How can a foreigner finance a condo in Philippines

[Dave Hounddriver]

I came across this idea on OLX and I am putting it out there for the legal beagles among us to clarify if this is indeed possible.

First point to consider is that the best possible financing for property in Philippines seems to be pagibig financing that foreigners cannot get.  BUT:  I will show the link to the Pag-i-big site that shows their mortgages are fully assumable.  All you need to do is have a lawyer draw up a contract to assign all rights and responsibilities to the new purchaser.

Link here: http://www.pagibigfinancing.com/articles/2012/how-to-assume-a-loan/

Now this opens up a world of possibilities.  Any qualifying Filipino could buy a condo and resell it to a foreigner at an agreed (reasonable but small) profit.  The financing would be supplied by Pag-i-big and the downpayment would be small.

If this is a real way to do it then any foreigner would be able to buy a condo for about the same as rent.  Comments?

[stevewool]

Its there in black and white, but whos going to be the first to try it i wonder,

[expatuk2014]

I put this to my Sister in law and she still says you need a brilliant lawyer ! as Pagibig will not hand over deeds etc to

a Foriegner on any property that they have financed ! it would be considered as Fraud !

unless someone knows otherwise ?

[Dave Hounddriver]

15 minutes ago, expatuk2014 said:

Pagibig will not hand over deeds etc to

a Foriegner on any property that they have financed

But, as I read it, perfectly legal for a foreigner to own a condo, perfectly legal to assume the mortgage, and perfectly legal to sell i to someone else later and have them assume the mortgage.  Win Win?

1 hour ago, stevewool said:

whos going to be the first to try it i wonder,

Aye, there's the rub.

[robert k]

I agree that no laws would be broken by the foreigner or the seller, but if they won't hand over the title after it's paid off and you had to sue....would you have saved anything? Or lost money?

[mogo51]

3 hours ago, Dave Hounddriver said:

I came across this idea on OLX and I am putting it out there for the legal beagles among us to clarify if this is indeed possible.

First point to consider is that the best possible financing for property in Philippines seems to be pagibig financing that foreigners cannot get.  BUT:  I will show the link to the Pag-i-big site that shows their mortgages are fully assumable.  All you need to do is have a lawyer draw up a contract to assign all rights and responsibilities to the new purchaser.

Link here: http://www.pagibigfinancing.com/articles/2012/how-to-assume-a-loan/

Now this opens up a world of possibilities.  Any qualifying Filipino could buy a condo and resell it to a foreigner at an agreed (reasonable but small) profit.  The financing would be supplied by Pag-i-big and the downpayment would be small.

If this is a real way to do it then any foreigner would be able to buy a condo for about the same as rent.  Comments?

So does this apply only to the purchase of a Condo?  Not a free standing house?

[Dave Hounddriver]

Just now, mogo51 said:

So does this apply only to the purchase of a Condo?  Not a free standing house?

Foreigners cannot own anything except a condo.  A foreigner could do the same thing with his Filipina wife owning the house and assuming the mortgage.  But the trick is to get something that you can own outright and that no one can take from you barring a rule change from the palace.

[mogo51]

2 minutes ago, Dave Hounddriver said:

Foreigners cannot own anything except a condo.  A foreigner could do the same thing with his Filipina wife owning the house and assuming the mortgage.  But the trick is to get something that you can own outright and that no one can take from you barring a rule change from the palace.

Hi Dave,

Many farangs do the same thing here, buy in wife's name, then register a mortgage on the property.  But as I understand it,  that is a no no there, so far as houses go?  We can own a Condo outright there, same as here, but as you rightly said in another post and I saw for myself.  They are very small and very expensive in proportion to houses there?

 

[chris49]

18 hours ago, Dave Hounddriver said:

I came across this idea on OLX and I am putting it out there for the legal beagles among us to clarify if this is indeed possible.

First point to consider is that the best possible financing for property in Philippines seems to be pagibig financing that foreigners cannot get.  BUT:  I will show the link to the Pag-i-big site that shows their mortgages are fully assumable.  All you need to do is have a lawyer draw up a contract to assign all rights and responsibilities to the new purchaser.

Link here: http://www.pagibigfinancing.com/articles/2012/how-to-assume-a-loan/

Now this opens up a world of possibilities.  Any qualifying Filipino could buy a condo and resell it to a foreigner at an agreed (reasonable but small) profit.  The financing would be supplied by Pag-i-big and the downpayment would be small.

If this is a real way to do it then any foreigner would be able to buy a condo for about the same as rent.  Comments?

Dave. You might find the amount of financing available to a Filipino, unless they have a higher income, to be quite low. So one problem might be getting a Filipino who qualifies for the amount of loan you are aiming for.

Pagibig helps poorer people finance low cost housing.

[Dave Hounddriver]

2 minutes ago, mogo51 said:

But as I understand it,  that is a no no there, so far as houses go?

Yes you can buy something in your wife's name and just put up a down payment then make the payments, but she has to quality for the mortgage OR pull a stunt like I am talkng about and get her to assume one.  But you still own nothing EXCEPT you can walk away with only money already spent as your maximum loss exposure.

The purpose of a condo, in my opinion, is to limit loss if you feel there is a chance of relationship failure.  If you are 60 years old with a sweet young thing and only living together, then you are at her mercy if she owns everything.  But those of you who have been with your spouses for years and have very low expectations of marriage failure can just buy outright in her name