Q1:
Why invest in real estate?
Hedge against inflation. The value of a real property
increases as inflation rises.
Residual Value. Property values will never fall to zero unlike all
shares or hedge funds.
Hybrid Asset. Property has a capital appreciation of a stock and income
producing capacity of a bond.
Excellent Collateral. Real Estate in prime location is always excellent
collateral against loans, and allows financing to be secured anytime.
Pre-Development Appreciation. Units in projects that
are being sold in pre development phase generally appreciate in value
when the project is finished.
Easy to Rent Out. Units in projects that are near
malls and other high traffic areas are easy to rent out.
Appreciates at an average of 10% per year. Philippine property appreciates
at an average of 10% per year.
Q2: Who can own
a land or real estate property in the Philippines?
Acquisition and ownership of private lands in the Philippines is limited
and/or reserved to Filipinos or to corporations or partnerships where
at least 60% of the authorized capital of which is owned by Filipino
Citizen.
Foreign nationals or corporations may completely own a condominium
or townhouse. Q3:
What are the obligations of a Buyer?
Pay the price
Accept delivery of possession
Q4: Condominium distinguished
from traditional ownership:
Evidence of Ownership – Ownership in the
traditional concept is evidenced by an original transfer certificate
of title, while condominium ownership is evidenced by condominium
certificate of title.
Capacity to buy – In the traditional concept,
alien acquisition is not allowed except in cases of hereditary succession
or transfer in favor of former natural-born Filipino citizens subject
to the limitations prescribed by Batas Pambansa 185. In the condominium,
alien ownership not exceed 40% interest in the project is legally
allowed.
Extent of Ownership - The interest of an owner
in the traditional concept consist of absolute ownership of the
inner and outer structures of the building (the entire building).
In the condominium concept, the unit owner is the absolute owner
of the space within the interior surface of his unit, but he is
only a co-owner of the exterior or façade of the unit.
Q5: What are the Advantages of Condominium Ownership?
Enhances affordability
Accessibility to the amenities of the city
Better security
Maximizes land efficiency
Lesser costs of facilities, service and maintenance
Closer neighborhood relationship
Q6: What are the rights
of a condominium unit owner?
Absolute ownership of his unit
Ownership of the land and common area in proportion to the unit/s
owned
Exclusive easement of the air space within his unit
Non-exclusive easement to common areas for ingress and egress
Repair, decorate the inner surfaces of his unit as he pleases
Sell, lease, mortgage of his unit
Vote and be voted upon during the meetings of the condominium corporation
Q7: What are the obligations of a condominium unit owner?
Pay Realty Tax of his unit
Share the realty tax on land and common areas
Pay insurance of his unit
Share the insurance on the common areas
Comply with use restrictions
Pay dues and assessments
Give right of first refusal to condominium corporation or other
unit owners in case of sale or lease of his unit (if so required
by the master deed)
Q8: What are the extents
of interest in common areas of a condominium unit?
In the absence of provision in the master deed, all unit owners
shall have equal share in the common areas.
Master deed may provide for any of the following sharing schemes:
Equal Sharing
Sharing based on value, or
Sharing based on area (area of unit divided by total area of all
condominium units)
Q9: Can a foreigner
buy a condominium unit in the Philippines?
A: Yes
Q10: Can a foreigner/buyer issue a foreign
check to pay for a condo unit?
A: No. A non-Philippine bank check takes about 45 days to clear
and be credited and within that period, a unit may be sold to another
who can pay immediately.
Q11: What then is the
procedure for a foreign buyer to pay to get the unit?
A: He/She can do any one of the following:
Open a checking account with a Philippine bank and issue the check/s.
Request a friend/relative/associate to open a checking account.
Make a Special Power of Attorney (SPA) and appoint your friend,
relative or associate to pay for you.
Q12:
What is the best thing to do in order to process a smooth transaction
if you are based outside of the Philippines?
A: Make an SPA and let your agent/representative act for you. (Caveat:
Beware: make sure you have the full trust and confidence of your
agent/representative to do the payments and accomplish your transaction).
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