied on to the buyer.
3. When selling the condominium unit before the full payment or handed-over?
There are no taxes levied on to the seller if the unit is not yet fully paid or handed over by the developer. The cost of selling the unit would ONLY be the deed of assignment fee amounting to P300,000, paid to Megaworld Corporation for the processing, legal fees and taxes our company will be subject to by the Bureau of International Revenue for change of ownership.
5.) What are the annual costs in owning a condominium property?
1. Condominium/Homeowners Association Dues
Dues are from Php 90 to P100 per SQM per month. For example on a 40 sq. m., dues are expected to be at Php3,600 to Php4,000 by the time of turn over. Dues are inclusive of 24hr security, maintenance of the building and the common areas, use of amenities, etc.
2. Annual Real Property Tax (Unit)
Real Property Tax or RPT is assessed and computed based on assessed value by the city government. In Makati, RPT is 2% of the assessed value. For example, a 36 sq. m. unit paid about Php9,150 OR USD204 for this year's (2015) RPT.
3. Annual Real Property Tax (Common Area)
The RPT of the common area is computed the same but is divided amongst your ratio of ownership in the condominium corporation.
The amount you'll be paying will be based on the size of your unit.
6.) Are Megaworld Makati condominiums freehold?
YES. Megaworld Makati condominiums are freehold which means it is entitled for perpetual ownership or Lifetime ownership.
7.) Can foreigners get approval for a home loan in the Philippines?
Foreigners are allowed to bank finance their condominium upon turn over with our tie up local banks.With no attorney-in-fact residing in the Philippines Foreigners are allowed to get financing for at most 50% of the Total Contract Price for a maximum of 5 years With an attorney-in-fact residing in the Philippines As long as foreigners have an attorney-in-fact in the Philippines, they can avail of loans as if they are Filipino citizens.
Bank Financing can be granted up to 80% of the Total Contract Price for a maximum of 15 years. Foreigners with a Special Retirement Residence Visa (SRRV), may bank finance your properties for 15 years up to 80% loanable amount as well.
8.) How do we reserve a unit?
Once you have decided on the exact unit/s and payment option you want to avail, to reserve:
1. Sign complete Request for Reservation (to be provided by us)
2. Sign and accomplish the Buyer's Information Sheet (to be provided by us)
3. Submit a copy of at least two (2) government issued identification card (I.D.)
4. Pay respective reservation fee/s thru cash, check, credit card or wire transfer of Php50,000
9.) What are the modes of payment?
Megaworld Corporation accepts payment made thru: Checks payable to MEGAWORLD CORPORATION CASH BANK WIRE TRANSFER DEPOSIT/REMITTANCE payments Please note that only PHILIPPINE PESO or US DOLLAR currencies are accepted for all modes of payment.
10.) How much is the rental yield?
As of today in Makati CBD, condominium units are being rented out for an average Php1,100 per sq. m. per month, giving you a gross rental yield ranging at 7.6% - 11.7% for a high-end residential condominium in the area.
11.) How much is the property appreciation?
As of today in Makati CBD, our Megaworld projects increase its prices at about 5% - 8% annually.