Why buy a condo?
When planning to buy a condominium, the ultimate consideration is your purpose for purchasing one. Is it because you want to move into a better residence to establish your independence? Or are you planning to make it an investment property? Buying a condominium ensures that these two reasons are fulfilled.
A condominium offers a kind of flexibility that you can’t find in owning a house or land. If you’re looking for a permanent residence without the added burden of building your own home, then a condo is your best option. Similarly, if you want an asset which you can use commercially, it can become a lucrative investment property.
Important factors when buying a condo
1. Consider your short-term needs and long-term goals.
Evaluate your goals in life before buying a condo. While a condominium is a premium investment and a cost effective housing option, you cannot bank on the possibility that it can be passed on to your children 50 years into the future (see Section 8 of RA 4726!).
Think about the next five years and ask yourself questions that will create a drastic change in your lifestyle in the future. Will you be married after five years? Do you have plans to move in five years? Are you planning on changing careers in the next few years? These will help you decide whether you should invest on a condo and what type you will buy.
2. Learn about the prices of properties in different locations before deciding on a place to settle down.
Location is a very crucial factor in selecting your unit, mainly because where you choose to live will shape the lifestyle that you will have. However, different locations especially in the Metro are priced differently depending on the area.
Properties near the central business districts are higher than those farther away. For example, the sale price of a three-bedroom unit in Makati can go from PHP 14,500,000 to PHP 25,785,000. While the same unit for sale in Bonifacio Global City can cost between PHP 13,500,000 to PHP 29,500,000.1 Aside from condominium prices, the cost of living also varies in different locations.
3. Choose the type of unit that best suits your needs.
The great thing about buying a condo in the Philippines is that you have a lot of options to choose from. Aside from the many existing condominiums in the market, there are also pre-selling condos that are readily available. However that same factor can also hinder you when you start searching for your ideal residence.
Because of the number of options, you may find yourself gravitating towards cheaper alternatives or more costly ones just because they have amenities and features you think you might need.
You should bear in mind that you are in control of what condo you’ll buy. Don’t settle for second best when you can have the perfect one by simply being very discerning about your decisions.
4. Gather all the information you need before signing a contract.
Buying a condo unit entitles you to a building’s services and amenities. Thus, you are also responsible for a portion of the upkeep of the building. Before you sign a contract, enlist the help of a broker to guide you into the financial aspect of buying a condo unit. This ensures you won’t be blindsided when a bill comes for a service that you were not aware of before buying the unit.
You should also pay particular attention to the details of the contract and discuss some important points you want to clarify with the building owner. For example, if you’re planning on sub-letting your unit then you should be aware if the owner allows this sort of business venture or not.
Moreover you can also make some suggestions or propose changes to your contract. For example, you are not certain about paying for a gym membership since you don’t work out that much or you want to upgrade the pre-installed appliances in your unit. You can discuss these with your broker or the owner of the building. By voicing out your opinion, you will save yourself from regret and complications later on.
Buying a condominium in the Philippines shouldn’t be a difficult task, especially if you follow these simple guidelines. Owning the perfect residential home is a dream, and you now have a chance to turn it into a reality.
A Guide to the Condo-buying Process
Thinking of buying a condo? The idea of owning your very own luxury condo unit is incredibly appealing. That is, until you get to the actual buying process. Suddenly, it gets pretty intimidating.
Buying a condo appears daunting, but then again, buying any type of real estate usually is. But if you have a solid idea of what the process is, you’ll know what to expect and you can prepare accordingly. Preparing what you can ahead of time already eliminates any additional stress.
The condo-buying process is actually pretty simple once you have everything you need prepared. Here are the basic steps in the condo-buying process to guide you:
1. Prepare your documents.
When you reserve a unit, it’s best that you have the necessary documents already prepared. You’ll be needing at least (2) valid Ids, a checking account, a utility or credit card bill in your name, a recent Income Tax Return, to start with. For special circumstances, you may need other documents like a Special Power of Attorney, and so on. To be sure, ask your broker for the requirements you need.
2. Reserve the unit.
Make sure that you’ve clearly communicated with your broker regarding your preferred unit location, orientation, and other specifics. Also, make sure that you’re up to speed on the necessary computations. You’ll be asked to fill up a reservation form, a registration fee, and pay the reservation fee.
3. Submit requirements for the processing of the Notice of Approval.
For the processing of the Notice of Approval (NOA), you’ll need the documents mentioned in Step 1, plus the reservation form, a copy of the provisional receipt for the reservation fee, as well as the computation sheet signed by you and your broker.
4. Submit requirements for contract preparation.
After the NOA is released, the contract is ready to be prepared. For this process, you’ll need the reservation forms, valid Ids, proof of billing, a copy of the signed computation sheet, proof of TIN, and a copy of your marriage certificate if you’re married.
5. Submit all documents within 30 days from your reservation date.
For this step, you’ll need the signed contract, as well as the complete post dated checks.
Be sure to work with your buyer on the requirements you need. Don’t hesitate to ask questions, especially if something is unclear to you. This way, you’ll be able to purchase your condo unit without the unnecessary stress!