Megaworld Fort Condominum FAQ:
Investor Frequently ask question:
- Properties Rental Yield and Appreciation of Property for investor
- Restriction for Foreign investor buyers and ownership
- Taxes on Buying and Selling a property in the Philippines
- Withholding taxes when remitting money to your country
- Association or maintenance fee on a condominium
- Home loans for foreign borrowers
1. How much is the rental yield for the Property in Fort Bonifacio and property appreciation?
McKinley Hill and Bonifacio Global City as of today , you can rent out a unit for Php 750 – Php 1,200 per sq. m. per month (at a conservative rate) having this rate you will have a rental yield of around 8% -11.7% for a residential condominium in the area of Fort Bonifacio.
2. Any restriction on foreign buyers on owning a condominium?
Foreign buyer are not restricted to acquire a condo units in the Philippines. Provided, the condo development consists of only 40% or less Foreign owners. For example, on a stand-alone condominium with only 100 units, only 40 units should be owned by foreigners and the remaining 60 units should be owned by local investor. Other than that foreigners are restricted to buy land unless he or she will marry a local citizen to acquire a land.
3. What are the real estate taxes involved when buying an apartment in Philippines?
Upon Turnkey of unit the following Taxes and fees which is a one-time payment which are the following:
- Documentary Stamp Tax
- Transfer fee Tax
- – to be paid to the City Treasurer’s Office
- – the rate differs per city, ranges from .5% – .85% of property price
- Real Estate Tax
- – the Computation for Real Estate Tax : Real estate tax = Fair Market Value x 45% Assessment Level x 1% Basic Tax Rate
- Miscellaneous Fee
- Meralco and Water deposit
Annually, there is a very minimal amount of Real Property Tax (RPT) needs to be paid which is so called amilar, which is assessed value x 1%. Also, enjoy big discounts up to 20% if you will pay in advance on the tax
On selling, if you will be selling a pre-selling there is no capital gains but if the property is already been turnover to you. You will have to pay 6% capital gains tax on the property.
4. Are there any withholding taxes when remitting money back to your home country?
If you will be remitting money back to there are no withholding tax. However, if you will remit your money through bank transfer there will bank charges when remitting money going to the Philippines internationally. The rate will 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 do a bank financing on their condominium. The % of loan they can loan in the bank is 50% with the maximum of 60% loanable amount case to case to the local bank here in the Philippines.
Foreigner with local wife can loan 80% to 90% loanable amount of the total contract price of the property making her local wife as co borrower.
At the moment, bank loan rates are 5.95% fixed for 1 year and 7.50% fixed for 3 years then 9% fix for 5 years. depending on the approval of the bank.
6. What is the typical maintenance fee for the apartment?
The maintenance fee for the condominium for Megaworld Properties Maintenance fee or association dues is going at 75 to 100/ sqm . For Example, for a 40 sqm the association dues is going at 3000 pesos to 4000 pesos.