10 Helpful Tips when Buying a Condo Philippines 2023
Investing in condominium units in the Philippines is always an appealing option for individuals searching for a haven in the heart of the city. The quality and convenience that condo units provide are perfect for those who seek a low-upkeep dwelling, with high-end amenities, seated within the metro where access to surrounding industries is easier.
In this article, I aim to provide you with your personal checklist of the top 10 helpful tips you need to know if you plan to do condo buying in the Philippines in 2023.
10 Helpful Tips when Buying a Condo Philippines 2023
1. Reflect and assess your needs
Unless you want to resell the unit, your main driving force to buy a condo in the Philippines is because it meets your needs. You have to put in some effort to do a bit of research and reflection first to determine which checks out for you better.
If you are searching for space away from people, a condo might not be the best option because your neighbors will be residing right next to your unit. But for what it’s worth, your privacy demands will still be met, nonetheless.
Here are other aspects you might want to put into consideration:
- Security of the neighborhood
- Safety from potential hazards and disasters
- How it will affect your daily routine
Remember that this condo will be a part of you for the years to come. So if I were you, I’d take a long hard time to think things through.
2. Know your Location in the Philippines
In reference to the previous point, assessing your needs is only one-half of the solution and the other half should answer the question “is condo the answer?”
If yes, then it’s high time that you get to know your limitless options.
Which is located where and how does the place fare?
With the 2023 lifestyle trend shifting towards wise investments and strategic financial planning, you must put into consideration the potential futuristic market value of the place you choose now.
Certainly, one that sits in the heart of the city would be a better buy than one atop Mount Makiling (no pun intended).
In addition to this, other elements you should look out to are the following:
- Distance from your office or workplace
- Closeness to essential establishments like schools and hospitals
- Density of traffic in the area
3. Preselling or RFO? Which do you prefer?
To those people who see the city-life future bright, investing in pre-selling condos is no different from RFO (ready-for-occupancy) condos. In simpler terms, pre-selling condos are the units sold even before the construction of the building.
It might seem like a risky business but there are perks in this option which serves as a beacon to attract investors:
- They sell for the lowest price
- Paying is not that heavy a burden
- You call dibs on the best locations
With pre-selling ones, construction will only commence thereafter. The duration of the condo project might take longer than expected or even be prematurely halted.
These are ratified by RFO or Ready-for-Occupancy – the more assuring option. As the name clearly suggests, it is an already available and fully furnished unit for sale.
There are also benefits found here that are not in the previous option, like the confidence that there will be no construction mishaps although they are sold at costlier prices than pre-selling ones.
There are perks and quirks whatever you choose but that might be affected by what you plan to use the unit for, which brings us to #4.
4. Goal
Your personal goal will also be definitive of where you plan to bet your finances on: pre-selling units or RFO.
If you plan to move out from the earthy aroma, peaceful ambiance of the province, and inhabit the unit immediately, then an RFO is the better choice. However, if you are pretty much settled with where you live and not in a race against time, then a pre-selling unit might be a better investment.
5. Define your price range
Condo units sell for a considerably high price, that is true whether you choose pre-selling or RFO. That is why your budget must be factored in.
Usually the payment is done through a substantial down payment of 20-30% of the whole price, with the remaining dues (with interest) paid in a span of years. Make sure that the monthly amortization is something you can finance before anything else.
Do some good assessment first before signing that contract to avoid future mishaps. There are tempting “no down payment” offers too, but the monthly amortization would be exceedingly high.
Obviously, this is not a problem for those who can pay the amount in full.
6. Familiarize yourself with the Association Dues
Even if you pay for the whole price of the unit, monthly association dues will be required from the residents. This accumulated fund will be used for the maintenance, cleaning, repairs, and renovation of the property.
Make sure to also ask the agent handling you about the other fees you ought to pay such as real property tax, condo insurance, fire insurance, elevator fees, and the like.
It’s good to be aware of all the things you need to pay for to assess your capacity to include it in your budget.
7. Research about the Maintenance Management
For novices in real estate in the Philippines, identifying a good developer and property manager is a bit confusing. But apart from getting the job done on time, the maintenance of the property needs personal assessment as well.
It pays to know how good the company is in maintaining the property because this can define its suitability to your preferences. No one would want an untidy place, nor a management that does not address your concerns, right?
8. Know the condo’s resale value
Related with almost all preceding tips, your condo’s resale value will be highly affected by the developer, location, maintenance management, and the competitiveness of your selling price.
Most of the time, realtors will keep their eyes on reselling units from buildings constructed by the best developers in the league. Since the quality of their work has been tried and tested, and their names itself is a good-selling point to condo onlookers.
9. Know your payment terms
There are only a certain few who can bite the bullet, fully pay condo units in cash, and do a hairflip after.
Normally, people in the Philippines will require some assistance from finance institutions and agencies to help them get by. This includes bank financing and Pag-ibig.
Both of them simply refer to applications for loans, although the ceiling amount and the terms within the contract will vary.
10. Choose a credible Developer and a trustworthy Property Specialist
At the end of the day, the words of a condo property specialist will always be more appropriately catered to your specific needs. They will help you with every process, each step of the way until you buy that dream condo of yours and live amidst the upbeating pulse of the city.
Remember that this investment will be a significant part of your expenses, so be certain that a condo is what you are looking for and it meets your needs perfectly.
10 Helpful Tips when Buying a Condo Philippines 2023