Buying Properties In The Philippines

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

If you are Filipino living or working overseas, you usually still would want to have a home in the Philippines, whether you are preparing to retire in the country or just have some place to live in when you come home for vacations. Filipinos are well known for being loyal to their country and going back to their roots all the time. This is why most real estate agents target overseas Filipino workers (OFW) when they market newly opened properties like condominiums and subdivisions.

When you are deciding which among the Philippines properties for sale you are presented with to buy, remember that condos in the Philippines are a great way to do some passive business. Condos can serve as transient housing for tourists or college students and you easily save more when you buy in their pre-selling stages. However, if you are looking for a retirement property, owning a house and lot would be more practical and have more value in the years to come. If you can have both, why not? But you need to be aware of the pros and cons of each so you can decide properly.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

When you decide to buy a condo unit for residential purposes, remember these tips:

  • Ownership of a condominium unit is evidenced by a CCT or Condominium Certificate of Title. Unlike a TCT or Transfer Certificate of Title which is evidence of ownership of a traditional house and gives the homeowner absolute ownership of the “inside” and “outside” of his house up to the boundaries of his lot, a CCT only endows the condo buyer ownership of the “inside” of his unit. By the way, a townhouse owner is also issued a TCT that entitles him ownership of his unit and the land on which his unit stands.
  • Association dues are not the only extra expenses you will have to pay. While association dues are paid monthly, realty tax is paid yearly.
  • What makes a condominium project unique is not the number of stories they have or whether the units share walls or not. What makes it unique is that each home buyer owns his unit space but shares ownership of the common areas with other unit owners. This means that the common areas are owned by everyone and there is no individual ownership of a plot of land. The entire land on which the condominium project stands is owned in common by all the homeowners.
Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: August 8, 2017 — 9:16 am
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