Living In The Philippines Forum

Itís Your Money => Building in the Philippines => Topic started by: JoeLP on August 29, 2014, 02:48:59 PM

Title: Leasing land to own
Post by: JoeLP on August 29, 2014, 02:48:59 PM
There's a pinoy in Babon who has started something pretty nice for foreign men.  He owns a nice large piece of property.  He then has broken them up into lots that he leases at the price of the property in a one time lease payment, that at any time can be transferred to the purchase money and he'll sign over the property to the pinay of choice of the foreigner who leased it.  Basically, the foreigner is the lease holder until he trusts his gf/wife, then she becomes the owner. 
Just learned about this last night from my Aussie friend who lives in Babon.  My friend has owned a nice ocean front piece now for over 5 years, but said he wishes there was something like this when he first bought his property, he was pretty worried at the time.
Title: Leasing land to own
Post by: Art, just a re(tired) Fil-Am on August 29, 2014, 03:24:03 PM
You mentioned a Pinay and then go to say he did this, he did that! You mean to say the owner is a Filipino? A foreigner can not own land in the Philippines! So how can an Aussie sell land that he doesn't legally own? That would be a great deal to a foreigner and his spouse, if it's true and the Filipina owns the land legally!
Where is Babon exactly? When I did a Google search, nothing showed up, except for a picture of a baboon!  ???
Title: Re: Leasing land to own
Post by: Gray Wolf on August 29, 2014, 11:22:12 PM
You mentioned a Pinay and then go to say he did this, he did that! You mean to say the owner is a Filipino? A foreigner can not own land in the Philippines! So how can an Aussie sell land that he doesn't legally own? That would be a great deal to a foreigner and his spouse, if it's true and the Filipina owns the land legally!
Where is Babon exactly? When I did a Google search, nothing showed up, except for a picture of a baboon!  ???

I edited Joe's post, correcting some spelling.  The pinoy owns the land, not the Aussie, according to how I read Joe's post   ;)
Title: Re: Leasing land to own
Post by: suzukig1 on August 29, 2014, 11:38:18 PM
There's nothing that can legally bind the land owner to turn over title to land to some fictitious person i.e. the future gf/wife.  So you have to trust that the land owner will honour his verbal commitment.  What happens if the value of the land doubles in 5 years?  Will the landowner still turn over title without added cost?  IMO someone who would enter into a deal like this is too trusting.  (Why are foreigners in such a rush to buy land in the Phl?)
Title: Re: Leasing land to own
Post by: Lee2 on August 29, 2014, 11:43:35 PM
Besides trusting, what would happen should the owner of the land pass on before you decide to buy.
Title: Re: Leasing land to own
Post by: meylou on August 30, 2014, 01:49:58 AM
Where in the Philippines is Babon?

Since a Filipino owns the property, you need to make sure he is the sole owner of the property. Do your due diligence before signing any lease contract, otherwise there will be trouble down the road.

When it's too good to be true ...
Title: Re: Leasing land to own
Post by: JoeLP on September 01, 2014, 11:11:38 PM
Babon in in Northern Samar.  The Pinoy was born and raised in Babon, then moved to the US for about 20 years, and now, in his 40's is living back in his hometown.  He's a friend of Bob(my Aussie friend).  He was trying to find a way to make money and have his own business, but he couldn't find anything that fit his background.  The land is some that he bought from family, and the rest that he inherited.  Per Bob, it's all a clean ownership. 
I guess this Pinoy has been doing it for a few years and 1 foreigner has already "leased" land and as of a month ago already transferred it to his fiance. 
The reason for this is Bob and this Pinoy had an Aussie friend who was taken to the ringer by his fiance.  He gave her a family heirloom for the wedding ring.  They got married.  And 6 months into the marriage, she sees and ex of hers who doesn't want to be an ex to her no more, and she took her ring(appraised at over $5K in Australia) to a pawn shop and only gets 5kphp for it because the rock means nothing to pawn stores.  She then also takes the property from him because it's in her name. 
So this Pinoy thinks he found a way to take care of the issue with the whole "lease/then own" set up.  He does mark up the price for his own nice little income.
Title: Re: Leasing land to own
Post by: Art, just a re(tired) Fil-Am on September 01, 2014, 11:48:10 PM
Looks like a very nice, secluded and isolated place!
Where's the nearest hospital, airport, bus terminal,
ferry, U.S. Embassy and or local BI Field Office?

http://tinyurl.com/kb9dyso (http://tinyurl.com/kb9dyso)
Title: Re: Leasing land to own
Post by: Gray Wolf on September 02, 2014, 02:18:30 AM
Looks like a very nice, secluded and isolated place!
Where's the nearest hospital, airport, bus terminal,
ferry, U.S. Embassy and or local BI Field Office?

[url]http://tinyurl.com/kb9dyso[/url] ([url]http://tinyurl.com/kb9dyso[/url])


There's only one US Embassy in the Philippines and it's in Manila. 

http://manila.usembassy.gov/

Consular affairs officers travel to Mindanao where they offer VPP (Virtual Presence Post) when conditions allow. 
Title: Re: Leasing land to own
Post by: Art, just a re(tired) Fil-Am on September 02, 2014, 02:30:50 AM
How about showing us all some pictures of your friend's property and what lots are available for least to own?
How accessible is the property?
Are there any "right of way" easement bounders involved?
Is it beach front property?
Is water and electricity readily available to the property?
Is the total combined area of the property already subdivided individually by their perspective lots and with easements attached and or included when the lot is sold?
What's the markup of the selling price of the individual property?
What's the cost of the land Title Transfer and how long does it take (free and clear certificate)?
What's the cost of the annual property tax for the land only per sq meters and or after an assessment if and when a home is constructed on the property depending on the size of the floor plan per sq meters?