GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES:
GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES : INVESTMENT GUIDE
I created a guide in buying house and lot in the Philippines. This guide is based on my own personal experience, so to those who are planning to acquire or invest but do not know how or where to start please feel free to read my post.
If you can afford to avail a house and lot, invest now (especially if you’re renting)! If you can’t pay the property in CASH your other option is to apply for a “loan (Housing Loan)”. There are plenty of developers who offer rent to own house and lot everywhere!
YOUR GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES: STEP BY STEP PROCESS
GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES: Your Investment Guide
1. IDENTIFY YOUR DESIRED HOUSE TYPE
* Lot Area – refers to the size of the lot.
*Floor Area – refers to the size of the house (first floor + second floor and so forth)
* The bigger the lot you acquire the higher the price.
2. IDENTIFY YOUR PREFERRED LOCATION/PROJECT
• Consider your work place.
• Accessibility to different transportation.
• Accessibility to all basic establishments (hospitals, schools, markets, malls, banks, etc.)?
• Village Amenities/Facilities
• Know the Developers’ Reputation
Do your home work! Scout/Research about the place or the property and its developer, find the most trusted developer for you’re investing your hard earned money in it! Choose your agent well!
3. IDENTIFY YOUR BUDGET OR INCOME CAPACITY
• Know your monthly income or resources. Studying your monthly expenses and savings will help you to identify your budget. Do not force yourself to buy a big/huge house if you are cannot pay it in the long run.
• Choose the right financing scheme that fits your budget. (Pag-Ibig, Bank, In-house).
In house financing – is the easiest financing scheme among the 3 when it comes to requirements, but it has the highest interest rate (about 15% up). The Maximum term to pay your loan via Inhouse financing is upto 10 to 15 years only.
Bank Financing– offers longer terms (maximum of 20 to 25 years to pay) with a much lower interest rate. Some banks offer as low as 5.5% interest rate per annum (fixed interest rates varies according to terms)! Always remember that banks only grant 70% – 80% of the appraised value of the property and you cannot apply for a loan more than the actual cost of the property.
Pag ibig Financing – it’s a government financing scheme that offers longest payment terms (max 30 years) with least interest rate for 500K below, as the loan amount goes up interest rate gets high as well so better check with Pagibig for the exact rate because sometimes banks offer lower Interest rates than them. Some developers are not accredited by Pag-ibig that’s why some of them only offer in-house and bank financing, but if you really want Pag-ibig financing, an individual application is possible, you need to be at least a Pag ibig member for 2 years to avail a housing loan. Please note that this 2018 Pag ibig is offering more competitive interest rates to its members.
4. RESERVED A UNIT BY PAYING ITS RESERVATION FEE
5. PREPARE/SUBMIT THE NECESSARY REQUIREMENTS (such as ID, pay slip, marriage cert, tin# etc. Your agent will give you the list of exact requirements)
6. PAY THE REQUIRED EQUITY (DOWN PAYMENT) & APPLY FOR A HOUSING LOAN
(Pag ibig Financing, Bank Financing or In-house)
For rent to own house and lot, the buyer can pay the down payment which is the whole 20% of the total contract price within 8 to 24 months depending on the developer’s policy or terms at 0% interest rate).
You are required to provide post-dated checks for the down payment.
After paying the down-payment (the whole 20%), the developer starts the construction of your chosen house model. Construction takes about 6 to 8 months and during this period you should be at least processing your loan applications. Aside from submitting all the necessary requirements/documentsalways remember that the house should be at least 80% complete in order for banks to appraise and approve your loan.
*For townhouse, the whole block should be paid or sold before the developer starts its construction.
6. MOVING IN
As soon as the house is fully constructed you can perform the house inspection and if you’re happy with the unit (constructed correctly), the developer will ask you to sign some documents (house acceptance).
As soon as your loan is accepted by the Institution you can now move into your new home! (some developers have special services wherein clients can apply for MERALCO and water connections tru their office and while processing the application the developer will temporary allow you to connect via sub-meter within the village). The Original Copy of the Title will be kept by the bank and will be given to you (under your name) after paying your debt.
Guide in buying house and lot in the Philippines:: Investment Guide
Protect your money or your investments. Good Luck!
Check this link:(Guide in buying house and lot in the Philippines): Investment Guide
GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES::
GUIDE IN BUYING HOUSE AND LOT IN THE PHILIPPINES::