Are you considering buying or renting a property? Be it a house or a condominium unit you are eyeing, or any other type of property available, investing in one is not an easy task. You must of course follow a careful and comprehensive approach before arriving at a final decision. The necessary approach consists of numerous factors to be considered and examined thoroughly along the course while viewing the property.
One of the trends that is significant as of the past years is owning a condominium unit and the thought of buying or renting one can be a smart choice. The decision you have to make, however, will greatly depend on your preferred lifestyle, state of living, purpose of investing in the property, and many more.
Compared to other types of residential properties, condo units hold a lot of perks that are usually associated as new, modern and high-standard. Condominium units are mostly structured in buildings that can be low-rise, mid-rise, or high-rise. Since the units are structured in a way wherein the spaces of each owner are close to each other, the advantageous sense of community can be found, but this characteristic of a condo community can also be a disadvantage. Knowing that the distance between you and your neighbors are close enough, there can also be noise. This example of contrast found in condo units is just one of the great amount of details needed to be understood before deciding to buy or rent one. In that case, here is a list of things to look out for when viewing a condo property in the Philippines.
Geographical Location
Easier access to different places such as schools, universities, hospitals, malls, your workplace, transportation hubs, markets, and others can vary depending on the condominium’s location. Most of the developed condos in the Philippines are located in the metro areas whereas people are used to the urban-style of living. This factor of accessibility strongly determines the value of a condo unit. The greater the development of a city, the higher the prices of condominium units that are available and also, the cost of living. Ensuring to highlight the location of the condo and the factors that come with it is important if you are investing in one. Is the building satisfyingly close to your workplace or your school? Is it connected directly and conveniently to some major roads? Ultimately, your personal preferences and necessity are the things to follow in determining the location of your planned condo unit to take.
Unit Type and Structure
There are different types of condo units regarding the available space found on the interior of it. The most common is a studio-type condo unit which is the most affordable among the other types. Studio types typically consist of a single floor area with integrated kitchen area and the partition can only be for the bathroom. This type is perfect for single people and couples that are starting to live independently. Loft type of condo units consists of an elevated space located directly under the roof of the unit made possible by a high ceiling. The space can be a bedroom, an office space, or any other space of your preference within the limitations given by the condo association. The loft type will be open and spacious enough and it can be perfect for you if you want an overlooking view of the place.
Another type is a bedroom unit which can hold one or more bedrooms partitioned by a wall also inside the unit. A unit like this is perfect for family accommodation because of the enough space provided. Lastly, there are penthouses. Penthouses are located in the top of the building and are the most expensive type of unit. Aside from the luxurious space it provides, the condo will be much more exclusive and private for the owner.
This important thing to look out for when viewing a property will be consequential because it will greatly vary according to your necessity. Make sure to see if the space is enough for you and still, see to it that your preferred lifestyle will not be affected with the type of unit you will settle in.
Provided Amenities
A condominium building has their own amenities provided for their unit owners. It can be gyms, fitness and sports centers, outdoor pools, pet centers, lounges, spas, recreational facilities, parking lots and many more. These amenities can be of necessity on your lifestyle before moving in on the unit and also, it can change the way of your living. These amenities are shared through all the residents of the community you are residing. Taking a look in the list of the provided services and amenities of a condo is beneficial, either you are buying or renting a unit.
Security Services
Living in a secure and safe environment greatly increases the standard of your living. If you settle on a property, security is one of the crucial factors to look at because safeness will ensure and promote a healthier living for you and your family. A condominium management must offer their best in maintaining order inside their provided spaces. It is a given that you must select a condominium unit where there is no history of danger incidents and negligence in security.
Community Association
Most of the condominium properties have their homeowner’s association which is for the management of the community on the whole residence. Officers are to be appointed or elected by the residents of the condominium. Settling on a condo unit, be it renting or buying, will of course provide a new neighborhood. Knowing what kind of neighborhood you are going to have, is also a considerable thing to look at upon viewing the property. Also, know the association’s management style. Ask your possible neighbors if the care and control for the residents are great and adequate.
Ownership History
Whenever a property is being sold in the market, there are two possibilities of its source. First, it can be new and freshly built and second, it can have a previous owner and is now selling it on the market. In terms of investing in a condo unit, knowing the ownership history can help you understand more about possible reasons as to why some condo owners sell their property titles.
Developer's Reliability
An aspect not to be forgotten along the course of viewing the property is examining the reputation of the condominium developer. In case of buying a condo unit in presale, make sure that the construction of the said project will not be stopped or delayed in the long term. There can be instances where some developers have gone bankrupt while in the continuation of their project.
On the other hand, if you are planning to rent a condo unit, make sure that the owner has a clear history regarding him/her being a landlord. And if the owner will be a first time landlord on your upcoming rent, make sure to be clear on your terms in the lease agreement to avoid unexpected issues. You would definitely want to have a responsible and reliable developer or landlord so that your condo settlement can be more successful.
Property Value and Budget
The property value must fit according to your budget. Your planned finances will be a foremost aspect of importance among all the things you have to consider in viewing a property. Before investing in a particular condo unit, it is crucial for you to know your exact budget. It is also helpful to assess some certain possibilities regarding the budget. Can you go a little over your financial plan? Can you sacrifice other investments in order to settle in the property? Considering possibilities like these, evaluating your ready price range, and diving into some small details can help you be more flexible in the financing you have to provide.
In addition, the budget you are planning for this investment, particularly buying one, is not limited to only the property’s price. An affordable condo unit depending on its price tag is not all there is in the budget, owning a condo unit also guarantees you additional expenses that are typically provided on a monthly basis. Examples of these are miscellaneous fees from the condo association itself (homeowner association fees, parking fees, maintenance fees of condo amenities, etc.), your living expenses that varies from your lifestyle (internet bills, electricity and water bills, home furnishings), possible mortgage fees, and some property taxes.
Expenses on renting a condo unit is slightly different compared to owning one. A condominium unit tenant does not have to worry about the property taxes since basically they do not own the property. Monthly rent, utility expenses, and just a few other payments are in store for a prospective tenant. Therefore, having an established financial plan before making a deal will essentially increase the investment success, causing it to be an absolute smart move.
Offered Payment Options
After establishing a desired financial plan, the next thing to look for is which payment option can be suitable for you. There are various payment options to choose from if you will invest in a condo in the Philippines. These payment options are in-house financing, bank loans, and Pag-IBIG.
In-house financing is a type of financing that will come from the developers of the condo you are planning to buy. Because of the direct association between the developers and you as their client, this option requires less paperwork and less processing time. However, the interest rate of this option is higher than the others. Generally, in-house financing considers your financial capabilities and helps you pay with an amortization plan. The instances where you can avail a discount when the property is bought by cash is included in this financing.
Compared to the first option, bank loans can be more flexible depending on the selected bank. Each bank differs on their loan terms and interest rates. They will usually lend you 80 percent of the property’s value and accept the property as a collateral.
The last option is the Pag-IBIG Housing Loan. This government established corporation accommodates many Filipinos for their home development agendas. The requirements are two years of active membership, age must not be older than 60 years old, no other existing house loans, capacity to acquire and encumber real property, and etc. Visiting their official website will help you have a comprehensive look on their terms and services provided.
Every condominium management has their own payment options to allow and offer for their clients. Double-check if they offer exclusive and great terms for you or else go for the other payment options and consider a loan that suits the best for you.
Real Estate Brokerage Services
Real estate brokers and agents are trading professionals. Brokers have completed additional licenses and training compared to real estate agents. However, their work responsibilities and obligations greatly coexist with each other. Services provided by them are important in the industry to help prospective property buyers and sellers in reducing workloads and to guide interested people initially. Their main goal is to guide you in the process and to advise in times of uncertainties for you to get a successful outcome.
Working with a broker in the Philippines assures you of excellent guidance and management while working for the legal responsibilities, financial transactions and other discussions associated with the trading process. Having a reliable broker will significantly increase the chances of a best result so make sure to find help and guidance from them.
Bottom Line: Your Long Term Investment Plan
In order to successfully invest in a property, taking many factors into consideration while viewing it will strengthen your plan and experience in the field, converting the effort into a major advantage for you. As a forte, always make sure to study and research all the things provided on the list above so that aside from your gained assets, there will also be gained experience.
Regardless of which, be it investing on the ownership of the property or renting, your main established plan will be the central point to return to whenever you need to reassess and reconsider everything. Do you plan to grow or to start your family in the condo as your home? Do you plan to take and settle in this property to focus on your desired career? Do you plan to use this as a future asset that will give you a return of investment? A long term plan for the investment will give you assurance and great confidence during the course or the process. Do not overlook the present and also consider the future by giving out efforts of investing on assets and of course, also investing for yourself.
Sources:
https://www.pagibigfund.gov.ph/Availmentofnewloan.html