Since the real estate industry is still in boom in the Philippines, more and more people are investing their earnings into properties. Are you looking into investing in a condominium? You may be downsizing from a house, buying to rent out, or flip from preselling. Either way, everyone wants to make sure they’re spending their money smartly and on the right choice.
In order to make the right decision, we gathered some important questions to ask before taking out your checkbook:
1. Who is the developer?
Usually when a property is being planned or developed, the name of the developer is the first thing we see. But just to be on the sure side, it’s best to confirm you have the right developer. Developer reputation, especially here in the Philippines, is crucial. If you don’t have an idea about a developer, try to ask around and do some research on their background and past project reviews.
You should also be sure to verify the registration of the project through the Housing and Land Use Regulatory Board (HLURB). Also best to double check your agent or broker’s legitimacy through their NBI Clearance and PRC license number.
2. What are the biggest complaints?
This applies to already built and standing condominiums. Hopefully you can get answers for this. If your agent won’t let up, then you can ask around about the development to make sure.
3. What’re the rules?
It’s good to know the cans and can’t dos before purchasing a condominium. Just to make sure your furry friend will be allowed into the building!
4. When is the turnover?
If you’re looking to move into a condominium within a certain time period, this question is important. Say if they tell you that completion is by end of 2021, make sure to give enough buffer time in case anything goes wrong. Turnover is mostly always delayed, unless your developer is never known to be late, but just to be sure, give yourself a little time.
5. What’s the management team like or is there any?
This goes with knowing who the developer is and if the project has already been standing for awhile. Usually high-end developers have great quality staff members who’ve been trained well. Best to talk to the manager of the condominium. You want to know what the people servicing the property are, as you are going to see them around almost everyday. Unless there’s no management team, then that would lower costs for you.
6. What’s the breakdown of the monthly association fees?
Being able to afford a condominium may not be enough. You also have to account for your monthly association dues and you need to make sure you have the right breakdown to account for. Also take note, that your association dues are not tax-deductible like your mortgage.
7. Where is the location of the property?
Simple question yes, but a heavy answer if answered right. You want to make sure it’s in an area that’s convenient for you. If you’re the type to live in an accessible area with say a mall and grocery nearby, this is important. Also make sure that it’s not on any fault line for earthquakes. If it’s near one, then that’s no problem, as long as it’s not on top of it. People tend to get this part confused.
8. Is there any storage space?
Say if you’re downsizing from a house, you can’t easily throw half of your livelihood out. My mom knows your pain, for all the hoarders out there. No shame! So if you can’t Kon Mari your life away, make sure the building provides or offers extra storage space somewhere.
9. What are the payment terms?
Some properties offer different options, with discounts as well if you pay with cash or per a certain basis. Make sure you have the right amounts and terms and conditions to avoid any penalties. Also be sure to ask what other fees need to be paid for, like water and electricity bills. Another area to make sure of is your financing options, whether they accept for example bank loans.
10. What documents are needed?
Before you give them any money, make sure you’ll be able to submit all the necessary documents for the reservation of the unit. Some developers have a policy wherein reservation fees are non refundable. Best to also ask for the process of obtaining your unit.
Happy condo shopping!