The continuous increase of birth rate in the Philippines has resulted in the great success of the real estate industry. This success lead to the booming of different other industries like education, food, clothing, hospitality, transportation and the like, providing the basic needs of every individual in order to survive. These industries are mostly present in Metro Manila drastically changing its cityscape, and the
call for vertical villages became necessary; thus, the beginning of high rise buildings and condominiums.
Condo living became an optimum choice for individuals who embrace the live-work-play lifestyle. This, however, can be a bit of a challenge if they are used to living in a house where privacy is important. Just remember that it should not be a hindrance to their pursuit of a home.
Finding your perfect unit can be a bummer especially for first-timers as there are so many things to
To avoid crucial mistakes in purchasing your unit, here are some guidelines to ease you and your
Know your Financial Capacity or Financial Options
Your financial capacity is a very important factor to consider. The cost of buying the unit is different
from the cost of maintaining it; be financially ready to pay for the mortgage, realty tax, association dues,
and so on.
The usual option for clients to finance them in buying a condo unit is a housing loan either from their
company they work for, a bank, or from Home Development Mutual Fund (formerly known as PAG-
Loaning from the company might be a little easier because they need less paper works and
requirements. Commercial banks may have stricter and more requirements but may offer a more
flexible loan and lower interest rates.
It would be recommended to know the perfect loaning source that is suitable for your financial situation
and your developer’s payment terms.
Location, location, location.
Is it important? Yes, definitely! However, you don’t have to stress much about it. These developers got
you covered. Why would they choose a location that is not interesting, right?
Accessibility plays an important role in the decision making. Proximity to almost everything is an
advantage. Frequently, it is the developer’s upper hand against their competitors. Properties in prime
locations like in central business district have higher value than those outside.
It is very important to know that the location
Know the type of condo you want
Studio, 1 BR or 2BR? Pre-selling or Ready for Occupancy? Low-rise, mid-rise or high-rise?
The choice of the size of the unit is usually affected by the number of people who will live in the unit. Pre-selling condos have units sold before the construction and completion of the projects. On the other hand, condos with RFO units are sold when they are ready for turnover. Low to mid rise condos offer more privacy as they have fewer units but high-rise condos offer bigger and more amenities. Every kind has its pros and cons you can assess.
Look for a trustworthy developer
Purchasing a condo unit is a big investment. You would not want to entrust this to someone not reputable, right?
Make sure the developer has a solid portfolio. Not only that but also the quality of the work they deliver. Just because some projects are low in price does not mean they should compromise the quality of their projects. You would not want your home to have leaking sewage pipes or crack on your walls months after turning the unit over.
Do your research
Attending open houses can open your eyes and mind to what you are really entering to. You can know what to expect and plan around these expectations.
Ask about the association dues and other condominium fees. It is important to know these fees so before sealing the deal, you know you can afford them.
Know about the facilities and amenities. Developers invest on state of the art amenities making these one of their selling points. Know the restrictions and the rules in using these amenities. Learn about the neighborhood. Ensure the security of the building and the location.
Be updated with what’s happening. Having a condo unit is a long term commitment. It is advantageous to give effort in learning the finer details of the purchase so you would not regret in the end.
So, is it really worth investing in a condominium? Yes.
Philippines has the second highest rental yield in Southeast Asia when it comes to real estate industry. Rental yield measures the ongoing return on the property. It can be expressed as a percentage of the property’s value in the market.
Owners eventually lease their units after a certain time when their lifestyle changes. This would mean an additional source of income to them.
Furthermore, the country’s real estate industry is sustaining its momentum, and experts from Colliers International, a global real estate group, are forecasting a shoot up in the industry’s performance. As a result, competition would be really tough, increasing the market value of each property.-