Long term leases - Page 3

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Long term leases - Page 3


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  #21 (permalink)  
Old 1st July 2018, 02:00 AM
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T

Maintenance, property taxes and rates and you are stuck there/committed if for some reason you want to get out.
Strange, here in SBFZ we don't have to pay property tax when we own a lease. Maybe because the lease is with the government? Never thought about it before.

we can always sell the lease to another and move on, the property stays in the family but useless for the duration of the lease, sell the property and buy/move elsewhere if we choose.
Is this type of lease automatically transferable or do you have to make sure that is written into the contract?

The property will hopefully appreciate in value at least with CPI increases if not more,
One thing to keep in mind is that your lease also has a time value and as the years run by, that will decrease the value. Our 50 year lease will be down to 25 years left in a year or so, and I will take up the option to re-up it to 50 years. In the case of SBFZ, it is very cost effective to do so.

Cheers, Steve.
It looks like you have done your homework and it should be a great choice! I love our lease here in SBFZ and the market values of the leases are going up a lot. I have a big lot and we plan to expand in the future.

True that you never know what could happen in a crazy country like the Philippines. I remember 30+ years ago when Mexico decided to revoke the long term leases of a lot of Americans who had retired in Baja California. They lost everything.

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Old 1st July 2018, 08:47 AM
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T

Maintenance, property taxes and rates and you are stuck there/committed if for some reason you want to get out.
Strange, here in SBFZ we don't have to pay property tax when we own a lease. Maybe because the lease is with the government? Never thought about it before.

We had that written into the lease to Protect Bengie if we part company, the taxes are low and either way at the moment we pay the taxes. Perhaps with your lease the taxes are loaded into the rent? Not sure but your lease should give you an idea, who knows what the government has done.

we can always sell the lease to another and move on, the property stays in the family but useless for the duration of the lease, sell the property and buy/move elsewhere if we choose.
Is this type of lease automatically transferable or do you have to make sure that is written into the contract?

I'm not sure Don but to cover all bases we had it written into the lease, can be bequeathed to a nominated person, can be transferred/sold.

The property will hopefully appreciate in value at least with CPI increases if not more,
One thing to keep in mind is that your lease also has a time value and as the years run by, that will decrease the value. Our 50 year lease will be down to 25 years left in a year or so, and I will take up the option to re-up it to 50 years. In the case of SBFZ, it is very cost effective to do so.

Yes I agree and see your point 100% but in our scenario Bengie will eventually be the owner or as said if we are not happy there or things change then the property can be sold and we move on, the lease torn up I suppose. The property should increase in value over the years so no loss there.

It looks like you have done your homework and it should be a great choice! I love our lease here in SBFZ and the market values of the leases are going up a lot. I have a big lot and we plan to expand in the future.

Sounds good and I have heard great things about your area but for us we chose to be closer to family and purchase a property for future security.

True that you never know what could happen in a crazy country like the Philippines. I remember 30+ years ago when Mexico decided to revoke the long term leases of a lot of Americans who had retired in Baja California. They lost everything.

Was that with government leases or private leases? Definitely a sad situation for those caught out in that.

Thanks for your input Don.

Cheers, Steve.

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Old 1st July 2018, 10:21 AM
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Thanks for your input Don.

Cheers, Steve.
Yes, I didn't mean to insinuate to others that a SBFZ lease is comparable to yours. That would not be apples to apples. Just sharing info if anyone can use it.

On our SBFZ 50 year lease it shows all the previous lessees and who they transferred it to, with us being the last. When you transfer, there is a 5% tax that goes to SBFZ, based on the selling price. Reminds me that I need to give them a copy of my will showing my wife as beneficiary. The lease is in my name only but if I die my wife will not have to pay the transfer fee, provided they have my will.
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Old 2nd July 2018, 02:20 AM
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On our SBFZ 50 year lease it shows all the previous lessees and who they transferred it to, with us being the last. When you transfer, there is a 5% tax that goes to SBFZ, based on the selling price. Reminds me that I need to give them a copy of my will showing my wife as beneficiary. The lease is in my name only but if I die my wife will not have to pay the transfer fee, provided they have my will.
Ours is a little different. It is a long term renewable sublease from Subic Homes. When this was drawn up, the lawyer suggested we nominate other names as co-owners (beneficiaries as co-owners). Incase of our death, there is no need to transfer ownership to the beneficiaries. According to him, taxes were just too high.
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Old 2nd July 2018, 11:46 PM
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Attorney told me something. Trust and Filipino might not go together over time. Look at the message on most Philippine Schools encouraging to tell the truth. As been a LONG term problem in Philippines and other parts of the world.
Attorney advised me to: Buy the land for wife/girlfriend in their name BUT record a mortgage on BACK or original DEED as mortgage lender. Remember, and I think I am correct, there is only ONE title floating around for a property. To get another DEED almost takes a act of the courts.
Then take a lease on the property. Land owner dies and relatives get the land and you know how that goes.
A Foreigner putting house on land HE does not own is like putting your hand in a alligator's mouth and hoping the gator is not hungry.
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Old 3rd July 2018, 01:13 AM
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You can also use a local who is not your girlfriend or significant other. That would take the emotion out of the equation. I have a friend from Afghan days that I trust, only issue is will I trust his son or wife who would inherit the property after he dies? He is younger than me so that may not be a problem, but still something to consider.


I'd still do all the things that 2054403 mentions plus get the actual deed. I'd put it in a safe place either a bank safety deposit or store it out of the country where the locals cannot get their hands on it.

It is my understanding that there is only one deed issued on a property however there can also be counterfeit copies around. (You sometimes see signs on a property saying it is not for sale, beware counterfeit deeds, so I assume that that is not unheard of here.)
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Old 3rd July 2018, 02:38 AM
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It is my understanding that there is only one deed issued on a property however there can also be counterfeit copies around. (You sometimes see signs on a property saying it is not for sale, beware counterfeit deeds, so I assume that that is not unheard of here.)
They can definitely make a counterfeit. Happened to us. The counterfeiter took out a loan from a bank with the house/lot as collateral. Long story is we had to pay the loan amount to get the property back or walk away from it.

Because of this and all the other things I have witnessed here I no longer care what happens to the properties and vehicles and anything else I own. I am sure when I die it will all be pawned immediately for pennies on the dollar and I am ok with that. Whatever makes them happy in the short run as they never care about the future.

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Old 3rd July 2018, 05:39 AM
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They can definitely make a counterfeit. Happened to us. The counterfeiter took out a loan from a bank with the house/lot as collateral. Long story is we had to pay the loan amount to get the property back or walk away from it.

Because of this and all the other things I have witnessed here I no longer care what happens to the properties and vehicles and anything else I own. I am sure when I die it will all be pawned immediately for pennies on the dollar and I am ok with that. Whatever makes them happy in the short run as they never care about the future.
As most of you all know, I have been living here (married) for the past 15+ years. I have two of the greatest brother in laws around and rest of the family as well. I would trust them with the temporary use of personal possessions such as a vehicle or appliance. Would I trust any of them with a land title or something of great value? Not a snowball's chance in He**.. I have many locals for friends but in my opinion it's foolish and risky to the extreme to be trusting and reasonable with locals.
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  #29 (permalink)  
Old 3rd July 2018, 11:40 PM
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They can definitely make a counterfeit. Happened to us. The counterfeiter took out a loan from a bank with the house/lot as collateral. Long story is we had to pay the loan amount to get the property back or walk away from it.

....
The bank was the one scammed, how could then make you pay for it? The bank should have done due diligence and checked out the title. I would think that you should be able to verify a title somehow and the bank failed to do that.

Perhaps someone at the bank was in on the scam????

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Old 4th July 2018, 07:11 AM
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The bank was the one scammed, how could then make you pay for it? The bank should have done due diligence and checked out the title. I would think that you should be able to verify a title somehow and the bank failed to do that.

Perhaps someone at the bank was in on the scam????
In the Philippines it's always someone else's fault, it's a game of pass the parcel, whoever is left holding the parcel catches the cr*p. It's the only place I know where if a tradesman cocks up you have to pay him to fix it.


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