Buying a lot is a project for the future. A mix of stress and relief goes when considering purchasing a lot in the Philippines. The legal processing and signing process takes a while, but when you realize you are close to your ideal home, it is a reward. Not to mention that owning a lot is a great start for investment particularly when property values are rising, as they have been in the Philippines for more than five years. We all need a beautiful home in this lifetime, but not just anywhere. It must be in a very peaceful and quiet surrounding, with a well-landscaped garden, big trees, and lots of open spaces, pleasing-aesthetic, so, you might want to consider many things including the location. It takes some effort to prepare to buy your land, but the time and effort will ultimately earn you a nice profit. As I have said, like any other investments and assets, you first need to research everything before putting all your hard-earned money into this decision.
You don’t need to make an impulsive while decision on this one. It is better to educate yourself and not buy a lot in the Philippines until you are sure that you are informed about these points.
Investing in Real Estate: What You Need to Think About
The Philippines’ real estate industry is seemingly bright in the upcoming years, despite the country’s many economic challenges brought on by the emergence of the global health crisis. Experts are seeing the potential of the industry in the next year since there is a steady growth in demand. There are potential rates in residential places, commercial establishments, and business warehouses where there is no surprise that 2023 will be the comeback of the real estate industry in the Philippines as well as the lucky year for both local and foreign investors.
When it comes to investing, real estate is one of the best choices you can make. Sure there are lots of options available, however, real estate is one of the best markets out there, why? Because it has been there and here for years. Its long-term benefits and its ability to provide a stable ROI without much effort on your part make it grow further. Real estate investments are also manageable because they do not require much time or effort from the investor, which means you can keep more money in your account and spend less time working for it or putting too much stress on it. So, it is a good idea for a reliable source of income.
Also, with the start of investing in real estate, you can purchase a piece of property, or an apartment building with the money you’ve worked so hard for, rent it out, and then sell it whenever you want to. You’ll have more income than most other investments, which means you’ll have more choices in terms of how to handle it. It is advisable to invest as early as now or just simply plan out your investment since, over time, real estate helps you to gradually build your wealth while offering a stable return on your investment. Plus, if you invest in real estate now, you’ll be able to retire early and spend more time with your family.
Buying A Lot in the Philippines: 5 Things You Need to Know
Have Specific Criteria of What You Want
It’s also necessary for you to do your part as a buyer if you want to acquire the value of the lot you intend to purchase. Setting specific criteria will help you as a buyer acquire exactly what you want by concentrating your search on options that have that particular target. If you have certain preferences, it is better to regard these as non-negotiables or to eliminate other options. Determine how much money you are willing to pay or your budget, location or what neighborhood it is in, and its size. You also want to make sure the space suits its purpose, whether will it be for business, future home, etc. Also, some things to consider are security and hazards of the place. Lastly, you might also want to make sure it’s a good deal for both price and quality.
Hire a Professional
When you already have decided on your non-negotiables, now it is time to consider getting assistance from professionals in the field. These experts will not just help you in decision-making but as well in the guide and educate you in buying a lot. If you are planning to buy a lot in the Philippines, you might want to consider hiring these experts.
- Licensed brokers – brokers are the ones who mediate between you, the buyer, and the sellers. They also know varieties of choices according to your specific criteria. They are also the ones who task with scheduling in securing legal documents and negotiate with regard to charges and fees on your behalf.
- Land surveyor – Simply, land surveyors are in charge of all-over measurements, observation, and plotting the entire area the seller is presenting. In this way, you can make sure that the lot you are buying is safe from any problem ahead in the future.
- Real Estate Attorney – Legal advice is also one thing to consider with regard to the filing of legal documents that are needed in the purchase, transactions, and any necessary procedures. They are essential in supervising the entire process. Additionally, they can verify that all important legal and required procedures were followed when purchasing the property.
Ask for a Copy of the Plan
It is essential to have a copy of the lot plan of the property to also check its features like its size and boundaries. You can request a hard or soft copy of the plan for your own so that you can check it properly. It is also advisable to personally visit the lot so that you can also check the area and its surrounding.
Perform a Soil Test
After double-checking the features and boundaries, it is also important to also check the possible problem or problems that may not be evident at the first glance. Performing a soil test gives you the assurance that the soil beneath is not too soft and that there is no water underneath. In this way, a legitimate soil test may prevent you from failing construction or building accidents that may be possible in the future. Take note that it may be pricey but allotting a budget for a soil test is very much important to minimize or possibly eliminate the danger.
Take Photos of the Lot and the Surrounding Areas
Let’s say you already have a copy of the plan and you finally visit the location, inspecting the area through photos and capturing the area is important so that you would also know a few details you might miss during the visit. There are possibilities that the nearby establishment might bother you in the future, so it is important to take note of this as well. There might also be lacking essential things such as electricity or internet posts that might give you a hard time in requesting installations. Especially here in the Philippines, establishments, and warehouses are scattered most likely in provincial areas.
5 Documents to Secure When Acquiring a Lot
Of course, when buying a lot, there is a lot of paperwork and legal documents you need to prepare together with multi-pocketed envelopes to store even the small papers of your future home. That said, here are five important documents that you should acquire before securing a lot.
Contract to Sell
This document serves as a temporary reserve agreement with the seller that they agree to remove the lot on the sale. They can still possess the property until the proper agreed debt is settled. If the buyer must pay a down payment up front and the rest of the amount over time, an agreement to purchase is created. This is a written contract between the buyer and the landowner.
Deed of Absolute Sale
When you are finally convinced with regards to the title and your personal criteria, the Deed of Sale must be signed by both seller and buyer in order to signify the transfer of ownership when the payment is completed. It is followed after the receipt of the payment which proves that you purchase the property and that you are now the owner. This agreement will be written by the seller and must contain all the information about the transaction. For this document to be effective when filed in any higher court, it needs to be notarized.
Deed of Adjudication with Sale
This document differs from the latter since this is important when the property was inherited. The Deed of Adjudication with Sale protects this agreement against any sale disputes by declaring that all surviving heirs have consented to sell the property.
Certificate of Titles
This document is also essential and the most legitimate proof that you are the owner of the property. When you purchased a property, you would receive a Transfer of Certificate of Title. This proves your legal ownership of the property.
After the process of Certifications, you must request a Tax Declaration. You also must clarify the taxes and up-to-date payments of the property. Include a picture and a new title for the property. Once finished, you won’t have to worry about paying taxes.
Founding your investments little by little is also building the future for yourself and your family. The process of investing and purchasing a lot may be stressful and time-consuming but always take note that it is for the betterment of one of the biggest decisions you are considering. All these steps are essential to consider when you want to buy a lot in the Philippines. We all want to live and spend the rest of our life in a comfortable neighborhood as well as rest in a space where we feel that we are safe from all danger. It might be a long preparation but, it will always be worth it.
- Beldad, K. (2022, August 31). HomePossible: Things to Do Before Buying a Lot in the Philippines. Bria Homes. https://www.bria.com.ph/articles/things-to-do-before-buying-a-lot-in-the-philippines/
- Calzado-Meneses, C. A. (2022, August 2). 8 Things You Need to Do Before Buying a Lot, According to an Architect. Realliving.com.ph. https://www.realliving.com.ph/home-improvement/building-renovating/things-you-need-to-do-before-buying-lot-according-to-architect-a1810-20220802
- A Buyer’s Quick Guide on How to Buy a House and Lot in the Philippines. (2021, May 31). Lessandra. https://lessandra.com.ph/blog/2021/05/31/house-lot-philippines