Why can Song Hye Kyo, Cha Eun Woo and many Korean stars buy Condotel real estate in the Philippines? Law prohibiting foreigners buying real estate in the Philippines?
After a real estate expert revealed that many foreigners have bought properties in the form of Condotel in the Philippines, especially famous stars such as Song Hye Kyo, Cha Eun Woo.
Many fans have become confused when foreigners can buy real estate in the Philippines?
Real estate in the Philippines is ripe for investing, and a buyer would find potential returns in the purchase of property in the country. A foreign national who is planning to buy a residential or agricultural property in the Philippines should first be aware of the laws governing the purchase of land and assets. Foreigners must know these rules for a successful acquisition of real estate properties in the country.
The Philippine Economy
One of the reasons that foreign nationals will consider purchasing properties in the country is the upbeat state of the Philippine economy. The highly current economic condition is indicative of an explosive industry. Many foreigners are seen coming in and out of the country frequently. Others extend their stay. To establish residence, expats invest in properties.
By law, the purchase of real estate properties in the Philippines by a foreigner is not a walk in the park. It is not even allowed if bought directly by a foreign national. Philippine laws and regulations should be adhered to religiously, otherwise, the result will not be favorable for the foreign guest. Foreigners who are planning to purchase property will likely want to know the legalities specific to the country, so the transition of their acquisition will push through smoothly.
Buying Property As An Individual Or A Corporation
A foreigner aiming to buy properties in the Philippines should seek a licensed real estate agent or broker that will assist him with the purchase of property in the country. Foreigners, in principle, are entitled to buy and own properties in the Philippines. The Philippine Condominium Act allows them to own up to 40% of the project development. A subdivided townhouse is qualified for foreign ownership under the 40-60 condition. Foreigners may own buildings and houses, but not the land where the edifications are erected. The most convenient way for a foreigner to buy a property is to marry a Filipino and put the property under their name.
Also, a corporation with at least 60% Filipino ownership will entitle a foreigner to be part of the acquisition of the building, consider that the foreigner is one of the owners of the corporation. Another exception is when someone buys the property before the 1935 constitution. Hereditary heirship exempts in the case where Filipino parents die and their children are already of foreign citizenship. The children, legitimate or illegitimate, will have the right to claim the property left by the deceased parents.
In the Philippines condominium hotels carry a condominium real estate dead. This allows foreigners to acquire up to 30% of the condotel units, unlike most other real estate. This has made this particular development popular in the country.
A condo hotel, also known as a condotel, hotel condo or a contel, is a building which is legally a condominium but which is operated as a hotel, offering short term rentals, and which maintains a front desk.
Condo hotels are typically high-rise buildings developed and operated as luxury hotels, usually in major cities and resorts. These hotels have condominium units which allow someone to own a full-service vacation home. When they are not using this home, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room.
Another option for foreign ownership is to have a long-term lease of the desired property. A 50-year lease period is considered a long-term rental. After this, a renewable lease agreement will be in order. Renewable leasing could be another 50 years or more.
Former Philippine Citizens
A former Philippines who had allegiance to another country still buy Philippine property but will limit themselves to residential property of up to 1,000 square meters only. The former Filipino could also purchase an agricultural estate limited to one hectare only.
Have A Real Estate Agent
Under normal conditions, the foreigner will negotiate directly with a property developer for a property acquisition (i.e. a condo unit) or a resale of an existing one. As mentioned earlier, they require a real estate agent who is honest and experienced for the purchase of a real estate property in the Philippines.
Having a reliable agent will be helpful for the expatriate. The selection of a reputable agency with a licensed real estate company is imperative. The trusted agent, together with the property developer, will assist the expat in the process of acquisition.