What are the risks of buying a house in the Philippines?

1. Foreigners cannot buy Philippine land directly.

When investing in real estate in the Philippines, the legality and compliance of the transaction should be the primary consideration. Before actually buying a house, investors should have an understanding of local laws and regulations on the sale and subsequent operation of the house. In addition, foreigners who buy houses in the Philippines, although they also have permanent property rights, do not own land and cannot buy land directly. If foreigners want to buy land in the Philippines, there are four ways:

By buying shares in the country club.

② Purchase Philippine land through the company.

(3) Become a Philippine citizen.

4 Marry a Filipino.

Of these four ways, the first two are indirect ownership and the latter two are direct ownership. At the same time, in the same housing project, the share of foreigners cannot exceed 40%, that is to say, more than 60% must be sold to people with Filipino nationality. Therefore, for investors, we should not only be wary of the statement that "the return on land investment is higher", but also do not have to consider whether the foreign purchase rate of a certain project has exceeded 40%.

2. Understand the tax payment ratio and check the bills.

At present, the main taxes and fees involved in buying a new house in the Philippines include value-added tax and transaction tax (stamp duty, transfer fees, registration fee, document fee, etc. ). Whether it is an auction house or an existing house, if the bare price of the house purchased from the real estate agent exceeds 3 199200 pesos, the buyer must bear the value-added tax of 12%.

It should be noted here that when buying a house for the first time, you should ask whether the house price includes value-added tax, some real estate prices include it, and some do not. Then there is the cost of handling the new house formalities, including: 1.5% stamp duty, 1-3% transfer fees, registration fee, certificate fee, etc. When buying a house, you can compare the tripartite consultation data with the tax information provided by the broker to prevent the risk that the tax payable is concealed. In the process of housing maintenance, the actual expenses that investors need to pay are mainly property fees, management fees, insurance fees, etc., which are generally stipulated in detail in the contract. By carefully examining the contents of the contract and comparing it with the types and amounts of taxes and fees learned from private sources, hidden risks can also be prevented.

3. Check the authenticity of the project in advance to avoid being cheated.

Before completing the payment, confirm whether the project exists or not, and whether it is a false project. Investors can judge the authenticity of the project from the following angles: through satellite maps, in the land where the project is located, according to the high-precision query of 1 to 200 meters, verify whether there are cleared and under construction plots. Generally speaking, a project will have multiple operating entities, such as design companies, contractors and operators. Investors can judge the authenticity of the project by consulting the partner official website and the publicly disclosed information. For projects with multi-phase construction and first-phase operation, the authenticity of the project can be judged by querying the reservation records and hotel evaluation of the project through websites such as reservation, Ctrip and Owl. In addition, we can cross-judge the authenticity of the project by querying official website, the government where the project is located, and see whether the government authorizes developers to develop land. If the authenticity cannot be confirmed through the above information inquiry, investors can go to the site to watch the dish in person to ensure the authenticity of the purchased property. Specific concerns can include whether foreigners purchase houses in compliance with regulations, whether the qualifications of project developers are legal, whether the project procedures are complete, whether the housing construction and operation are legal, and whether the project operators have corresponding operational qualifications.

4. You don't have to find a big developer, but it must be legal.

In the Philippines, there are many well-known developers. The more famous the developers, the higher the brand premium will be. For investors, this part of the expenditure may not be cost-effective, so when choosing a developer, it is not necessary to be well-known, but it must be legal. Due to the limited personal time and energy, it is difficult to verify the background of every developer and service provider, so this part of the work is mainly done by institutions. Investors can choose a service institution with a good reputation in their careers when buying a house overseas. Generally, such institutions will make a series of comments on overseas brokerage service providers and developers from different dimensions such as company qualification, establishment time, past performance, negative information of the company, internal control management and domestic cooperation experience. To ensure that the company information and strength provided by the service provider are true and reliable. For brokers, their brokerage qualifications, whether there is fraud in the transaction, whether there is unfinished breach of contract in past agency projects, and whether there is a complete and clear internal process of house purchase service will all be evaluated, while for developers, the situation of their past development projects is equally important.

5. Control the payment and delivery links to ensure the timely delivery of the house.

Buying new houses in the Philippines is generally divided into existing houses and auction houses. The existing houses are basically bought and lived, and they are generally paid in full. The auction house can't deliver the goods temporarily, so it can pay by installments. Xianfang can get the title certificate after payment and all formalities are completed. If it is an auction house, it needs to be paid regularly, in full accordance with the progress of the project. However, in this process, investors are often unable to check the progress of the project on site, and part of the house payment will be credited to the agent account of the developer. After payment, you must get the corresponding credentials. If the construction period is long, it is recommended to check it once or twice a year. In addition, there may be risks such as overdue delivery, poor quality of house decoration, and even the end of delivery. Therefore, it is best to make a field trip before paying the final payment. Once you encounter something that is not in line with expectations, you should take photos in time to collect evidence.