Buying a property in the Philippines is one of the most important financial decisions you will make in your life. The purchase of a home is not only an investment, but it could also be your biggest asset and security.

Whether you are a first-time buyer or an experienced investor, there are certain key elements that must be evaluated before making a decision. By understanding and analyzing these factors, you can make an informed decision and secure a property that meets your needs and expectations.

Here are some things to look for:

#1 – Location

You’ve heard of this many times over. One of the most important factors when buying a property is its location. It affects the price of your home as well as its value in the future.

In this section, let’s go over some tips to remember when searching for a good location:

• Accessibility. When buying a property, find out how accessible is the property via public or private transportation. Use Google Maps to know the travel time between the property and the places that make up your lifestyle (e.g. office, school, airport)

• Security. Do take into account how safe is a property’s neighborhood. You can do this by checking if there are street lights on routes where people walk home or if there are security personnel at night.

• Surroundings. Another factor to check is what are the buildings near the property. Does it sit in a quieter part of the city? Or is it close to an area with a lot of foot traffic or nightlife activities? One of these might be more suitable for families with young children while the other may appeal to a younger crowd or solo dwellers.

• Future developments. Nowadays there are more options when it comes to property investment purchase. This means that you need to assess a neighborhood’s present condition and its potential for growth and development in the future because this can significantly impact the property’s value. For instance, a prime location surrounded by infrastructure developments such as subways, bridges, or grade-A offices can stretch out your gains making for a wise investment.

#2 – Purpose

Different purposes require different considerations when purchasing a property. To supplement a desire to buy a home from a particular location, one must be clear about their purpose for it. Here are some follow-up questions you can ask yourself to help you identify where you should hone in your property search:

Question #1

Will you be using it as a primary residence? If so, how soon do you need it, how long do you plan on staying there and how many people will be living in the property?

Question #2

Are you buying it as a holiday home or retirement home? Who will be managing your property while you’re away?

Question #3

Is the goal to have an investment property? Do you know of real estate brokers and agents who can expertly guide you in the local rental market?

It’s important to understand the distinct requirements you might have for your and/or your family’s needs. For instance, if you are upgrading to a bigger home with your pets or plan on getting one, you should prioritize this during your search given that some residential buildings may not be pet-friendly, and therefore having clarity upfront lets you avoid wasting precious time.

#3 – Payment Terms

Understanding the payment terms of a property is essential to avoid financial strain and ensure a smooth transaction. Evaluate the total cost of the property, including any additional charges such as taxes, maintenance fees, or association dues. Consider your budget and discuss potential financing options with your bank or financer.

Some property sellers require only cash payment from buyers for many reasons such as needing funds right away, having the property under mortgaged, or preference on the technical process. So our advice is to avoid investing your time and energy to visit a property only to learn that the secondary market seller is not open to bank financing to begin with.

Buying from a developer is a different story. Most of the time major or boutique developers offer flexible payments both in the pre-selling or ready-for-occupancy (RFO) units. Taking an in-depth look at the payment terms will help you determine whether the property is affordable and financially sustainable in the long run.

#4 – Personal useability or Rentability

If you are purchasing a property with the intention of generating rental income, it is crucial to assess its rentability. Research the rental market in the area and determine the average rental rates for similar properties.

Consider the property’s attributes, such as its size, location, and amenities, to gauge its attractiveness to potential tenants. Additionally, evaluate the demand for rental properties in the area based on the lifestyle of an average tenant in your area. Investing in a property with high rentability increases your chances of securing reliable tenants and maximizing your return on investment.

Here are some of the most common questions prospective owners and tenants ask about a property when finding out how it can best serve them and their lifestyle:

• Are pets allowed?
• Is it Airbnb-friendly?
• What’s the property management like?
• Basic utilities-efficiency
• What are the amenities?
• Is there a view?

There are pros and cons to buying a property that’s Airbnb-friendly. An investor would most likely prefer a property that offers maximum earning potential, including being Airbnb-friendly. It increases its rental appeal because you’re no longer limited to only long-term tenants of 6 months or longer.

🔗 RELATED: Pros and Cons of Buying a Property That’s Airbnb-friendly

When it comes to the pet-friendliness of a property, this can be imposed by the building policy or the discretion of the owner. Some owners may be allergic to pets or have health issues so they may wish to impose a pet ban on their personal unit despite it being within a pet-friendly building.

On the other hand, if pet-friendliness is something you would like as a feature of your property, remember to check the building policy regarding pets so you can ensure you and your prospective tenants are aware of it.

You also want to know how well property management manages their properties–are there any major issues with maintenance? If so, how long does it take for them to respond? Are there any recurring problems that should raise a red flag about their ability to handle emergencies effectively?

Prospective owners and tenants can also be particular when it comes to knowing the basic utilities of a building. Things like having 100% backup power in case of a power outage or having fiber-optic internet ready can be a top priority for some people who work from home. Whereas some people who may be budget-conscious would likely appreciate getting an estimate of what a monthly bill would look like before they sign a lease so there’s no surprise later when bills arrive in the mail.

Further, what are the amenities like at this complex? Evaluate the availability and quality of recreational amenities like parks, gardens, swimming pools, gyms, and sports facilities. These amenities contribute to a healthy lifestyle and can enhance your overall well-being.

#5 – Resale Value

Resale value is an incredibly important factor to consider when purchasing a property and is worth paying special attention to.

With so many homes on the market these days, it’s easy for buyers to find one that meets their needs at a price point they can afford. But if your property doesn’t have good resale potential or is priced too high, it may not sell as quickly as other properties in its price range.

When evaluating the resale value of a property, there are several elements to consider. These include the location of the property, brand recognition (i.e. esteemed luxury developers), structural integrity, and any upcoming development plans in the area. The more desirable a property is, the higher its resale price will be.

By paying close attention to these, you can make a more informed decision about whether or not a particular property has strong resale potential. Investing in a property with strong resale value can help ensure that you enjoy a healthy return on your investment and protect yourself against any unforeseen market fluctuations.

We hope that this article has helped you to better understand the process of buying a property and the things you need to look out for. Should you have any questions or concerns, please feel free to contact us at info@luxuryestateph.com and it will be our pleasure to assist you.