The Philippines offers some of the most beautiful landscapes on the planet. That is why buying property on one of its islands with amazing beaches and stunning views is a smart investment.
The cost of a house is determined by three major factors: its location, its amenities, and the size of its land. Let’s look at some of the things to consider before buying a property in the Philippines.
Downpayment
When you buy a house from a developer, you normally have to pay 10 to 30% of the purchase price upfront. That is, if you want to buy a P5 million property and the developer requires a 30% downpayment, you must have P1.5 million on hand. However, this can vary based on your final agreement with the broker.
Miscellaneous fees
Consider the hidden costs you’ll have to pay until you finally obtain the keys to your home. If you’re buying from a developer, make sure you have the following in order to avoid unnecessary delays and penalties: notary fee, municipal transfer tax, registration fee, moving-in fee, documentation stamp tax, capital gains tax, and real estate agent’s fee. Don’t forget about the association fees that come with buying a home, whether it’s in a gated community or a condominium.
Monthly payments
Unless you’re paying the whole value of the house, you will almost certainly apply for a mortgage. Obtaining a house loan through several public agencies should be easy, provided you understand the application process. SSS and Pag-IBIG provide financial support for the purchase of a home. The agency pays the developer for the property, which you will repay to the financial institution over time. Since this is considered a loan, you will also need to pay interest, which can be as low as 6.25% fixed for one to three years.
Property taxes
Being a homeowner entails paying your real estate taxes. Alongside this, you are also required to declare all the earnings and losses you incurred upon the acquisition of the house. It should also be established whether you’re using the house for personal or business use. Many consider buying several properties which they can utilize as passive income. For travelers looking for a place to stay, the home can be rented or leased through AirBnB.
Real property taxes are prescribed based on assessed values: 1% for the province and 2% for each city or municipality inside Metro Manila.
Buying a house, let alone considering one, is a major decision that can change your life forever. Make sure that you find the best people to help you locate the best place to invest in.
Know your options with Elanvital Encalves. For more information, contact its sales at +63 9271440196.
