Real estate purchase of the foreigner
Foreigners can only buy Condominium property in the Philippines. Raw land purchase is not applicable for an individual foreign purchase however, if a foreign national establish a company 60% Filipino share, 40% Foreign share of stock the company can purchase a land under the company name.
When Foreigner will buy a Condominium property Philippine Visa is not necessary.
Real estate lease article at Manila
Payment Terms in a Contract of lease maybe categorize into three, it can be:
1. Paid in Full One year advance rent and Security Deposit all at the same time prior to the start of Contract of Lease.
2. Two (2) months Security deposit and two (2) months Advance rent with a total of four(4) months is paid in cash initially upon contract signing and the remaining balance of ten (10) months will be issued ten (10) Post Dated Check (PDC) which will be encashed by the unit owner every month.
3. Two (2) months Security deposit and two (2) months Advance rent with a total of four(4) months is paid in cash initially upon contract signing and the remaining balance of ten (10) months will be paid in cash every month to the Unit owner.
Condominium units can be classified with the following categories:
1. High end condominium Units. These units are High-Class condominium and located strategically in classy village which is very exclusive and private. They offer high end and luxurious exclusive amenities that residents would enjoy. This usually fits Foreign Expatriates. Unit area starts from 70 sqm and above with rental rates starts from Php 60,000.00 and up.
2. Middle end condominium units. These condominium units are not quite expensive as compared with above mentioned units however the amenities that they offer is still appealing and enjoyable even not as expensive compared with the high end units. Unit area starts from 30 sqm and rental rates starts from Php 30,000 and up.
3. Low end units includes condominium comes in small size units around 24sqm. This also includes apartment at downtown, and mid rise condominiums. Monthly rental is usually at 20,000 and below.
Post Dated Check
Upon signing up of contract, you need Post Dated Check (PDC), but bank will not allow Foreign tourist (No Visa) to open a checking account in that case, the following are the alternative options:
1. One time payment full amount rent for one year
ex. monthly rent is at Php 15,000 and Security deposit is equivalent to 2 months rent Php 30,000.00 the total amount due is Php 210,000 paid upon signing of contract.
2. Negotiate with owner through a Real estate Broker regarding payment term
Ex. 6 month rent pay by cash, remaining balance after issued PDC.
This case Foreigner tourist apply valid visa to stay in the Philippines and open a checking account.
3. Contract under name of your Filipino Friends.
The Filipino should have an existing saving account at least 6 months to open a checking account.
Open Account to The Bank
Normally to open a bank account a valid Visa is needed, however there are some Banks that VISA is not required.
For instance at HSBC if you already have an existing premier account in other country you can open an account with them with initial deposit of Php 4,000,000.00 but transaction is only foreign currency If you don’t have Visa.
By the instruction of the Immigration, some condominiums (e.g.:Cityland) The foreign tourist without the long-term stay visa can’t make a contract.