There are countless under-utilized lands in the Philippines with so much economic potential. From agricultural lands to idle infrastructures, there will always be a growing list of properties like these in either urban or rural centers. The good news is, the Philippine government, in partnership with private corporations, is actively converting state-owned lands to achieve greater economic value for residential, commercial, or industrial purposes.

As a property investor, how can you take advantage of programs and developments like these? Let’s explore a different form of investing that might fit your interest.

What is a leasehold?

Leasehold is intangible ownership of an asset that gives the lessee a set of rights to use and occupy a property or building for a long period of time. The lessor grants these rights to the lessee once he agrees with fixed conditions in a contract. A leasehold is a legal and safe form of land or property tenure commonly applied for public lands.

How long do leasehold agreements usually last?

One of the distinct differences of leasehold to regular rentals is the terms involved. A leasehold usually runs for decades while rentals are only good for months or years.

What kind of properties are available for leasehold?

There are several lands, commercial, and residential properties available for leasehold in the Philippines. If you’re a homebuyer, you can check out ongoing or completed developments in state-owned properties.

Can I transfer or sell a leasehold property?

It usually depends on the conditions of the lessor. However, the majority of condominium or residential properties on leasehold allow a leasehold owner to assign, transfer, sell, rent, or sublease with provisions and limitations.

What kind of document will prove my ownership of the leasehold?

For condominiums, lessor or developer awards an Original Condominium Certificate of Ownership of Leasehold Right upon fulfillment of payments.

Can I build on or renovate my leasehold property?

Compared to rentals, you have the liberty to manage, change, or renovate your leasehold property. Building new structures on leasehold land is possible also as long as it follows the conditions and provisions in the agreement with the lessor.

Who is responsible for the insurances?

Insurance should be acquired by the lessor or developer while the leaseholder owner will take care of paying the premiums. If it’s a state-owned property, the default insurer would be the Government Service Insurance System (GSIS).

What are the usual terms of payment?

If you’re planning to own a leasehold, you must understand that it is far from a rental property in terms of payments. Upon signing the agreement, you will be required to settle a down payment and agree on a fixed monthly installment in a short span of months or a year.

A leasehold property can be quite daunting for some investors who’d rather choose a surefire route in buying a property. But if you’re after the economic viability or the living advantage of an elusive public property, this is a life-changing deal with positive trade-offs.

Check out these properties that are on leasehold here on OnePropertee. Or head over to OnePropertee and check out some of the top properties that match your budget using the Income Filter. Happy home hunting!