Real Estate Philippines 101

I feel for those buyers who made some serious mistakes in buying a house only to find out later that they really can’t afford to pay the future monthly dues and has to give it up. It can be a very stressful experience and can be expensive mistake, too. It doesn’t have to happen to you.

If you are clueless about home financing, as many home buyers are, here are some tips that you can use to help you determine how much you can afford to finance your home purchase.

View the details of “Home Finacing For the Clueless Buyers”

There are basically three (3) ways of financing a real estate purchase, namely: a) spot cash, b) deferred cash payment, c) long term financing. A resale house or property from an individual seller (as opposed to a developer) is usually to be paid in Spot Cash. On the other hand, real estate for sale from developers, can be availed in longer terms.

Each type of financing scheme has its own advantages and disadvantages. To determine which one is appropriate to you, it is best to start looking at your own budget and financial capabilities. Some financial institutions (banks, credit unions, money lenders, etc) will require income documents from your and/or your co-borrower to determine which one applies to you.

Listed below are the characteristics of each type of payment scheme.

View the details of “Real Estate Financing Terms”

Under the Law of the Philippines, former Filipinos or those who are natural-born Filipinos but lost their citizenships are still entitled to own real estate properties in the Philippines subject to a few limitations. If you are a former Filipino, the following will be a helpful guide:

1. Land must be used for residential or business purposes only.
2. Land acquisition may be through sale, donation, tax sale, foreclosure, or execution sale.
3. If the land is for residential purpose, a maximum of 1,000 sq meters of urban land or one (1) hectare of rural land is allowed.
4. If the land is for business purpose, a maximum of 5,000 sq meters of urban land or three (3) hectares of rural land is allowed.
5. A maximum of two (2) lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalities.
6. Either rural or urban lots, but not both, can be acquired
7. Either one or both spouses may avail of this privilege, but the above limits must be observed.

Holders of Dual Citizenships are allowed full rights of possession of real estate in the Philippines.

Owning a home is a reward in itself. It brings pride and frees you from bondage of renting. But it is not for everyone. Some people are better off just renting a home than buying one.

You should continue renting if the following situations are true to you:

View the details of “Renting A House May Be Good For You”

Given two houses — with almost the same price and equally good looking — one is new while the other is old, which one would you buy?

Well, there is really no right or wrong answer for that question, but your response will most like reflect your priorities and standards. Each has its own advantages and disadvantages over the other. To help you decide which is a better fit for you, consider the following points:

View the details of “New House Versus Old House”