Buying a home

Based on our experience, I have noted several things one need to know about buying a home particularly when the scheme is pre-selling, which means the house is not built yet and there's a developer that will do things for you. (Disclaimer: I am not a real estate broker and not connected with any real estate company, for more accurate information about a particular developer or agent, please contact them yourself).

1. Scouting
Decide where you would like to buy a home. The most popular location nowadays is the south particularly Cavite and Laguna because commuting daily became easier with the existence of shuttle vans from these areas to Metro Manila. The skyway that links Alabang to Makati made travel very fast (about 15 minutes) between the city and the south. Gather those brochures people hand over to you at the mall. Talk to them so you get an idea of what the range of price is for a particular unit (townhouse, single detached, etc.) while taking note of the lot size and floor area. Some people prefer the smaller unit with bigger lot area which may have an equal pricing to a bigger unit but with a smaller lot. Prices of course depend also on the location, the nearer it is from say, Alabang, the higher the price. That is why buying a smaller house along Daang Hari is more expensive than one which is a bit bigger but located in Dasmarinas, Cavite.
2. Site visit
Once you have narrowed down your choices to a few. Schedule a no-commitment visit to the sites. If it is a pre-selling, you'll see their model units and the turn-over units. Check out the area. I would recommend one that is not too excluded from the rest of the community, because then you would not have much problem in accessing various utilities and services - like gas shops, water refilling stations, drug stores, groceries, not to mention clinics, and of course, schools. Ask - will there be a shuttle service? Are they going to build a common area like play area, a basketball court, or a swimming pool? Do these matter to you?
3. Deciding to buy
Before deciding, talk with the developer who will apply and pay for Meralco and water service. After choosing the right location and developer for you and the type of unit, you need to choose the exact location. The developer has a map they will show you when you pick your unit. You may want to ask where the nearest gate will be, which will be the main road. Would you like to be at the periphery or at the center? Would you like to be situated in the would-be busiest road?
4. Payment schemes
Developers like Camella usually requires a 10 to 20 percent down payment (DP) payable within 12 months. They will require you to submit 12 post-dated checks if you will opt for the installment. So if you don't have a checking account yet, get one. After that they will look for a bank for you, or you may want to apply yourself in banks of your choice. There is also in-house financing at a fixed but usually higher rate. I went for the bank financing because they have lower rate at that time. Once you have paid about 75% of the DP, the developer will assign a contractor to build the house. The contractor will contact you when they start groundbreaking. The bank loan application is written once you sign to buy a house with the developer. The result will be known to you at the latest at the end of the 12-month period (when you have almost paid in full the DP). Once the developer is ready to turn you over to the bank, you need to pay bank charges and documentary stamp. You should have asked this to your agent prior to deciding which unit to buy. You will start paying your monthly amortization to the bank (or developer if you chose in-financing) come 13th month.
5. Payment Term
If you can afford to pay in cash, that would be most ideal. But most likely, one will opt for installment. The shorter the duration, the better, that is if one can afford to pay higher amounts per month. OFWs are allowed up to 15 years only to pay the property. But those locally employed - can be given up to 25 years. Check out my post on how to minimize the amount you'll pay. Click here for posts related to the unit we bought.
6. Move-in
After getting the bank's approval, paying the taxes and bank charges, and settling all your obligations with the developer, your house may now be ready for move-in. The developer will provide you the documents you need for move-in, including a move-in certificate, forms for paying your "real estate taxes" because they are the ones who do the valuation and other stuffs, and information on utilities installment. Meralco should be installed by this time. Before moving-in, the developer assumes that you have visited your house for quality check etc., and moving in will not proceed unless you have accepted the unit in writing (they have a form for this).

There you go folks. 'Hope this helps you in your research and decision-making process. Ask me anything by filling-up the comment form below. Thanks and good luck!

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Buying a Camella Home

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