Problems for expats buying a house and lot

If your total investment is 2mil or less. Why stress over it?

Most of you will regain that in a matter of months to a year. The problem is you are centered on getting burned. If that be the case then die now and save your self some grief. If not then buy the land and live out your few years and enjoy. A friend has a resort. He's the owner and that's all anyone knows or cares about. The resort is 8 yrs old. Ofcourse its not in his name but who cares. The Pinoy who's name its really in doesn't give a crap about ripping the guy off and taking the resort. Most people who will lend their names to an agreement such as this isn't doing it to beat you out of the deal. Quit sweating the small stuff.

Most of you on here are two feet from the grave. You probably are married to your future caregiver anyway. So buck up and enjoy your last turn on the MERRY GO ROUND.

SO WHAT IF SHE GETS THE HOUSE AND LOT. AFTERALL SHE EARNED IT. SHE LAID WITH A DRIED UP PRUNE AND HAD TO PRETEND SHE ENJOYED IT SO UNDERSTAND THAT ATLEAST.

IF YOU HAVE TROUBLE UNDERSTANDING THIS THEN THINK ABOUT IT THIS WAY. YOU ARE A 21 YR OLD STUD. YOU MARRY A 65 YR OLD LADY WITH WRINKLES EVERYWHERE, CAN'T HOLD HER BLADDER. IT PAINS HER TO PERFORM WIFELY DUTIES. NOW YOU HAVE TO WAKE UP AND KISS HER EVERY DAY AND ACT AS THOUGH SHES THE ONLY ONE YOU EVER WANT TO MAKE LOVE TO...

IF THAT AINT A WAKE UP...

Get a grip dudes. Buy the frickin house and trust me if she spends 6 months with you that's a keeper so relax and enjoy your final days. Be happy she gets the house and lot. She's the only one who earned it... Have you guys looked in the mirror?.. This poor child is taking a Gamble that giving up her youth and happiness has a financial reward so prove her right by making sure she gets a payoff.

i think condo in philippines are so much expensive that if i invest money in condo i just lost money, 20sqm for 1.5M o 2M,

sirrobcentral wrote:

Most of you on here are two feet from the grave. You probably are married to your future caregiver anyway. So buck up and enjoy your last turn on the MERRY GO ROUND. <..>
Have you looked in the mirror?.. .

Interesting comment, but a little concerning on the assumptions...

giovannigio wrote:

i think condo in philippines are so much expensive that if i invest money in condo i just lost money, 20sqm for 1.5M o 2M,

I think that buying a condo is a guarantee of losing, at least in the short term.  They are normally priced for foreign buyers, and that includes those that live on OFW incomes. 6 Million for a 70 sqm condo where I am.

giovannigio wrote:

i think condo in philippines are so much expensive that if i invest money in condo i just lost money, 20sqm for 1.5M o 2M,

Then why do it?

Why spend 30 to 40k on enough space to sleep only? I say its a stupid move but hey to each his own.

I was raised being told that nothing you buy is yours because after death its still here so treat everything as a rental or loan from God.

Only enjoy the now...stop acting European by trying to plot and plan. Trust me you can't take it with you.

sirrobcentral wrote:

Only enjoy the now...stop acting European by trying to plot and plan. Trust me you can't take it with you.

But you can have it sold and leave it to someone you love.

One of the problems that I see for many Filipino is that only think about enjoying NOW, and they never plan for the future.

Many people say that is why they have difficulties getting past current situations. They spend everything they get in, and assume something will come along tomorrow.

You say that Europeans plot and plan, they doi, and they plan for tomorrow, and see where they are now..

ABCDiamond wrote:

sirrobcentral wrote:

Only enjoy the now...stop acting European by trying to plot and plan. Trust me you can't take it with you.

But you can have it sold and leave it to someone you love.

One of the problems that I see for many Filipino is that only think about enjoying NOW, and they never plan for the future.

Many people say that is why they have difficulties getting past current situations. They spend everything they get in, and assume something will come along tomorrow.

You say that Europeans plot and plan, they doi, and they plan for tomorrow, and see where they are now..

Yes, in financial ruin begging for China to bail them out. Or Kuwait who just keeps pumping money in my country.... At the end of the day we all end up in a box or vase..

Hehehe. Enjoy the now. I grew up with Eurocentric ideology. I've changed all that now because its a stress filled lifestyle. Join me in celebrating only today and lets hope there's something to eat tomorrow.

(Smile)

sounds like your already in the grave pal

I'll keep planning for my future

I can't leave that to chance and be destitute like many in the Philippines.

I could have another 40 years left 

I assume your assumptions are from personal experience.

Six million for a Condo??? Six million for a 190 sqm (2035 sq ft) brand new Aussie style Bungalow where I live. Big private roads, tight 24/7 security, large open green spaces, no Jeepney's, no  Tricycles, no noise, no pollution, just birds singing in my trees. You choose. I've made my choice. Silang, Cavite.

WintergolfinPI wrote:

Six million for a Condo??? Six million for a 190 sqm (2035 sq ft) brand new Aussie style Bungalow where I live. Big private roads, tight 24/7 security, large open green spaces, no Jeepney's, no  Tricycles, no noise, no pollution, just birds singing in my trees. You choose. I've made my choice. Silang, Cavite.

If I end up staying in the Philippines, I will come down to Cavite to look around
I'm only renting the condo for now while I work things out.

get  a lawyer

As I mentioned previously ABC, you are more than welcome to visit. In which case you will find the many house photographs, as well as the pictures of my expat friends and Filipino golf buddies, are for real.

You know the domain name of my web site and so may I suggest you take another look at the Aussie style Bungalow my wife and I built as our future home, the price is detailed for all to see.

It's true that Lot prices have risen since your last contact; even so the Condo comparison price is still doable… Okay.

Meanwhile further information for interested parties regarding ‘The problem for expats buying a house and lot'.

Over the past few years dozens of retired Korean's have purchased a lot and built a house at Riviera. Primarily to enable them and their Korean wife and family back in Korea, to enjoy playing the two championship courses at considerably less than they would pay to play golf in Korea.

How do they purchase land without a Filipina wife? Well they can never Own the land, but importantly they can Control it. At minimum initial and ongoing cost, because we are talking local professional labor costs and not USA, Australia, or UK professional costs.

As I confirmed in a recent blog, a foreigner can own (control) land via a Corporation at absolute minimum cost, when compared to the price of the land and the house they subsequently build.

The least expensive way I know to form a Corporation, is to use a local out-of-town Accountant, rather than an Attorney, to handle the initial and ongoing documentation. And arrange for your Filipina wife and your expat friends' Filipina wives, to be Directors. This approach will reduce the initial cost to around four hundred USD and the future monthly cost to around fifteen USD.

It will also safeguard your investment forever and one day. You will own 40% of the shares and your wife and each Director will own 15%, therefore it will take the combined vote of your wife and the other Directors, all voting against you, for you to lose control of the Corporation.

The location of Riviera, it's one hour driving time from Manila airport via Skyway & SLEX, similarly ninety minutes from Makati via the same route. [email protected]

Expensive and not necessary Professor... May I suggest that any interested party read blog #55 before visiting an Attorney... SORRY blog #54

ITS more expensive if u lose everything you put in coz what ur doing is not within the bounds of law. It pays to visit a good legal counsel. have your right protected and safeguarded.

Yes by all means recommending expats to check with an Attorney is always good advice. However my experience is, whether someone forms a Corporation with the assistance of an Attorney, or a certified Accountant, the paperwork, the documentation, is the same, it's the initial and ongoing cost which is different, i.e. less.

HE! HE! Poor kid!😀😀😁

WintergolfinPI wrote:

As I mentioned previously ABC, you are more than welcome to visit. In which case you will find the many house photographs, as well as the pictures of my expat friends and Filipino golf buddies, are for real.

I've looked at your site a few times and checked what i can, and would like to get down and view properly one day.  Just a question of time, and commitment. I am not sure if we are staying or going back to Australia.

How much is a taxi from Manila to your place   I am in Manila for a few days

Seeing is believing and so it's good to learn you are planning to visit our home and our expat friends homes, within the Riviera Residential Estate, in the near future.

We live one hour from NAIA airport via the Skyway and SLEX highways and so the easiest 'no cost way for you' is to arrive at  terminal 3 NAIA airport in the morning, say by 9am and I meet you and take you to Riviera, arriving by say 10am. We then spend a few hours showing you around, then enjoy some lunch together and I return you to the airport for you continue your journey into Manila.

I'll forward other options for you to consider by email in an hour or so...

Aussie Engraver wrote:

This is about a foreigner investing a significant part of his money into a house and lot in the Philippines for his retirement years with his Filipino wife. Indications are that the foreiginer can own the house but not the lot.  Even though the house and lot is intended to be left with his younger Filipino wife when he passes on there seems to be big hazards with the investment while he is alive.if his wife dies first he is dealing with unknown parties controlling his home and of course if the relationship fails his property is at risk.
It seems that The Filipino Govt is wanting to encourage foreigners to live and invest in their country but their is a "sting" in the arrangement that doesn't benefit anyone and encourages minimal investment.

I bought a house and lot. My name is on the deed as such.....spouse's name, Married to Munchie. I am told that if my wife precedes me, ownership of lot and house reverts to me.But that's not from any lawyer, so don't sue me if I'm wrong.

Munchie wrote:

I bought a house and lot. My name is on the deed as such.....spouse's name, Married to Munchie. I am told that if my wife precedes me, ownership of lot and house reverts to me.But that's not from any lawyer, so don't sue me if I'm wrong.

That is sort of correct, but it depends on if the deceased wife has any children or parents still alive. And whether or not a will is a made.

The estate In the absence of a will, can dealt with under the “compulsory heirs” method.

Primary - legitimate children and/or descendants
Secondary - legitimate parents and/or ascendants; illegitimate parents
Concurring - surviving spouse; illegitimate children and/or descendants

The surviving spouse can come third in this instance

Not sure what a will does... in the Philippines.

This does need legal checking, as this is only how I have read the laws on this, and court cases on this can take years, at just the wrong time..

Is the land and the house under separate titles ?  A foreigner can own the house, on the Filipinos land.

ABCDiamond wrote:

Munchie wrote:

I bought a house and lot. My name is on the deed as such.....spouse's name, Married to Munchie. I am told that if my wife precedes me, ownership of lot and house reverts to me.But that's not from any lawyer, so don't sue me if I'm wrong.

That is sort of correct, but it depends on if the deceased wife has any children or parents still alive. And whether or not a will is a made.

The estate In the absence of a will, can dealt with under the “compulsory heirs” method.

Primary - legitimate children and/or descendants
Secondary - legitimate parents and/or ascendants; illegitimate parents
Concurring - surviving spouse; illegitimate children and/or descendants

The surviving spouse can come third in this instance

Not sure what a will does... in the Philippines.

This does need legal checking, as this is only how I have read the laws on this, and court cases on this can take years, at just the wrong time..

Is the land and the house under separate titles ?  A foreigner can own the house, on the Filipinos land.

We have no children together. She has 3 from a previous not married to partner.   

There is two deeds to the property as a barangay road now splits up our holding.

Both deeds have a dwelling and each parcel is a house and land deed together.

Munchie wrote:

We have no children together. She has 3 from a previous not married to partner.   

There is two deeds to the property as a barangay road now splits up our holding.

Both deeds have a dwelling and each parcel is a house and land deed together.

I am not an expert, but have seen some Filipino divisions.

My best guess is that her children get priority on her property. ie: anything in her name. That means any land titles.

Some good reading for you:
The Civil Code of the Philippines
SECTION 5. - Art. 886
http://www.chanrobles.com/civilcodeofth … sbook3.htm

also:

http://www.globalpropertyguide.com/Asia … nheritance
The surviving spouse is entitled to ¼ of the hereditary estate if there is only one legitimate child. With 2 or more legitimate children, the surviving spouse is entitled to a portion equal to the legitime of a legitimate child. The legitime of the surviving spouse is taken from the free portion of the hereditary estate.

Legal experts may be able to decipher that better, but it gives us an idea of what may happen...

A corporation is not without risk. There is an anti dummy law, which annull exactly such constructions, which are only meant for overtake the law, that a foreigner can not own a land. If this corporation does not have any other purpose than buy and own a private lot without any other commercial interest, it is very risky.
But there are a few other safety mechanism, what everybody can do:
- Mortgage. Make a credit contract with your wife, which shows, who paid the lot and register a mortgage in your name as high as you want, which you should also let be recorded in the tax decl. or title.
- Make a usufruct, which ensures that you are the only beneficiary of lot and house as long as you live (or for 50 years). Must also be recorded in the lot documents.
- Let your wife sign a power of attorney, which empowers you to sell the lot (and house) to another filipino citizen, whenever you want. If the time has come, choose a filipino who is reliable for this purpose.
Let all documents prepare from 3 different notaries/attorneys and choose the notary which seems to be the best. All of that is not expensive, but for me the best way to let you sleep better.

Maybe it's just me but I can't comprehend why a foreigner would place themselves in harm's way with attempts to purchase land here. It's pretty obvious what the "no foreigner" can own land laws are designed to accomplish.

ditto, not only concerned with the assumptions but the motive...

ABCDiamond wrote:

sirrobcentral wrote:

Most of you on here are two feet from the grave. You probably are married to your future caregiver anyway. So buck up and enjoy your last turn on the MERRY GO ROUND. <..>
Have you looked in the mirror?.. .

Interesting comment, but a little concerning on the assumptions...

Ditto, not just the gross assumptions but the motive of that post.

edi58 wrote:

- Mortgage. Make a credit contract with your wife, which shows, who paid the lot and register a mortgage in your name as high as you want, which you should also let be recorded in the tax decl. or title..

I looked at that once, but I recall seeing a problem.  Not sure what it was, but it may also be classed as an "anti dummy " attempt. in law. Especially if the figures differ to (exceed) the purchase price.

However, if an overseas relative loans the money, it may be different ?

But the bottom line is.  Paying for land should be treated as "money gone" forever.

Make sure you own the House in your name though, and you have a long irrevocable lease on the land for your own use.

munchie, you can own by hereditary succession.

professor cebu wrote:

munchie, you can own by hereditary succession.

But can he really ? 
Don't her children get the first say of her property, according to the Philippines Constitution, and compulsory heirs ?

Art. 842. One who has no compulsory heirs may dispose by will of all his estate or any part of it in favor of any person having capacity to succeed.

One who has compulsory heirs may dispose of his estate provided he does not contravene the provisions of this Code with regard to the legitime of said heirs. (763a)

Art. 886. Legitime is that part of the testator's property which he cannot dispose of because the law has reserved it for certain heirs who are, therefore, called compulsory heirs. (806)

A little bit uncertain

professor cebu wrote:

munchie, you can own by hereditary succession.

That's what figured. I have not fathered any children to her. So I am next in line, and her kids are next in line behind me I  believe.

Munchie wrote:

That's what figured. I have not fathered any children to her. So I am next in line, and her kids are next in line behind me I  believe.

As she has children of her own, I think you may need to get that checked.

Philippine law seems to put her children first with her property after death.

Republic Act No. 386
The Civil Code of the Philippines
Subsection 4. - Surviving Spouse
Art. 995. In the absence of legitimate descendants and ascendants, and illegitimate children and their descendants, whether legitimate or illegitimate, the surviving spouse shall inherit the entire estate, without prejudice to the rights of brothers and sisters, nephews and nieces, should there be any, under article 1001. (946a)

The exception to owning lands in the Philippines is only through hereditary succession; the constitution is very clear about this; hence when the spouse who is a Filipino national dies, he/she dies owning the land; hence the property though bought from the money of the foreign nationals shall be partitioned among the heirs of the deceased spouse in accordance with Civil Code as cited under discussions No. 73; the deceased spouse should be orphaned, only child, no children from previous or current marriage for the foreign husband to inherit the entire land;

Filipinos who renounced their citizenship and had children after such renunciation, the children are considered aliens and if they choose to stay in the Philippines, they will have the same rights, privileges, and limitations of other races who chose to live and stay in the Philippines; there is no discrimination on this prohibition of disallowing foreign nationals to own private lands with regards to races! FYI

Aussie Engraver wrote:

The requirement that your Filipino wife owns the land you buy for your house and lot is well known.
I think it's a good idea - unlike here in Australia where huge amounts of real estate are owned by foreign people.

BUT - How can the husband protect his money invested in the event of the marriage/relationship breaking down or if he outlives his wife/partner?

There needs to be a clear and reliable way for the husband to retain control over his investment whilst he is alive.

Get a lawyer - who - where? - how do we know it will work?
Get a life long lease - does it work?
Dont worry about it - Filipino Immigration  will look after the problem - hmmm!!!

I'd like to encourage all readers to comment on this issue. I think if we expats had more confidence in the money we invest into our wive's country that even more foreign money would result and most of it would be bequeathed to our Filipino wives.

What do you think?
What has been your experience?

Hello there!
How do you do?Hoping that you are doing great..

Cynthiavilla wrote:

The exception to owning lands in the Philippines is only through hereditary succession; the constitution is very clear about this; hence when the spouse who is a Filipino national dies, he/she dies owning the land; hence the property though bought from the money of the foreign nationals shall be partitioned among the heirs of the deceased spouse in accordance with Civil Code as cited under discussions No. 73; the deceased spouse should be orphaned, only child, no children from previous or current marriage for the foreign husband to inherit the entire land;

And what becomes of the foreigner then. Is he banished to the streets from the house and land he paid for, a beggar in a foreign country? It just burns my butt that these Filipino's, for the most part, didn't have a pot to pee in, are given a fantastic life like they have never experienced by us idiot foreigners, who are to be ripped off and discarded with wild abandon. IT DOES HAPPEN.

There should be a law that will allow foreigners to own a land but limited for residential purposes only; maybe a bill is being pass there to resolve this issue;

As to be put out in the street, will not happen if you own a condominium; you have a perpetual lease annotated in the title; a corporation owning 60% of the asset included in that asset is the land; but a corporation is created with different requirements and not by reason of marriage obviously;

Cynthiavilla wrote:

There should be a law that will allow foreigners to own a land but limited for residential purposes only; maybe a bill is being pass there to resolve this issue;

I agree in some ways with that, but I can also see a negative for the Philippines as land prices may soar even more, as more foreigners buy up the land instead of Condos.

Cynthiavilla wrote:

As to be put out in the street, will not happen if you own a condominium; you have a perpetual lease annotated in the title; a corporation owning 60% of the asset included in that asset is the land; but a corporation is created with different requirements and not by reason of marriage obviously;

Not all Condos are sold on "perpetual lease".
The most common ones seem to be pushed as "Leasehold ownership" which is commonly only for about 50 years, but maybe extendable for another 25.

The most important thing though is that any Condo sale must meet the conditions according to Section 5 of Republic Act 4726 (The Condominium Act).

Also, all Condos could be limited to a 50 year term if the majority of the Condo owners wish, using section 8 of the Act after 50 years, to terminate the Condo. And with foreigners being restricted to 40% share, they effectively have no say.