DANIELLE and Jon live in Canada, and aspire to make an investment in a condominium in the Philippines. After exploring several options through retail fairs and expos in Toronto, they finally found their dream investment.
The allure of condo living in the Philippines is undeniable. The investment in a condominium to bring in financial security, while keeping a place to live in when returning back home is an even bigger come on.
Offering a blend of urban convenience and modern security, condominiums have become a sought-after housing solution for many Filipinos, particularly those in the middle and upper classes. With the increasing accessibility of condo ownership, more and more individuals are considering making their home amongst the clouds.
OFWs invest in condos
Overseas Filipinos (OFWs) play a significant role in the Philippine real estate market, often choosing to invest their hard-earned savings in condominiums. This preference is driven by a combination of factors that make condos an attractive and practical option for those working abroad.
Firstly, condos represent a secure investment that can appreciate over time, providing financial stability and a potential source of passive income through renting. Many OFWs view condo ownership as a means of securing a comfortable retirement home for themselves in the future, ensuring a place to return to after their time abroad.
The convenience and modern amenities offered by condo living also appeal to OFWs. With features like swimming pools, gyms, and 24/7 security, condos provide a comfortable and low-maintenance lifestyle that requires minimal upkeep, ideal for those who are not physically present to manage a property.
Furthermore, condos are often strategically located in urban centers, providing easy access to business districts, shopping malls, and transportation hubs, making them a practical choice for those who may need to travel for work or leisure.
However, navigating the complexities of condo acquisition requires careful consideration and a clear understanding of the process. For those aspiring to join the ranks of condo owners, seeking guidance from seasoned real estate professionals can provide invaluable insights and ensure a smooth and informed purchase journey.
Before the signature
a thorough contractual review
Prior to committing to a purchase, engaging in a detailed discussion with the developer’s agent about the contract is crucial. This involves confirming the contract duration aligns with the buyer’s expectations and clarifying the specific duties of the agent, such as loyalty, disclosure, and obedience. Establishing a clear understanding of these aspects can prevent potential misunderstandings and ensure a harmonious buyer-agent relationship.
“Transparency is key in any real estate transaction,” says Rommel C., Danielle’s real estate agent from Manila who joined a trade show in Toronto to offer these condominium units to Pinoys in Canada. “Openly discussing the contract terms and the agent’s responsibilities fosters trust and allows buyers to make informed decisions.”
Negotiating the final fees, including broker and developer charges, is often possible and can significantly impact the overall cost. Many developers in the Philippines are open to fee negotiations, particularly during the contract discussion phase. Buyers should proactively inquire about potential fee adjustments to secure the best possible deal.
Financial planning: securing your investment
Understanding the financial implications of condo ownership is essential. Before making any payments, discuss the various payment options with the agent and carefully review the developer’s policies on down payments and association dues. This proactive approach minimizes the risk of confusion and potential financial or legal complications.
Payment policies can vary depending on the developer and the location of the condo. In metropolitan areas like Metro Manila, stricter policies may be in place. For instance, Taguig condominiums often require a two-month advance payment and a one-year deposit. However, buyers may have the option to pay via post-dated checks for added convenience.
“Flexibility in payment options is crucial for accommodating the diverse financial situations of buyers,” explains Jon, who is married to Danielle. “Developers are increasingly offering various payment schemes to make condo ownership more attainable.”
Exploring financing options
making condo ownership accessible
For those requiring financial assistance, availing of a housing loan can be a viable solution. The Pag-IBIG housing fund provides accessible loans with flexible payment terms, making condo ownership a reality for many Filipinos. The fund’s dividend earnings and tax-free benefits further enhance the affordability of housing loans.
The Pag-IBIG Fund plays a crucial role in enabling Filipinos to achieve their homeownership dreams. Its website points out how its flexible loan programs are designed to cater to the diverse needs of our members.”
Renting out the condo unit can also be a strategic approach to generate additional income and offset loan payments. The growing condo rental market in the Philippines, particularly among students, presents an opportunity for condo owners to maximize their investment.
Legal finalization: ensuring
a secure transaction
To ensure the legality and enforceability of the condo purchase contract, seeking notarization from a competent attorney is essential. This step protects the buyer’s interests and minimizes the risk of disputes. Selecting a reputable attorney with expertise in real estate transactions is crucial.
Choosing the right developer: a foundation for success
The choice of real estate developer can significantly impact the condo buying experience. Buyers should thoroughly research the developer’s reputation, past projects, and customer appraisals before making a commitment. Seeking referrals from family and friends can also provide valuable insights.
By diligently following the condo buying process, asking clarifying questions, and collaborating closely with the agent and developer, aspiring condo owners can navigate the market with confidence and achieve their dream of owning a piece of the urban skyline.
Beyond the financial and practical benefits, investing in a condo allows OFWs to maintain a strong connection to their homeland. It provides a tangible sense of home and a place for their family to live or visit, fostering a sense of security and belonging.
Owning a condo can also be a way for OFWs to build a lasting legacy for their families, providing a valuable asset that can be passed down to future generations. In essence, investing in a condo is a way for OFWs to invest in their future, their family’s well-being, and their connection to the Philippines.
