FAQ's
"I made a tremendous amount of money on real estate. I'll take real estate rather than go to Wall Street and get 2.8 percent. Forget about it."
General questions
How can I make a staggering IRR by investing in real estate properties in the Philippines?
The whole model is based on the certain facts and assumption. The investors typically pay only less than 0.5% of the property value each month during the construction period. The investment done in small condominiums at right location from top developers and at an early stage of the development appreciates typically at 8% to 10%. This appreciation happens on the face value of the condo and not on the invested amount. As the condominium nears completion, these properties can then be easily resold to the growing upper middle class who need ready to move in condominiums. Since the investor has only invested by paying small monthly installments but the appreciation has happened on the whole property, the IRR is outstanding.
How do real estate funds differ from PH Realty?
PH-Realty is not a fund. Instead, we are a specialized platform for people who wish to purchase real estate in the Philippines. Through our portfolio, you can access great under construction properties also known as pre-selling properties, below market prices. Properties are only listed after the project has been issued a Certificate of Registration and the license to sell by HLURB (Philippines Housing and Land Use Regulatory Board) and after all property information has been verified by PH-Realty. If you find the property and its price attractive, you can reserve the property by paying a small reservation fee and then continue to pay monthly installments for predetermined period. You can either pay the balance due after project completion or resell the property anytime, in which case the assume balance is paid by the final buyer.
How does PH-Realty allow low and flexible ticket sizes for real estate?
PH-Realty pre-negotiated deals allow you to purchase a property with a variable down-payment. You may pay as low as 0.5% of the property's purchase price each month. Usually the higher the down-payment paid, the lower will be your contract price. As a part of our service, you can elect to have us resell the property for you at a later time so that you need not spend time and effort trying to market it. This also means that the eventual buyer of your property will pay the balance amount due on the property so you need not pay anything beyond your initial payments.
Will PH-Realty rent out my property and manage the property after it is built?
We offer under construction properties because that's where we think the returns are likely to be highest. As the developer completes the project, the property price tends to increase and can create a very attractive return for early buyers. We offer our optional property marketing services to you if you choose to resell your property. If you wish to retain the property and rent it out, we will help you through our property management service division.
Is the purchase price lower than the market price?
Yes. Since we enter into large institutional-sized arrangements with developers, we are able to get you a price below the current market price. PH-Realty prices are guaranteed to be lower than those offered by anybody else.
Why do builders offer huge discounts through PH-Realty?
PH-Realty's large client base allows developers to sell a large amount of their inventory very quickly. They are therefore willing to offer discounted prices through PH-Realty that they will not offer anywhere else
What is the duration of the investment? When will I get my money back?
Each project has its own expected time of completion and this tends to vary based on the type of project and the size of the development. If you elect to have PH-Realty market and resell your property for you, we will give you an indicative time within which we expect to be able to resell your property. This is called the "Investment Period." During this period, we will give you a quarterly update with the current expected resale price range and you may choose to authorize us to market your property at that price.
What are the parameters used to determine if a property could be listed?
PH-Realty only allows the best developers with an established track record to list on its platform. Properties are listed from only from Metro-Manila & Cebu Locations that have a good sales velocity. Properties are only listed after the project has been issued a Certificate of Registration and the license to sell by HLURB (Philippines Housing and Land Use Regulatory Board) and after all property information has been verified by PH-Realty.
What are the parameters used to select a developer?
We select developers based on a number of factors. PH-Realty's core team is very familiar with the top 10 developers in the Philippines and we deal only with developers who have a reputation for ethical and professional conduct. All the projects listed and recommended by PH-Realty are pre-vetted to ensure that their developers have an excellent track record.
Is there any property insurance on the property?
It depends on the property. Typically, PH-Realty enters into a project at an early stage and before the project is fully constructed. Therefore, our clients need not purchase insurance cover for such properties.
Does PH-Realty enter into deals where approvals are pending?
No. Properties are only listed after the project has been issued a Certificate of Registration and the license to sell by HLURB (Philippines Housing and Land Use Regulatory Board)
Is PH-Realty a Real Estate Investment Trust (REIT)?
No. A REIT is like a mutual fund, in the sense that you get shares. It pools investor capital, buys property and manages or sells them. In the case of PH-Realty, you are directly buying individual properties from that are carefully vetted and by paying directly to them. PH-Realty however facilitates the transaction.
Is there a definite entry period where I will get a good deal?
PH-Realty is not a fund and is instead a specialized property marketplace that is designed to address the needs of real estate investors. Therefore, there is no entry period and you may purchase any property that is currently listed on the platform. Due to the high demand for these properties they tend to sell out quickly and prices appreciate periodically. We encourage our users to decide promptly so that they can take advantage of their preferred opportunity.
What kind of returns can I expect?
As in any asset purchase, there are no guarantees. If you buy properties in bulk, you will be buying significantly below the current market price, then you already have a built-in profit in the transaction at the time of your purchase assuming prices remain the same. If prices rise, you may have an even higher return. And the discount also acts as a safety net, prices have to decline quite significantly before they reach a level below your purchase price. Over the last few years, PH-Realty clients have enjoyed an annualized return between 30% and 35%. If for any reason some o your properties can't be sold sooner, you can always rent them out. We will help you with renting your properties as well.
What will happen if the real estate market crashes?
Only properties in cities and areas where real estate markets have been stable and consistently growing are listed on the PH-Realty platform. Expensive areas, large unit sizes, ultra-luxury projects and cities that appear overpriced are not listed. Furthermore, since you get a discount compared to the prevailing market price, you will have a big margin of safety even if Philippines property prices were to decline.
How safe is my money?
We understand that buying a Philippines property may seem risky to those who are unfamiliar with the market and we therefore take a number of precautions to ensure the safety of your money. All property transactions happen directly between you and the top developers. All the properties listed have Certificate of Registration and the license to sell issued by HLURB (Philippines Housing and Land Use Regulatory Board) and after all property information has been verified by PH-Realty.
What kind of transparency can I expect from PH -Realty?
Transparency is one of the key pillars of our service and value proposition. When you purchase a property in Philippines from us, you will be clearly informed of your total purchase price including all fees. You will also be able to view all documents pertaining to your purchase. You can keep the original property documents with you, we will keep copies for our records.
Is there a regulator for the services PH-Realty provides?
Yes. All property sales listed by PH-Realty are regulated in the Philippines. Properties are only listed after the project has been issued a Certificate of Registration and the license to sell by HLURB (Philippines Housing and Land Use Regulatory Board) and after all property information has been verified by PH-Realty. We only deal with the top developers in each city and those developers are members of HLURB, the Government regulatory organization of the Property Developers in the Philippines.
Does PH-Realty guarantee investment returns?
No. PH-Realty offers you an opportunity to purchase Philippines real estate that has been carefully vetted, at discounts compared to the market price. It is not an investment product but is instead a real estate platform. Since properties that are listed are below their current market price, you have a margin of safety in the event of a downturn in real estate prices. Nevertheless, your gains will depend on how the real estate market performs between the time you purchase and the time you resell.
How much does PH-Realty charge for its services?
PH-Realty does not charge the investors any fees at the time of purchase. A 4% brokerage fee is charged to the investors only if they choose PH-Realty to resell their purchased properties. This is however totally optional, Investors can resell their properties themselves or through any licensed broker.
People I know have been able to triple their money in the last few years. Will I be able to do the same?
Buying real estate anywhere in the world is tricky and for every person who has had that kind of return, there are many more that have lost their money or are stuck in unfinished projects. PH-Realty is extremely selective in ensuring that the right properties from the right developers at the right price are listed on our platform. The core value of our company is to ensure safety, transparency and avoid risky or speculative deals. To put it in perspective, the 30%-35% annualized IRR that our clients have enjoyed in the last few years would be the equivalent of doubling their money in 2-3 years.
How does PH-Realty help with diversification?
Our huge inventory across various project and developers along with the flexible staggered down-payment pricing allows you to build a diversified portfolio of real estate with the money that would otherwise get you only one or two properties.
Should one deal only with licensed real estate brokers?
Yes. A real estate buyer should deal only with licensed real estate brokers. Practicing or advertising real estate service without the necessary license is prohibited under the Real Estate Service Act. This is to protect buyers of real estate and to regulate the real estate industry.
Foreigners
Can Foreigners buy properties offered by PH-Realty?
Yes. Foreigners may buy residential and commercial condominium properties in the Philippines through PH-Realty.
Can I buy through my company or trust?
Yes. Foreign companies and trust may buy residential and commercial condominium properties in the Philippines through PH-Realty.
How do I make the payment required to purchase my property?
You may pay for your property by remittances, check or bank transfer directly to the developer. We will guide and facilitate you with all the requirements.
Is there Tax on the gain?
In the Philippines, there is a fixed 6 % Capital Gain Tax on the value of the property which is to be paid at the time of resell. Our gain calculator, already factors that and other selling costs before it shows you IRR estimates.
As a Foreigner, do I face any restrictions when selling and repatriating the proceeds?
There is no restriction placed on the acquisition or sale of residential property by a foreigner. In any case Investors who wish to invest should consult their professional advisers before investing.
Do foreigners have to file income tax in the Philippines?
As per the Income-tax Act any person whose income is from Philippines source in any financial year, irrespective of his residential status, must file a tax return in Philippines. Investors who only have capital gain income in the Philippines will have to file BIR Form 1706, which is fairly simple and straightforward. PH-Realty can assist you with all income tax returns at a very nominal fee.
Legal
What is a deed of sale?
A deed of sale is a document executed by the seller and the buyer upon payment of the agreed price by the buyer. The title and ownership to property is formally transferred to the buyer through the execution of this document. It contains the names of the parties, the Transfer Certificate of Title number, the land area, the technical description and the selling price. A deed of sale must be notarized.
What is a contract to sell (CTS)?
A contract to sell is a bilateral contract whereby the seller retains the title and ownership to the property until the full payment of the purchase price by the buyer. The seller is bound to sell the property exclusively to the buyer upon full payment. In some instances, the physical possession of the property is transferred to the buyer, subject to terms and conditions. Upon full payment, a deed of sale will be executed by the buyer and the seller. Most condominium unit buyers execute this kind of contract with developers.
Who will certify the title for my property?
Every property undergoes exhaustive due diligence and is offered by a top 10 developer in the Philippines. All properties have licensed to sell from HLURB. The certificate of title is given to the investor only upon full payment to the developer.
Can I buy through my company or trust?
Yes any company or trust will be able to purchase property in the Philippines through PH-Realty.
Is the money held in Escrow Account?
No. The investors directly pay the money each month to the developers either via remittances or post dated US Dollar checks or post dated Filipino bank checks.
Is an assignment agreement a legal document?
Yes. An Assignment Agreement, also called a Contract To Sell (CTS) allows a party to an agreement to assign his contractual rights and responsibilities to another party. This is an effective way in which to transfer your interest in an under-construction property to another person. Since Assignment Agreements are legal contracts, under Philippines law they will need to be franked with proof of payment of stamp duty.
Can I buy a property under my child's name?
Yes with certain conditions. However our services are only offered to investors, who are adults and capable of entering into legally binding agreements.
Who is the custodian of all my documents?
Investors will have access to all original documents issued by the developer. Developers will have access to all original documents and post dated checks issued by the investors.
Can I select a nominee for my account?
You may name a nominee for each property that you purchase through PH-Investors.
Taxes
Is there Tax on the gain?
In the Philippines, there is a fixed 6 % Capital Gain Tax on the value of the property which is to be paid at the time of resell. Our gain calculator, already factors that and other selling costs before it shows you IRR estimates.
As a Foreigner, do I face any restrictions when selling and repatriating the proceeds?
There is no restriction placed on the acquisition or sale of residential property by a foreigner. In any case Investors who wish to invest should consult their professional advisers before investing.
Do foreigners have to file income-tax in the Philippines?
As per the Income-tax Act any person whose income is from Philippines source in any financial year, irrespective of his residential status, must file a tax return in Philippines. Investors who only have capital gain income in the Philippines will have to file BIR Form 1706, which is fairly simple and straightforward. PH-Realty can assist you with all income tax returns at a very nominal fee.
What are my tax implications of buying through PH-Realty?
PH-Realty offers a property buying service for Philippines real estate and as such your tax implications will be similar to what you would experience were you to purchase the property on your own. Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. You should consult your tax adviser for further information. We can also assist you with reference of a qualified licensed tax advisor (CPA) in the Philippines.
Can I reinvest my earnings directly into another PH-Realty project without paying taxes?
No. Unfortunately as per government rules, taxes would have to be paid on the sell of each transaction, even if you purchase another property from these proceeds. Our gain calculator, already factors that and other selling costs before it shows you IRR estimates.
Buyers
What are the different ways in which I can purchase through PH-Realty?
Purchasing a property through PH-Realty is easy. Select your property, and give us your information. We will take care of all the paperwork and help you navigate the Philippine's real estate space like a pro. Our job is to advice on what properties to buy and which ones to avoid.
Is my investment backed by the underlying property as the asset?
Yes. When you buy a Philippines property through PH-Realty, you are directly buying the property from the developer and you are therefore the owner of the property.
How is my discount related to the up-front payment?
Every developer offers discounts depending on how much down-payment an investor pays initially for the property. Developers offer additional discounts if units are purchased in bulk. The exact price and discount will vary for each project. We will negotiate with the developers for the best possible prices. We want you to succeed, simply because we want you to reinvest your money in the future as well as refer your friends and family.
If I am putting a down payment of just 0.5% a month, who is funding the rest? Am I expected to pay the rest over time?
Only if you wish to take possession of the property for your personal use or to rent it out. If you resell the property or have us resell it for you, then the eventual buyer of your property will pay the balance. In effect, you can think of the balance due on your property as equivalent to an interest-free loan from the developer. When PH-Realty sells the property on your behalf, we return your capital with the appreciation after subtracting the balance due to the developer.
If I purchase now with the intention of reselling but later change my mind and decide to take possession of the property, will you allow it?
Yes, of course. The property is yours and you may do with it as you please. You can decide to take possession of the property upon completion by paying any balance due to the developer. In order to avoid any complication, if you ask us to market your property and then change your mind, we ask that you notify us of your intent to cancel our marketing service prior to our executing any resale documents on your behalf.
How do I make the payment required to purchase my property?
You may pay for your property by Filipino bank checks, US Dollar checks or bank transfer. There are certain requirements for foreigners to open a bank account in the Philippines. We can guide and assist you with that.
Can I get a loan from a bank to pay for my property?
It depends. Banks in the Philippines offer loans to foreigners after some due-diligence, typically a loan is approved only after at least 20% down-payment is made. Please note, however, that the typical project offered by PH-Realty can be resold within 2-3 years, so you will usually not have to worry about paying the balance in cash or getting a loan.
What documents do I get when I buy?
When you buy under-construction real estate in, you will get a purchase contract called an "Contract to Sell" from the developer. You will either be the named party in the contract or the named party will assign the contract to you. These are the standard legal documents executed in the Philippines in every typical property transaction and are legally valid. If you decide to retain the property and pay the developer the balance in full you will get a Certificate of Title from the local government office.
Can I "top-up" current purchases through additional purchases?
PH-Realty pre-vetted projects are generally so attractive that they tend to sell out within few months. Therefore, it is sometimes not possible for a client to purchase multiple times within the same project. However, we always have deals available and you may purchase property in as many projects as you like.
I want to buy. Whom do I contact to make a purchase?
Please contact client support via phone or chat or send an email to sales@PHInvestors.com.
What happens if the project does not get completed?
Only the top developers with a proven track records are listed on our website. All the developers are amongst the top 10 developers in the Philippines. These developers are all publicly listed companies in the Philippines Stock Market, who engage the best contractors. Therefore, we believe that our clients have much lower risk when purchasing properties through us, than when they buy properties on their own.
What are the rights of home buyers?
Under the Subdivision and Condominium Buyers Protective Decree, a home buyer has the right to demand from the developer the delivery of the title of the lot or unit to him/her upon full payment of the lot or unit. In the event that the owner or the developer fails to develop the subdivision or condominium project according to the approved plans and within the time limit, a buyer may choose to be reimbursed the total amount paid including amortization interests. No installment payment made by the buyer shall be forfeited in favor of the owner or developer.
Sellers
What do I need to do to get PH-Realty to sell my property for me?
PH-Realty is one of the largest licensed real estate brokerage company in the Philippines. If you would like PH-Realty to resell your property on your behalf, you would need to sign a marketing agreement with PH-Realty for those properties. In addition, if you wish to have PH-Realty to execute the sale documents on your behalf, you will need to give a special power of attorney (SPA) to PH-Realty. The SPA will only be used by PH-Realty subject to your approval of the sale price.
What happens if PH-Realty is unable to sell my property within the project duration?
PH-Realty ensures that client's properties are sold within the targeted investment period. In our previous transactions, all clients who had us market their properties have had the properties sold within the expected targeted investment period or, in rare cases, within a few months thereafter. However, since you are the owner of your property, you are free to market your property yourself instead of using our property marketing service.
What if I need my money back urgently?
As you own the property, you may choose to sell it at any point of time depending upon your requirement. In addition, you also have the option of having us market your property for you, but in that case we cannot guarantee that your property will be sold within your time-frame. Our marketing efforts are geared towards marketing properties in a project within a certain investment period and not designed for an immediate liquidation.
As a foreigner, do I face any restrictions when selling and repatriating the proceeds?
There is no restriction placed on the acquisition or sale of residential property by a foreigner. In any case Investors who wish to invest should consult their professional advisers before investing.