Whether you’re a Filipino who have migrated or working overseas, a foreigner who has come to love the Pearl of the Orient Seas or an ordinary Juan de la Cruz who has forever lived in your homeland, having a property you can call your own in that gorgeous tropical country, is a dream worth pursuing. With so many beautiful beaches and a bounty of natural sceneries coupled with the warmth and smiles from the Filipino people, the Philippines is quickly becoming a recreation and relaxation hub and a favourite retirement spot from natives and foreigners alike.
Real estate in the Philippines has reached an all-time high in the recent years and condominiums have become more popular and more affordable than ever before and for many who belong in the working class, owning one has become an achievable dream and luxury.
(Read our success story of a property investor, “The next step after buying your condo”)
As with most things, buying a piece of property comes with both advantages and disadvantages. If you’re considering buying a property soon, you may have already looked up and considered its advantages but have you ever thought about the bad side? Here are some pitfalls of buying a property in the Philippines.
GEOLOGICAL HAZARDS
This is something that not many property buyers take into consideration when buying a property, be it in the Philippines or elsewhere. The Philippines is located within the Pacific Ring of Fire which makes it one of the most seismically active regions in the world. Thankfully, there is a geohazard map from the Philippines’ Department of Environment and Natural Resources (DENR) that you can access online to check out where fault lines are located so you can avoid purchasing a property in and around that area.
NATURAL DISASTERS
Aside from being prone to earthquakes, one more thing that you may consider as a drawback to buying a property in the Philippines is the number of natural disasters that take place in the country. All too often, the Philippines is visited by heavy rains and typhoons which cause immense flooding. There are also some areas that are prone to landslides. If you’re planning to buy a property in the Philippines, it’s best to take your time to do due diligence to avoid vulnerable and high-risk areas.
LIMITED LOCATION CHOICES
You know how they say location is everything when buying and selling a property? Well, because of the booming real estate industry in the Philippines, almost every livable square metre is already utilised. This means that if you’re planning on building your dream home from scratch, then it would be rather difficult for you to find a nice location especially if you’re planning on living in the Metro or other nearby areas. Developers have already gotten hold on most of the prime areas in the Philippines. So, if you’re all about the location, you might want to check out what these developers have to offer instead.
AGENT TROUBLES
Whether you’re buying land, a residential property or a commercial property, chances are that you’ll have to go through a real estate agent. While there are some very good and reputable realtors out there who are honest and do care about getting you the best deals, there are also those who are very unscrupulous with their business. The sad thing is that you’ll never really fully know what kind of agent you’re dealing with until you start transacting with them.
TITLES AND TRANSFERS
Because of actions by some unscrupulous realtors in the real estate industry, problems with titles and transfers are not uncommon. Sometimes, multiple ownership can become a problem, too. Make sure that the property you are buying has a clean title and that every other paperwork has been taken care of. You wouldn’t want to be forced out of the property after you’ve already parted with your hard earned money.
COMPLICATED PROCESSES
Still on the topic of legalities, acquiring a property in the Philippines can be a pain to deal with, especially if you are not a Filipino citizen. There are laws and rules that prohibit non-Filipinos from acquiring properties in the Philippines. While there are workarounds to that, the process takes quite a long time and that, in itself, is already pretty expensive.
TAXES AND OTHER FEES
Property prices in the Philippines are relatively low compared to other Asian countries. However, there are certain fees and payables that can raise the prices on these properties and often, these prices and payables are not included in the listing fee. So, while that gorgeous two-storey home priced below Php 800,000 may seem like a bargain and while that beautiful Php 3.5M three-bedroom condominium unit in a master planned community may seem like a great deal, it may not be so after you discover how much these taxes and fees are.
SAFETY AND SECURITY
Safety and security should always be a top concern when buying a property. Unfortunately, there are not a lot of areas in the Philippines where one can truly feel safe and secure. The lack of CCTVs in public areas and the leniency of law enforcement authorities do not help at all with lowering the crime rates in the country.
If you’re looking for a quick and easy option to acquire a property in the Philippines, getting a condo would be your best bet (at least for now, that is). Just make sure to entrust your money only to a firm or company with good standing reputation. On the other hand, if you want to take the time to build everything from scratch to truly make it your dream home, remember to always take into consideration the important things like the location, legalities and your budget, among other things. You wouldn’t want to halt construction halfway through because of unforeseen expenses and whatnot.
There are always pitfalls, drawbacks and snags when buying a property so it’s important that you do a lot of research on the things that matter. This way, you know you’re not going blind and without a clue. This makes buying properties a whole lot easier and it will help you get the most bang for your buck as well!
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