FOLLOW US!
C E L E B R ITY H OM E S
C L E A N IN G & OR GA N IZIN G
H OM E C A R E
D E C OR A TIN G
Coco Martin’s 2000sqm TropicalInspired Dream Home
5 Amazing Cleaning Hacks From Real Living Readers
Get Rid Of Amoy Kulob With This Two-Ingredient Home Spray
5 Tips For Designing His-And-Her Spaces
MENU
MON E Y MA T T E R S
Here's Everything You Need To Know About Buying A Condo When the opportunity to own a condominium unit knocks at your door, make sure you work at getting everything you need to know by Real Living Team
Aug 15, 2017
2.3K Shares
Share
Tweet
Original Article: Bubbles Santos-Salvador
Pin
Photography: Jilson Tiu and Pexels.com (Main Photo)
No down payment, zero percent interest, no interest for up to five years, for as low as P10,000 a month—these catchy phrases that you often see on flyers and billboards selling condominium units are meant to catch your attention and whether you like it or not, they do. Especially if you are plunking down any of those amounts for a monthly house or condo rental, then you are likely to take a second look at these advertisements. After all, you want to see if buying your very own condo unit is actually doable. THE BUYING PROCESS: AN OVERVIEW The process involved in purchasing a unit is similar across developers. • The client is endorsed to a sales agent. • The sales agent contacts the client to find out if the client’s specific needs (location, type of unit, floor area, etc.). • Sales agent schedules an appointment with the client to present details of the project as well as the payment terms. • A site visit is scheduled to show the actual unit (for RFOs) or the area where the unit will be (for pre-selling units). The client fills up the reservation form and pays the reservation fee. All other requirements, such as valid identification and proof of billing, will then be complied with by the client, and submitted within an agreed time. • Upon submission of requirements, developer prepares the Contract to Sell, and sends it to the client within a predetermined time from the completion of requirements.
Newsletter Signup Get inspiring design ideas and handy hints. Subscribe to our newsletter now! Email Address
Subscribe
Aside from your signature on the reservation agreement, the preferred payment scheme, and the payment for the reservation fee, here are some documents that you may be required to submit: • Fully accomplished buyer’s information sheet • At least two valid government-issued identification cards. If the buyer is married, he/she and spouse should sign and submit identification. • Photocopy of marriage certificate, if married • Proof of billing on declared address • Certificate of Employment (COE), if applicable • Special Power of Attorney, if applicable FIND THE FUNDS There are various ways to save up for your dream condo, from savings accounts to stocks and bonds. Philippine National Bank (PNB) Assistant Vice-President Modette Cariño recommends home financing. Several banks have tie-ups with different developers in order to ease the burden of finding funding for your condo.
MOST POPULAR
If you agree to purchase a condo during the pre-selling stage, you pay a downpayment “and the bank comes in to finance the remaining 80 percent,” Cariño says. Grace Lastimosa, First Vice President of Consumer Lending Group of BDO, says the bank has an All-In Financing offer. This includes the additional 5 percent loan to cover loanrelated expenses, such as transfer cost, registration fees, insurance premiums, and other incidental expenses. Depending on whether you are granted fixed or variable interest rates, you will need to consider this when you pay up. Assuming that you have a fixed term of three years, after your third year your balance is re-priced based on your outstanding balance.
C E L E B R ITY H OM E S
A Look Inside Sharon Cuneta’s Condo Unit in Makati
Cariño says it’s important to note that if you have money to spare and want to pay off a part of your balance, try and pay it on your loan anniversary date—before the re-pricing happens. Otherwise, you suffer the penalty of pre-termination—which is still about 3 percent. The requirements for a bank loan application may vary per banking institution, but these are what you should have: • Photocopy of two valid government issued IDs • Appraisal fee (non-refundable) • Proof of income (latest ITR and COE) • Photocopy of passport, COE, and proof of inward remittance (for Overseas Filipino Workers) • Securities and Exchange Commission registration and other business documents (if selfemployed)
B U IL D IN G & R E N OV A TIN G
7 Valuable Tips An Interior Designer Gives To Clients And Friends
PAY FOR IT Expect to write your first check when you confirm the reservation for the condo unit of your choice. Reservation fees depend on the developer’s standard rates, but these can range from P15,000 to P25,000. Aside from check payments, reservation fees may also be paid in cash and via credit card in some cases. As a general rule, the reservation fee is always deductible from the final computation of the condo unit price.
S H OP P IN G & S E R V IC E S
I Booked My Air Conditioner Repair Service Online
Cash payment is almost always an option, with corresponding discounts, with varying rates, given by developers. The discounts may seem attractive, especially when you see the savings in pesos so it's important to consider the payment terms. MOVE IN You’ve issued all the checks and signed all the necessary documents, and you think your work is complete. Not quite. Check your final payment computation again, to confirm if closing fees or move-in fees have been included. Final payment computation will cover documentary stamp tax, transfer tax, transfer fees, notarial and documentation fees, and other administrative and handling fees related to the transfer of the title to your name.
D E C OR A TIN G
These Photos Show How Important Your Side Table Is
Upon unit turnover, you will also receive an assessment of joining fees, Meralco deposit, water meter deposit, association dues, and other charges. The actual computation should be presented prior to the turnover of the unit. Below is a sample computation of these fees: Estimated Move-In Fees Administrative processing fee: P1,000 Construction bond: P10,000 Condominium corporation membership fee: P5,000 Permanent water meter: P1,500 Water service connection: P550 Water security deposit: P1,000 Estimated Power Fees Temporary power: P2,000 Meralco processing package fee: P4,500 Estimated TOTAL P 25,550 Most condo units are bare when turned over to the owner, and you are expected to shoulder the cost of making improvements on the unit. You should detail a budget for construction, labor, and materials for this purpose, but remember to allocate a separate budget for expenses, payable to the property management office as well.
R E A L E S TA TE
5 Fun Things To Do At Bonifacio Global City MOST SHARED
Here are examples of what may entail additional charges: • Minor electrical work such as bulb replacement • Minor plumbing work such as de-clogging and installation of shower fixtures • Minor drilling work for wall frame and window blinds
1
I Booked My Air Conditioner Repair Service Online
2
18 Billion-Peso Development Slated To Rise In Cebu
3
7 Home Improvement Projects for the Summer
4
5 Fun Things To Do At Bonifacio Global City
5
A Look Inside Sharon Cuneta’s Condo Unit in Makati
OWN IT Real estate broker Agnes Acosta enumerates the documents that should be in your possession following the turnover of the unit. • Notarized Deed of Absolute Sale and all other contracts signed • Condominium Certificate of Title, clear of any annotation of previous mortgage, lien, or encumbrances • Certified true copy of tax declaration • Bureau of Internal Revenue (BIR) certificate authorizing registration, BIR capital gains tax, and documentary stamps, forms, receipts • Real estate tax receipt • Real estate tax clearance If the developer or agent undertakes to transfer the title to your name, you should also have the following. • Deed of Absolute Sale • Condominium Certificate of Title in your name • Tax declaration in your name • Registration fees receipt • Transfer tax receipt ASK YOUR AGENT Acosta recommends that, from the get-go, buyers ask the property specialist as many questions as possible, such as: Is the price inclusive of VAT? Who will shoulder the taxes and registration fees? How much is the discount if straight cash payment is made? How much is the discount for down payment? What is the minimum down payment and maximum number of years to pay? How much is the interest rate? Is there a warranty? How many years? How much are the condominium association dues? LOCATION IS KEY When it comes to real estate, it is important to think long-term and know your exit plan before even investing. Look at the long-term value of the location, and ask yourself if what you are buying now is going to be valuable 20 years into the future. Here are some factors that will affect the property’s value through the years: • Is the property within a master-planned community? • What are the amenities already in place and what will still be developed? • Is it in a highly commercialized area? What is the noise level? If possible, take a look at the zoning ordinances, and determine what establishments may be developed or infrastructure that may be built outside or nearby, that will affect your quality of life. Read the original article ("Condo Smarts") in the April 2015 issue of Good Housekeeping Magazine. Log on to summitnewsstand.com.ph/good-housekeeping for more details.
More on Realliving.com.ph 3 Common Questions About Buying a Condo Unit 4 Common Questions on Renting or Buying a Home Money Matters You Need To Know Before Buying A Condo
2.3K Shares
Share
Tweet
FOLLOW US
Pin
Latest Stories H OU S E S
A Family Moves To A Smaller Quezon City Home (And They Love It) Real Living has featured this family's homes since 2003, and now they've made the big move to a cozier space by Rachelle Medina D E C OR A TIN G
How To Decorate With Chandeliers This lighting fixture can reveal a lot about the homeowner’s personality by Real Living Team
M A K E OV E R S
5 Impressive Condo Unit Makeovers Let these transformations inspire you to turn a bare area at home into a bright and functional nook by Cielo Anne Calzado
H OM E C A R E
Get Rid Of Amoy Kulob With This Two-Ingredient Home Spray
/realliving.ph
Fighting off musty odors is not an impossible task by Gab Buganan
S H OP P IN G & S E R V IC E S
How To Save Money At Home Stores And Depots Find out the secrets to getting discounts (and even freebies and prizes!) at these 6 popular home stores by Real Living Team
C E L E B R ITY H OM E S
Coco Martin’s 2000sqm TropicalInspired Dream Home Found in an exclusive subdivision in Quezon City, the actor’s sanctuary features must-see designer pieces, works of art, and a paradise-like outdoor area by Cielo Anne Calzado C L E A N IN G & OR GA N IZIN G
5 Amazing Cleaning Hacks From Real Living Readers We asked and you answered! by Gab Buganan
@reallivingph D E C OR A TIN G
5 Tips For Designing His-And-Her Spaces Architect Julia Sandra Uy shares tips on how to design spaces for the lady and the man of the house by Gab Buganan
TR A V E L
This Eco-Friendly Hotel in Tagaytay Is Built from Container Vans Relish the cool breeze in these mustvisit stop that champions upcycling and recycling by Christa De La Cruz For Spot.ph M ON E Y M A TTE R S
How To Divide Inherited Property Among Children Have you ever wondered how to legally divide inherited property among children and spouses? We answer everything here (and bookmark this page!). by Faye Valencia
C ON D OS
A Comfy Industrial Style for a 27sqm Unit In just five months, the owner was able to achieve his dream man cave with customized furniture pieces, black subway tiles, and interesting lighting pieces
@reallivingph
by Cielo Anne Calzado B U IL D IN G & R E N OV A TIN G
Are You Ready To Build A Container Van Home? Read these reminders first before you embark on a fun yet challenging journey by Real Living Team
Load More Stories
Newsletter Signup Get inspiring design ideas and handy hints. Subscribe to our newsletter now! Email Address
Subscribe
We use cookies to ensure you get the best experience on /reallivingwebRealLiving.com.ph. By continuing to browse our site, you are agreeing to our use of cookies. Find out more here. GOT IT! Close
© 2016 realliving.com.ph. All Rights Reserved. RealLiving.com.ph is property of Summit Media
