7 Things to Consider When Purchasing a Property in SubdivisionsYou probably already know a few things to do or avoid when buying a property in the Philippines. But there are some secrets that I will share with you that I’ve learned as a seasoned real estate broker. Some of these are often overlooked by buyers, but are actually very important during the buying process. So, let’s figure out the key factors that you need to know before purchasing a house and lot, specifically in subdivisions.
1. Is It a Flood-free Area? If you’re living in a condominium building, flooding might not be a common problem which you may overlook when buying a property in subdivision. The best way to see if the area is prone to flooding is to ask a local or the sari-sari store owner nearest to the property. 2. Verify the Authenticity of the Title To buyers eyeing on secondhand properties or house and lot on private listings, there are several ways to verify their titles. However, the most effective way is to ask the Registry of Deeds regarding the property you want to buy. You can request a certified true copy of the land title to see if there are problems and check its authenticity. The staff can answer all your questions pertaining to the property as well as issues regarding the title. 3. Ask About the Type of Finishing It’s also important to know the finish type of the property you are purchasing. There are three types of finish – bare, fully finished, and fully furnished. Bare finish means you are buying a house without tiles, paint, and cabinets. Fully finished refers to a house that is completely constructed with paint, tiles, and fixtures. Fully furnished is the best because that means the house is complete with appliances and all you need to do is move in. Avoid advertisements that say affordable house and lot, but only bare finish. That means you need to spend more to finish the interior and exterior of the house. 4. Is It a Formal Subdivision Formal subdivisions have property management, admin staff, security guards, and fence. On the other hand, informal subdivision is the exact opposite of formal subdivision where there’s no security guard, admin, and even gate. 5. Subdivision Dues If the property is in a formal subdivision, you need to pay monthly subdivision fee. This is used by the admin to pay the security guards and other staff, maintain the amenities, and pay common electricity bills. The advantage of informal subdivision is that there’s no monthly dues. So make sure to ask how much is the subdivision fee before buying a property since this is a lifetime fee that you need to pay as long as you’re residing in that subdivision. 6. Ask About the Minimum Construction Cost and Height Restriction Some subdivisions have height restrictions before giving building permits to owners. Also, be sure to ask about the minimum cost for construction to ensure you are not violating any policies. These limitations are set to ensure that all properties have good quality structures and meet the standards of the subdivision. 7. Is the Property VATable Value-added tax refers to the additional 12% on properties being sold. If the house is worth Php5 million, you will need to pay an additional Php600k to BIR. So ask about the VAT first before buying a property to avoid these huge costs. Whether you want to buy or sell a property anywhere in the Philippines, please let us know so we can help you get started. Visit reals.ph website and go to our dashboard to List a Property in the market, or Sell a Listed Property without the hassle.
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