Buying a Home in the Philippines

The Philippines is an attractive destination for property buyers, offering modern condominiums, beachfront homes, and residential options at competitive prices. Whether you’re looking for a vacation home, a future residence, or a place to stay when visiting the country, buying property in the Philippines is more straightforward than you might think. Below, we break down the key rules, the preselling process, and what to expect.

Can Foreigners Own Property in the Philippines?

Yes, but with limitations. Foreigners cannot own land in the Philippines, but they can own condominium units and buildings. Here’s how:

• Condominiums – Foreigners can own condo units as long as foreign ownership in the building does not exceed 40%. Most developers ensure this quota is not exceeded, so purchasing a condo is typically hassle-free.
• Land & Houses – Foreigners cannot directly own land in the Philippines. However, Philippine nationals (including dual citizens and former Filipinos) can buy land, houses, and lots freely. If you have Filipino heritage, you may be eligible to acquire land through dual citizenship or Balikbayan privileges.
• Long-Term Lease Options – If you want to build a home on land, you can lease land from a Filipino citizen or corporation for up to 50 years, renewable for another 25 years.

What is the Preselling Condo Process?

Many buyers choose preselling condos—units that are sold before the building is completed. This allows buyers to secure a property at lower prices compared to completed units.

How the Preselling Process Works:

1. Choose a Project – Developers offer preselling units at set prices with flexible payment terms. These are usually marketed with showroom models and 3D renderings.
2. Reserve Your Unit – You secure your unit with a reservation fee, typically ranging from $500 to $2,000.
3. Monthly Payments – Instead of paying in full, buyers typically make monthly installment payments (often 0% interest) during construction.
4. Turnover & Final Payment – When the building is completed, you either pay the remaining balance in full or secure a bank loan for financing.

Project Completion Risk – What to Know

While preselling condos offer lower prices, they come with completion risk—the possibility that the developer may face delays or, in rare cases, fail to complete the project. To minimize risk:

• Choose a reputable developer with a track record of completing projects on time.
• Check government permits to ensure the project is properly licensed.
• Look for refund policies in case of project cancellation.

Financing Options for Foreigners

Unlike in some countries, mortgages for foreigners are limited, but certain Philippine banks do offer financing options. Many foreign buyers pay in cash or use financing from international banks.

Final Thoughts

Buying a condo in the Philippines is a straightforward process, especially when working with a reputable developer. Preselling units provide a great opportunity to secure a property at a lower price, but buyers should be aware of project completion risks and choose trusted developers. If you’re a Filipino citizen or dual citizen, your options expand to include houses and land as well. Want to see available condo listings? Browse our properties today!