10 Things You Should Know When Buying Real Estate Properties In The Philippines



One thing that makes real estate buying so interesting is the diversity of developers and lots available for purchase….. whether it’s residential, commercial, industrial or agricultural or farm lots. The choice is yours …is it for your own use as a future residence, office, business, or haven for mangrove.As well for personal injury lawyer you can check accident law firm for more detail information about that.

In buying real estate properties in the Philippines, please remember the following:

  1. Deal only with a licensed real estate broker who will have the authority to sell. With utmost honesty and integrity, a licensed broker will be familiar with the properties which he undertakes to sell. He has a working knowledge of land economics, real estate market, legal provision affecting real estate, reading ordinary maps and plans, financing practices in real estate transactions, basic features of land and building construction and the working knowledge of government offices concerned in real estate.
  2. Buy properties developed by a reputable company, experienced in real estate development and with very strong financial position. You should look at the people behind the company and the properties they have built.

I was a victim myself when I bought a townhouse in Baguio from an unknown developer. It was on installment payable in four years without any interest. It was clearly stated in the contract that the property will be awarded within 60 days after completion of the last payment. The property was 70% finished when the last payment was made in July 2006 just in time for the developer to request for corporate rehabilitation. To date, the case is still under the jurisdiction of the court with nothing on sight on when said property would be finished and awarded to me.

  1. Location is also one factor, you should consider when buying a property for investment since you would always want an area with a good appreciation rate.
  2. The value of the property is determined by dividing the net operating income (NOI) by market capitalization rate so you should consider this factor when buying existing properties. The net operating income is the sum of money you will earn from a property, say by leasing it, less all expenses. The capitalization rate is the net operating income divided by the purchase price of the property.
  3. When buying big existing properties, you also need consult a real estate assessor in order to determine the price at which the real estate properties will likely sell in a competitive market.
  4. Always beware of fake titles. Obtain a Copy of the Transfer Certificate of Title preferably certified by the Register of Deeds in the municipality where the property is located. It should be valid and without any defects. It should be free from any liens or encumbrances and annotations. Together with the TCT, the lot plan prepared by the licensed Geodetic Engineer and verified by the Department of Natural Resources (DENR) as well as the copy of tax declaration.
  5. Be on the look out for amenities or features such as clubhouse with function halls, fitness gym, swimming pool that Use the automatic pool cleaner, children play are, basketball court, badminton and tennis courts and convenience store, wide roads, 24-hr security, fence, electricity and water supply, shuttle service, where the properties are located if it is within a subdivision. Some subdivisions have their churches, schools, stores outside of the church so as to allow more privacy for the residents.
  6. Deal only with reputable banking and financial institutions if you intend to borrow money to finance your purchase of properties. Be sure you get the best rate of interest and payment terms.
  7. Make an actual site inspection of the property to remove any doubt you may have or get encouraged by the development undertaken in a particular area and always take care of end of lease cleaning by clicking here.
  8. Again, deal with a licensed Philippines Real Estate Broker if you desire to resell the property after some time.

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