If you’re thinking of buying a condo in the Philippines, there are a few things you’ll need to know first. In this blog post, we’ll walk you through the process step by step so that you can be a proud owner of a condominium in the Philippines in no time!
1. Finding the Right Condo
The first step in buying a condo is finding the right one for you. There are many factors to consider, such as location, price, amenities, and more. You’ll want to take your time to find a condo that meets all of your needs and wants. When searching for condo investment or even researching local condo prices, we recommend using 4 of the big real-estate websites:
If you invest in a condominium in the Philippines with a good reputation and high demand, you may find several opportunities to maximize your gains. This can be through weekly rental on Airbnb or a full-time tenant with a one or two-year contract agreement.
Over the last few years, the condominium appreciation rate in the Philippines has fluctuated. Historical data from 2015 to 2022 shows that the average growth rate for houses is 3.4%, but what about the condominium appreciation rates?
It has been suggested that the annual appreciation rate of condominiums in the Philippines is on average 3 – 8%. However, this is an estimate only based on verified historical data. Furthermore, we discovered that several factors could impact the condominium appreciation rate in the Philippines during our findings.
The factors that can impact the appreciation rate of a condominium are the location, the type of property, the age of the unit, how accessible the condominium is, the upkeep and maintenance of the building, the condominium developer, the Philippines real estate economy, and the current market demand.
2. Getting Pre-Approved for a Home Loan
Once you’ve found the perfect condo, the next step is to get pre-approved for a loan. This will give you an idea of how much money you’ll need to borrow and what interest rate you can expect to pay. It’s important to shop around for loans and compare rates before making a decision. Most banks have loan calculators on their websites so this step is relatively easy.
Some immport things to consider when taking out a home loan for a condo are:
- How long will the loan be for?
- Are there any early repayment charges?
- Approach as many banks as possible to find the best interest rate and always try to negotiate the interest rate (if possible).
- Is paying the loan off quicker or slower better for your financial situation?
3. Making an Offer
Once you’ve been pre-approved for a loan, it’s time to make an offer on the condo. The seller will either accept or reject your offer, but they may also counter with their own offer. If you reach an agreement, the next step is to sign a purchase contract.
4. Closing the Deal
The final step in buying a condo is closing the deal. This involves paying any remaining fees and transferring ownership of the property from the seller to you.
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.
Once you have negotiated and taken into account some of the miscellaneous fees associated with condo ownership, then congratulations! You are now the proud owner of a Philippine condominium!
Bonus Section: Some Additional Things to Consider Before Buying a Condo in the Philippines
When determining whether to buy a condo, you should consider some of the below pointers:
- 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 – however, if the condo is situated in an area which is in-demand, this would be less of an issue.
- There are taxations involved for real estate in the Philippines – please check where your condo is situated and ensure that you are aware of local tax laws.
- Avoid any unnecessary hurdles when assessing the condo unit by networking with real estate agents, checking the property at different times of the day, and the analyzing necessary documents.
Summary of buying a condo in the Philippines
Buying a condo in the Philippines is relatively easy if you know what steps to take. First, find the right condo for you by considering factors such as location and amenities. Next, get pre-approved for a loan so that you know how much money you’ll need to borrow. Then, make an offer on the property and sign a purchase contract if it’s accepted. Finally, close the deal by paying any remaining fees and transferring ownership of the property from the seller to you. Congratulations! You are now the proud owner of a Philippine condominium!
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