Have you ever thought about investing in or purchasing real estate in the Philippines? We will be going over seven things to consider when buying a condo in the Philippines. The real estate market is currently hot, and many people wonder if buying a condo in the Philippines is worth it, so let us skip the intro and get straight into it.
What To Consider When Buying A Condo In The Philippines
The Condo Markets In The Philippines In 2030
When looking at what things to consider when buying a condo in the Philippines, one of the most critical areas to focus on is the future condo market, which can be unpredictable at the best of times. However, when looking at logistics and the logical side of real estate, you are in a much better position to decide if this “deal” is worth it or not.
Suppose you are buying a condo in the Philippines with the hopes of selling your unit in 10 years. However, if you are focusing on the wealth of the Philippines and other foreign investments, do you feel that you can resell your unit for a much higher price?
This is also essential to remember when buying a condo in the Philippines because many buyers prefer to buy a brand new unit at a lower price, and it’s often much harder to sell a second or third-hand unit. However, this is not always the case… if your unit is unique or in a prime area, you may not have any problems in the future, but it’s still a vital area to consider when buying a condo in the Philippines.
The Taxation & Hidden Costs
Whether you are a foreign investor looking to invest in a condominium in the Philippines or a Filipino, tax is important to consider when buying a condo in the Philippines.
The taxation rate for condominium complexes in the Philippines Stands at 1%; however, this is increased to 2% if the condominium is situated in Metro Manila. Unfortunately, late payments will incur a financial fine. Lamudi has put together a FAQ section on real estate taxation for the Philippines.
The next thing to consider when buying a condominium in the Philippines is any hidden costs involved. When buying a condominium, specific fees are negotiated. Sometimes buyers or sellers pay extra fees. Therefore, this is a critical area to consider at this negotiation stage, affecting the overall costs.
Here at Filipino wealth, we sometimes get asked if buying a condo in the Philippines is worth it? There are many things to consider about this question, which we will speak about later, but your plans are one of the most important things.
Are you buying a condo in the Philippines for an investment, or is it for you to live? Additionally, what are your plans for the next five years? Finally, are you looking to grow a family? If the answer is yes, you may wish to consider the room size and if it’s big enough to hold a family.
Unfortunately, some condo units have very strict regulations in terms of changing the fixtures and fittings. Therefore, your plans are essential to consider when buying a condo in the Philippines.
How & When Payment Will Be Made
How will this condo unit be financed, and when will the payments need to be made? Furthermore, has the mathematics of this purchase been calculated fully?
When buying a condominium in the Philippines, another area to consider is how and when payment will be made.
If you are going to take out a home loan, how long will the loan be for? Are there any early repayment charges? And is paying the loan off quicker or slower better for your financial situation?
As any real estate agent in the Philippines will tell you, the area is one of the most important things to consider when buying a condo in the Philippines.
If you are looking to buy a condo in the Philippines as an investment, then it is also critical. Over the last five years, there has been incredible growth around the Philippines, such as Cebu and Manila…
… therefore, many developers are now turning to smaller cities and other areas. Earlier this year, we spoke about how Davao is 1 of the Philippines’ upcoming areas for real estate. Currently, the prices are relatively low, and the area is unique.
Many property predictions believe that Davao will increase in size. As a result, many businesses and developers will turn to Davao in the upcoming years, likely pushing up the property’s costs.
Your Current Lifestyle
The next thing to consider when buying a condo in the Philippines is your current Lifestyle. For example, are you somebody who works at home and needs a little more space, or are you using this just for investment or for a holiday home?
When I look into buying a condo in the Philippines, I consider any local shops such as 711 or any gyms within walking distance. Of course, these may not apply to you, but when looking at buying a condo in the Philippines, what is the most important thing to you?
How This Fits Into Your Goals
Does this purchase fit into your overall life goals? For example, if you are an expat, are you looking to live in the Philippines permanently? On the other hand, if you are a local, is this part of your investment strategy?
In other words, when buying a condo in the Philippines, a critical thing to remember is how it will fit into your overall aspirations in life.
Unfortunately, buyers purchase condominium units and later regret their decision for many different reasons, but one common reason is that this purchase does not fit into their goals in life. It’s not always an easy decision to make as our life goals are continuously changing; therefore, it’s recommended to have a solid exit plan in this situation.
Is Buying A Condo In The Philippines Worth It?
Financially speaking, buying a condominium in the Philippines is worth it if you can buy at the right time, at the right price, for the right reasons. In real estate, it’s important to remember that you often make your money when you buy, not when you sell.
Additionally, we mentioned “for the right reasons,” therefore, when looking at things to consider when buying a condo in the Philippines, the reason is one of the top areas to focus on. As they often say in motivational videos and speeches …” what is your why ?”
3 Tips Before Buying A Condo In The Philippines
Paperwork: Whether you are a new buyer or experienced, the most important thing is that the paperwork is up to date and correct. Unfortunately, there have been many scams in real estate; therefore, whatever decision you make is always vital to cheque the legitimacy of paperwork.
Different Times: Here at Filipino wealth, we speak to many real estate investors. Many mention that a new investor or purchaser should always check the unit at different times throughout the day. This includes late at night and very early in the morning.
Network: Sometimes in life, it is not what you know; it is who you know. If you can network with the right people and build connections, especially with developers, you can often find excellent deals that save you thousands of pesos. Additionally, You may be able to negotiate some added extras for your new unit.
Things To Consider When Buying A Condo In The Philippines: Takeaway
- It’s wise to look into the future when purchasing a condo unit. This is especially true if you are looking to resell your unit in five or ten years.
- In many cases, it’s often easier to sell a brand new unit than it is an existing unit
- There are taxations involved for real estate in the Philippines
- Your current Lifestyle is an essential factor if you are looking to live in the unit
- Avoid any unnecessary hurdles by networking, checking the property at different times, and analyzing documents.
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