Investing in Real Estate in the Philippines

[sedna]

Originally Posted by Dvorak

providing you now have the condo.. how much is the yearly tax that you would pay? Does this depend on the amount of the condo? say if you have a 10M condo.. how much is the yearly tax for this?

Yes, it would be based on the market value. Php10M x 2.5% annual tax = Php250,000. Ouch!

[Dvorak]

yikes! is it really pegged at 2.5% per annum no matter how big or small your condo is?

so if you own a 40M condo at Pacific Towers, you'll pay 1M in tax annually??!

Originally Posted by sedna

Yes, it would be based on the market value. Php10M x 2.5% annual tax = Php250,000. Ouch!

[marites4]

2.5 of the value for the prop. tax. That seems kind of steep. Is this true. considering you hardly own any lot just a unit in building. IF that's the case I'll not even bother to proceed with our plan. Can anybody provide more info. on this.

[jerseygeorge]

Originally Posted by Dvorak

yikes! is it really pegged at 2.5% per annum no matter how big or small your condo is?

so if you own a 40M condo at Pacific Towers, you'll pay 1M in tax annually??!

Guys let me enlighten about real property taxes applied on condos, from the document that was handed to me from Joya at Rockwell. according to my record taxes is computed as follows: $5/sqm/year as of May 2005. So if your condo has 79sqm. it would come out to $395/yr. If you need some more info about other payments-association due,ins./taxes on common areas, one time payment paid upon turnover of unit -Joya in particular- let me know and I'll be glad to provide you.

[marites4]

how much did u end up paying for your association dues

[Dvorak]

association dues at Boni Ridge is at Php75.00/sqm.. all units have 113sqm so it's Php5,625.00 monthly.

Originally Posted by marites4

how much did u end up paying for your association dues

[jerseygeorge]

Originally Posted by marites4

how much did u end up paying for your association dues

rockwell-joya's association dues is Phldingp67/sqm month
my unit 67sqm =Php4489.00/mo.=$85.00 ex. rate Php=53

Insurance(buillding)(USD 0.13/sqm/mo)=$15/mo

Taxes on Common Areas(USD 0.27/sqm/mo)=$18/mo

Total monthly due=USD=$118.00 or Php6254.00

[sedna]

Originally Posted by jerseygeorge

Guys let me enlighten about real property taxes applied on condos, from the document that was handed to me from Joya at Rockwell. according to my record taxes is computed as follows: $5/sqm/year as of May 2005. So if your condo has 79sqm. it would come out to $395/yr. If you need some more info about other payments-association due,ins./taxes on common areas, one time payment paid upon turnover of unit -Joya in particular- let me know and I'll be glad to provide you.

real estate taxes are based on the assessed fair market value of the property(not by it's size) multiplied by the assessment level as mandated by local ordinances. Makati and Ortigas areas have the highest levels and condominiums, particularly Class "A" such as the Essensa are taxed in the highest bracket.

[sedna]

Originally Posted by marites4

2.5 of the value for the prop. tax. That seems kind of steep. Is this true. considering you hardly own any lot just a unit in building. IF that's the case I'll not even bother to proceed with our plan. Can anybody provide more info. on this.

Remember, the lot is also "owned" by the unit owner as a shareholder in the corporation that owns the lot and common areas. Thus, you will also be liable to pay your share of taxes on these common areas, on top of the taxes, you pay for your own condo unit, plus insurance, utilities, etc. make sure these are included in the condominium dues. . . . my, I'm getting dizzy. . .

[Lili]

Isn't the Condomimium Corporation (not the individual shareholder) liable to paying the real estate tax on the lot? So that if as a shareholder, you pay your maintenance fees, the property tax and insurance fees should be covered by your monthly maintenance fees. Otherwise, it would really be onerous on the part of the condo unit owner.

[highlander]

The Condo Corp is usually a non-profit organization composed of the Unit Owners. The association dues you pay covers the security, electricity and water for the common areas, maintenance of the common areas, painting... plus the real estate tax of the common areas including the lot and the insurance of the entire property. In effect, the cost of paying the real estate tax and the building insurance is passed to you through the association dues. Additionally, you have to pay for the real estate tax of your own unit. However, you do not need to pay any insurance anymore unless you want to insure the contents of your unit.

[Lili]

ok, thanks highlander.

[cutenapasaway]

question for everyone: what are the advantages & disadvantages of condominiums to house & lots?

(im planning to invest for my future home... thanks in advance for replying.)

[Dvorak]

the only advantage of a condo is that it's within the city and nearer to your work, provided you work in the vicinity. Security might also be an advantage for condos.

on every other aspect, nothing will beat a house and lot.

a condo like any other building only has a lifespan of I think 50 years. A house and lot can last forever, if the house doesn't then you can always build another one on the same lot.

Originally Posted by cutenapasaway

question for everyone: what are the advantages & disadvantages of condominiums to house & lots?

(im planning to invest for my future home... thanks in advance for replying.)

[sedna]

Originally Posted by cutenapasaway

question for everyone: what are the advantages & disadvantages of condominiums to house & lots?

(im planning to invest for my future home... thanks in advance for replying.)

A condo hardly appreciates in value especially on a very unstable economy such as the Phils and the maintenance costs(association dues) can be a worry on a unstable wallet.

[jerseygeorge]

Originally Posted by sedna

real estate taxes are based on the assessed fair market value of the property(not by it's size) multiplied by the assessment level as mandated by local ordinances. Makati and Ortigas areas have the highest levels and condominiums, particularly Class "A" such as the Essensa are taxed in the highest bracket.

I think we are not connecting on our issue here , you are correct real estate are based on fair market ex. Php10MX2.5-3.0% assessment for Makati City as to this date this will total to Php250,000-Php300,000. Now this is what everybody is worrying about, remember this is only one time payment I'll repeat one time payment only. This is like when buying a new car from a dealer USA/Phil. you have to pay taxes , the rates depend on the State/Town/City. With regards to annual real estate taxes, this what I mention in my previous posting real porperty taxes=$5/sqm/yr. on the unit. As for Lili's info. Condo management are responsible for payment of taxes , taxes on common areas, insurance(building) and other misc. These are included on the monthly Association Dues.

[Sinjin P.]

I'd trust Ayala Land, Filinvest Land, Commonwealth Estate, and others I forgot to mention

[bustero]

Originally Posted by cutenapasaway

question for everyone: what are the advantages & disadvantages of condominiums to house & lots?

(im planning to invest for my future home... thanks in advance for replying.)

One aspect is that it's a lifestyle choice.

H/L offers more space, garden living, ownership to the land itself

condo offers location, lock up capability, convinience

that's if you are a consumer of a primary domicile

if you're thinking from an investment point of view, then it's always location , location, location - in general though most homes have a poor rate of return basis and it's arguably cheaper to put your money in the bank and rent

[AkafloresToo]

Very educational thread, expecially for expat condo-owners like me. For additional info, try this link that talks about these ad other similar issues.

http://www.myhomeland.com.ph/

[marites4]

Originally Posted by sedna

A condo hardly appreciates in value especially on a very unstable economy such as the Phils and the maintenance costs(association dues) can be a worry on a unstable wallet.

IN this case why are they selling like hotcakes, it seems with all these new developments. Or maybe it's just a marketing ploy to make people think they're selling like hotcakes. Do people have a lot of disposable income.