Author Topic: Living & Working in the Philippines (introduction)  (Read 2617 times)

Offline gregpinton

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Re: Living & Working in the Philippines (introduction)
« Reply #15 on: December 14, 2018, 12:52:56 PM »
Sorry i should have mentioned that i actually created the following Topic several months ago with our plans for our future there in the Philippines, which has a fair bit of information about what we intended to do, but it was only created for the purposes of finding out information about buying or leasing property in the Philippines, but it ended up going on for a lot longer than i intended it to be.

http://www.livinginthephilippines.com/forum/index.php?topic=53366.0

Offline gregpinton

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Re: Living & Working in the Philippines (introduction)
« Reply #16 on: December 18, 2018, 04:21:16 PM »
Any contract that you make with the lot owner is something that will have to be negotiated and agreed by both parties.  Unless he agrees to it as part of the contract, I don't believe there is any obligation on him to compensate you for any improvements or additions that you make to the lot, and as a consequence I think he will assume that the cottage will become his.  Most people leasing land on which to build, go for a really long term lease, like 50 years, not 3 years extendable to 10.

I have Quoted the section regarding "Leasing" Property from the following article written by Badladz.

https://badladz.com/property-ownership-in-the-philippines/

Lease of Property

Now, Lease property from the “owner”. This is legal also.

Write a Lease Contract on the property for 75 years. Pay 10 pesos per year in advance and get a receipt to prove payment. Then REGISTER THIS LEASE ON TITLE.

You now have Physical Control.

A Foreigner can Legally have property ownership in the Philippines on buildings that are on someone else’s property through a process called TAX DECLARATION. This means you pay the taxes on the building and proves your ownership.

If you want to build on that property or there is already an existing building then create a document from the “owner” of the property saying that you have permission to build or purchase the building from the “owner “. Should you ever vacate the property, the owner must reimburse you for construction costs. Under Article 1678, the lessor upon the termination of the lease shall pay you one-half of the value of the improvements at that time. Should the lessor refuse to reimburse you said amount, you may remove (demolish) the improvements, even though the principal thing may suffer damage thereby.


I have also read very similar scenarios to this in other articles as well, and i do know that in the case of the lot owner in Diapila Bay, he agreed to lease his lot to me for the 10 years at P100k per year, but when i asked him what he wants done with the cottages when we leave, he told me that he wants them handed over to him, which i outright refused to do because this place is not a tourist destination yet, and i believe that this guy thinks his lot is worth a lot more than it really is, and for him to get P1m from me over 10 years i think is a good deal, but i won't be giving him up to P1.5k for the cottages i build there.

I sent him a proposal whereby i pay him P50k per year for 10 years (P500k) then he can keep the cottages (without the solar systems) which would be valued at around P1.0m for 4 cottages, OR if i have to pay him his P100k per year over 10 years (P1m) then i want him to pay me for 50% of the total cost of building the cottages (less the solar costs) which will be around P500k, so either option works out the same, and i explained to him that he would be better taking my P50k per year option so he doesn't have to fork out P500k for 50% of the building cost when we leave (with our solar systems)

I think he is being greedy, and trying to take advantage of this situation by thinking i may be a bit of a nut case, and he has continuously tried to convince me to get the cottages started now so at least 2 will be finished by the time we arrive there next April.

He hasn't even got his title yet.

As far as other family members trying to get the lot back, well i have made mention of the fact that we are employing a family lawyer from Manila who specializes in property, and he will be the one who will act on our behalf to make sure that everything is done properly, and this includes making sure there are no other family member mentioned on his tax dec paperwork, and if there is, those persons will be required to sign whatever lease agreement that is made between the lot owner and myself and my wife.

I gave this lot owner 14 days to decide on my terms, but i will only follow thru with the lease IF he gets the clean title in his possession by April 16 when we arrive there, if no title, we will start looking at other Lots in the Far northern region of Palawan, or further south at Port Barton, and this will make it easier for us as we will be there for nearly 7 weeks to find something else.

Article 1678
https://philippinecivillaw.wordpress.com/category/obligations-contracts/08-lease/

Offline David690

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Re: Living & Working in the Philippines (introduction)
« Reply #17 on: December 18, 2018, 07:40:44 PM »
I have Quoted the section regarding "Leasing" Property from the following article written by Badladz.

https://badladz.com/property-ownership-in-the-philippines/

Lease of Property

Now, Lease property from the “owner”. This is legal also.

Write a Lease Contract on the property for 75 years. Pay 10 pesos per year in advance and get a receipt to prove payment. Then REGISTER THIS LEASE ON TITLE.

You now have Physical Control.

A Foreigner can Legally have property ownership in the Philippines on buildings that are on someone else’s property through a process called TAX DECLARATION. This means you pay the taxes on the building and proves your ownership.

If you want to build on that property or there is already an existing building then create a document from the “owner” of the property saying that you have permission to build or purchase the building from the “owner “. Should you ever vacate the property, the owner must reimburse you for construction costs. Under Article 1678, the lessor upon the termination of the lease shall pay you one-half of the value of the improvements at that time. Should the lessor refuse to reimburse you said amount, you may remove (demolish) the improvements, even though the principal thing may suffer damage thereby.


I have also read very similar scenarios to this in other articles as well, and i do know that in the case of the lot owner in Diapila Bay, he agreed to lease his lot to me for the 10 years at P100k per year, but when i asked him what he wants done with the cottages when we leave, he told me that he wants them handed over to him, which i outright refused to do because this place is not a tourist destination yet, and i believe that this guy thinks his lot is worth a lot more than it really is, and for him to get P1m from me over 10 years i think is a good deal, but i won't be giving him up to P1.5k for the cottages i build there.

I sent him a proposal whereby i pay him P50k per year for 10 years (P500k) then he can keep the cottages (without the solar systems) which would be valued at around P1.0m for 4 cottages, OR if i have to pay him his P100k per year over 10 years (P1m) then i want him to pay me for 50% of the total cost of building the cottages (less the solar costs) which will be around P500k, so either option works out the same, and i explained to him that he would be better taking my P50k per year option so he doesn't have to fork out P500k for 50% of the building cost when we leave (with our solar systems)

I think he is being greedy, and trying to take advantage of this situation by thinking i may be a bit of a nut case, and he has continuously tried to convince me to get the cottages started now so at least 2 will be finished by the time we arrive there next April.

He hasn't even got his title yet.

As far as other family members trying to get the lot back, well i have made mention of the fact that we are employing a family lawyer from Manila who specializes in property, and he will be the one who will act on our behalf to make sure that everything is done properly, and this includes making sure there are no other family member mentioned on his tax dec paperwork, and if there is, those persons will be required to sign whatever lease agreement that is made between the lot owner and myself and my wife.

I gave this lot owner 14 days to decide on my terms, but i will only follow thru with the lease IF he gets the clean title in his possession by April 16 when we arrive there, if no title, we will start looking at other Lots in the Far northern region of Palawan, or further south at Port Barton, and this will make it easier for us as we will be there for nearly 7 weeks to find something else.

Article 1678
https://philippinecivillaw.wordpress.com/category/obligations-contracts/08-lease/

If he has no title, do yourself a big favour and walk away.  I was intent on buying a beach lot in Samal recently.  The family had been living there for yonks and had all the tax declarations etc.  When we carried out the surveys and investigations with DENR, it transpired that there was a previous name on a title back in 1940.  I walked away.  Without clean title, any contract you make with him, won't be with the paper it's written on.
Londoner at heart

Offline gregpinton

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Re: Living & Working in the Philippines (introduction)
« Reply #18 on: December 19, 2018, 12:00:26 AM »
If he has no title, do yourself a big favour and walk away.  I was intent on buying a beach lot in Samal recently.  The family had been living there for yonks and had all the tax declarations etc.  When we carried out the surveys and investigations with DENR, it transpired that there was a previous name on a title back in 1940.  I walked away.  Without clean title, any contract you make with him, won't be with the paper it's written on.

Thanks David, as mentioned in my previous post, i ended up giving the lot owner in Diapila Bay my final counter Offer with 14 days to accept it, he now has 5 days left, or we walk away, but part of that offer was that if he did accept by the deadline in 5 days, he MUST get the clear title in his name completed by the time we arrive at Diapila Bay in April, or we walk away then, as i told him even though he has the survey plan already, which he sent a copy of to us, i refuse to lease any land that is not titled in his name only.

If i have read the Civil Law on Leasing correctly, the Lot owner cannot take any of the cottages from me at the end of our lease period unless i stipulate this clause in the lease contract, and the only way he is getting any of my cottages will be if he accepts one of the 2 lease options that i have made in my written offer to him (see above post)

I have been reading a lot thru this article, very very interesting, but very confusing as well.

https://philippinecivillaw.wordpress.com/category/obligations-contracts/08-lease/

Offline gregpinton

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Re: Living & Working in the Philippines (introduction)
« Reply #19 on: December 19, 2018, 04:43:48 PM »
I have just found a relatively new Eco Camp on an island down in Port Barton (south of El Nido) that is run by a Filipino Lady and her English Partner, and we have just booked in to stay with them while we are in Palawan next April.

Their camp only operates from January 1st until the end of June, they spend the other 6 months back in England (during their summer) with their 2 teenage kids who are at Uni, and their accommodation consists of Tents for guests to live in, and they have a big kitchen and dining area which is used for cooking and serving of the guests meals, and they charge P2,500 per night, including meals.

I told her via messenger about our plan, and that it looks like the Property in Diapila Bay has fallen thru, and she has offered us a couple of options that may suit us more financially, depending if we want to live there for only 6 months of the year, or live there permanently.

Just around the corner from their Tent Camp they also have 2 small Bamboo cottages for each of her 2 teenage kids, and another cottage for her and her partner that opens out onto a small pool, and she rents these cottages out to anyone who does not wish to stay in a cheaper tent, but the cost is around P3,500 per night, and the pool is out of action until the renovations have been completed.

She has made an offer whereby if we only live there 6 months a year (May until Oct) which is most of their closed season, we can rent one of the Kids cottages very cheaply, or we can lease all 3 cottages from her during their 6 months off season (we live in the pool cottage) and we can rent the other 2 kids cottages out to tourists and we pay her a % of the income that we can get from them, which could be a fairly good idea.

This particular place we have already been to, so we already know what it is like there, but it was 4 years ago, and the cottages and pool were part of a closed down mini resort, and the Eco Beach Camp was not there.

The original cottages were ripped down and replaced with those in the photos below.
« Last Edit: December 19, 2018, 05:13:19 PM by gregpinton »

Offline suzukig1

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Re: Living & Working in the Philippines (introduction)
« Reply #20 on: December 19, 2018, 07:30:57 PM »
I have just found a relatively new Eco Camp on an island down in Port Barton (south of El Nido) that is run by a Filipino Lady and her English Partner, and we have just booked in to stay with them while we are in Palawan next April.

Their camp only operates from January 1st until the end of June, they spend the other 6 months back in England (during their summer) with their 2 teenage kids who are at Uni, and their accommodation consists of Tents for guests to live in, and they have a big kitchen and dining area which is used for cooking and serving of the guests meals, and they charge P2,500 per night, including meals.

I told her via messenger about our plan, and that it looks like the Property in Diapila Bay has fallen thru, and she has offered us a couple of options that may suit us more financially, depending if we want to live there for only 6 months of the year, or live there permanently.

Just around the corner from their Tent Camp they also have 2 small Bamboo cottages for each of her 2 teenage kids, and another cottage for her and her partner that opens out onto a small pool, and she rents these cottages out to anyone who does not wish to stay in a cheaper tent, but the cost is around P3,500 per night, and the pool is out of action until the renovations have been completed.

She has made an offer whereby if we only live there 6 months a year (May until Oct) which is most of their closed season, we can rent one of the Kids cottages very cheaply, or we can lease all 3 cottages from her during their 6 months off season (we live in the pool cottage) and we can rent the other 2 kids cottages out to tourists and we pay her a % of the income that we can get from them, which could be a fairly good idea.

This particular place we have already been to, so we already know what it is like there, but it was 4 years ago, and the cottages and pool were part of a closed down mini resort, and the Eco Beach Camp was not there.

The original cottages were ripped down and replaced with those in the photos below.


June through November in the PHL is a very "rainy" time.  July through September are particularly heavy rainfall months.  You better check the weather for that area for those months.  Not many tourists for that type of place if it's raining all of the time.

Offline gregpinton

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Re: Living & Working in the Philippines (introduction)
« Reply #21 on: December 19, 2018, 10:11:34 PM »
Yeah we go to Palawan, and especially Port Barton quite a lot, and we mostly only travel between April thru to October as it is our winter, so we got to know the weather in Palawan quite well by now, and even tho it may be the rainy season, it does not seem to affect the tourist business in Palawan that much, especially Port Barton as it is the 2nd most frequented tourist place in Palawan, behind El Nido.

If the owners of the 3 cottages near their beach camp make us a reasonable long term (6 month) rental offer on one of their kids cottages, and allow us to run the other 2 cottages for them while they are not there, and share part of the rental with them, then that rental income should be enough to pay for the rent that we will pay on our cottage, plus some.

Also, one of the 2 investment townhouses/duplexes that we want to buy will be rented out to permanent tenants so we have a steady monthly income from that, and the other one will probably be rented out thru Airbnb as we may end up making more money by doing so, if it does't pan out then we revert that to take in permanent tenants as well.

For several years now my real ambition in Palawan has been to buy a big fully enclosed sea going Banka (outrigger boat) and take large groups of tourists from Australia on 14 day expedition tours starting from Sabang, going up to Port Barton, up to El Nido, and further north until we reach Cabuli Island, and then take them over to Coron.

One day i still hope for something like this to happen.

Offline JohnH

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Re: Living & Working in the Philippines (introduction)
« Reply #22 on: January 19, 2019, 12:16:20 PM »
Since the OP is a Centrelink client, this warning may not be necessary:
If the Australian Aged Pension is important to your plans, proceed with caution!
In the opinion of the person who reviews your application, you must be a permanent resident. They have easy access to immigration computers and probably know more about your travels than you remember.

If you lived and worked all your life in Australia (with overseas vacations), then hit pension age, you are home free. You have portability and can retire wherever you like.

If you recently returned from an extended time away, but now swear that you are NOW a permanent resident you will be granted the pension but it WILL be cancelled if you leave Oz for more than a few weeks.

The uncertainty is - how recent is "recent"? Then, how long, if ever, till you are reclassified as having portability?

 


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