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5 Important Things to Consider When Buying Your First Condo Unit

There’s no place like the breathtaking view of the city when buying your first condo unit.

By: Eunice Sheene Fulgencio | January 23, 2018

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condo purchasing guide Philippines

Every adult experiences numerous milestones in their own journey toward full-fledged adulthood. Some examples include a serious relationship, a job promotion, and an expensive purchase or investment. And with how real estate is thriving in Metro Manila, a condo unit is a smart investment now more than ever. A condo unit can serve as a first home, your own private space in the bustling city, or, if you’re gutsy enough, a form of additional income if you rent out the unit.

But purchasing a condo unit isn’t as simple as it may seem and so it needs insight and knowledge. Here’s what you need to do, know, and think about:


Check out this video:





1. Do your research.


condo purchasing guide Philippines

Read up before making any important decisions.



Some might say that “location is everything,” but nowadays, that may not be so true anymore. While location is a crucial factor in your purchase, there are other aspects you need to consider. Does the unit have all the necessities to make your stay more convenient? Is the noise level around the area acceptable? Also, between the two options in condo buying (Pre-Selling and Ready For Occupancy), which fits your needs better? If you are looking into cheaper payments and you want to make your unit a long-term investment, better opt for a pre-selling condo unit. Meanwhile, if you need to move in right away, go for Ready For Occupancy units.




2. Review your budget.


condo purchasing guide Philippines

Make sure that the unit is within your means to avoid problems in the future.



Everyone dreams of having a three-bedroom unit with a breathtaking view of the city, but the reality is, not everyone is in the financial place to afford such luxury. This is exactly why you should also have a realistic budget when making big, important considerations. And as a potential homeowner, you should not only make sure that the property’s primary cost fits within your budget, but you should also be knowledgeable about the association fees and closing fees that come with the unit.


3. Learn about your payment options.


condo purchasing guide Philippines

Learning about your payment options will help you out in the long run.



“Leverage” is the magic word in this scenario. Leverage in finance means “the ratio of a company's loan capital (debt) to the value of its common stock (equity).” In simpler terms, it is the ability to use as much money of others and as little of your own when buying your property. A good technique for first-time condo buyers is to first pay for the reservation fee of a unit. Then, depending on the developer, pay between 10 to 20% of the total price as the down payment for the unit until the turnover date for the project arrives. After paying the down payment, take a loan from your bank (or through PAG-IBIG) to pay for the remaining 80 to 90% balance of the unit. If payment through credit is not for you, there are other payment options that you can also do, depending on your developer. Common options include cash, check, bank deposit, wire transfer, and auto-debit.




4. Consider your short-term and long-term goals.


condo purchasing guide Philippines

Before deciding on the unit’s specifics, consider first your current life direction.



Be realistic about the direction of your life. Where will you be in five years? How about in ten years? Will you still be living in the same area? Will you be working somewhere else? Will you be living abroad? Will you still be single? Or would you already have a family by then? Purchasing a condo unit isn’t only an investment, but also a lifestyle choice. These questions will help you make a good decision about which type of condo to buy and the qualities it possesses.




5. Ask questions!


condo purchasing guide Philippines

Know every nook and cranny of the contract presented to you.



Before signing the fine print, make sure all your questions and clarifications are answered thoroughly. If something isn’t entirely clear to you, ask someone of authority from the developer until you are satisfied. Pay close attention to the contents of the contract presented to you and if it includes all the rules and amenities that were presented earlier. It is your duty as a future homeowner to be in the know and responsible of what’s to come.




Make sure to visit Yoorekka to learn and find out more about the best tips when buying your first condo unit..


Your first condo unit purchase may be daunting and confusing, but if you follow the tips we mentioned above, this adult venture will surely seem like a breeze. And when all is a done deal, this will only be an added notch to your “adulting" belt.


Do you have any first condo purchase experiences you would like to share? We’d love to hear about them in the comments below!



condo purchasing guide Philippines

Every adult experiences numerous milestones in their own journey toward full-fledged adulthood. Some examples include a serious relationship, a job promotion, and an expensive purchase or investment. And with how real estate is thriving in Metro Manila, a condo unit is a smart investment now more than ever. A condo unit can serve as a first home, your own private space in the bustling city, or, if you’re gutsy enough, a form of additional income if you rent out the unit.

But purchasing a condo unit isn’t as simple as it may seem and so it needs insight and knowledge. Here’s what you need to do, know, and think about:


Check out this video:





1. Do your research.


condo purchasing guide Philippines

Read up before making any important decisions.



Some might say that “location is everything,” but nowadays, that may not be so true anymore. While location is a crucial factor in your purchase, there are other aspects you need to consider. Does the unit have all the necessities to make your stay more convenient? Is the noise level around the area acceptable? Also, between the two options in condo buying (Pre-Selling and Ready For Occupancy), which fits your needs better? If you are looking into cheaper payments and you want to make your unit a long-term investment, better opt for a pre-selling condo unit. Meanwhile, if you need to move in right away, go for Ready For Occupancy units.




2. Review your budget.


condo purchasing guide Philippines

Make sure that the unit is within your means to avoid problems in the future.



Everyone dreams of having a three-bedroom unit with a breathtaking view of the city, but the reality is, not everyone is in the financial place to afford such luxury. This is exactly why you should also have a realistic budget when making big, important considerations. And as a potential homeowner, you should not only make sure that the property’s primary cost fits within your budget, but you should also be knowledgeable about the association fees and closing fees that come with the unit.


3. Learn about your payment options.


condo purchasing guide Philippines

Learning about your payment options will help you out in the long run.



“Leverage” is the magic word in this scenario. Leverage in finance means “the ratio of a company's loan capital (debt) to the value of its common stock (equity).” In simpler terms, it is the ability to use as much money of others and as little of your own when buying your property. A good technique for first-time condo buyers is to first pay for the reservation fee of a unit. Then, depending on the developer, pay between 10 to 20% of the total price as the down payment for the unit until the turnover date for the project arrives. After paying the down payment, take a loan from your bank (or through PAG-IBIG) to pay for the remaining 80 to 90% balance of the unit. If payment through credit is not for you, there are other payment options that you can also do, depending on your developer. Common options include cash, check, bank deposit, wire transfer, and auto-debit.




4. Consider your short-term and long-term goals.


condo purchasing guide Philippines

Before deciding on the unit’s specifics, consider first your current life direction.



Be realistic about the direction of your life. Where will you be in five years? How about in ten years? Will you still be living in the same area? Will you be working somewhere else? Will you be living abroad? Will you still be single? Or would you already have a family by then? Purchasing a condo unit isn’t only an investment, but also a lifestyle choice. These questions will help you make a good decision about which type of condo to buy and the qualities it possesses.




5. Ask questions!


condo purchasing guide Philippines

Know every nook and cranny of the contract presented to you.



Before signing the fine print, make sure all your questions and clarifications are answered thoroughly. If something isn’t entirely clear to you, ask someone of authority from the developer until you are satisfied. Pay close attention to the contents of the contract presented to you and if it includes all the rules and amenities that were presented earlier. It is your duty as a future homeowner to be in the know and responsible of what’s to come.




Make sure to visit Yoorekka to learn and find out more about the best tips when buying your first condo unit..


Your first condo unit purchase may be daunting and confusing, but if you follow the tips we mentioned above, this adult venture will surely seem like a breeze. And when all is a done deal, this will only be an added notch to your “adulting" belt.


Do you have any first condo purchase experiences you would like to share? We’d love to hear about them in the comments below!



author

Eunice knew that she’d be writing for the rest of her life from a very young age. Naturally introverted, she is selective with how she uses her time and who she spends it with. Has a penchant for sweet treats, sentimental proses, and online personality quizzes. A true-blue INFJ.

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Disclaimer: All articles in the Consumers Magazine of Yoorekka are for general information and entertainment purposes only. Although careful research has been made in writing them, Yoorekka does not make any warranty about the completeness and accuracy of all information presented in our articles. Our content is not intended to be used in place of legal, medical, or any professional advice.

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