Bought property in the Philippines?

[ski4evr 0]

Greetings all,

My wife is from the Philippines and we want to buy an investment property for us to retire to in 20-25 years. Also her parents will live there now. Has anyone done this already and would be willing to help us avoid any potential problems? I know that a PHP national has to be a part buyer/owner (land can't be 100% owned by American)so her parents and my wife will be the signer. We hope that they cans send up papers for her to sign and send back. Other questions would be:

Taxes? for US Taxpayers on the 1040? and PHP taxes (I do not think they have any if not in a gaited community. I told my financial adviser that this was an investment property and not a "gift".

Liability? I know Filipinos are not sue happy like Americans but what if someone gets hurt, can they come after me and my wife?

Any good/bad stories about buying land? I am glad we are not doing this from here and the parents will see the property personally.

Thanks in advance,

SKI

[Cyberfx1024 7,980]

Me and my fiance ended up buying land in her home town for the same exact purpose as you, retirement. Yes, land has to be owned by the citizen, either your wife or father in law. Also I don't know how it works in all of the philippines. But in my fiance's province, paid 1 amount, and put on the paperwork a different smaller amount. I asked about this, and I was told it was for tax purposes, so the ph goverment wouldn't tax it all, and I was told that this is a common theme.Due to the government being so corrupt over there. If it is going to be in your father in law's name, why would you have to file taxes on it in the states? Where in the ph is she from?

[Tim/Mav 305]

The way I understand the Law is: You can purchase REAL PROPERTY. But Entitled to 49% Ownership. 51% in her Name. You Only own the Property if Married but still a 49% Ownership.

In the Event of Divorce it is 100% hers.

You can buy a Condo but not Real Property.

[Magic Power 7]

IF you buy property there, it is hers.

You can purchase a condo and own it

[Cyberfx1024 7,980]

Yes, that is what was told to me as well. Due to us not being married she was buying it outright, even though EVERYBODY in her town knew where the money came from. It's a small town and everybody knows her, and me. Mainly because I am the only white guy that has shown up in town all year.

[Tim/Mav 305]

Yes, that is what was told to me as well. Due to us not being married she was buying it outright, even though EVERYBODY in her town knew where the money came from. It's a small town and everybody knows her, and me. Mainly because I am the only white guy that has shown up in town all year.

Your Choice. The replies given you are true. You don't Own Jack Sh--t

Married or Not

Edited March 8, 2012 by Tim/Mav

[Philwithlove 17]

as far as i know, its 40-60. the foreign national cant exceed to 40% ownership of the property. you can buy a house but not the land just like in a condo unit.

[Philwithlove 17]

some question and answer about forigners buying property in the phil

[ski4evr 0]

Thank you all for your posts! I will give more details. This is in Pampanga. We are buying a vacant lot now but will build on it after the next rainy season. The tax question came up by my financial planner since americans can "gift" only $13,000 a year tax free. That is why my wife needs to be on the paperwork so it is NOT a gift to her parents. Now that is for the US taxes. Thanks for the post on Property tax. My wife just called the PHP and they are totally on top of that! They have a cousin that works at the city hall that they pay some greese money to and she told them about that. Good info! Also they said I will not be on the title (which is what I wanted anyway) so good info there also by that post. I am glad to say after 3 years we are hapily married, and blessed by the Catholic faith so there will be no divorce :)Tim/mav are correct. Marital community property here, definately not there!

All great info friends. Thank you again.

SKI

[duriantaste 44]

But in my fiance's province, paid 1 amount, and put on the paperwork a different smaller amount.

...and that is how corruption is spreading!!...good one

[The Nature Boy 4,224]

Greetings all,

My wife is from the Philippines and we want to buy an investment property for us to retire to in 20-25 years. Also her parents will live there now. Has anyone done this already and would be willing to help us avoid any potential problems? I know that a PHP national has to be a part buyer/owner (land can't be 100% owned by American)so her parents and my wife will be the signer. We hope that they cans send up papers for her to sign and send back. Other questions would be:

Taxes? for US Taxpayers on the 1040? and PHP taxes (I do not think they have any if not in a gaited community. I told my financial adviser that this was an investment property and not a "gift".

Liability? I know Filipinos are not sue happy like Americans but what if someone gets hurt, can they come after me and my wife?

Any good/bad stories about buying land? I am glad we are not doing this from here and the parents will see the property personally.

Thanks in advance,

SKI

Just my 2 cents worth. You have 25 years until retirement and you want to buy something deeded in someone else name in a foreign country ( a corrupt politically volatile country at that) as an investment. I think that is a bad move. Other than the obvious, and I know you don't want to think about it, but marriages do break up no matter how strong they are now. If that happens you can forget that purchase, it is outside the jurisdiction of american courts and not in your name.

The U.S. real estate market is at rock bottom. Invest in some foreclosed rental property here, which can be had a unimaginable bargains. Invest in securities, stocks or any thing else "here" that you can maintain a vested interest in. Then when you are a few years from retirement start liquidating and hunting for your retirment property in the Philippines. I am just approaching this from a growing your investment angle.

Buying a house you will not need for 25 years, in the Philippines, in someones else s name, is not an investment, it is a very very very risky maneuver that stands a great chance of you losing every penny and almost certainly not growing your money. Be realistic.

You are buying her parents a house. Nothing wrong with that, but it is not an investment and don't fool yourself that you will own anything and it is anything other that that.

[edwardteresa4ever 18]

Scruffy Dog makes some really good points, one thing I would look at it the rate of appreciation if your worried about buying now versus later, Just follow the math. If its to help your inlaws thats cool too.