Philippines Short term and Mid term rentals

[Michael Mendoza]

Hi BP community

I am a Filipino citizen living in the US. Me and my wife are newbies with real estate and currently owns few properties which we placed in LTR and sTR here in the US.  WE are venturing in the Philippines with a view towards retirement - having properties that will pay for itself, a place to stay when we come to the US and buy & Hold for our future retirement or our kids in the future. 

Would love to know our kababayan or BP members who have invested or currently investing in the Philippines advice or insights.

1. Short term and mid term rental prospects for condominiums in major hubs such as BGC and Taguig. Im seeing ready for occupancy condos. Very difficult to analyze just because of a lot of gray areas - my numbers do not produce cashflow. Looks like more of an appreciation game. Any investors who did STR/ LTR in the Philippines successful in at least getting a break even cash flow? How's the property management, cohosting situation? I am in due diligence with a respectable developer in BGC.

2. Looking at a lot near the beach.  The game plan is to acquire the land and build a vacation home to become a vacation rental. Any experience on this? bank loan, construction loan? contractors? and property management? How did you analyze the deal.

3. On Turnover of the property. Any experience or guide on transitioning to bank loans? as a US resident what's your experience getting bank loans in the Philippines?

4. Tax- property income tax in the Philippines. Any thoughts. Things to know both for Philippines and the US when it comes to paying and reporting it. 

Thank you BP for sharing your time.  Looking forward to your response