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Buying a plot of land, is a company a good way to do it

Discussion in 'Money Matters' started by Tim the Plumber, Apr 14, 2017.

  1. Tim the Plumber
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    Tim the Plumber New Member

    Hi everybody,
    Well I'm now happily engaged to an incredible Pinay woman. One of so many things I like about her is her ambition to create a business empire : ) which I am sure she will for her children, should we be lucky to have some and to help her family ( a big hearted woman, she's funded her sisters through education so far which I also adore and supports her parents and brothers and that's working in the Philippines as a nurse ) I am going slightly off topic here but I love her to bits.
    Anyway, one of the things we need to do is buy a plot of land to have a base which is a home for them while they carry on their education. I think I know the answer to can I buy a plot - No, could I become a dual Philippine national - No, I don't meet the requirements and it would take 5 years But could I form a company with my fiancée to buy a plot?
    Cheer
    Tim
  2. Aromulus
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    Aromulus The Don Staff Member

    Welcome aboard.............

    Foreigners cannot own property. Simple.
    You may enter in a minority partnership, although putting up all of the capital necessary, but you still own squits............

    lots of people got caught in the quagmire and lost their hats and t- shirts, after their partners decided they were surplus to requirement or wanted to revert back to the pinoy boy-friends...

    I would try to lease a property, if I were you. At least, one day, if and when the writing is on the wall, you can walk away and won't feel too ripped off and bitter.

    Sorry about the negativity, but if one starts with the worst case scenario, then the disappointment doesn't hurt as much, and on the other hand if it goes well, then more satisfaction is guaranteed........

    Investing in businesses............ No-no............
    Lending money............ You will never see it again.............

    Good luck.
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  3. John Surrey
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    John Surrey Member

    @Aromulus just about says it all... you could suggest they move into a Condo somewhere - you are allowed to own a Condo providing it meets certain requirements... you aren't allowed to own the land or a share of it that it sits on though :)
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  4. Bootsonground
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    Bootsonground Well-Known Member

    It`s cool that "You love her to bit`s" and I respect that a lot..
    The only advice I can give you is start small...We cant own land in the R.P so figure out how much you can afford to lose without regret and if it should all go pear shaped in the future,then at least you have made preparations in your own mind.
    We cant (or certainly SHOULD NOT) stop living our dreams..Sometimes we have to go with our gut feeling..
    We only have one life to live..It goes real quick,so make the most of it...Just live it with wisdom attained and then thereafter have no regrets.
    It`s all we can do in our attempts to pursue true happiness..
    You will come across a lot of naysayers filled with bitterness and tales of past failure...
    Thats their problem..Ignore them..Let them deal with their own issues.
    Your plans are entirety unique.
    Last edited: Apr 14, 2017
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  5. Timmers
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    Timmers Well-Known Member Trusted Member

    I like the name; Tim the Plumber, super :)

    When you describe your loved one as helping her family, paying for her sisters education etc. you are describing a typical Filipino, par for the course there so do not think there is anything out of the ordinary what your Fiancée is doing that will sway your decision.

    Part company with your cash to buy some land if that is your desire but do not expect to see a return for your money.

    As @Aromulus stated, start with the worst case scenario and it can only improve from there :)
  6. graham59
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    graham59 Well-Known Member

    Just have the land in your wife's name... after you're married . She will then be the owner. (As my wife is the owner of our land). You can't own land in the Phils, as has been pointed out.

    Take things slowly. It's too easy to get carried away, when in love. Very different laws and culture in the Phils.

    Invest what you can afford to lose, and don't sell any property in the UK, would be my advice.
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  7. Bootsonground
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    Bootsonground Well-Known Member

    To answer your question..
    Legally speaking there are only two ways according to the constitution of the R.P that you can own lands here as a foreigner..
    The first will not apply to you as you were not a land owner from the 1940`s..The second still does not apply to you as you are not yet married...
    If you were married then the second provision could apply.."Ownership by hereditary succession" but from my understanding that all depends on if you have kids with your wife or not as there is a compulsory heirs system here... Anyway..It`s complicated.
    Do not bother setting up a lease agreement with your wife or intended spouse but ONLY with a third party land owner..
    Land leases between spouse`s are not counted as valid here in law.
    Be careful of Corporation deals also...You need a minimum of 5 Corporation members and your share above 40% will be considered suspicious by a judge if there are any complaints made.
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  8. Maley
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    Maley Active Member

    As all the members have mentioned, in all money related things in ph, invest only amounts you can afford to loose, thats rule #1. (My parents have lent our relatives money before along with promissory notes but those were treated as 'donations').

    Second, if you are thinking of creating a corporation in ph, the maximum any foreigner can own is 40% of the business regardless of how much you think you can invest, so think hard.

    I would personally advice you not to purchase any land via any means (personally or via a business) as its would become very complicated if it doesnt work out. It would require a lot of investments to go around the system and would require lawyers to protect your interest.

    I understand that you want the best for her and her loved ones but sometimes the best way for her or her family is to let them figure it out. (This is another sad face of the ph culture that I want to highligh. If you start helping them now, they might start thinking they have a godfather and a bottomless source of funds. they become reliant to you or your girlfriend on everything. That is the situation for majority of filipino overseas workers and their family.)

    Keep the above into mind in making any decisions. Goodluck!
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  9. Timmers
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    Timmers Well-Known Member Trusted Member

    Some excellent and valid points from a Filipina who is obviously in the know :like:
  10. Alexnew
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    Alexnew Active Member

    I
    Have to with the "godfather" thing here. One of my wife's sister's husband is a prime example, having been reliant on the mother in law, who's now a pensioner. Sadly not much has changed and her sister is the one looking for work to supplement their income.

    Whilst the pound goes far, don't let the family think of you as a cash cow, otherwise you'll find various requests for "investments".
    • Agree Agree x 2
  11. CatchFriday
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    CatchFriday Member

    You could get a Special Resident Retiree's Visa (SRRV) and I have a friend who bought a house in Cayagen d'Oro through his company - there is a loan on the house. However if you buy as a company there can also be problems ahead if there is a problem in your relationship - he has a problem ten years later.......
    Last edited: Apr 15, 2017
  12. Aromulus
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    Aromulus The Don Staff Member

    Avoid problems related to buying property, wich you will never ever own, at all costs............. RENT............
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  13. Bootsonground
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    Bootsonground Well-Known Member


    Rent= 20K per month X 12 = 240,000 x 5 = 1.2 Million..
    For 1.2 million I can buy a lot and build a nice 2 bed bungalow here!! If she kicks me out in under 5 years,I lose..Anything after 5 years I`m living rent free!!
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  14. ChoiAndJohn
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    ChoiAndJohn Well-Known Member Trusted Member

    I can only agree with what others have said. I wouldn't invest any money. Anything you send, consider it gone for ever. I personally wouldn't made donations. I wouldn't buy land. And I would tread carefully.

    If you've seen one of those sci-fi movies where the robot has a 'prime directive' that gets revealed during the latter part of the movie, well, essentially that's what you most likely have with your filipina. Her Prime directive is to take care of her family. It's not helped because plenty of filipino people believe that once the daughter marries a westerner the family is entitled to house and lot. Disguised an an 'investment' in many cases.

    Starting a business empire? Not so fast. Stick with her, be married for ten years, invest your money in the UK, see how it works, and then start thinking about investing in the Phils. Don't send money to the Phils in half baked business ventures or other enterprises. Just don't.

    I'm married to a lovely filipina woman. I love her to bits. But her family put incredible pressure on her, and us, all the time. It's only manageable because I've always been very firm and never listened to all the BS. Put your foot down now, and stay firm, or you will get raped. Seriously.
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  15. PatVen
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    PatVen Active Member

    I agree with @ChoiAndJohn. I really hope that the culture of financial dependency among us, Filipinos, would be gone slowly, if not forever. It's really part of our culture to help one another in times of need whether we have little or more money. I always believe that it's better to give than to receive but we should know our boundaries as well.

    In my early 20's, when I was still single, I used to give or lend money to anyone close to me as long as the need is genuine. I only helped those who were in need and never begged for help. I also invested in small businesses but they didn't work. Everytime I took cash out of my pocket, I considered it as a money lost. So, if everything goes wrong, I won't be hurt.

    Though I only worked in the Philippines, I was blessed with a job with a decent salary. Like others, my main goal was to help my siblings finish their courses in College so when I get married, no one will beg for any help. Luckily, the two siblings were able to finish their courses but getting a job in maritime industry after apprenticeship was really impossible. The other one is still trying his luck.
    *****************

    With regards to financial matters with (western) husband, as much as possible I don't want to involve him in any business plans my family is planning or is having in the future. Though hubby had promised to help, I am not expecting for fulfilment of that promise. When the right time comes, I might invest in business using my own (extra) money. And if anything goes wrong, hubby won't blame me that much :).

    Transparency is also very important. I kept copies of money transfers hubby sent to me when I was in the Philippines. I put all receipts of money transfers and parcels sent to me from day 1 in a folder. I brought them here in the UK. I'm not a hoarder by the way ..Lol..

    Also, this may sound awkward to some but I didn't let people know that I'm married to a foreigner. They will only know if they ask me personally, I won't deny it.

    So far, I received at least two solicitations since I came here but I politely declined by saying I don't have a job at the moment. :). Also, as much as possible, I refrain myself from posting on Facebook, it will just cause trouble :) It's always best to be private.

    Being generous is good but it will cause you headache if you can't sustain it for long. If you help someone, there is a tendency that the person you favoured will tell someone until all the people within your circle will know. It's a domino effect. :)

    In summary, never involve foreign husband in any business or investment plans in the Philippines to avoid trouble in your marriage unless he voluntarily give the money as a gift. But it's best to decline if the husband will offer. :)
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  16. Timmers
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    Timmers Well-Known Member Trusted Member

    Some very sensible and wise words @PatVen I especially liked your last paragraph in your post.

    I have never given any financial help to my wife's family for two reasons, one they don't need it as they are quite wealthy and two it goes against my principles.

    Lending or giving money to another family member often leads to family fall outs (not just in the Philippines).

    “Neither a borrower nor a lender be.”
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  17. graham59
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    graham59 Well-Known Member

    My wife and I have had no requests for loans, etc, since the start of our relationship in 2011.

    We also live close to our extended family in the Phils, and though we do give business (because it makes good sense anyway) to brother-in-law and his trike, and have our niece as a live-in-helper, for which we feed her and pay for her small public school expenses, it is known that I'm poor... and kuripot.... so don't bother to ask. :p There appears to be no resentment from these lovely people.
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  18. Maley
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    Maley Active Member

    Totally agree. Start with establishing that rule from day 1 and you should be okay.
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  19. PatVen
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    PatVen Active Member

    Oh that Shakespeare quote. I always hear such from hubby as well. :) I very much agree with you. Hubby has the same principle, no matter what happens, he doesn't borrow a penny from any of his family. His family had at least 40 properties in the 80s here in the UK but went bankrupt as the family members who managed the business squandered all the profits. When I arrived here, he first toured me in those properties they owned and they were really nice. All of those became memories of their past. Her mother and aunt were close to me and told me how they squandered the profits from their business but they never regret it because they enjoyed it and really had a good time. Now, they were in their 80s and have nothing but had very nice memories of their past.

    In my part, I didn't regret being too generous with my own money at a young age as such experience would serve as a lesson. Experience is the best teacher as they say. My family is not wealthy. My parents got married at a very young age. Both came from a family with hectares of land but because both their parents disagreed on their union, they started a family without any help.

    My father was a hard working man. Little by little, he acquired land on his own and also partnered with his uncle in the pineapple plantation business while my mother was very good in business. Everything was okay until he crashed and died in an accident 12 years ago. Both were really thrifty and wise in terms of handling their finances. They were sometimes accused of being so 'scrooge'..LOL.

    Our pineapple plantations went so well in the beginning, but unexpectedly, they all went down in the end as my mother had no clue in managing the farm. The three of us were in College but the sibling next to me had to stop. The eldest and I continued our education and made a promise to help the younger ones. Good thing, my father was wise, he secured a life insurance years before his accident. That money had sustained us in our education.

    I was only 17 when my father died at age 37. Life is indeed too short and sometimes unfair but I believe that there is always a reason why things happen against our will. From that age, I promised to myself that I will look after my younger siblings when I landed a job since my mother had a serious heart problem that time and couldn't cope up from my father's death.

    So, before I met hubby, everything is well with my family. Hubby is a bit generous to me though he knew that I have a good job. Though he insisted that his act of generosity is a reward to myself for being a good daughter and a sibling, I didn't squander the money he gave. I'm just a lucky girl....:).

    I will always preserve our marriage by not allowing money as the problem. We promised that in sickness and in health, for poorer and poorer and poorer, we will stay forever, until our last breath. I hope he will reach the age of a hundred like his parents who are both still alive and kicking. :).
    Last edited: Apr 16, 2017
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  20. PatVen
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    PatVen Active Member

    You are not kuripot.hehe. You did the right thing based on your principles as well..:).
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