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T he Philippines, our archipelagic nation attracted more than 5.3 million visitors in
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It is estimated that one can comfortably live in the Philippines for around $1,000 a
month, that is around P40,000 to P45,000 including foodstuff, activities, essential
healthcare, and housing costs.
Just like everyplace in this universe, housing makes up the large percentage of the
finances. Thats one reason why many people stick to renting but if youre planning
to stay in the Philippines for good, it can be cost effective to buy.
Property prices vary greatly in the Philippines depending on location, size, condition,
and features. Buying a property or land in the Philippines is difficult, complicated and
a long process. As a buyer, you must know what to do and what to be aware of before
completely deciding to buy your dream property or land in order to avoid problems in
the future.
Real estate transactions always involve more than just the price tag. If you buy
property in the Philippines, you can expect to pay some fees, including:
Capital Gains Tax this is 6% of the real estates sales price, zonal value,
or fair market value, whichever is highest. This is normally paid by
the seller, but it some instances the buyer pays it, or it ends up rolled into the
sales price.
Documentary Stamp Tax normally 1.5% of the real estates sales price,
zonal value or fair market value, whichever is highest.
Transfer Tax this is generally 0.5% to 0.75% of the real estates sales
price, zonal value, or fair market value, whichever is highest.
Title Registration Fee this varies according to a published registration fee
table and commonly around 0.25% of the real estates sales price.
Is the land has an adverse claim? This is a problem when somebody claims
the land owned by the seller.
Is the land has encumbrance or mortgaged. Alternatively, if the land has
been used as collateral by the owner during loan.
Is the land has lis pendence? Or the land has a pending litigation or under
investigation.
If you found any of these problems, try finding ways to remedy those problems or
maybe you can find another land to buy.
One of the things you should ask yourself when buying a land, Is the land cheap or
expensive? If the price of the land is too low, beware of this property.
There are many cases being reported where unsuspected victims fall for fake land
titles despite all the regulations that were put in place to fight scammers. Therefore,
youll have to be careful in dealing with strangers. If you have any doubts to the land
youre going to purchase, its best to consult a lawyer and ask questions. Protect
yourself from fraud or hidden issues of the land you want to buy by being careful.