Buying a property? Here are the top 5 questions to ask

Hi Tony,

nice post, thanks. I suggest you to register your professional activity in the business directory. (advertisement is not allowed on the forum)

Thanks,

Julien

Seriously there are a lot of flaws in the skyscraper engineering in the Philippines. A lot of the structure would not even pass but only the knowledgeable person can spot that problem. When my condo got turned over, immediately my training from the past engineering firm kicked in, I spotted so many structural/snagging issues.

Be pray that these skyscrapers, in the event of a big earthquake would not collapsed, because if it would, the fire brigade in Metro Manila and Makati are incapable of dealing such calamity.


As for ROI, that remains to be seen, wishing and hoping that properties would appreciate x 1000 %... who knows only time will tell...

tonyrances wrote:

Philippine real estate proves to be one of the safer avenues for investing these days.
But as a responsible buyer, keep in mind that your hard-earned savings should only
be   entrusted   to   reliable   developers.   The  5   questions   below   will   help   you   further
narrow down your choice.

     1.  How long has the developer been in business?
The developer's enduring factor in the industry is important. Look for one that has
gained   valuable   experience   and   built   successful   projects   even   throughout   various
real   estate   cycles.   Research   on   how   the   company   fared   through   tough   economic
periods, more specifically, if it was able to deliver its projects amid difficult times.

    2.  What is the developer's project portfolio?
Find out about the projects that the company has completed. Are these buildings and
communities in good standing today in terms of livability and marketability?

    3.   What is the developer's experience in the realm of property that you
         are investing in?
It would also be good to know if the company has the experience in developing the
kind of property that you intend to purchase. If, for example, you would like to get a
condominium unit, it would be good to buy from a developer that has built a string of
condominiums in the past and has already refined the practice over the years.

    4.   Does the developer deliver its previous projects on time?
This is a critical requirement for any property buyer. Choose a developer that makes
it a point to deliver its projects on time or even ahead of schedule.

    5.  Who manages the properties built by the developer?
It's   also   important   to   know   the   company   that   will   be   entrusted   to   manage   the
property   you   intend   to  purchase, as   this will   ensure   how   your   condo   unit   or   your
entire community will be maintained. There are some real estate development firms
that have their own property management arms. Find out about their competencies
and track record.

Try landed property at [moderated: no free ads in your very first message]

There are many homes that are newly built and offered for sale. The problem is that you do not know what's under the concrete. Despite the Architects drawings, the builder can save money by using less Cement and steel, all of which will not show until the first earthquake produces cracks in your walls. Attractive tiles, balconies and the like can attract attention and these sales guys can be quite pushy.
Stainless steel in the Philippines is low quality and 5 years on will be speckled with rust. Beautiful chrome bathroom fittings will not keep their luster unless you pay top price for them. The developer will of course fit the cheapest.
I would suggest looking at a developers previously built homes and asking the occupiers what they think of their properties.
Beware of buying special imported goods thinking that they will be better than the local purchases. A few years on you may have trouble replacing the articles or finding anyone to provide the specialist knowledge for maintenance.
Never choose the cheapest Developer and if you select a "Package" obtain a list of what values he puts on fittings. ie, the tiles included in the package could be cheap ones where the choice is limited and you have to "add" the cost.

No 1 issue is that foreigners cannot own landed property. You can do a lease, trust, wifes name (if pinoy), etc, but in the end you cannot own land.

No. 2 issue is its difficult to get clean title. There is no title insurance like there is in the US. you have to go check taxes paid, bank claims, etc and still no guarantee someone wont claim it and cause you grief.

Condos are better, but still need majority local ownership and its takes a long time to sell. And with USD decreasing and interest rates decreasing, the housing market is on shaky grounds. Seems that evey mall has a row of kioks all advertising the latest development, there will be oversupply.

Do your homework. IF buying for investment, make sure it will cash flow, provide return (and that must be pretty high in Phils) and good developer. If to live in, then great and you dont have to worry about market fluctations, just that its built soundly.

Good luck

All good points mentions, but I just wanted to add to dhnindc  point "No 1 issue is that foreigners cannot own landed property. You can do a lease, trust, wifes name (if pinoy), etc, but in the end you cannot own land."

Another option is to set up a corporation in the Philippines and have the corporation hold the land title.  This is muddied by the fact that a Filipino corporation must be owned 60% or more by Filipinos.  Incorporation setup can be done with in a few weeks, complete with shareholder agreements.   

Contact me at [email protected] or PM for more info.