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NEWSLETTER
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OUR PEOPLE
CURRENCY
CONVERTER
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1. President's Corner
2. Article 1 - Foreign
ownership of condos in the Philippines - what you should know
3. Article 2 -
Financial returns on leasing your condo
4. Article 3 - Demand
for older condominiums rising
5. News
6. Hot Condos
7. Contacts
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President's Corner
Mabuhay!
Welcome to our Quarter 3, 2003
edition of the
CondoMillion.com
Newsletter. If you need any
assistance, please speak to one of our representatives, or email us at
sales@condomillion.com.
Remember, there's a million reasons to buy a condo in the Philippines!
Sante Delle-Vergini
President & CEO
CondoMillion.com
ARTICLES
Article 1. Foreign ownership of condos in the
Philippines - what you should know
It is not generally known
that in the Philippines only Filipinos can own land. Therefore it is
almost impossible for foreigners to actually own land, or a house that is
built on land. Even if a foreigner is married to a Filipina National, that
house and/or land effectively belongs to the Filipina spouse. Of course
the property can be bought and sold, but the issue remains that if that
foreigner were to pass away, their foreign beneficiaries (such as children
in their country of Nationality), would not be able to claim that
property. It would pass to the Filipina spouse entirely.
Also, if the Filipina spouse were to pass away, that property would not
pass to the husband (if he was a foreigner), even if he was living in the
Philippines, and even if his name was on the Title. It would pass directly
to the Filipina spouse’s family.
Finally, a child who becomes a citizen of another country, even if both
parents are Filipino Nationals, cannot inherit that property.
However, there are no restrictions on condominiums or apartments. A
foreigner buying a condominium will receive a freehold deed of ownership,
exactly the same as a Filipino. There are no restrictions on occupying or
renting the condo. If you wish to sell the condo at some time in the
future, you are free to export your money with no restrictions. Likewise,
you can leave that property to a foreign beneficiary in your estate.
Therefore, condominiums are the only way to buy and invest in property in
the Philippines, knowing that you can always leave that property to anyone
you want to. The way it should be!
Article 2.
Financial returns on leasing your condo
What sort of financial returns do you get from leasing out your property?
In most western countries, the return is about 4-5%. So if a property was
valued at $200,000, then the return would be about $10,000 per year, or
$830 per month.
In the Philippines, it can be a very different story. Especially if you
own an older condo that is renovated, and valued a lot less than a brand
new condo. For example, we have seen older 2 bedroom condos, valued at
around 3 Million Pesos, 65m2 in size, leased out for 25,000 Pesos per
month. What sort of return is that? Let's take a look:
| Condo
Value
|
3M
Pesos (or US $53,305 as at April 2004) |
| Return in most
Western Countries
|
US $220 per
month @ 5% return |
| Return in
Makati Philippines
|
25,000 Pesos
p/m (or US $444 as at April 2004) |
That's 10% in Makati as
opposed to 5% in Western countries. And returns of 12-15% is not uncommon.
Obviously rates will vary, but what is consistent is:
1. Property values are very low to foreign purchasers
2. There are many foreign visitors seeking to lease properties (for travel
or work)
3. The Western dollar (UK, UK, AUS, JAPAN etc) is very good against the
Pesos
4. Lease costs, even at 10% is still a lot lower than what foreigners are
paying back home, simply because the properties back home are so expensive
All the factors above fuel higher return rates for leased condos. And
what's more, there are many condo towers that are able to rent your condo
out for you, and keep it free when you visit the Philippines. So what
could be better than that?
For more information on leasing your condo out, or for property management
services provided by CondoMillion.com,
please email us at
sales@condomillion.com.
Article 3. Demand
for older condominiums rising
There are many new condominium developments in the Philippines. The good
thing about this is it lowers the price of older condos.
Many purchasers are now looking at older condos as an alternative to new
condo prices. With low renovation costs, an older condo can be brought to
life, and end up still costing 20-40% lower than new prices.
If you plan to stay in the condo you purchase, then an older condo is
probably OK, and you can renovate if when it suits you. However, if you're
planning to buy an older condo as an investment, be very careful what you
buy, as this will effect the ability to rent the property out.
The reason is that your main customers in the major cities will be
foreigners wanting to lease, and they will have a vast choice to lease
from. New and old condo lease costs don't vary that much, and given the
Western dollar is so good against the Pesos, that person will choose a new
or renovated condo over a run down one every time. So keep that in mind
when purchasing an older condo as an investment.
NEWS
For news articles, please visit our
News section.
HOT CONDOS
Makati - 2.1M Pesos
1 bedroom, 1 bathroom. 20 storey condominium tower, Just off Makati avenue, and just
1000 meters to Makati CBD. 1 balcony with this condo.
Great alternative to new condo prices.
24 hour guard and video security, cable TV/Internet ready, 2 elevators.
Burgos Street 100 meters away.
CLICK HERE for more details.
CONTACTS
________________________________________________________________________________
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