How to Buy Property in the Philippines While Working Abroad

1. The Unique Challenges of Buying Remotely

Buying property while abroad isn't just about not being there — it creates specific challenges that local buyers don't face:

• Trust gap: You're relying on photos, videos, and other people's descriptions
• Time zone differences: Important calls happen when you're asleep
• Document logistics: Signatures, notarization, and authentication across countries
• Family dynamics: Often, family members choose while you pay
• Information asymmetry: Sellers and agents know the local market better than you

This guide addresses each of these challenges with practical solutions that thousands of OFWs have used successfully.

2. Before You Start: Preparation

Before you even look at properties, get these foundations in place:

Know Your Budget

Use our Affordability Calculator to determine:

• Maximum property price you can afford
• Monthly payment you'll be comfortable with
• Down payment you need to save

Be conservative. Your income abroad isn't guaranteed forever.

Check Your Pag-IBIG Status

If you're planning to use Pag-IBIG financing:

• Verify you have at least 24 monthly contributions
• Update your membership information if needed
• Consider increasing contributions to maximize loan eligibility

Identify Your Representative

You'll need someone trustworthy in the Philippines to:

• View properties on your behalf
• Attend meetings and inspections
• Sign documents as your attorney-in-fact

This is usually a spouse, parent, sibling, or trusted friend. Consider also engaging a buyer's broker who can provide professional oversight.

3. Setting Up Your SPA (Special Power of Attorney)

The SPA is the legal document that allows someone to act on your behalf. Without it, you cannot buy property remotely.

Types of SPA

• General SPA: Broad authority for multiple transactions (flexible but risky)
• Special/Specific SPA: Limited to a specific property and transaction (recommended)

For property purchases, use a specific SPA that names the exact property (once identified) and authorizes specific actions: viewing, reserving, signing loan documents, signing deed of sale.

SPA Process

1. Draft the SPA document (templates available, but consult a lawyer for complex situations)
2. Have it notarized in your host country
3. Submit to Philippine Embassy/Consulate for authentication
4. Send the original to your representative in the Philippines

For detailed instructions, see our SPA Guide for OFW Property Buyers.

4. Finding Properties from Abroad

Online Property Portals

Start your search on major property websites:

• Lamudi.com.ph — Largest portal, good search filters
• Property24.com.ph — Good for resale properties
• Dot Property — Strong in condo listings
• Developer websites — Direct for new projects
• Facebook Marketplace/Groups — Owner direct sales (be cautious)

Working with Agents Remotely

A good agent can be invaluable when you're abroad. Look for:

• Licensed broker (verify PRC license number)
• Experience with OFW buyers
• Willingness to do video calls and virtual tours
• Transparency about commissions and fees

Virtual Property Tours

Request video walkthroughs for properties you're serious about:

• Live video call tours (so you can direct what to look at)
• Recorded walkthroughs of the entire unit and common areas
• Street view of the neighborhood
• Photos of things agents don't usually show: views from windows, parking, utility areas

Involve Your Family

If family will be living in the property, involve them in viewings. But establish clear criteria beforehand:

• Must-haves vs nice-to-haves
• Non-negotiable budget ceiling
• Location boundaries

This prevents the classic OFW problem: family falls in love with a property you can't afford.

5. Due Diligence Without Being There

Due diligence is critical — and entirely possible to do remotely.

Title Verification

Never skip this. Request:

• Certified true copy of the title from the Registry of Deeds
• Check for liens, encumbrances, and annotations
• Verify the seller's name matches the title
• For condos: verify the mother title and developer's license to sell

Your representative or broker can obtain these documents. Review them via scanned copies.

Developer Background (for pre-selling)

If buying pre-selling from a developer:

• Check HLURB/DHSUD License to Sell
• Research developer track record (delivered projects on time?)
• Read buyer forums and Facebook groups for feedback
• Verify escrow arrangement for your payments

Physical Inspection

Your representative should inspect:

• Unit condition (for RFO): water damage, cracks, fixtures
• Building common areas and security
• Neighborhood during different times of day
• Flood history (ask neighbors, check news archives)
• Accessibility and traffic patterns

Document Checklist

Generate your personalized document checklist to ensure nothing is missed.

6. Making a Reservation

Once you've found your property and completed due diligence:

Reservation Fee

Pay a reservation fee to take the property off the market. Typically:

• P20,000 - P50,000 for condos
• P50,000 - P100,000+ for houses

This is usually deducted from the down payment. Clarify refund terms if the sale doesn't proceed.

Reservation Agreement

Before paying, ensure the reservation agreement includes:

• Property details (unit number, lot area, floor plan)
• Total contract price
• Payment terms and schedule
• Timeline for next steps
• Conditions for refund

Your SPA holder signs this on your behalf using the SPA.

7. Financing Options for OFWs

Three main options for OFW buyers:

Option 1: Pag-IBIG Housing Loan

• Interest rates: 5.75% - 9.75%
• Maximum loan: P6,000,000
• Down payment: 5% - 10%
• Requirements: 24 Pag-IBIG contributions

Best for: Most OFWs buying properties under P6.67M. See our Complete Pag-IBIG Guide.

Option 2: Bank Financing

• Interest rates: 7.5% - 9.5%
• Higher loan limits
• Down payment: 20% typical
• Faster processing: 2-4 weeks

Best for: Higher-value properties, or when you need faster approval.

Option 3: Developer In-House Financing

• Interest rates: 12% - 18% (much higher)
• Easier approval
• Often interest-free for down payment period

Best for: Those who can't qualify for bank/Pag-IBIG, or for short-term while securing better financing.

Compare your options using our Pag-IBIG vs Bank Comparator.

8. Closing the Deal

Contract to Sell

After reservation and loan approval, you sign the Contract to Sell (CTS). This formalizes:

• All payment terms and schedule
• Transfer conditions
• Penalties for default

Deed of Absolute Sale

Once fully paid (or loan released), the Deed of Absolute Sale is executed. This is the actual transfer of ownership.

Title Transfer

After signing the Deed of Sale:

1. Pay transfer taxes (typically 0.5-0.75% of selling price)
2. Pay documentary stamp tax (1.5% of selling price)
3. Submit for title transfer at Registry of Deeds
4. Update tax declaration at Assessor's Office

For Pag-IBIG loans, the title is held by Pag-IBIG until the loan is fully paid.

Turnover and Possession

Upon full payment or loan release:

• Schedule turnover inspection
• Create punch list of defects (for new units)
• Receive keys and access cards
• Transfer utility accounts to your name

9. After the Purchase

Property Management

If you won't be living in the property immediately:

• Rent it out: Generate income to help with mortgage payments
• Family use: Have family live there and maintain it
• Leave vacant: Hire someone to check periodically (not recommended long-term)

Bills and Maintenance

Set up:

• Auto-debit for mortgage payments
• Online banking for utility bills
• Association dues payment arrangement (for condos)
• Property tax calendar reminders

Keep Documents Safe

Store copies of all documents:

• Title (original with Pag-IBIG if mortgaged)
• Contract to Sell and Deed of Sale
• Tax declarations
• Receipts for all payments
• SPA and other legal documents

Keep both physical and digital copies in multiple locations.

10. Common Mistakes to Avoid

Letting Family Decide Everything

Your family can view and recommend, but YOU should make the final decision. You're the one paying for decades.

Skipping Title Verification

Many scams target OFWs because they don't personally verify documents. Always get certified true copies of titles.

Rushing Because of Vacation Schedule

Don't pressure yourself to close a deal during your home visit. It's better to buy remotely with proper due diligence than rush in person.

Not Getting Professional Help

A buyer's broker or lawyer can save you from costly mistakes. Their fees are often less than 1% of the property price — cheap insurance.

Overextending Your Budget

Your income abroad isn't permanent. Buy within your means, keeping buffer for emergencies and potential job loss.

Ignoring Total Cost of Ownership

Factor in:

• Monthly mortgage payment
• Association dues (for condos)
• Property tax
• Insurance
• Maintenance and repairs
• Renovation/furnishing costs

Related Guides

• Complete Pag-IBIG Housing Loan Guide — Deep dive into Pag-IBIG financing
• SPA Guide for OFW Buyers — How to prepare your Special Power of Attorney