Question 1

What is pre-selling property in the Philippines?

Accepted Answer

Pre-selling means buying a unit before construction is finished — sometimes before it has started. Developers price pre-selling inventory below the eventual ready-for-occupancy price and spread the down payment across the construction period, commonly 24 to 48 months, with the balance settled through a bank or Pag-IBIG housing loan on turnover. The trade-off is waiting for delivery and carrying completion risk, which is why the Department of Human Settlements and Urban Development requires developers to hold a License to Sell before marketing a pre-selling project.

Question 2

How does rent-to-own work for a house in the Philippines?

Accepted Answer

In a rent-to-own arrangement the buyer occupies the property and pays monthly, with an agreed portion of each payment credited toward the purchase price. Contracts usually run one to three years, after which the occupant either settles the balance in cash or takes out a housing loan. Because many rent-to-own deals are financed in-house by the seller rather than a bank, credit requirements are typically lighter than a Pag-IBIG or bank loan, and the effective interest rate is typically higher.

Question 3

Where do foreclosed properties in the Philippines come from?

Accepted Answer

Foreclosed listings are assets repossessed after a borrower defaulted, then put back on the market by the lender. The largest sources are Pag-IBIG Fund, which publishes regular acquired-asset listings, and the universal and commercial banks, which market them as ROPA (Real and Other Properties Acquired). They are usually priced below comparable open-market units because the seller's objective is recovering the loan balance, not maximising price.

Question 4

Can a foreigner buy property in the Philippines?

Accepted Answer

A foreign national cannot own land in the Philippines under the 1987 Constitution, but can own a condominium unit outright provided foreign ownership in that condominium corporation stays at or below 40 percent of the total. Foreigners can also lease land long-term, and a former Filipino citizen may acquire limited land area under Republic Act 8179. Land ownership through a Philippine corporation is possible where Filipino citizens hold at least 60 percent of the equity.

Question 5

What is a Pag-IBIG housing loan and who qualifies?

Accepted Answer

The Pag-IBIG Fund housing loan is the Philippines' government-backed home financing programme. Qualification requires at least 24 monthly membership contributions, an age of 65 or under at application and 70 or under at maturity, and sufficient documented capacity to pay. Loan terms run up to 30 years, and the maximum loanable amount reaches ₱6 million. Rates are typically below comparable commercial bank housing loans, which is why it is the default financing route for most first-time Filipino buyers.

Question 6

What does TCP mean in a Philippine property quotation?

Accepted Answer

TCP stands for Total Contract Price — the full agreed price of the unit before financing. A typical quotation breaks the TCP into a reservation fee, an equity or down payment portion paid over the construction period, and a loanable balance covered by a bank or Pag-IBIG housing loan. Miscellaneous fees, which cover transfer taxes, registration and utility connections, are frequently quoted separately and can add roughly 6 to 10 percent on top of the TCP.

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