The thought of purchasing your first property as a couple sounds enticing. This is a huge step that tests your maturity, responsibility, and commitment to each other.ย
Condo living is an attractive choice for couples because the location is generally good, security isn’t a big concern, and the amenities suit every lifestyle.ย
Although exciting, buying a condo isn’t as easy as you’d think. The nitty-gritty factors could be a nightmare if you fail to acknowledge them when shopping for a property.ย
There are ways to overcome the unexpected shortcomings and misunderstandings during the condo-buying process with careful planning and communication. Below are some helpful tips for couples moving in together in their first condo.ย
1. Communicate regularly
Be honest with each other, no matter how hard it is to say and hurtful to hear. Work through your concerns about every property you’re viewing, instead of bottling them up and letting them linger. As long as the two of you voice your opinions and are open to each other’s thoughts and preferences, you can work around any setbacks.ย
2. Don’t engage in power struggles
Belittling, dismissing, or disrespecting the opinions and needs of the other will cause both of you to clash, and your conversations will become more tense and feel more confronting. Eventually, you’ll feel like you’re on different teams and forget that the goal is to buy one shared home. This is how power struggles start.ย
Once the power struggle begins, couples start to look at their partner’s flaws, mistakes, and differences and let their emotions run the show, instead of focusing on the facts. There will be no compromise, and either one can be passive or aggressive to the process as a result. That’s why it’s crucial to be respectful when listening to each other’s positions the entire time. Focus on what you both want and always talk calmly.ย
3. Postpone if needed
If your conversations during this time are beginning to heat up and many disagreements are going on, take a breather for a moment. Condo-hunting should be something that excites you both, not cause fights and strain your relationship. There will never be a shortage of properties, so put a pause on it if needed.ย
Your marriage or partnership is more important than buying a home. If you feel like you’re getting in a rocky situation because you couldn’t compromise on certain things, halt all discussions about your condo search for a couple of weeks. Then, when you both have had enough time to think things through and have a new perspective, that’s when you can get back to the discussion.ย
4. Real estate friendships
While you can find all the answers to your questions with a quick Google search, you can’t be experts at everything. When property hunting, it’s still best to work with an agent with in-depth knowledge about properties and purchasing a condo.ย
If you need to hear unbiased advice and perspective, your agent can be the perfect person for that. You can also ask them for newlyweds buying tips that you might have missed.ย
5. Compromise on your wants and needs
Take the time to sit and write down the things you both want as well as deal-breakers in a condo, but do it separately. This way, you both can see your conflicting wants and needs as well as the common things you like.ย
Finding common ground is a great starting point that will help guide your condo-buying discussion. Be practical and open when talking about the must-have features and non-negotiables when looking for a property. This can help you better understand where the other is coming from and compromise later on.ย
6. Agree on a budget
An important subject you’ll have to discuss with your partner is how much you plan to spend on a property. Should you go for a unit with a conservative price or take on a higher mortgage to afford a larger unit? While it’s nice to have a bigger unit so you can host a lot of people in your new home, it may take a toll on your finances if the monthly payments are too high.ย
When talking about money, it’s more advisable to set aside emotions and desires. Stick with the facts instead. Determine your monthly income and consider the other expenses (i.e., phone bills, subscriptions, etc.) on top of monthly payments that come with owning a condo unit. Veto properties that are beyond your price range.ย
Let Condo Shopping Bring You Closer Together
Living together is a significant milestone for couples. But know that buying a condo property is more than just agreeing with one another. And remember, don’t rush the process. Picking a home can take months. So take all the time you need to talk about your worries and desires to find the perfect condo match for you and your partner.
Are you ready to purchase your property and turn a new chapter in your life as a couple? Hunt for quality condo units with Federal Land, where comforts and conveniences are right at the door. Enjoy this new journey of living together in your own home.
As with any other sanctuary, the home needs constant improvement. The thing is, improvement needs creativity, and thereโs only so much creativity we can get out of ourselves. Creativity requires collaboration, and thatโs how Home Buddies came to be.ย
Founded in September 2020 by Nobi Home creator Frances Lim Cabatuando, the Home Buddies Facebook Page is a haven for people who need home makeover inspiration.
Over the months, group members or kapitbahays have shared various DIY hacks, design inspiration, and notably, the latest budol finds. These items are usually practical, aesthetically pleasing, and suitable for any home.ย
Scrolling through the pageโs feed may be a bit overwhelming considering the 50+ posts per day. Thatโs why we compiled a list of the best home finds from the group, which you can use as inspiration for your home makeover plans.
9 Budol Finds from Home Buddies for Your Home Makeover
Are you tired of losing your house keys or wanting to lessen the number of keys you carry around? The Shanong Fingerprint Smart Door Lockcan be the solution to your problems. This door lock has its own fingerprint scanner and passcode, allowing you to unlock your door with ease. You can also open it using a designated card which you can place inside your wallet.ย
The door lock is powered by four AA batteries and can last for more than a year before they need to be changedโthatโs high endurance for something that adds a touch of โhigh techโ to your place!ย
Are you #TeamPuti or #TeamKahoy? Either way, youโll love this next one.ย
Fans have become such a staple at any home that itโs not surprising for them to have their permanent corner in a room. But what if you can get a fan that not only keeps you cool but also adds aesthetics to your home? The Asahi Wooden Stand Fan has a minimalist and natural design, perfect for anyone looking for practicality and style.ย
Just type in โDeermaโ in the search bar, and youโll find that a significant number of kapitbahays have purchased a Deerma product, with most of it being vacuum cleaners. The VC20 Plus, in particular, is one of the most affordable options in the Deerma vacuum cleaner line.ย
The VC20 Plus features a wireless design allowing you to clean anywhere without tangling. It comes with multiple brush heads, which you can interchange as needed, and are suitable for cleaning the floor, sofa, ceiling, and car interiors, among others.ย
Thereโs a wide selection of coffee machines out there, with various prices and features to choose from. This can be daunting, especially if youโre buying for the first time and need a straightforward machine. The B Coffee Co. Freshman Capsule Coffee Machine covers all the basics at a price that doesnโt break the bank.
With a sleek and smart design, the B Coffee Co. Coffee Machine can be a great addition to any kitchen. The machine has one-touch control buttons and rapid pre-heating, which make it fast and convenient to use. Itโs also suitable with Nespresso original and Nespresso-compatible capsules so you can explore your coffee options.ย
Hereโs another one for the coffee loversโor anyone who loves hot and cold drinks. Double-wall glass mugs have been the latest craze these days because they not only help you pick up a drink safely but also look unique and classy. There are many shops in Shopee and Lazada that sell double-wall mugs, so feel free to explore your options!ย
Yup, thereโs another vacuum cleaner on the list! If youโre someone whoโs always on the go and doesnโt have much time to clean their home, then consider a robot vacuum cleaner. The Xiaomi Mi Smart Robot Cleaner has an Intelligent Path Planning feature, which involves mapping a room for a more efficient cleaning path. One kapitbahay said it had caught a bagful of dirt even after cleaning and mopping the area right before!ย
Generally speaking, water filters arenโt a common budol find, but it has already gained traction within the Home Buddies community. A member who sells coffee concentrate and soy lattes shared how she and her husband had to order gallons of water three times a week for business and personal consumption, but the IVO Water Purifier helped lessen that.ย
If youโre looking to save on water expenses, too, then consider purchasing a faucet water filter.ย
These hanging shelves are ideal for the plantitos and plantitas, but they can also be used by anyone who wants to organize and display their trinkets. Whether floating or hanging shelves, these can enhance space, help show your personality, and add character to your room.ย
Another popular budol, weighted blankets simulate the feeling of being held or hugged, making it easier for you to sleep better. Better Sheepโs Lambing Blanket aims to relax your nervous system and allow for the creation of serotonin (your happy chemical) and melatonin (which makes you sleepy). This ensures you wake up with more energy and enthusiasm the next day.ย
When It Comes to the Rest, You Know Best
Home Buddies saw a rapid increase in engagement because there is always a need to renovate oneโs home successfully, regardless of the pandemic. The home is where you spend most of your time, so it needs to be beautiful, conducive, and motivating.
Support groups like Home Buddies can help you make the best decisions in beautifying your space. remember to take it slow and steady and carefully consider your preferences, especially when researching through a multitude of online furniture shops.
Federal Land creates homes with generous living spaces so you can have the freehand to design it your way. Choose among a wide variety of residential developments by Federal Land today.
Condo-living is great for several reasons. Whether you live alone or with family, settling in one will entitle you to many benefits for that complete urban experience. To name a few perks, condo owners have access to high-quality amenities, so they donโt have to worry about security and maintenance, and can potentially use their units to generate profit.ย
While these advantages sound fantastic, itโs important to keep in mind the financial obligations that come with owning a condo. As you prepare for your move, youโll need to be mindful of factors such as upkeep, utility bills, and association dues. To help you budget accordingly, the guide below will talk about the costs of owning a condo.
Condo Living: A Breakdown of Your Expenses
Recent trends suggest that the demand for condominiums is on the rise. Thanks to the security and convenience they provide, theyโre seen by many as a desirable housing option. At the same time, they can be lucrative investment options that can yield high returns. As such, itโs no surprise why many people are looking to get one.ย
As you settle into your new condo, youโll need to take note of both upfront and recurring fees to manage your budget wisely. Here are some of the expenses that come with condo living.
Upfront costs –This encompasses all of the initial payments that come with purchasing the property. These expenses may be charged by your real estate partner, chosen service provider, and governing agencies. These balances must be settled before you officially acquire your title.ย ย ย
Moving costs –As you move from one place to another, youโll need to consider the fees that come with transferring equipment. This includes truck rentals, manpower, and other related services.
Property cost/Downpayment –This is the price you pay to officially acquire a property. This can be done either through an upfront transaction or a downpayment with periodical amortizations.
Legal document fees and property taxes –These are expenses you incur to acquire the property title. Notarial fees, documentary stamps, and charges imposed by the government are some common examples.
Loan/financing fees –If youโre looking to mortgage your home or acquire a loan to pay off your condo unit, then youโll need to consider lender charges. Interest rates aside, service fees and miscellaneous expenses should also be taken into account.ย
Recurring payments –These are essential services that are billed periodically. These transactions are necessary for maintaining your standard of living and are usually settled every month, quarter, or year.
Rent –Usually paid every month, this refers to the amount a tenant pays when leasing space. Note that this does not apply to you if you own your condo unitย
Mortgage payment –For those who have mortgaged their units, there is a balance you need to pay off to settle off your debt. While this is usually done monthly, terms may vary from one lender to another. Projecting your expenses will ensure that you donโt walk on a financial tightrope.
Association dues –These are monthly payments by unit owners and tenants for the maintenance of the condominium. The fees are used to preserve common areas, manage amenities, and pay security.
Amenity fees (parking, etc.) –You may get billed for using your condoโs facilities. While some amenities, such as pools and common areas, are complimentary, some real estate providers may charge you for parking or renting conference rooms.ย
Utility bills –These expenses are essential for maintaining your quality of life. Some examples are water, electricity, and internet bills. You are usually charged monthly, and prices vary according to your needs and usage.ย
Yearly property tax –These are real estate taxes imposed by the government. Take note of the necessary due dates since failure to settle balances will subject you to penalties.ย
Maintenance –This is the payment for the general upkeep of your living space to minimize wear and tear, from minor repairs such as leaks to major design renovations.
Landscaping/Gardening –If your condo has a designated area for greenery, expect to shell out some money for gardening. Budget properly to keep your plants healthy!ย
Cleaning the home –Regularly cleaning your home to maintain the atmosphere of your unit is crucial.Consider the price of cleaning materials or the rates of sanitation services when budgeting.
Appliance maintenance –Naturally, appliances such as stoves and washing machines will break down with regular use. With that said, you should plan for eventual repairs and replacements.ย
Pest treatment and prevention –Pests can cause a great deal of inconvenience. If you have a rodent or bug infestation, extermination services should be on your list of expenses.
Furnishing and dรฉcor –Proper furnishing will pave the way for a happy and comfortable living space. Set aside some cash when canvassing for fixtures and other essential pieces.
Emergency fund –Accidents or breakdowns can happen unexpectedly, so itโs always good to have a safety net to fall back on. Having an emergency fund can help you pay off sudden repairs and give you more breathing room in case of an emergency.ย
Unexpected repairs –Appliance malfunctions and accidents can happen at any point in time. As you allocate your monthly budget, set some money aside for unexpected repairs and emergencies.ย
Broken fixtures, pipes, and electrical wires –Down the line, wear and tear will eventually diminish the inner workings of your home. Whether your home is in good shape or not, donโt forget to budget for broken fixtures, pipes, and electrical wires.ย
Insurance (Fire and Mortgage Redemption) –The best way to protect your home is to have it covered with a comprehensive insurance plan. Getting one will give you financial flexibility in case of a fire or any other disaster that can destroy your home.ย
Budget Wisely
Despite the effects of the COVID-19 pandemic, itโs good to know that there is still a lot of optimism surrounding the real estate industry in the Philippines. Now that prices and terms are more favorable than ever, today is arguably the best time to purchase a property.ย
Taking note of the factors above will ensure your comfort and guarantee a smooth transition. Budgeting effectively will help you address the needs of the present while preparing for whatโs to come. If youโre on the lookout for prime condo units in the country, head on over to Federal Land today!
Investing in real estate properties can grant you several opportunities to build your equity over time. However, that is not the only reason why so many people consider these investments a wise choice.ย
Despite the rising prices of mortgages and housing, the real estate market continues to experience a steady rise. According to investment analysis, the Philippines is expected to see a favorable growth of 7.8% within 2021.
The demand for real estate properties has also significantly increased beyond the supply in the current market, which makes it the perfect time to start your investments. However, before you even begin to take part, you must first understand the types of real estate investment available.ย
Each option has its advantages and disadvantages. These different property types can benefit various kinds of investors depending on their needs and goals.ย
1. Residential real estate
Residential real estate refers to any property used for housing. These include family homes, cooperatives, duplexes, and condos where the investor or a party renting the property lives in. This type is ideal if you are looking to start building your dream home or begin a family.ย
Properties such as condos continue to remain in high demand due to their primary location. These properties are popular because of their convenience and access to nearby essential services such as malls, hospitals, and stores.ย
Residential real estate is a good investment because of the returns you can get. For example, a real estate company in the Philippines typically has a pre-selling period when you can buy properties at a lower price. Investors take this opportunity to purchase and sell them later on when their value in the market increases.ย
2. Commercial real estate
Commercial real estate refers to any property where the main purpose is to host business operations and services. These properties typically include apartment complexes, stores, gas stations, hotels, hospitals, parking facilities, etc.ย
Investors in this category are typically business owners who want to establish their brand in a particular location or create a working space for their employees. While sales and transactions do play an important role in creating cash flow, most of its returns come from the rental profit of the property.ย
3. Industrial real estate
Industrial real estate refers to all lands, buildings, and other properties that accommodate industrial-sized activities. These activities include production, assembly, warehousing, manufacturing, research, and distribution of goods and products.ย
Zoning laws will typically specify which areas in a city these real estate properties can be designated so they wonโt disrupt residential and other nearby places during its operations. The return on this investment is influenced by multiple factors, including the type of property you choose.
4. Raw land
Raw land typically refers to undeveloped or agricultural land such as farms, ranches, and timberlands. Many investors look at these properties as a good investment because they are tangible and finite resources. Additionally, these properties save you from the trouble of running renovations and worrying over stolen or damaged goods.ย
Compared to buying a residential property or warehouse, raw land can be a significantly cheaper investment that requires no property insurance. However, a major downside to this is that it cannot generate income on its own.ย
5. REITs
Real Estate Investment Trust (REIT) manages or owns commercial properties that produce an income. Investments with these companies can be made through an exchange-traded fund or a mutual fund.ย
REITs are one of the assets that perform exceptionally in the real estate market, meaning better returns for your investment. There are also different types of REITs to choose from to better leverage your portfolio, such as retail, office, healthcare, residential, and mortgage.ย
Investing for the future
As the world population continues to grow, the demand for housing and other real estate properties continues to rise. This makes it ideal to begin your real estate investments as early as possible to get the best deals for your preferred properties. They can help grow your income, benefitting you financially.
While several real estate properties are available in the market, residential continues to be one of the most popular choices. This is because many prime spots in the Philippines have established residential properties, such as condos, for convenient living. Email invest@federalland.ph today to find the best properties located in these key areas.ย
The world is rapidly changing, and with the onslaught of the pandemic, things have been further transformed. Besides the altered buying behavior of consumers, different markets are now welcoming millennial customers and modifying their sales strategies for them.
This shift can be seen in the real estate industry in the Philippines. If youโre thinking about buying a condo as an investment, it helps to be aware of the emerging real estate trends so you can plan your purchase accordingly. Here are a few of them.
1. BPO companies will continue to be top buyers
The business process outsourcing (BPO) industry is likely to propel real estate investment in 2022 further. With more foreign companies turning to the Philippines for their offshoring and outsourcing business, the lease of condominiums and other properties is seen to escalate in the next 18 months.
While the COVID-19 pandemic crippled many businesses, the BPO industry continues to expand. The Philippine Economic Zone Authority reported aย 37 % increasein information technology and business process managementย pledges from investors. From Php8.32 billion in 2019, it increased to Php11.4 billion in 2020.ย
With these growing numbers, weโre looking at higher purchase and lease rates in the real estate industry this 2022.
2. More co-working spaces will pop up
With the rising trend of co-working arrangements, companies are looking to lease more spaces, complementing their headquarters with satellite offices near their employeesโ homes. This shift is likely to benefit co-working alternatives.
Co-working allows diverse groups of remote workers, freelancers, and other independent professionals to work together in a communal setting, offering them more convenience. Itโs a departure from the traditional office arrangement. When the pandemic is over, people may no longer want to go back to the crowded central business districts.ย
Interestingly, Colliers Philippines predicts that flexible workspaces will expand by 10% in the next three years. One reason is that co-working spaces not only currently cater to digital nomads but are also seen as a practical option among multinational outsourcing companies looking for flexibility.
3. Foreign investors will increase
Foreign investments in the country have poured at the start of the year, totalingย Php36.49 billion. According to the Philippine Statistics Authority, the U.S. committed Php13.4 billion, while Taiwan and Japan pledged Php4.4 billion and Php4.3 billion, respectively. In addition, approved projects are expected to generateย 24,239 jobs.
With the creation of more jobs, the demand for more workspaces is likely to increase significantly. Companies will need to lease buildings for their industrial and commercial needs. As they say, employment moves the real estate industry.
4. OFWs to invest in more real estate
The Philippines is one of the largest recipients of foreign remittances in the world. In 2020, overseas Filipino workers sent $29.9 billion to their families here in the country. Each year, the figures continue to rise, giving many Filipinos the capacity to purchase real estate properties.ย
When you have an increased financial capacity, it becomes easier for you to own a condo or buy a house. Whether you want to treat this as your private space or a business opportunity is up to you.ย
5. Developers are turning to green spaces
The pandemic has got some of us thinking that maybe we could use this as an opportunity to rise to the occasion and create sustainable workspaces. Companies, for example, are considering alternative options in reshaping the workplace.ย
In Metro Manila, the pandemic has prompted businesses to adopt sustainable workspaces, increasing office leasing demand. In fact, it is anticipated that about 37% of the new buildings that will operate in the next few years will be wellness-certified structures.
Whatโs exciting is that this shows the start of the shift toward sanitary redesign. Iron and steel materials will likely be replaced with copper, which is more sustainable and has antibacterial properties. Ventilation systems will be installed so that airflow will be directed downward rather than from the floor up. Whatโs more, the pandemicย has made hand sanitizers a staple desk item.ย
6. Majority of home seekers are millennials
Surveys show that the majority of potential property buyers are millennials aged 25 to 34. This can be attributed to their adeptness at using technology.ย
Indeed, this digital generation often turns to their mobile devices for almost everything they do, from shopping for fashion items to ordering pizza and, now, house hunting. Itโs easy to look up properties and communicate with a real estate agent with just a tap on the phone.
7. Microcities are becoming a thing
Even developers are adapting to the increasing number of millennial property buyers. The emerging concept of microcities is an example.
Microcitiesย are โcities within citiesโ designed to meet the needs of millennial residents, similar to Cebu IT Park. These areas are packed with state-of-the-art amenities and structured to suit 21st-century demands. With millennials jumping from one job to another, developers have created communities where these young employees can live, play, and settle down, all within the proximity of their workplace.ย
Real estate: The post-COVID transformation
The increasing demand for office, commercial, and industrial spaces, coupled with the changes brought about by the pandemic, continues to transform the real estate industry into a more practical and sustainable sector.ย With technology making it easier for users to navigate home-buying basics, the real estate industry is poised to thrive in the coming decades.
In the past year, people have spent more time in their homes than they probably have before. Many have started sprucing things up in their abode to create a more comfortable and aesthetic space where they can feel cozy and good, whether the theme is hygge, Japandi, minimalistic, or something else.ย
Reinventing your space is entirely up to youโyou can set it up in a way that would make it look good and feel more comfortable. You can start by browsing reputable furniture shops and looking for pieces that fit your mood board that can bring your dream space to reality.ย
Youโre in luck. This article will give a rundown of some sought-after local furniture stores to check out for your homeโs next makeover.ย
Ikea is set to open its largest store in the Philippines soon. But for those who arenโt patient enough to wait for their opening, you can shop for your favorite Ikea furniture pieces from Furniture Source Philippines. You can check out their Instagram page for their featured products and customer reviews or their website to browse all available Ikea products, from kitchen pieces to home office furniture.ย
If youโre looking to incorporate local artistry into your space, consider Furi Home for your home goods. From home decor, mirrors, and blankets to furniture and wall art, they have unique yet attainable pieces that will suit your contemporary space.ย
Their colorful blanket pieces and wall arts can give your room the splash of color it needs, while their curved mirror can serve as a decorative piece anywhere around your home. You can check out their roster of products on their website.ย
Are you looking to upgrade your bathroom fixtures with timeless pieces? Maybe you want a rose gold or matte black theme for a luxe bath time experience. If youโve watched Bea Alonzoโs farmhouse vlog, the faucet, shower fixtures, and some accessories were from Homestore Philippines. For minimalist and classy bathroom furniture pieces that leave a big impression, you have to check out this shop!ย
If you want to make your home look like a meditative space with a cozy and minimalist aesthetic, you wonโt go wrong with pieces from June and July Home. They offer curated items that can transform your home into a little sanctuary, one that tells a story of your everyday lifeโs purpose.ย
Among their products are aesthetic mirrors, vintage lamps, rattan pieces, minimalist glassware, and containers that can fit your Korean- or Japanese-inspired space.ย
For Team Kahoy homemakers, check out Ohanna Interiors. This home goods store also sells specialty crafts home pieces. Some of the wood furniture items they have include bath stands, kitchen organizers or shelves, side tables, and their coffee corner cupboardโa must-have if you need a proper space for your growing coffee space. You can explore their Instagram for their selection of home items.ย
Are you planning to give your space that light and airy ambiance? Youโll want to see Yannaโs Home for home items that fit the bill. They have a wide range of products that suit your minimal and modern, rustic, or mid-century modern-inspired mood board. If youโre looking for decorative solihiya pieces, youโll find a great selection at Yannaโs Home. Check out their website to browse their shop.ย
Are you looking for locally-made furniture that is visually pleasing, skillfully crafted, and long-lasting? Raw Tura Home offers a selection of extraordinary pieces that will exude comfort in your condo. They have ready-made home decor that you can browse on their website.ย
If youโre looking for cozy and unique rattan home items, such as a bar cart or floor chair, you can find them here. But if you have a specific sketch in mind, they accommodate custom furniture inquiries through Raw Tura.
Minimalist homeowners, rejoice! Hereโs a furniture shop that creates functional pieces that are stylish and uniquely yours. Going minimalist doesnโt have to mean your space looks identical to other homesโand thatโs what Lamana PH ensures.ย
Lamana PHโs intentional and carefully designed pieces have multiple purposes, prioritizing form and function and letting you embrace minimalism without sacrificing style.ย
Itโs Time to Upgrade Your Space
Furniture shopping doesnโt have to be overwhelming. When youโre looking for inspiration or insights, you can join online support groups like Home Buddies to help you make well-informed decisions in dressing up your space.ย
Are you on the hunt for quality condos in prime locations in the Philippines? Compare condos from Federal Land and find the one that fits you and your familyโs lifestyle and needs.
Buying a property may not be as simple as going out to buy groceries or clothes, but it is definitely one of the most rewarding purchases you can make.
If you want to invest in a real estate property, it will require time and proper financial preparation. Knowing and understanding where you currently stand financially is a great place to start. This is because factors such as credit scores, mortgages, and down payments take time for you to earn and pay off.ย
Factors in the real estate market can also affect your investment decisions, including the demand for homes and property values. For example, buying real estate in the Philippines is considered good because more people are looking at properties to expand their investment portfolio and grow their money. This can cause prices to inflate due to the increased demand.
Itโs not common for people to pay for their dream home out of pocket since it could make things less flexible for their finances. As a result, they end up getting a bank loan or relying on in-house financing as the go-to solution to buying a property.ย
However, because investing in a house or condo is a big undertaking, you should consider the pros and cons of both financing options before taking up assistance. Taking time to learn how each process is done and how payment terms are dictated can help prepare you for what to expect in the future.ย
This guide will help you understand the difference between these options and determine which one suits your needs best.ย
What is Bank Financing?
Also known as a Housing Loan or Home Loan, this refers to the amount of money you borrow from a bank or financial institution and is given for the specific reason of buying a real estate property rather than funding a business.ย
Employment Status
Typically, banks will require you to be employed for a minimum of two years with a specified minimum gross monthly income before you can apply for a loan. If you own a business, you must meet the minimum years of operation and prove significant financial profit.ย
Interest Rates
Bank financing typically has fixed interest rates and payment terms that you will need to oblige by. However, in some cases, the interest rates may be adjustable. Unique factors such as economic conditions can also help determine this factor.ย ย
Banks typically provide you with adjustable interest rates that can go anywhere between 5% to 12% per annum. Meanwhile, fixed interest rates usually have a decided period between 1 to 5 years that banks will assess after the term. This can be a good or bad option depending on the economic state of the country.ย
Repayment Terms
Your bank can also offer you longer payment terms, ranging from 5 to 20 years, based on your financial capacity. This is an excellent benefit for those who prefer to balance their finances over time.ย
Bank loans are an advantage because of their extended payment plans. However, a disadvantage is that they often charge you several fees such as property appraisal, registration, notarial, handling, etc.ย
Requirements
Bank financing is the more traditional type between the two options and is easy to apply for, as long as proper requirements are met. These include preparing the correct documents such as Income Tax Returns, financial statements, certification of employment, payslips, valid identification, etc.ย
Banks usually list requirements on their website or give this out through their customer representatives over the phone or in person.
What is In-house Financing?
If you opt for in-house financing, you take out a loan from the property developer to acquire the home or condo you want. Several retailers typically provide this option to help facilitate the process of purchasing a property. It’s less complicated overall versus getting a bank loan.
Interest Rates and Repayment Terms
The interest rates for in-house financing are generally higher compared to banks. Typically, these interest rates are fixed and given at a range between 14% to 18%.ย
Unlike in banks, the interest rates for in-house financing are not affected by economic factors, which can be advantageous. However, they have shorter payment plans, typically expecting you to complete the payment within five years.ย
Requirements
Compared to a bank loan, in-house financing does not require extensive paperwork that you need to submit. Typically, if you opt for this loan, you will only need to offer a certification of employment or something that proves your primary source of income. Due to the less complicated processes, your application also has a lower risk of being rejected.ย
According to financial advisors, the best time to take advantage of in-house financing is during the pre-selling stage of the real estate property. This is because developers usually price these properties around 30% less than a completed unit.ย
Go For What Best Meets Your Needs
Taking up a loan to buy your dream condo is a big decision you’d want to think about carefully. If not, it could cost you more harm in the future than you think. It is always best to be realistic with your expectations and what you can genuinely afford.
While Federal Land does not offer in-house financing, itโs still worth considering all your financing options before you commit. Due to their longer repayment periods and lower interest rates, we recommend taking up a bank loan instead–as long as it fits your needs.
Buying a condo typically coincides with a particular milestone in life. Perhaps youโve reached a financial breakthrough to make your first solo move possible.ย
Owning a condo can also mark the start of your investment journey in real estate in the Philippines. Youโll probably choose a condo space in the early years of building a family, too.
Indeed, buying a condo is a huge step that entails planning and selecting the best match for your purpose. For this, you need a guide that breaks down the various things to consider and steps in buying a condo to help you navigate the market as you look for that place to call home.
Is a condo right for you?ย
By now, this question is settled. Itโs safe to say youโre a condo person if you checked most of the items in the short quiz above.
Youโre comfortable living in a condo with limited space, perhaps because youโre living on your own or with only one or two family members. Your active lifestyle probably takes you away from home most of the time, so youโre willing to trade space for the convenience that comes with condo living and maintenance.ย
Many condo buildings have fully developed communities where goods or services are readily available for unit owners. You also have membership privileges at the clubhouse pool, gym, and function room, and on top of that, you get to enjoy 24/7 gated security.
Daily commutes are manageable if youโre living in a condo located near or in the center of business or commercial districts. If you own a car, you can rent or buy a parking space on one of the condo floors. Insurance-wise, youโre only responsible for your condo unit, not the entire building.
Financing Options for Condo Buyers
One of the first things to consider when buying a condo is financing it. Luckily, having the condo of your dreams is possible thanks to flexible payment schemes and available financing options.ย
If youโre in the market for a condo or real estate in the Philippines, there are four ways you can buy your target propertyโspot cash, in-house financing, bank loan, and Pag-IBIG loan. Each of these financing options differs in loan amounts, interest rates, and terms and conditions.
1. Spot cash
What is it? A spot cash mode of payment is where you use cash to buy the property from the condo developer. After reserving a unit, youโre allowed up to a month to pay the entire balance. Pros:
Since youโll be settling the total amount in cash, you wonโt need to undergo a credit check from the bank or lending institution.
Youโll enjoy significant discounts from making a one-time payment instead of stretching the payment period to five years or more, which will incur annual interest rates.
ย Cons:
You may exhaust your finances by paying everything in cash.
Unless you have an existing property that you plan to sell to fund your condo purchase, making a spot cash payment will require more money.
2. In-house financing
What is it? The condo developer serves as the lending institution, allowing you to make a 10% to 20% down payment and pay the balance through monthly amortizations.
Pros:
In-house financing involves less paperwork and faster processing than bank loans.
You can pay more than 20% in down payment to lower your monthly amortizations.
Cons:
In exchange for flexible payment terms, developers may charge higher interest rates.
If you only pay the minimum down payment, youโll have a higher loan balance and higher monthly payments.
3. Bank loan
What is it? By taking out a loan from the bank, youโre making arrangements with the bank to pay the real estate or condo developer. In return, youโll pay through monthly amortizations.
Pros:
The loan repayment period can be up to 20 years.
You can borrow up to 80% of the total property price, depending on your financial capabilities.
Cons:
The property will serve as loan collateral and remain under the bankโs name until youโre fully paid.
Most banks have strict policies on loan approvals and missed monthly payments.
4. Pag-IBIG
What is it? Pag-IBIG members can avail themselves of housing loan benefits to purchase a residential property, such as a condo in the Philippines. Depending on the arrangement, Pag-IBIG may deduct the monthly amortizations from your salary.
Pros:
Pag-IBIG lets you borrow up to P6 million at low interest rates, starting at approximately 6%.
Short-term and long-term repayment options are available. The maximum payment period is 30 years.ย
Cons:
The amount you can loan will depend on several factors, including Pag-IBIGโs value appraisal of the property.
Not all realty companies accommodate Pag-IBIG financing.
The 3 Types of Condo Units
The real estate industry features several condo types, ranging from studio unit, 1- to 3-bedroom suite, or penthouse. The type of condo unit you choose will depend on your lifestyle, status, needs, and budget.
Here are some tips to help you decide which condo type is the most suitable for your situation.
Choose a studio if:
Youโre single or a couple who doesnโt need an overly spacious area. Studio units have the smallest floor area, with some starting at 18 sqm.
You prefer a basic home structure, a minimalistic lifestyle, and an uncluttered, easy-to-maintain unit.
You have a tight budget but feel confident about getting started with mortgaged living.
Choose a unit with bedrooms if:
You have a small family that will fit in up to three bedrooms.
You want to maintain a level of privacy by having your own room.
Your idea of a comfortable home has separate areas for the living room, dining and kitchen, and storage.
You have saved enough money to pay for higher monthly amortizations.
Choose a penthouse if:
You want to get the best view of the city by living on the topmost floor of the condo.
Youโd rather have a stand-alone unit than have adjacent units belonging to other tenants.
Youโre after exclusive perks like dedicated elevators and private areas with a pool or lanai.
You have the financial capability to support living a premium lifestyle.
10 Things to Consider When Buying a Condo
Moving into a condo is a process of planning, comparing alternatives, and looking at the overall picture of home buying. That can be overwhelming, but not if you take these recommended steps in buying a condo. The idea is to simplify that process while ensuring that youโre maximizing the benefits of your property investment.
1. Ascertain your goals.
Condo living comes with pros and cons. On the one hand, it represents a modern lifestyle that makes it a popular choice among individuals and families attracted to the comfort and convenience of city life.ย
On the other hand, condominiums offer less living space than single-detached properties. Itโs a matter of identifying what you want and what you canโt compromise.
2. Study the unit structure.
Your condo unit will be your home for years to come. It should be comfortable and presentable enough, at least based on your standards. If the arrangement or placement of rooms and other structures feels different to you, you should not settle and instead look for other units that youโd want to come home to every day.
3. Settle on a location.
Many condos are close to offices, schools, malls, hospitals, and other essential facilities. When choosing a site for your condo, you may want to consider whether itโs in a first-class, second-class, or third-class municipality, as this can have an impact on your cost of living.
4. Review the fine print.
It would not be correct to assume that condo rules and policies about homeowner association fees, building maintenance, unit renovations, or personnel salaries are the same across real estate companies. As a unit owner, itโs your responsibility to determine what to expect from the condo association and vice versa.
5. Choose your financing option carefully.
More and more Filipino families realize their dream of owning a condo. The key is to examine the available financing options thoroughly and review the offers presented.ย
For instance, low interest rates arenโt the be-all-end-all of selecting a funding source, as you also have to consider if the loan amount youโll be receiving can cover the total contract price of your target property.
6. Ask about the amenities.
The more amenities available, the more activities you can do without leaving the condoโs vicinity. Although developers arenโt likely to charge you for using the condo building amenities like pools, gyms, function rooms, basketball courts, or lobby Wi-Fi, there may be exceptions that you should know, such as homeowners association dues for maintenance and upkeep.
You might also want to think about which amenities are non-negotiable to you and which ones you can live without.
7. Inquire about security.
24/7 security is one of the best features of condo living. Besides this aspect, other security must-haves are CCTV cameras and intercom systems, smoke detectors, fire alarms and exits, power generators, and emergency plans.
8. Observe the neighborhood.
Whatโs your vision of an ideal neighborhoodโis it a friendly, close-knit community, or would you rather be distant from everyone else? These may seem like trivial details, but remember, such considerations can affect your condo living experience one way or another.
9. Research about the property developer.
A reputable, professional property developer like Federal Land adds a lot of weight to a smooth condo-buying venture.ย
The best ones know the trends of real estate in the Philippines inside out, from finding the most strategic locations to developing a well-planned community and offering attractive deals. Check the developerโs track record, especially in completing pre-selling units on schedule.
10. Check for parking.
Parking spaces in condos are either for rent or sale, so be ready to pay anywhere from a few thousand to hundreds of thousands if you want your own. Some residents choose to rent their unused parking slot at lower prices, so be on the lookout for this option.
What Legal Documents Should You Prepare?
A condo purchase is considered an investment, which requires complete paperwork to ensure that transactions are fair and legal for buyers and sellers. Once youโve decided on the condo unit you intend to buy, you must secure these documents:
Letter of Intent (LOI) to Purchase Also called an offer to purchase, this document signifies your interest in buying a property from the seller or developer. The LOI typically contains details like property description, pricing terms and conditions, and other financing information. Although itโs not a binding agreement, the seller must sign the LOI and reserve the property for you for an agreed period upon your payment of a reservation fee.
Reservation Application In paying the reservation fee, youโll receive a reservation application stating essential information, such as the propertyโs complete address, type, size or floor area, preferred financing option, and payment terms. This document formalizes the agreement between you and the seller. Included is the sellerโs promise to take the unit out of the market. This way, no other buyer can make an offer for the same property.
Contract to Sell Your broker or developer will draft this document to detail the sales provisions you and the other party must comply with before paying the property in full via home financing. Upon settling these requirements, the developer will use the Contract to Sell as the basis for the Deed of Absolute Sale.
Tax Declaration As a condo unit owner, youโll have to request the City Assessorโs office to issue a Tax Declaration to your name. That means you will be paying all tax obligations moving forward. Tax declarations require a copy of the title and photo of the property you purchased.
Letter of Guarantee If you have secured a loan as payment for the condo unitโs remaining balance, the bank or lending institution shall issue a written guarantee to the developer containing details about your home financing loan, such as the amount and date of release. Ensure that the details in the Contract to Sell and Letter of Guarantee match to avoid potential legal issues.
Deed of Absolute Sale
This document is the final requirement to be submitted to the Registry of Deeds, who will issue a Condominium Certificate Title to indicate the transfer of the condo ownership to your name. Either you or the developer can prepare this document with a Notary Public.
These are six of the most common documents requested when buying a condo, you may check Federal Landโs full list of requirements here.ย
Get Your Dream Condo
Buying a condo is a worthy and rewarding investment if it fits your budget, needs, and lifestyle. The important thing is to know as much as you can about the options and opportunities available to you. In the Philippines, the real estate market is teeming with quality condos in prime spots. Check out your dream property from Federal Land.
Thereโs certainly a different kind of thrill and excitement when youโre about to get your own condominium unit. Itโs going to be your personal space, your haven. And as a major investment, you want to make sure everything goes well.
When buying a condo, avoiding purchase-related mistakes is key to ensuring that your investment is worth it. Luckily, the best way to prevent these errors is to know the red flags to look out for.ย
Read on to know how to spot condo-buying mistakes to make sure your experience of buying a property is a great one.
1. Not getting a pre-approved loan
You might be too preoccupied at the thought of having a condo unit that you unintentionally ignore getting a loan pre-approved first.
Getting a loan approved before you start paying for your unit will give you an idea of what price range you qualify for. It will also keep you from going overboard with your budget. Note that a seller is unlikely to entertain an offer without a pre-approval. Essentially, a pre-approved loan will help you secure payment until you have fully paid for your property.
2. Failing to set a budget
The idea of having your own space can prompt you to tender the down payment upfront out of delight, making you forget about the budget for the entire payment period.ย
With proper understanding and awareness of how you will go through the entire payment process, you can be sure youโre walking your way into your dream property stress-free. One way of doing this is by coming up with a budget.ย ย
Having a financial plan will help you focus on completing your payments for the property. Likewise, with a budget in place, you can track your spending and avoid missed payments.
3. Overspending a previously set budget
Sometimes, real estate agents give you special options, which can spell additional payments. Sure, adding a few thousand to what you have to pay every month so you can get a bigger unit sounds like a sweet deal, but thatโll only work if you can actually afford those additional charges in the long run. Stick to your budget to avoid compromising your finances.
Having a budget helps you keep tabs on how much cash youโre taking out of your bank account, and laying out your expenses will help you identify your priority areas. Without a plan, you can spiral into out-of-control spending, which can cause you financial stress.
4. Not getting the right size
Large properties often attract prospective buyers because having a big space means having more rooms to move around comfortably. It is crucial, however, that you consider your future goals when choosing a unit size. It helps to make sure the appeal of big condos does not overshadow your plans.
Your space preference should depend on your plans for the long haul. If you intend to live alone for the long term,ย you can settle with a small unit so you can save money for your other priorities.ย But if you plan to have a family, a unit with three or more bedrooms would be appropriate.ย The bigger space provides comfort and convenience to all members of the household.
5. Not evaluating the neighborhood
Moving into your own space is exciting, but remember that your condo isnโt the only place youโll be frequenting. From grabbing coffee to a weekend grocery run, your neighborhood will have a significant impact on your well-being, so choose your community wisely.ย
When touring a condo, make sure you check out the neighborhood, as well. Walk around so that you can have a grasp of the community vibe. Evaluate the place and see if it fits your preference. For instance, if you canโt stand late-night noise, youโll probably want to steer clear of an area with a lively bar scene.
6. Believing that expenses end once youโve fully paid your condo
Owning a condo means continuous ongoing costs. Much like acquiring a house, there are fees to settle even after you have fully paid for your unit. These include insurance, utility fees, and even renovation charges if youโre considering doing one in the future.
These costs are necessary for the buildingโsย upkeepย andย maintenance. Fees are also needed for other services such as garbage collection, landscaping, and security. While this is true for any residential property you purchase, just make sure youโve got things budgeted properly so you can handle your finances in the future. After all, these amenities and fees are what contribute to the charm and convenience of condo living.
Buying a condo doesnโt have to be challenging
Moving into your own place is a significant milestone. At the same time, itโs a huge move. In starting your journey, note that a lot of time goes into buying a condo, and itโs important that youโre prepared for your next move.
While you canโt be ready for everything, reaching out to a reputable property developer such asย Federal Land will help you navigate your way with ease.ย Federal Land is a real estate company in the Philippines that offers quality condos located in prime spots in the country.
Many young professionals think of moving to a condominium unit as they stake their independence and put money into their first big investment. The convenience of condo living appeals to the younger workforce, as its features match the fast-paced corporate world.
Indeed, young professionals have to make a crucial decision of finding a place to live. A condo for sale in Manila can offer safety and security, although this doesn’t mean your options are limited. The Philippines provides the best cities to live in for young professionals with budding careers.
This article will go through the famous and best cities that you can consider living in when deciding to move into a new home.
1. Makati
Most Filipinos living in the Greater Manila Area have experienced working in Makati at least once in their professional life. So it goes without saying that you live where you work when you get a condo in Makati, one of the country’s prime centers for business and leisure. There’s no shortage of things you’ll love about Makati. Walking to work is an all-too-common scenario here. Besides being a healthy way to live, you’ll find the security astounding. Every building has a guard, every street corner has a traffic aide, and every traffic light has local police. You can even avoid the swathes of commuters on the main streets by passing through walkways and parks and occasionally stop to enjoy an artisan sandwich from one of the many coffee shops that line Makati’s towering office buildings.
2. Pasig
Pasig is ideal for modern living, connecting highly urbanized cities to the north and south of the metro. Pasig is rising fast as a progressive city, so you’ll find the offices of numerous global or multinational companies here. Itโs also home to residential communities composed of middle- to upper-class populations. You can also traverse the eastern part of Rizal if you want to get away from the hustle and bustle of the city. The mountainous side of Rodriguez or Tanay, which is about an hour away from Pasig, offers solace for your body and mind.
3. Taguig
Taguig is Makati’s neighbor, with the EDSA thoroughfare separating the two business havens. But what sets it apart are the sprawling wide roads within the Bonifacio Global City, Taguig’s financial and lifestyle hotspot.
Urban planning is at the heart of Taguig. The malls donโt look like the typical ones in nearby cities, surrounded by rivers and sustainable developments that make you feel more in touch with nature. Whatever you may need is just a stone’s throw from the entrance of your condo.
4. Manila
The city capital of the country, Manila, is where you’ll find high-profile business establishments. Manila boasts skyscraper condominiums and luxury hotels and casinos, so expect it to grow even more, with the potential to equal Makati and BGC in a few years. Manila has a rich history, as you can see in its Spanish-reminiscent towns. Last but not least, it’s the perfect spot to catch the famous Manila Bay sunrise or sunset. So if you’re looking to settle here, be sure to include a condo with a view of the bay before taking up a job offer.
5. Quezon City
Quezon City is the capital of government offices. If you’re a young lawyer, you may find Quezon City a good start for your career and lifestyle. It’s also home to the University of the Philippines, the country’s premier educational institution.ย
Beyond that, Quezon City is a nature haven, with several eco-parks and zoological gardens. As an urban hub, you’ll come across streets filled with fusion restaurants and coffee shops that offer open spaces for young Filipino professionals who need to unwind from their busy schedules.
6. Cebu City
In the Visayas area, Cebu City offers a solid urban landscape and unforgettable tourist destinations. The city’s strong growth in both segments makes it a much-favored place to live among expats, not to mention that astounding beaches surround the province island. Cebu’s cultural and religious legacies are also nothing short of par excellence, with its food culture and historical sites leaving a mark in the global scene.ย
Choose Where You Live
As you navigate the different crossroads of your career, think of condo ownership as something that can enhance your life. Living as near as you can to where you work, having all the amenities so close by, and meeting like-minded peopleโall these are essential to bringing about constant improvement in you.
In compliance with Bayanihan to Recover as One Act, qualified clients are entitled to a one-time 60-day grace period for payment due dates between September 15 to December 31, 2020 with accrued interest.
The one-time grace period will start from the due date and 60 days thereafter. No penalty charges for late payment shall be imposed for the said period.
Qualified clients who wish to avail of the payment reprieve may contact Customer Service 10 days before the due dates of each amortization
at customerservice@federalland.ph with subject line [avail60_unit number_project] or call 8886-0000/0917-8271893, Mon-Fri, 8AM-5PM.
We hope you and your loved ones are safe and healthy!
Enjoy culinary dishes from Grand Hyatt Manila in the safety and comfort of your home!
A variation of delectable cuisines and confections are made available through their online ordering system. To order, visit bit.ly/DineAtHomeGHM.
For inquiries and alternative ways to order, please call +632 8838 1234 or email manila.grand@hyatt.com.
Are you finally moving out of your parentsโ house and moving in together with your partner? Here are some newlyweds buying tips to guide you in making the right decision.
Summer is almost here, and with it comes the desire to make everything in your condominium bright and airy. The sun is shining, flowers are blooming, but if the insides of your unit feel gloomy, crack open your windows and deep clean your condo.
