Things to Consider When Buying A Condo in the Philippines

From www.philippineskylines.com

These are the things to consider when buying a condominium in the Philippines:

• Location
• Price
• Mode of Payment
• Developer
• Delivery date
• Condo dues
• Safety
• Amenities

Location

This is the most basic of the factors you need to consider before buying a
condominium. “Where is it located?”
Fortunately, the Philippines has been experiencing a growth in the Real Estate
sector, making a lot of locations available to investors. Often, residential condominiums are
built in areas where there are other developments in the area (offices, malls, restaurants,
etc.) The creation of these “mini-towns”, makes choosing a condominium easier.
A good location is where there are other places in the area which service the investor
(e.g. schools, churches, hospitals, malls, offices); there is low vehicular traffic (traffic is a
problem in the Philippines) and the neighborhood is generally safe. www.philippineskylines.com

Price

Price is another important consideration when purchasing unit. A buyer must know
how much he/she is willing to pay for a certain condo over a certain amount of time. A good
way of gauging if the condo is priced correctly is by looking at similar developments in the
area and comparing prices.

Mode of payment

Many condos in the Philippines are offered as “pre-selling”. This means that the
whole condominium is not yet completely built and you are already paying for this unit in
installments while it is being constructed.
In a pre-selling project, developers ask for equity from buyers – which is a certain
percentage of the total price being paid while the condominium is being built, paid for over a
certain amount of time.
Typically, developers ask for a 10% downpayment for the buyer and pay the rest of
the equity through monthly amortizations that can span for years.
The balance is called the “turnover amount”, which will be paid upon delivery of the
unit to the buyer.

Developer

There are a lot of developers in the Philippines offering a wide array of projects to
choose from. Though it would always be easy to conceptualize an excellent residential
project, a lot depends on the quality of the developer to make it the concepts into reality.
 Consider developers who already have completed projects, the mere fact that they
have a completed project will make you know that they have the capacity to complete
future projects.

Delivery Date

Before becoming excited about making that reservation on your dream condo unit,
consider the important detail of when you would need the unit.
Generally, projects are divided into RFOs (ready for occupancy) or pre-selling (on-
going development) units. If you don’t need the unit too soon, consider investing in a pre-
selling unit rather than in an RFO. RFOs are generally more expensive and have more strict
terms (such as only accepting cash payments). www.philippineskylines.com

Condominium dues

Condo dues are the monthly payments paid to the homeowners association for the
maintenance of the building and common areas. It is always a good idea to ask your agent
how much the monthly condo dues would cost.

Safety

Condominiums must comply with the Building Code, providing safety features such
as sprinkler systems and fire escapes.
Aside from this, one must look at the neighborhood of where the building will be built
or where the building is already built. Check to see if there is police and fire protection in
the area.

Amenities

Amenities are the icing on the cake for condominiums. Many condominiums have an
array of amenities for its residents.
Common amenities include swimming pools and gyms. Consider what will suit well to
your needs.

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