Are you in the market for real estate properties? Owning a property is a dream for everyone, but buying for the first time is quite challenging, especially if you don’t have a trusted real estate agent. Social media has made it easy for scammers to post and market properties online. Lack of property knowledge and real estate laws may make it difficult for buyers to decide on their first purchase. Are you buying for end-use or investment? Is the property legitimate? How do you know if you are making the right choice? Here are some tips for first-time buyers from an accredited salesperson.
1. Purchase your first property from an established company.
Look at the company’s track record and history of property development. You are investing a considerable amount of money, so getting your first condo or piece of land from a real estate developer with high demand and return on investment is wise. Research clients’ feedback on internet community boards. The most important thing to know: Can the company award the property at the turnover year on the contract? Delays in turnover mean the company is not a reliable developer.
2. Make sure that the property you’re buying has a License to Sell (LTS).
A property with no LTS number is not registered with the land and housing regulatory board. Therefore the real estate company has no right to market the property to clients. The company will be penalized for selling without LTS. The license number should always be displayed in promotional materials and online posts. The housing board or your agent may give you information- for free!
3. Never purchase from an unauthorized seller.
A professional license is also required for property sellers. The Professional Regulation Commission(PRC) and the Department of Human Settlement and Urban Development (DHSUD) issue licenses to brokers and salespersons in the Philippines. Buying from an unlicensed salesperson is also very risky. Ask for the agent’s PRC and DHSUD ID when you contact them.
4. Buy at the pre-selling stage.
It’s better to buy during pre-selling because you will be entitled to pre-launch payment terms that are more affordable than ready for occupancy (RFO). For condominiums, it will take about 4-5 years for the unit to be RFO, so you have more time to reach property equity. The money you invest in real estate can go against yearly inflation rates. At the same time, you can see how your condo or land was developed from the start. The rule is to buy now and wait instead of waiting to purchase.
5. As much as possible, negotiate the payment term for the down-payment.
If you’re paying installment terms, it’s better to deposit a higher down-payment to lower the interest rate for your loan. Before the turnover, the remaining balance will be significantly lower when it’s time to apply for a housing loan. In my opinion, you should not go over ten years. Get a loan that has a fixed interest rate for several years.
These are just some helpful information that first-time buyers should know. Always consider the long-term plan for acquiring a property. For land acquisition, the purpose would be for generational use. For house or condo ownership, it would be for end-use, so find a home in a great location. Whatever your purchase reason is, investing in real estate is one of the best ways to secure your family’s future. It’s an outstanding personal achievement to own a property. Happy prospecting!
