An investment in real estate has always been a wise move.
Real estate has proven to yield significant returns whether that may be a house and lot, a condo in Quezon City, or a condominium in Makati. So, if you have ever thought of investing or purchasing real estate in the country, you may need to brush up on the things you need to consider before doing so. Currently, the real estate market is hot, and people are left wondering if buying a condo in the Philippines is worth the investment.
So, without further ado, let us get right into it.
WHAT TO CONSIDER WHEN BUYING A CONDO IN THE PHILIPPINES
When it comes to buying real estate property, the first thing that comes to a potential homeowner’s mind is the price. That said, most prospective property owners would be looking for affordable condos for sale in Cubao or affordable condos for sale in Manila, or affordable condos for sale in Pasig or elsewhere. However, albeit significant considerations, price point and affordability should not be the only two things to look at when scouting for property.
Below are just some of the most crucial things to keep in mind when buying a condo in the Philippines:
1.) The Taxation & Hidden Costs
Whether you are a foreign investor or a prospective local homeowner, tax is a paramount consideration when buying any type of real estate in the Philippines.
Currently, the taxation rate for condominium complexes in the Philippines is at 1%; however, if the condominium complex is situated in Metro Manila, this is increased by 2%. Keep in mind that a financial fine will be imposed if you default on your payments or are late in paying them. Another thing to consider when buying a condominium is the hidden costs involved. A lot of negotiation goes into buying real estate in the Philippines. At times, buyers or sellers pay extra fees to expedite the process. These things are pivotal to consider at the negotiation stage as these will affect the overall costs.
2.) Your Plans
You may have asked yourself if buying a condo in this country is worth it. Sure, there are a lot of considerations that go into it, but one of the essential things to consider is your plans. That said, you need to ask yourself whether you are buying it as an investment or as a place for you to live? More importantly, where do you see yourself in the next five years? Do you see yourself trying to grow a family? If the answer is in the affirmative, certain considerations will now come into play, such as the room sizes and whether it is big enough to accommodate the family size you wish to have.
An important area to consider when buying a condominium in the Philippines is how and when payments shall be made. For example, are you taking out a home loan to finance it? If so, how long will this loan be for? Are there any early repayment charges? Also, can you realistically pay the loan, and is it better for you with regard to where you stand financially?
4.) Your Lifestyle
Your current lifestyle is vital to consider when buying a condo in the Philippines. With that in mind, think of how you intend to use the condo you are purchasing. For example, do you wish to make this your primary home where you can work and relax or use this as an investment or as your vacation home?
More importantly, take a look at the property’s surroundings. For example, are there any local shops or shopping centers within the proximity? Your lifestyle should be a good fit with the condo’s location to afford you convenience and accessibility.