The City Of Tagaytay recently issued a first notice for delinquent real property and this was also published in the March 20, 2009 issue of the Philippine Daily Inquirer. According to the notice, the properties listed were declared delinquent in payment of real property taxes by virtue of the provisions of SEC. 2A. 44 of the Codified Revenue Ordinance of Tagaytay City enacted from Section 254 of the local Government Code of 1991.
Tagaytay, Taal Lake and Volcano Island. Image by Storm Crypt via Flickr
Do take note that this is just a first notice which means owners of the properties included in the list can still pay their realty taxes inclusive of surcharges, interests, and penalties and avoid the foreclosure of their properties. However, in case an owner fails to settle their real property tax arrears on time as stipulated on the ad, the delinquent real property shall be sold through a public auction. Expect the actual list of tax foreclosed properties for public auction to contain significantly less number of properties.
As I have mentioned in my previous post about the 2008 Marikina tax foreclosure auction, investing in tax foreclosed properties would normally give a return of 2% per month or 24% in total per year on top of the amount of the winning bid.
For example, let’s say you made a bid for a property for Php100,000 and you won, you will receive 2% per month on top of the Php100,000 which means you earn Php2,000 per month, when the property is redeemed by the owner of the property. You can receive a maximum return of 24% or Php24,000, if it takes the owner the maximum 1 year to redeem the property. Not bad at all! If in case the owner does not redeem the property, then the property is yours for a mere Php100,000!
Unlike public auctions conducted by banks that only require a down payment of 10% to 20% of the winning bid, tax foreclosure auctions require the winning bidder to pay the entire bid amount on the day of the auction. The City of Tagaytay should be releasing auction guidelines when the public auction schedule is finalized. As of this writing, no official schedule has been set. You may also visit their website to get the contact information of the City Treasurer’s Office. In the meantime, you may read the Marikina City rules, regulations, and conduct of the public auction as reference. I’ll be posting additional information once they become available so don’t forget to subscribe to my mailing list by simply entering your e-mail address here:
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