The Ultimate Guide in Buying a Property Lot in Baguio City Philippines

Everyone wants a piece of property in the only Summer Capital of the Philippines. Dub the city of Pines, labeled as the education center of the north, also named a Creative City by the UNESCO World Heritage a first in the country.

This small mountain resort is a melting pot of culture where not only Cordillerans have the bliss to live in this city but every Filipino and other race comes here to enjoy them all year. The chilly weather of Baguio City and its nice people.

This has made the real estate properties in Baguio’s demand rise.

 

Other Factors

The market price of Baguio makes it one of the most expensive properties when it comes to houses in the Philippines according to the authority site Lamudi.com.ph.

Furthermore, considering that not all properties in Baguio are Torrens Titled there are only Tax Declared, Certificates of Ancestral Land Titles (CALT’s). Which is an Indigenous Person native to the land has a right of ownership on a certain parcel of land but not transferable.

This has challenged real estate developers and individuals to seek good clean properties in the city of Baguio.

 

Buying and prospecting a property in Baguio is still relatively easy. But then again if you are not cautious enough you will surely lose your hard-earned money.

So here is a list of my ultimate guidelines in searching for a good property in Baguio City.

Seek Professional Real Estate Advice and Help

Getting a reliable professional real estate broker/agent (Like Me) is the best way to do it.

A real estate professional will give you the best guidance and information you need on the areas that you would like to prospect in Baguio City.

They can tell accurately the history of the place, the original owner, the situation of the Torrens Title if it is clean.

They could also advise if there were encroachments on the property.

They would also advise you if the property is flood or landslide-prone and if there are dangers to consider besides all the things to be deliberated.

 

Why Seek Professional Service?

Good brokers or agents have already done in-depth due diligence on a certain property.

If I will explain the process of researching the history of the land and doing an actual survey on the site and many other steps we need to do to ensure the property we are selling is good to go.

Then, this blog post will be very long.

 

 

Consider the major fault line area, landslide-prone area, and sinkholes in Baguio City

Not many buyers consider these geological hazards when buying properties in Baguio.

Your best option is to familiarize yourself with places where this risk area is more prone to happen.

I have posted an article about this and you can visit by clicking here and get acquainted with the areas of Baguio that are susceptible to this geological calamity.

 

Ask if the area has city water service

Some places in Baguio do not have city water service for the reason that some are in an elevated hilly area.

Where water pressure cannot reach these places or it is really far to be connected by the pipeline.

That is why water delivery trucks are common in Baguio street as a band-aid solution for the moment.

 

 

Always Consider Location, Location, Location

This is already a total runoff cliché in real estate selling but the essence of it is very much true today.

You should always consider the LOCATION of the prospected property.

Here is my Top 5 list of what you need to look for on a property lot.

 

1. How far away from downtown proper do you want your property to be.

You should consider driving and commuting in Baguio 5 kilometers away from downtown proper it always takes 10 minutes drive.

For 10 kilometers, it would take about 15 to 20 minutes, and 15 kilometers away from town proper is approximately 25 minutes or more.

 

 

2. Road right of way is always a major concern

Sometimes, the property land only has a footpath, so constantly ask if it has its own road right.

If it is residential privately owned and a developers’ subdivision lots.

Then if it is subdivision type automatically the property land would have a road for sure since it is regulated by the government.

Always be cautious on a property that has no cemented motorway and especially if it is only a dirt road access.

Sometimes this dirt road is not the right motorway access to the property or worst case scenario the property has no road right of way in papers and it is landlocked, technically.

 

 

3. Is the place public transportation friendly?

Public utility vehicle availability and its routes are always sometimes the major concern of most buyers if they would not rely much on their private vehicles.

Most of the time properties in Baguio are a stone’s throw away from Jeepney/Taxi routes.

 

 

4. Since this mountain city has a unique geographical shape and terrain

Properties in Baguio are not mostly flat. You will encounter properties that are flat sloping, flat elevated, and 2 to 3 story basement deep property from the road level.

This also has an impact on pricing which is why flat lots are more expensive.

Simple logic to consider that even though the property next to it is in the same place and if the terrain of the other lot is gradually sloping downwards this will have a major impact on the asking price.

 

5. Do you want a private residential area or inside an exclusive or non-exclusive subdivision?

The Housing and Land Use Regulatory Board (HLURB) has a list of 116 registered subdivisions in Baguio City alone.

Upon the posting of this article and not counting other subdivisions that are applying presently.

You may already know the perks, pros, and cons of having a residential or subdivision property.

If you want to go in-depth I will soon post an article about it and link it here.

 

There are a lot of things to consider if you are looking for a property in Baguio City.

As I have talked about it constant due diligence is needed in buying a property.

Don’t always rely too much on your agent/broker, investigate and properly know the property you are prospecting.

If you will sum up this article due diligence is your best arsenal in buying a property successfully in Baguio City.

 

 

Transaction fees to pay other than the total sale asking price

Real estate transactions always involve more than just the price tag of the lot.

If you buy a property in the Philippines, you can expect to pay several fees, including:

• Capital Gains Tax: 6% of the agreed sale price or zonal value whichever is higher. Normally this is paid by the seller, but in some cases buyers pay it.
• Documentary Stamp Tax: 1.5% of the agreed sales price or zonal value, again whichever is highest.
• Transfer Tax: 0.75% of the agreed sales price or zonal value, whichever is highest—depending on where the property is situated.
• Title Registration Fee: This varies according to a published registration fee table; generally around 0.75% of the sales price. Also, if the title is not yet uploaded and digitalized expect that you will pay more.

 

The Legal Procedure for transferring Title for the land

1. The Seller and Buyer will agree on the property price sale. The lawyer will draft the Deed of Absolute Sale (DOAS) and notarize it.

2. From the Bureau of Internal Revenue (BIR) a Land Tax Declaration is secured and submitted to the city or municipal Assessor´s office

3. The buyer will shoulder the payment of real estate tax to the City Treasurer´s Office.

4. The City Assessor´s office will assess the market value of the property

5. Buyer will pay the transfer taxes to the Assessor’s Office

6. Documentary Stamp Tax and Capital Gains Tax is paid to BIR.

7. The old title will be canceled by the Registry of Deeds and a new title will be printed in the name of the new owner.

8. The buyer, now the new owner, gets an owner’s title copy and requests a tax declaration from the Assessor´s office.

 

Takeaway

An added tip, if you are not sure about the boundaries and point of reference for that property lot or you suspect that the neighbor has encroachment already.

Request the seller to have a geodetic engineer to re-survey the property for the benefit of everyone before any sale.

In Baguio, acquiring a property lot in Baguio is a different experience, and property prices are already sky-rocketing for some places.

The best option for those who are eyeing to have their money’s worth it is to get the service of a professional (Timons Cabansi ;-).

It will surely lessen the time for you to prospect properties and find that right and suitable lot just for you.

If you would like to make Baguio your second home or you plan to retire here don’t hesitate to contact me directly for questions or other inquiries and concerns about real estate in my hometown.

Thank you for your time, if you reach the end of this article.