Roadking

OK guys and gals, at Blue Cats insistence, what are the pros and cons of buying a holiday home in either of the above. I know I can probably search for previous threads but I need current info and I can't be bothered searching. I'm taking a hint from Spugsy and just asking.

We're a helpful lot in the Middle East and I'm hoping you are too.

pinoybill

As a foreigner in the Philippines you can only buy a condo not land or house.
Am sure there are people who form companies with locals and the like to get around it but would be careful with that.Dont believe the market is anywhere as near as developed for holday homes as Thailand.There are condos a plenty anyway in the big cities in the Philippines.I would just question the need to own a holiday home in the Philippines when even with the strength of the peso to other currencies especially the pound it remains an extremely good value destination.Unless you are spending regular amounts of time or have a real affinity for an area/family ties etc i would take advantage of the bargain hotels and resorts that you can find on the net and explore a bit.

Roadking

Thanks for the feedback. So, from a use and investment point of view, that's a no go? Don't want a condo, want a vill; 3/4 bedroom? Sorry, I know I'm being thick but so many different points of view. Thanks again.

pinoybill

There always seems lots more building work going on everytime I go to Philippines which is where the wife is from.Many of the new builds, be it houses or condos are targetted at the Overseas Filipinos who are making considerably more money than almost everyone earning in the Philippines.
The marketing is just as bad as the stuff in any British town or city,they are really trying hard to sell you the dream, some of the floor sizes of the houses or condos are ridiculously small. Whether they have been ramped up in price way too high or there is oversupply like over here in UK remains to be seen as their economy is very different and many families live in very basic accomodation but I would be cautious of new builds/estates as the price hasnt been tested by resale and they will build on anything. That said some of the top end stuff in Manila, Makati, Fort Bonifacio is very good but so are the prices.

I would be inclined to have more holidays and recces and establish an area that you like that isnt too far from an airport.
But as far as ownership goes of a house with land I think its a no no.
There will be no shortage of locals who are all realtors or have friends and fixers to help you. Buyer beware.I am still struggling to tidy up the ownership of the place my wife bought several years ago with the help of someone well known to the family.Even if there are places with weird and wonderful means of owning house and land, I would think the people who are consistently making money from real estate are the developers. As a place to live retire to etc etc I still think its a blast.Last thought would be to rent a house for a month when on holiday,that way you are going home with your shirt and you might decide its not for you.Many of the websites of expats living the dream are marrioed to locals which is why they live in a house.Believe it can get complicated when relationships go awry/wife dies and so on.Dont think you have much say after that.
If there was a fortune to be made there in real estate it would take a far better knowledge of the local market than you or I is ever likely to possess.Hope this isnt too negative a post, more of a proceed with extreme caution. On the postive side we are still aiming to spend considerably more time there/retire as it an excellent place to grow old if you have a modest amount of money and better still with family or local connections, but the usual grind of work and other commitments currently dont allow us to do so.

Roadking

Yeah, gues that's a no then. Thanks for the info, think I need to look elsewhere.

Cheers!

MonsterP

RK, good to see you in the Far East forum!
Not sure about Philippines, but in Thailand the rules are similar to above. I.E. As a foreigner you are only allowed to buy a condo and not land. HOWEVER, it is still possible for you to do this whereby you have 51% Thai shareholders, the other 49% being yourself, BUT you have 100% voting rights. My brother has a house in Samui for the last 2-3 years like this. Be careful though, there are many scams, many building on land they don't own etc etc. You just simply have to spend the money on a few lawyers to get everything checked again, again, and again. Most is ok with my brothers place, but the 10 year guarantee that the two Yanks promised, does not exist. This was a company that own's the Hilton hotel in Hua Hin too! So, don't trust anyone just get everything checked if you decide to go ahead with anything and be prepared to visit regularly to make sure progress is being made as you have to keep on their backs.

Good luck chap!
Cheers!

Roadking

Thanks MP, I think I've sort of talked myself out of either of these. Sounds a 'mare and don't really have time to flit back and forth.

Cheers for the feedback, though.

John Speed

We have lived and owned property in both Koh Samui and Phuket and been here 7 years with absolutely no problems.
Condo's are fool proof , and one good way to avoid Thai Taxes is to set up a BVI company which will "own" your apartment with you as the shareholder.
We are in the process of moving on and have an apartment for sale if you have any interest.

Chris351

This illegality is called using nominees and it is now being enforced and land can be confiscated.

Foreigners CANNOT own land in Thailand UNLESS 40 MILLION USD is invested then 1 rai ( 1600 sq meters) is allowed.

Even the old trick putting it in the wife's name is being looked into, you have to hand it over to her completely ( I say her because I really don't think any women travel to Thailand to marry Thai men, (other than Natalie Glebova ..) And if she can't show it was her funds originally?? Pay the graft ??


Thailand has laws to protect itself from what it views as foreign invasion. It lets people get away with skirting the laws for a decade or two, then it becomes convenient to suddenly start enforcing the laws, a " Farang" cull- Lots of fines and properties confiscated all ready for a new round of naive and horny foreigners.
Actually quite clever, the Thais at separating " Farang " from his money.

MonsterP

Absolutely bang on Chris.

There's some nasty press around lately. Rule is, only buy if you're prepared to lose it and not be sad.

regards MP

Travel Ed

My info is condos are far from foolproof in Thailand. All condo buildings have to be 51 per cent owned by Thais. But the developers can rarely fill the Thai quotient. That means they pack more foreigners in illegally and the govt is planning to seriously crack down on this. The illegal foreigners buy in the name of 'Thai companies' which do not trade.

bakedbean

Any luck with the apartment sale?

alp

yep in philippines you can't buy land. only condo units. Well unless you are a woman and you will marry me.

John Speed

Two lost, crooked lawyer responsible for one ! and we are now on the third sale which may go through .never easy

bakedbean

Best of luck. There is some movement on the market, despite what some people say.