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5 things to consider when buying a condominium unit

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As the old saying goes, “Don’t wait to buy real estate, Buy real estate and wait”. The same holds true today especially on the growing condominium landscape of the new tiger economy of Asia, The Philippines. Below are my checklist to consider in buying a condominium unit.

1. Purpose

The first thing a condo buyer would want to ask himself when buying a condominium unit is Purpose. What is his/her purpose when buying a piece of real estate. Is it for investment, home, vacation, secondary abode, start-up family, future rentals and so on? This is the fundamental question that needs to be answered so that he/she will have a clear cut preparation for the long stretch payments for the condo unit. Also, type of unit such as Studio, 1BR, 2BR and 3BR must be considered since under the law a Value Added Tax of 12% must be paid if the condo unit breaches P3.2M.

2.Can I afford it

Now, you already have a purpose in buying a condominium unit. The next and important question to ask yourself is: Can I afford it without becoming a mendicant? The monthly amortization must be 20% to 30% of your monthly gross income for high probability of bank financing approval. Also, you must ask yourself: “Will my quality of life be not affected since I purchased a condominium unit?” You have to remember that buying a piece of real estate entails long term commitment and not just a walk in the park. If you already secured your financial strength to guard your personal and family expenses then you are walking in sunshine to buy a condominium unit!! Many persons, fail to realize that buying a condominium unit is not a spur of the moment event, one must be prepared to shoulder the burden of paying the monthly amortizations, dues and taxes however when the challenges are surmounted the ROI (Return on Investment) will pay off!!

3. Look for a wonderful area not just the property itself

A real estate eye is needed when buying a condominium unit so you can spot an upcoming residential, commericial or mix-use area. As the old saying goes: “It is not the property that counts, it is the area”. You should find an area that is convenient, safe, secure, open for future projects, likelihood of becoming an upscale area, great ingress and egress, flood free, no faultlines and other personal due diligence checklist. Keep in mind, Real estate is always about location, location, location!!!

4. Find a reputable developer

There are so many horrifying stories of buyers that are duped into buying a condominium unit because of unbelievable low payment terms, fast turn-overs, free furnitures and so on. On this day and age it pays to be prudent. Always trust reputable developers who builds with integrity and put clients interest first. Always ask these questions in order to find a reputable developer? What are the developer’s finished real estate projects? Are there delays in date of turn-over? Are the buildings built with superb quality? Do they have customer support? And most importantly, go to your nearest HLURB Regional Office to ask for a list of reputable developers since they have an account of the pending cases filed with a real estate developer if any.

5. Trust a professional Real Estate Broker

As mentioned above, there are so many things that involve chicanery in real estate transactions. Colorum real estate salespersons are rampant as the colorum motorcycles, jeeps , vans and buses plying the streets. What better way to secure yourself than to find a licensed Real Estate Broker that can help you with your real estate needs and can find solutions from requirement gathering to financing options. A good Real Estate Broker will guide you every step of the way to realize your dream of owning a condominium unit. Also, a well to do Real Estate Broker can give you meaningful insights in the real estate industry from advising on great locations, best value for money investments, affordable payment terms, reputable developers, rights of clients and so on. The best way to probe a good Real Estate Broker is to ask his previous clients of the services rendered by the REB and go to the nearest HLURB Regional Office to ask if there are pending cases involving the Real Estate Broker. Always remember, it pays to be prudent!!