Since the last few years, the Philippine real estate property market had experienced quite a boom, basically coming from local demand from the increasing number of overseas workers that see the merits of investing their hard-earned money in real estate. There is also a great demand for real property ownership in the Philippines from balikbayans, upwardly-mobile young Filipinos and those that are married to foreigners and want to have some form of investment in their home country.
While some experts in the industry believe that the Philippine real estate market could benefit largely from foreign ownership, at the moment the law in the Philippines still bans foreigners from solely owning real estate properties in the Philippines.
Whether you are a balikbayan or a local and are interested in acquiring real estate property, there are some things that you have to consider. When you buy real estate in the Philippines, the purchase price is not the only amount that you have to consider. There are additional fees and taxes that will be borne by the seller as well as the buyer, which could considerably increase the final selling and purchase amount of the property. These amounts should be explicitly stated in the Deed of Sale.
The seller will pay for the Capital Gains Tax, which is six percent of the selling price or the fair market value or the zonal value of the property, whichever is the higher amount. The seller might also be asked to pay a Business Tax, whenever applicable. The amount of the business tax is dependent on the local government unit that has jurisdiction over the property.
On the other hand, the buyer will pay for the Documentary Stamps Tax, which represents 1.5 percent of the selling price or the zonal value of the property, depending on which one has the higher value. The buyer will also be charged a Transfer Tax that ranges from 0.25 percent to 0.75 percent of the zonal value or the selling price, again dependent on which one is the higher amount. A Registration Fee will also be charged from the buyer, which is a graduated percentage of the selling price. The buyer is likewise required to pay the Realty Taxes for the remaining months depending on when the full payment was made.
While many developers still use qualified real estate agents that set up booths in malls and other places to reach customers through fliers and booth displays, there are also several ways that real estate developers and brokers use to market their properties. They still advertise through traditional means such as newspaper ads and classified ads, but are also exploring other outlets, such as online classified ads listings like Craigslist and Buy&Sell and other dedicated online listings like Pinoy Real Estate.
Pinoy Real Estate is an online real estate property portal where members can post pictures of properties they want to sell, including descriptions, location and prices. The website has the capability to reach a wider audience through the Internet, allowing property buyers to see more options and compare features, locations and prices while affording sellers with more options to reach their potential market.
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