Buyers’ Guide: Finding a House & Lot For Sale in the Philippines
2016 May 20 | by janndel
Owning a house is a huge step for anyone—a milestone in a person’s life. It is a dream most Filipinos share, but truth be told, not everyone has the financial means to afford and actually maintain one. Hence, it’s important to understand the fundamentals involved in buying a house, and the factors we need to look for when deciding which property is going to satisfy our needs and lifestyle.
If you are considering buying a house and lot for sale in the Philippines but can’t seem to find the right property to invest in, don’t worry! Here’s a breakdown of the key things you should consider in buying your dream home, the best location worth living, and helpful tips to help you get started.
What Should You Look For in Buying a House & Lot?
There are a lot of cities and provinces in the Philippines that are flood-prone. Some are even located near or just above fault lines. This is why you should be extra careful when deciding where you would search for your dream house and lot. Shying away from these locations not only ensure your safety, but can also save you a lot of money from damages that will be incurred when disaster strikes.
Being able to go from home and work with ease and convenience is an added factor that makes a house and lot a good buy. Accessibility is important especially when you want to be on time for any appointment. A property that is close to your workplace, schools, and other institutions is an ideal choice as it cuts travel time and costs, as well as prevents the hassles of traveling to and from the places that you frequent.
#3. Community Utilities
It is highly recommended that you check out a prospective location’s community utilities. Inspect if the water system is adequate, sewer connections are available, telephone lines are working, and internet connection viable.
Most subdivisions today offer several amenities and facilities. There are parks, swimming pools, and playgrounds for the children, plus a fitness center, clubhouse, and sports venues for adults. When deciding to buy a house and lot, consider the amenities and facilities available. Not only do they become a way for you to spend quality time with your family, but down the line, they can help increase the resale value of your house.
Can I afford the house? This is the first question a prospect house and lot buyer always asks. Houses in the Philippines can go from hundreds of thousands to millions. So when buying a house, make sure to choose one that fits your budget. There are financial institutions, like banks and PAG-IBIG, that offer home loans with incredibly flexible rates to meet each person’s financial capability. But remember, there are eligibilities and requirements to be met first in order to qualify for these home loans.
#6. Resale Value
While most people buy a house and lot to live in, some consider it as an investment as its value increases over time. When buying a house and lot, consider its potential resale value and how to make a good return on your property investment. Location, upgrades on the interior and exterior of the house, lot size, security, environment, and accessibility are some of the things that will help you increase your property’s resale value. Moreover, purchasing a house and lot in a location where the market is flourishing can heighten the house and lot’s value.
The price of the property shouldn’t be the only factor you should consider before buying a particular house. Safety and security should be one of your main priorities. Check the crime and other incident rates around the area to find out whether you are choosing the right neighborhood for you and your family. Likewise, it is important to assess the locale’s vicinity to check for present risks that may affect safety and quality of living.
Best Locations to Find a House & Lot For Sale
The Philippines has a plethora of real estate properties. Every single day, a new property is being developed almost everywhere. Whether traditional or contemporary, real estate developers give us plenty of options to choose from.
Buying a house and lot is a momentous occasion for most Filipinos. Houses in prime locations are tempting but they have their own downside, especially in terms of traffic and price. So where do you look to buy a house and lot for sale in the Philippines?
Here are the top 4 locations worthy of an investment of your hard-earned money for your dream home.
If you are looking for a place where you can live the American dream, pack your stuff, and move to Pampanga. The province was once, and still is, a haven for American tourists and by products. From US-brand food, clothing, furniture and appliance, you get to experience the Land of the Free and Home of the Brave, without going for broke.
Not only is Pampanga an attractive destination, but is also a safe and viable environment with low crime rate, significantly less polluted, and ravishing environment that is suitable for you and your family. In addition, Kapampangans are known for their rich culture, delectable cuisine, and opulent ancestral homes and historic landmarks.
Similarly, the country’s major developers have metropolized Pampanga, building everything from houses to commercial establishments. Above all, the province can be accessed through major roads and highways, making it convenient for its residents who are working or studying in the Metro to still come home instead of renting a place.
The first thing that comes to mind when you think of Batangas are the 5-star resorts and white-sand beaches of Laiya the magnificent Taal Volcano and the breathtaking Mount Makiling while all these are true, Batangas isn’t just a summer destination.
If you’re looking for a place near the Metro but don’t want to get stuck inside the hustle and bustle of the city, drive down South and experience what the province has to offer. From their delicious delicacies, crystal-clear waters, and alluring accent, who wouldn’t fall in love with Batangas?
The towns of Batangas are highly urbanized, so you still get the same vibe as the city but with less traffic and pollution. Real estate developments on the other hand are thriving with subdivisions being built from left to right and a significantly cold weather (in some parts) to boot. More importantly, you can find it advantageous, especially during the summer season, to have a house in Batangas. There’ll be no need to spend a large sum of money to stay in a resort or wait until slots become available for fully-booked hotels.
Cagayan de Oro
Dubbed as the City of Golden Friendship, Cagayan de Oro is another place in the country worthy of investing your hard-earned money. It may be a developing province, but the people of CDO form a tight-knit community who will go a long way to make you feel at home.
For adrenaline junkies, there’s whitewater rafting, river trekking, plus several adventure and nature parks to satisfy your desire for thrill and excitement. You can also enjoy Cagayan de Oro’s rich culture and heritage through the Kagay-an Festival, Gaston Park, San Agustin Cathedral, Museo de Oro and Tourism Village among others.
Another reason to live and retire in Cagayan de Oro is the relatively less traffic and pollution. You can get to any point of the town in less than 20 minutes and can walk around without worrying about inhaling hazardous fumes. Moreover, Cagayan de Oro isn’t as susceptible to calamities. In fact, natural disasters are a rarity to the province unlike other parts of the country that are annually devastated by major typhoons and occasional earthquakes.
Although the province is known for its rich culture and history, Cebu is one of the best places to live and even retire in. Once tagged as One of the Best Cities in Asia by Asiaweek and World’s Most Affordable Places to Retire by Yahoo Finance, the Queen City of the South offers both residential enjoyment and a summer vacation right at your doorstep.
For one, the cost of living in Cebu is relatively cheaper than in Manila, but you still get the same luxury that other parts of the country offer. Secondly, the price of a real estate property is affordable, even those located near major establishments, unlike in the capital city where you have to pay a relative fortune for convenience and accessibility. In fact, Lamudi stated the some of Cebu’s most luxurious living spaces usually cost under $1000.
Additionally, there are various, world-class hotels, resorts, and casinos located in the city that have majestic views of the island and abundance of crystal-clear waters. Cebu nightlife is also booming. For commercial establishments, there’s the SM Seaside City Cebu and Ayala Center Cebu that cater to both local and high-end cravings for dining and retail shops as well as other leisure and family activities. Some of the most well-known schools and attractions in the country are also located in Cebu.
10 Interesting Tips to Follow When Buying a House and Lot
When deciding which house and lot to purchase, you shouldn’t jump the gun and go straight into the buying process. Educate yourself first! To help you with the process, here are some helpful yet interesting tips and insight to serve as your house buying guide.
#1. Choose the Right Builder
A house and lot is a lifetime investment. When choosing a property, make sure it’s been constructed by a developer with a proven record in the industry so you can be assured of the quality and time of turn-over.
#2. Check your Mortgage Options
As a golden rule, monthly amortization should not exceed 28% of a person’s income before taxes have been deducted. But given the prices of house and lot in the Philippines, not all options can meet the standard. Fortunately, there are financing programs by banks and PAG-IBIG that offer flexible rates with minimal interest. However, it pays to know that not all financial institutions offer the same loan rate and have more than what is publicized. PAG-IBIG, for example, offers the lowest interest rate (4.5%) while banks offer interest rates from 5%-8%. Age, income bracket, type of property to be purchased, and nature of employment, on the other hand, are some of the factors that will affect eligibility.
#3. Consider Space
Having a big house is a dream for anyone. But the bigger the house is, the more expensive it will cost. Choose a house with every space serving its purpose and function to your family instead of a massive house with spaces that are barely used but still end up costing a lot.
#4. Think of the Future
If you are a family-oriented person, choose a house that will fit each of the members of your family—even the future ones. You wouldn’t want to constantly transfer households as your family expands. It is a must to always put your plans into consideration when choosing a house and ensure that your home of choice will still be a comfortable place to live in even as your family grows.
#5. Validate Legal Documents
Make sure that the “Transfer Certificate of Title” is authentic and comes from the Register of Deeds, as well as the Deed or Contract of Sale. This is your leverage to fortify your legal claim of the property.
#6. Bank On a Legitimate Seller
If you are planning to buy a property from the direct property owner, you have to verify their legitimacy. Here’s what you can do:
- Confirm the identity of the owners and if their claims to the property are deemed legal.
- It is best to visit the site and see the actual property yourself.
#7. Don’t Forget the Annual Real Estate Tax
It is either the seller or the buyer’s due diligence to pay the yearly Real Estate/Property Tax. It is a kind of tax imposed for any type of immovable property. The rate of Real Estate/Property Tax in Metro Manila is 2% while 1% is charged for houses located in the province. The rate is then multiplied by the assessed value of the property to get the Real Estate/Property Tax you are due to pay.
#8. Survey the Property
Assess the property, along with a licensed surveyor and assessor, to confirm every meter and bounds of the property, road right of way, and operability of every part of the house. You wouldn’t want to release a substantial amount of money and sign a contract only to get a less than desirable piece of property.
#9. Ask If Modifications Can Be Done
Most houses today are sold complete with appliance, furniture, and fixtures, thus eliminating one of the hardest processes in house buying. However,it is also important to note that there are developers of houses and lots for sale that do not allow modifications in their plans to maintain uniformity in the designs and aesthetics of the houses they build. So if you’re looking into making any minor or major modifications in the house you’re interested in, better ask the developer if that is allowed. Remember to negotiate prior to construction if the developer can incorporate your house design ideas.
#10. Organize Your Finances
Apart from the downpayment and monthly dues from your mortgage, there are also other costs you need to save up for the basics like electricity, water, internet, and association fees. Always keep track of your bills and pay them on time in order to avoid penalties. It would also be wise to know other costs that come with purchasing the property and determine whether or not they are included in your expense.
A house and lot is probably the biggest purchase anyone will do in a lifetime. Preparing for it is a huge undertaking, and if you are thinking of becoming a homeowner yourself, it would be sensible for you to draw up a strategy tomanage your investment and maintain its value should you decide to sell it in the future. Let these pieces of advice be a guide in your house and lot buying process and make it worth every penny.