Planning to buy a new home or lot for commercial purposes? To get a great deal, here's a checklist of what to consider before buying a real estate property in the Philippines:
1. Be Goal-oriented
What are your goals with the property? Think about what you would like to gain from the investment. Whether it's for business purposes, dream home, or a simple shelter for your family, be clear with your goals and find a property that matches those. If you're looking for a home, check the amenities and distance from school, work, and medical services. If you're looking for a place for business, make sure the property is accessible to potential clients or customers.
2. Work with a Trusted Real Estate Broker
Once you set your property goals, be smart about your investment and work with professionals. Buying a property poses financial and legal risks. Before closing the deal, make sure to inspect the property, get a full walk-through of the legal requirements, and have a licensed real estate broker check all the documents first, such as the authenticity of the land title, tax declaration, and agreements between owners and developers for joint venture relationship. Purchasing property through a trusted broker can help reduce risks and save you from cumbersome legal procedures. Additionally, Philippine government authorities are now strictly monitoring "Colorum" or unlicensed sellers.
3. Keep Calm and Be Wise
Avoid making spur-of-the-moment decisions when buying real estate. Just because you fell in love with the house architecture doesn't mean you've hit the jackpot. Buying real estate shouldn't be love at first sight, you have to perform due diligence and study all factors from location to price. Consider hiring a licensed real estate appraiser to assess the value of the property before purchasing. Use your head, not your heart on where to invest your money.
4. Check Exact Measurements
Is the measurement written on the sales map, Contract to Sell and title's technical description the same as the property's actual size? Request for the title to confirm if the measurement is consistent with that in the sales map and Contract to Sell. Depending on the agreement, the buyer or seller can hire a licensed geodetic engineer to measure the property's actual size as there are instances of possible encroachment that could reduce the original size stated in the title. As the pricing of land is per square meter, size difference matters.
5. Prioritize Safety and Quality
Is the area prone to natural hazards like landslide, earthquake, or flooding? Are the materials used in building the house sturdy enough to withstand natural disasters? How secure is the place from criminals and illegal settlers? Conduct due diligence before buying a property, and if possible, ask residents in the neighborhood about their experience.
6. Use your Money Wisely
Take advantage of the low monthly amortization through Pag-IBIG Fund and low-interest rates to own your dream property. Get a clear picture of your monthly income situation and envision using a portion of it to pay for mortgage. You may be surprised that the price for owning your own place is just equivalent to your monthly expenses for caffeine from your favorite coffee shop, beer sessions with your barkada, or shopping spree at the mall. Prioritize your needs and build your savings to have the property of your dreams.
7. Focus on Investment Returns
In general, real estate is a good investment because land is a finite resource that increases value over time and shelter is a basic need. In the Philippines, the real estate industry is expected to continue growing in 2019 due to the high demand from the BPO sector, technology companies, and flexible space operators, and potential expansions of these industries to Cebu, Davao, Clark, Cagayan de Oro, Iloilo and Bacolod (Inquirer, Jan 2019). Choose a property that could yield the highest return on investments (ROI) and appreciation rates by conducting market research in the area and surrounding yourself with real estate professionals, financial advisors, and local experts.
Sources: Real Estate Lessons by Edward L. Tan, Real Estate Business Handbook
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