BUYING AN APARTMENT IN BORACAY PHILIPPINES


Globetrotting Benjamin K. Yong gives his opinion on the pros and cons of buying an apartment in Boracay.
Text and Photography by Benjamin K. Yong.
It was a rather long break for me at the internationally renowned Boracay Island at the end of August, so after spending some time exploring the famed White Beach, I took a stroll from Crown Regency Resort near Boat Station 2 all the way to Diniwid Beach. Upon arriving there, it was the perfect timing to settle in for drinks at the Nami Resort Restaurant for sunset viewing. Nami is located just next to its more famous neighbour, the Spider House. Both are built right on the side of a cliff and attracts many visitors for its great sunset views.
I however found the quieter Nami Resort more to my liking – the award-winning resort even has a manually-operated lift made of wood for the convenience of its guests who would otherwise have to walk up the many steps to go up. Due to its higher elevation, the view of the sunset is even more glorious from the vantage point of the restaurant.
During my entire trip, the wind was very strong on the White Beach side (west side), but when I walked across about 1km to the other side of the island to Bulabog Beach (10-minute walk), there was no wind at all. The sea was calm and I even managed to snorkel right by the beach. Although I only managed to spot five different species of fish (very small sized), it was still a gratifying experience as the water was crystal clear despite many boats anchored there.
Bulabog is acknowledged as the top wind and kitesurfing beach in Southeast Asia. It is especially busy during the windy season which runs from November to April. It runs parallel to White Beach, on the opposite side of the island.

TOURIST MAGNET

Back at White Beach, as I walked along Boat Station 2 of the White Beach (the entire length of Boracay is 7km), I spotted a signboard that says: “Own a Property in Boracay!”(see pix). That intrigued me as I note that despite some misgivings over its supposedly overcrowded and commercialised state, Boracay is still surrounded by crystal clear turquoise water and uninhabited virgin islands which are just a boat ride away. Best of all, it still receives hordes of visitors all year-round – an excellent state of affairs for anyone thinking of doing business there or renting out their property.
The law, as it stands, allows foreigners to own condominium units as long as the total foreign ownership does not exceed 40% of a condo corporation. Land ownership for foreigners however is out of the question except if the land is inherited in the absence of a will.
Upon enquiring with the sales person, I was invited to tour the Boracay Newcoast township the next day. As promised, a car picked me up at my hotel and dropped us off at the golf clubhouse the following day.

Units at Oceanway Residences come fully-furnished (except you have to supply the linen and curtains). On the sea-facing side of the apartment, you have views of the Sibuyan Sea and the Fairways and Bluewater golf course from the balcony.
There is a swimming pool in every block and the apartment sits on a slope right opposite the golf course. The only golf course on the island, the 18hole Graham Marsh-designed green stretches across 6,600 yards and is suitable for both amateurs and professionals.
Residents of the township can access two private beaches located on the left and right side of the golf clubhouse which is perched on higher ground.
 
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BUYING PROCEDURES

The purchase price of a top floor one-bedroom unit (6th floor) comprising a floor area of about 40sqm with freehold title is about USD155K (at the time of writing). Admittedly, the price is on the high side, but properties in Boracay are known to be more expensive than the rest of the Philippines, with the exception of high end enclaves in Manila. They are comparable to prices in some upmarket areas in Manila, for example, a 46sqm one-bedroom condo at the Radiance Manila Bay located in the historic Roxas Boulevard famous for its sunset is selling for about PHP8 mil while a 36sqm one-bedroom condo in Bonifacio Global City is advertised for sale at about the same price.
To reserve your unit, it’s as easy as paying USD500 which is non-refundable. After signing the Request for Reservation and Offer to Purchase Form, you have 30 days to come up with the 10% downpayment of the purchase price and post-dated cheques to cover the balance of the purchase price as well as sign the Sale & Purchase Agreement (Contract to Buy and Sell).
For the next 24 months, you need only pay a small monthly sum amounting to 20% of the total purchase price (including the downpayment). Thereafter you would have to come up with the full balance purchase price of 80% of the purchase price.
If you want to rent out your unit via AirBnb, there is an in-house manager who can manage it for you. The average monthly rental income is estimated at about PHP48,000 or USD1K, according to the representative. After deductions for maintenance and fees as well as monthly payments, you will either break even or have some extra balance.
Upon the full purchase price being paid, the property will be transferred to you after you pay the requisite stamp duties, fees and expenses. You will receive a Condominium Certificate of Title (CCT). No lawyer is required on your part although it is advisable to consult one to ensure all the procedures are adhered to and you are not charged unnecessary fees.
 

LOANS TO FOREIGNERS 

These are very limited and are offered under very strict conditions. Expatriates with work visas, and those with immigrant visas or Special Resident Retiree Visa (SRRV) who can show proof they have regular income such as income tax returns and pension payments will be at an advantage as are those who are married to Filipinos.
It is also worth exploring your home country’s loan availability for overseas property purchase. For example, according to HSBC website:
“Mortgages in Philippine peso (PHP) cannot be offered to non-residents. Non-residents interested in mortgages must maintain Premier Eligibility in their home country and may avail of USD, GBP or HKD mortgages.”

OUTLOOK FOR BORACAY

Over the years, Boracay has retained its position as one of the top 10 island destinations in the world along with Bali, Phuket, Samui and Palawan, among others. Visitors will continue to throng the island regardless of the uncertainty in the world economy. It is noteworthy that unlike many other islands, Boracay is a year-round destination with both west and east side of the island experiencing opposite conditions during the year.
Boracay is also frequented by a large domestic population regardless of the country’s political or economic situation. Hence, its resilience is one of its top draws. Due to the island’s tiny size and limited future supply as well as a maximum height rule, existing properties can only get more valuable over time.
Having said that, one can’t tell for sure whether the existing policies will change if one day in the future, the top management of the local authorities change resulting in overdevelopment. This might drive tourists away from Boracay to other less crowded and more pristine destinations like Palawan.
 

PROS & CONS OF OCEANWAY RESIDENCES 

PROS

• It is part of the first and only master-planned township in Boracay named Boracay Newcoast. Chances of another one popping up is practically nil due to the overdeveloped situation.
• The developer is Megaworld-GERI, which is one of Philippines’ top developers and is the leading developer of leisure townships.
• The 150-ha township has an 18-hole golf course, shophouses, boutique hotels, 2 private beaches, a clubhouse, 24/7 shuttle service to White Beach, and is guarded and gated.
• From 2018, residents can go direct from Caticlan Airport to the township’s private jetty instead of using the public jetty. This is currently being utilised solely by guests of Shangri-La Resort & Spa.
• The island is accessible via 2 airports – Caticlan (1 hour away) and Kalibo (2 hours away).
• Year-round destination attracting both international and domestic tourists.
• Maximum height of 6 storeys for all buildings in Boracay. This ensures no obstruction of views and maintains the density at a reasonable level.
• Right outside the entrance of the township is the only shopping mall in Boracay – CityMall – which has a supermarket and a small food court.
• Increased ecological awareness to protect the environment e.g. no smoking areas in many parts of White Beach.
• Potential for capital appreciation to double within 4 years based on past experience.
• Boracay is already a world-renowned beach for years – it still retains its title as one of the world’s Top 10 Islands – so, little branding is needed to attract tourists.
• Due to its popularity, occupancy rates are practically 100% for 6 months of the year with rates increasing during the peak Christmas season. During the other 6 months, there are an appreciable number of tourists too – with some coming just for the food alone.
• The restaurant variety is cosmopolitan with many countries represented such as Greece, Japan, Italy, Spain, China, India, UK, USA, Korea, Russia, and Filipino of course.
• Huge number of spas, with reasonable prices and quality service.
• Great night life with lots of live bands by the beach. • Cheap public transportation e.g. only 10 pesos between each boat station (Station 1,2 & 3) of White Beach along the main road.
• Very safe – you can sight policemen. It gives you a reassuring feeling that the island is safe from both crimes and piracy. It is high priority to maintain the safety of the island due to its high tourism receipts.
• Boracay is a watersports paradise with a great variety of activities available such as scuba-diving, snorkelling, surfing, sailing, wind and kite surfing, stand-up paddling, kayaking, island-hopping, cliff-diving, parasailing, helmet diving, jet skiing, banana boat, sunset cruises and freediving.
• For those who prefer a quieter village vibe, many parts of the island still offer that including parts of Bulabog Beach, Boat Station 3 of White Beach and other parts of the island.
• You don’t need to own a car as the 7km X 1km island is sufficiently served by tricycles and vans.

CONS

• It takes a good 20-30 minutes’ walk to the beach and Boat Station 1 of White Beach from the apartment.
• If you are thinking of renting our your unit through AirBnb, you face competition from the nearby Fairways and Bluewater Newcoast Boracay Resort which offers 700 guestrooms and the 560room Savoy Hotel, as well as boutique hotels to be built in the near future within the township.
• Boat Station 2, which is at the heart of White Beach with its numerous restaurants and shops (D’mall) and nightlife, is about 4.4kms away.
• Tricycle jam along the main road due to the narrow single lane in each direction.
• It takes a minimum of one hour to reach the beach from the nearest airport, Caticlan via both boat and land travel.
• There is no fitness centre at the apartment block – you would have to access it at the golf clubhouse or other nearby hotels.
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