Invest in Philippines - MegaMax Global





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Published on Mar 11, 2014

1. How much is the rental yield and property appreciation?

As of today, in both developments in Makati and Bonifacio Global City (BGC), units can be rented out for Php 650 -- Php 1,000 per sq. m. per month (at a conservative rate), giving you a gross rental yield of around 7.6% -11.7% for a residential condominium in the area.

As for the property appreciation, projects increase its prices of about 5-7% annually.

2. Any restriction on foreign ownership when buying condo apartment?

Foreigners are not restricted to own condominium units in the Philippines. Provided, the development comprises of only 40% foreigner owners or less. For example, for a stand-alone condominium (a residential property that is not part of a township development) with only 100 units, only 40 units should be owned by foreigners and the remaining 60 units should be owned by Filipino citizens.

Furthermore, foreigners are restricted to buy land.

3. What is the capital gain tax involved when selling property in Philippines?

On selling, there is no capital gains tax during the pre-selling stage. Only after the handover of the keys that 6% capital gains tax will take effect.

4. Any withholding taxes when remitting the money back to base country?

There is no withholding tax when remitting the money back. However, there are bank charges when remitting money from the Philippines internationally. The rates would depend from bank to bank.

5. What is the interest rate on housing loan at the moment and how much can a foreigner loan?

Foreigners are allowed to bank finance their condominium with our tie up local banks as long as they have an attorney-in-fact in the Philippines. For, international banks such as HSBC and CITIBANK, it process home loans to their foreign depositors.

Foreigners with Special Retirement Residence Visa (SRRV), may bank finance your properties for 15 years up to 80% loanable amount. Foreigners are eligible to apply for SRRV once they have paid at least P2,000,000 on their property.

At the moment, bank loan rates are 5.95% fixed for 1 year (can be lower) and 7.75% (fixed for 3 years), depending on the terms and bank applied to.

6. What is the typical maintenance fee for the apartment?

As of to date, our existing and operation residential properties have a maintenance fee (association dues) of Php 68 / sq. m. / month + 12% VAT. Hence it's about Php 76.16 / sq. m. / month. For a 90 sq. m. unit (968.40 sq. ft.), maintenance fee is about Php 6,854.40 per month.

7. Does your company provide Management services to manage the apartment (finding tenants, minor repairs etc) and how much does is the commission?

MegaMax Global has a local company based in Philippines, which is the entity that manages most of MegaMax properties. They take care of minor repairs and you may also list your unit/s with them for lease or sale. They will take care of your unit/s for you.

Aside from that, there are many real estate agents who are very aggressive in marketing real estate properties. They can help you lease out or sell your units in no time. The standard commission for rental is one (1) month commission for every one (1) year contract, or 10% of monthly rental if short term or transients. If you're looking to sell your residential properties, agent fees are usually 3% -- 5% commission depending on your agreements and Capital Gains Tax is 6% of the selling price.

Please feel free contact Victor Chua Victor.Chua@MegaMaxGlobal.com.sg

  • Category

  • Song

    • Soakin Up The Fun4-11-19664
  • Artist

    • Mad Music
  • Album

    • Mad Music
  • Licensed to YouTube by

    • AdRev for a 3rd Party (on behalf of Mad Music (Mad Music)); AdRev Publishing, and 1 Music Rights Societies


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