If you're thinking of buying a new house in the Philippines. You should consider these 10 key things before making your purchase decision.
Are you ready to buy a house in the Philippines? The Philippines has affordable real estate, low living costs, and a fast-growing economy which has made it an ideal location to buy a house in.
Buying a house is possibly one of the most significant decisions of your life, especially when you are buying one in a foreign country where the real estate market is on the increase.
You will need to figure out the pricing, the law, overall home decoration, and many other things. So, to help you get through the process more easily, here are 10 key things you should know before buying a house in the Philippines.
1. Location
The first thing to consider when buying a house is the location; you might want to consider your own preference and lifestyle.
Do you want to be close to the hustle and bustle of a city or live in a peaceful area? If you want to be in the center of everything you can consider major cities such as Manila, Makati, and Quezon City.
If you want to live somewhere a little less busy, places such as Tagaytay may be ideal for you. Besides your preference, you will need to consider other factors as well, such as proximity to work, proximity to your children’s school, the community, and nearby facilities.
In addition, if you want to make passive income from the house or you want to have it as an investment property, you need to make sure the location you choose is a good location that will continue to grow in the future.
2. What is the type of house you are Looking for
There will be hundreds of houses to choose from. Knowing the type of house you want will help you with the searching process.
What are you looking for in a home? What kind of house fits your lifestyle? Do you need greater privacy or bigger spaces? Do you want to make home improvements in the future?
Also, the house you are going to buy needs to suit your current lifestyle and future plans. For instance, if you are a family of four or you are planning to have children in the future, you may want to buy a house that has plenty of room for everyone.
There are several options to choose from in the Philippines, including single-attached, single-detached, bungalow, or multi-story. Each has its own advantages and disadvantages.
3. The actual cost
The purchase price is just the tip of the iceberg. There are many other costs associated with a house. These may include local transfer tax, stamp duty, notarial fee, loan fees, and the cost of insurance.
All of these can quickly add up, putting the house way over your budget, and remember that home improvement and maintenance costs money, too.
Always consider these extra costs, so you can stick to your budget and know which houses you can actually afford.
4. The market
Home-buying requires some negotiation skills. One of the things that will make you a better negotiator is learning all about the market.
Find out the average price of similar houses in the area to avoid paying more than you have to. Ask the seller many questions, such as the condition of the house when it was built, the reason they are selling it if there are any repairs required, and the disadvantages of living in the property.
Having all the right information will allow you and your broker to come up with a fair price and to make a reasonable offer.
5. The importance of home inspection
Inspecting your potential new house is really important. Although most sellers will provide an inspection report, you should insist on conducting an inspection of your own.
Inspecting the house before you sign the deal can save you a lot of money and time in the future. Inspect the property very closely and make sure that it is in perfect condition.
If you find it is hard to inspect a house, consider hiring a trustworthy inspector. Evaluate the roofing, plumbing, pest control, drainage issues, and structural damage.
Inspecting the house also has an added benefit as it gives you the power to bargain for a lower price.
6. Philippines property ownership regulations
Every country has different property ownership regulations. So if you are a foreign buyer, the regulation in the Philippines can be very different from the regulation in your home country.
The regulation can make the buying process a little tricky, which is why it is very important to understand everything about it.
In general, you are allowed to legally own a house but not the land that the house is built on. Consult with an experienced real estate professional to ensure the transaction goes smoothly and to protect your rights.
7. The developer
Knowing the developer of the house is particularly important when you are buying a pre-selling or off-plan property.
Find out their track record of success, find out if they are new or if they are already listed as one of the top developers in the country.
This will help you determine if the property will be good and whether the construction of the house will be successful, delayed, or failed.
8. Authentic “Transfer Certificate of Title”
Buying a house in the Philippines involves a “Transfer Certificate of Title.” Learn everything about it so you can make sure that it is authentic.
You can prove its authenticity by getting a “Certified True Copy” of the title from the Register of Deeds.
Additionally, you also need to verify that the title is clean, meaning the house is not mortgaged.
9. Your agent and broker
It is essential to work with an agent or broker that you trust. Bear in mind that not all agents and brokers have your best interest in mind and some would simply “help” you to fill their own pockets.
Make sure you work with an agent and broker who can protect your interest and guide you through every process, from negotiating to home inspection.
The easiest way to know if your broker and agent are trustworthy is to make sure they have a license, offer balanced views, and discuss terms of services.
10. The legal documents
One of your obligations is to secure the legal documents, which will make sure that the process would be put into writing to prevent legal problems in the future.
Consult your broker or agent to ensure that the paperwork is complete and correct.
