Dual Citizens

Balikbayan

Former natural-born Filipinos who are now naturalized citizens of another country can buy and register, under their own name, land in the Philippines but limited in land area (see below). However, those who avail of the Dual Citizenship Law can buy as much as any other Filipino citizen.

Under Republic Act 9225 (Dual Citizenship Law), former Filipinos who became naturalized citizens of foreign countries are deemed not to have lost their Philippine citizenship, thus enabling them to enjoy all the rights and privileges of a Filipino.

Steps to Gain Dual Citizenship:

• If you are in the Philippines, file a "Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225” at the Bureau of Immigration (BI) and for the cancellation of your alien certificate of registration.
• Those who are not BI registered and overseas should file the petition at the nearest embassy or consulate.

Requirements:
• Birth certificate authenticated my the National Statistics Office (birth certificate from the NSO can be requested online and mailed to you)
• Accomplish and submit a “Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225” to a Philippine embassy, consulate or the Bureau of Immigration.
• Pay a $50.00 processing fee, schedule and take an "Oath of Allegiance" before a consular officer.
• The Bureau of Immigration in Manila receives the petition from the embassy or consular office. The BI issues and sends an Identification Certificate of citizenship to the embassy or consular office.

If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail of the Dual Citizen Law, he or she can still acquire land but limited to the following:
• Up to 1,000 square meters of residential land.
• Up to one (1) hectare of agricultural of farm land.

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Foreigner's Opportunity to Own Real Estate

Foreigner's Opportunity to Own Real Estate

The general rule is that only Filipino citizens and corporations or partnerships, at least 60% Philippine owned are entitled to acquire real estate in the Philippines. As an exception to this rule, an alien acquisition of Philippine real estate is allowed in the following cases:

• acquisition before the 1935 Constitution
• acquisition thru hereditary succession if the foreign acquire is a legal heir
• purchase of not more than 40% interest as a whole in a condominium project
• purchase by a former natural born Filipino citizen subject to the limitations prescribed by law.

Filipinos who are married to aliens retain their Filipino citizenship, unless by their act or omission they are deemed to have renounced their Filipino citizenship.

Special Visas for Foreigners Allowing 100% Land Ownership

There are visa options available to foreigners that allow 100% ownership and control of Philippine land and real estate properties.

New Dual Citizenship Laws Affecting Property Ownership

Dual citizenship means having two citizenship's and passports from two different countries. Dual citizenship is now newly available for the following:

• Former Filipino citizens born in the Philippines, but that have immigrated to another country and obtained citizenship of that country.
• A foreign spouse married to a Filipino citizen. Dual citizenship allows the citizenship holder full rights of possession of Philippine real property. Currently this is a new law and it is still unclear as of the procedures involved to implement it. Check back for updates.

Foreigner Married to a Filipino Citizen

If holding title as an individual, a typical situation would be that a foreigner married to a Filipino citizen would hold title in the Filipino spouse's name. The foreign spouse's name cannot be on the Title but can be on the contract to buy the property. In the event of death of the Filipino spouse, the foreign spouse is allowed a reasonable amount of time to dispose of the property and collect the proceeds or the property will pass to any Filipino heirs and or relatives.

Foreign Ownership of a Philippine Corporation

Foreign nationals and or corporations may own 100% of a Philippine condominium or town home. For private land, residential home with land lot and or commercial building with land lot ownership, the foreign national and/or corporation forms a Philippine Corporation to take ownership of the property. A Philippine Corporation by law will be a maximum of 40% foreign owned, and a minimum of 60% Filipino owned with a minimum of five incorporators. The corporation by law shall have a main bank account tied to it upon incorporation. A foreign national may be the sole person on the Philippine corporation bank account. Thus allowing the foreign national total control over the funds derived and paid out from the Philippine Corporation and from the income or sale of the asset or real estate property.

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The Ten Big Mistakes Novice Real Estate Investors Make

Buying real estate is as popular as ever, and it seems pretty straightforward at first glace. With mortgage interest rates at moderate low and plenty of real estate to buy, many real estate investors truly believe that they can do a bit of cosmetic work, accessorize a bit, and then put up the for rent or for sale sign. Unfortunately, it is not quite that easy and there are some common mistakes that can be avoided if one plans ahead and truly understands what he or she is getting into before investing.

Don't Fall In Love

The first rule of thumb when you are investing in real estate is that you cannot fall in love with any one property. When you are looking at real estate to buy for investment purposes you can't think like a homeowner, you must think like a business owner. Don't think about what you like about a home or a piece of real estate, think about how well it will sell or rent in the current market.

Not Exercising Due Diligence

When you invest in real estate you can't simply invest if the property looks good at face value. A very thorough inspection of the structure needs to be done as well as research on the local market. One must also look into the vacancy rates and average rents for homes or structures that are comparable. A diligent business owner will also look into how the neighborhood is zoned as well as any regulations that will apply to the rental property. You will also want to check into how many other rental properties are in the area and if they are comparable to the property you are looking at.

Investing in Obscure Areas

Generally, it is not a good idea to invest in properties that you cannot visit regularly. Long distance real estate investments leave you out in the cold and you may have no idea what is going on in or around your property. It is a good rule of thumb to only invest in areas that you live.

Paying More than the Property Is Worth

New real estate investors often do not do the proper research and end up paying more for a property than it is worth. When you are investing you have to think about yourself, even if that means that you have to low-ball the seller at first. Investing in real estate is all about getting the right price for you. You need to know that you can cover your mortgage and your expenses from a rental payment, so really consider what the local market will allow.

Believing You'll Secure the Lowest Mortgage Rates

Television can be very deceiving for those that are in the real estate investment business. The low mortgage rates are not offered for just anyone, they are for owner occupied homes, which are considered much less of a risk than a unit that is rented out. Homes that will not be owner occupied will experience mortgage rates that are 1.5 to 2% higher, which can make for a huge difference in monthly payments for the real estate investor and his or her tenants. You also need to be aware of your credit, if you have terrible credit you won't have much luck getting a loan, but the better your credit is the better your rate will be.

Forgetting the Rule about Time and Money

Many new real estate investors forget that all home improvements are not as cheap and as straightforward and they hoped that they would be. The rule that most real estate investor's use is that it will take twice as long and three times the money than you would think to ready a unit for rent or sale. Real estate isn't transformed over night, so one must plan accordingly. Failing to plan ahead for this can leave you in a real bind where you lose money because you don't have the resources to complete a project.

Failing to Look into the Competition

It's a good idea to look at the competition, especially if they are successful. Lower payments, exciting features, and more will often help fill rental units. Pay attention to what works in your area and duplicate it if possible.

Failing to Pre-Screen Tenants

Many new landlords are so anxious to get their new tenants moved in that they forget all about screening them to be sure that they have a relatively clean credit history, they are gainfully employed, and that they have a good rental history. While screening tenants can take a bit longer than you might like to wait, it's easier to get this done than to try to evict a tenant. It's always better to pre-screen than deal with the headaches later.

Breaking Your Own Rules

New real estate investors often set business rules for themselves, and then occasionally they get a bit soft. If you have established rules about what day the rent is due, pet policies, waterbeds, or lawn care, stick with those rules. The minute you stop obeying your own rules you set your self up for disaster. If you stick to your rules and you refuse to break them no matter the situation, you will find that you are much more successful in a business sense.

Not Acquiring Enough Insurance

Being under insured is a common mistake of new real estate investors. You need to know that your insurance company will cover accidents on the property as well as damage due to fires or natural disasters.

As you can see, there are a lot of mistakes that you can make. Luckily, if you plan ahead and do not rush into real estate investment you can avoid a lot of these pitfalls, saving you a lot of time and money. Avoiding mistakes will help you become a much more successful real estate investor.

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Why Invest in Real Estate?

You've thought about real estate investing - go on, admit it. Even if it was a wistful little passing fantasy about buying that little rundown house you saw - because all it really needs is a coat of paint - and selling it for a big profit. Or maybe you've considered purchasing rental property 'so that the rents will cover the mortgage'. Why invest in real estate? You've already thought about part of the answer - there's excellent potential for profit in real estate investment.

Real estate investment is a proven method of making money and increasing your net worth - with a few caveats. Your profit will depend on your knowledge, your hard work and your ability to plan. Real estate investment isn't a magic formula. No matter how easy the late-night millionaire's club makes it look, it's not a get-rich quick scheme. It could take months before you buy your first property, a year before you sell one, and longer before you're realizing a consistent, comfortable income. To quote one major real-estate investment mogul, an overnight sensation in the real estate market is one that takes five years.

So why invest in real estate? Simply put, it IS a career choice with potential profit whose only real limits are those you impose on yourself - and that's how you have to treat it. That means that it's up to YOU how much you make. You control your profits by learning all you can about investing and real estate, studying loan structures and foreclosure laws, understanding the psychology of buying and selling, knowing the rules and responsibilities of holding tenant property.

If you know what you're doing, you are nearly guaranteed to make money. Unlike many other investments, you can count on one thing with real estate. You CAN eventually turn a profit on almost any property you own - as long as you paid a reasonable amount for it in the first place. Real estate values rise and fall with the economy. If real estate prices drop, you can count on the fact that they WILL rise again.

If you've invested in rental properties, you can count on a steady income from them - as long as they are well-maintained. It's another truth of real estate - people will always need housing. There is always a demand for what you're selling. And even in the toughest markets, rental prices seldom drop more than a few percent. As long as you can keep your rental units full with paying tenants, you can count on the income from those units to cover mortgage and upkeep costs and make a profit.

The bottom line is the bottom line. Real estate is one investment that has centuries of proof of its profitability. If you strip away all the get rich quick promises and hype, you'll find a core of truth: people make money buying and selling real estate. And that, after all, is the best reason to invest in anything, isn't it?

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