5 Things Buyers Afraid of For The First Time in Real Estate Investment by Albert Bayarcal

1. Buyers Bank Approval

Bank application and approval is the very vital in real estate investment. Most buyers are approved in 80% of loanable amount in banks if they can provide legitimate documents of business documents under your name and amount of money in your bank. For OFW, legitimate contracts of employment, payslip and other related documents and amount of money save in the bank.

2. Choosing the Developer

Its very important to know the developer. Because if you invest in a project without knowledge of the developer, you will just end up with headaches and problems.

Research about the developer and its integrity, family and businesses behind it.

3. Project Turnover Delayed

Most buyers are afraid that the condominium unit will not be turnover on time. In reality, most developers are delayed for 1 year an this is acceptable. Buyers should expect this fact due to uncontrollable events. But again it will turn back to integrity of the developer. Some developers are delayed in 2 or 4 years which is not acceptable.

4. Don't Know The Type of Ownership

Every buyer must know the type of ownership the property they are buying. Because it can be a very serious problem in the end. In Philippines there are two types of condominium property ownership. First is Perpetual Ownership(Freehold) means that you fully own the condominium property and you have a stake and say in the condominium project. And about the 50 years Lifespan clarification and understanding, condominium projects are essentially considered corporations, thus, called condominium corporations. Otherwise, a corporation in the Philippines has a lifespan of 50 years under the Corporation Code (Act 1459). The condominium you buy or invest is yours forever as long as the building exist (Full details in my next post).

Every buyer must know the type of ownership the property they are buying. Because it can be a very serious problem in the end. In Philippines there are two types of condominium property ownership. First is Perpetual Ownership(Freehold) means that you fully own the condominium property and you have a stake and say in the condominium project. And about the 50 years Lifespan clarification and understanding, condominium projects are essentially considered corporations, thus, called condominium corporations. Otherwise, a corporation in the Philippines has a lifespan of 50 years under the Corporation Code (Act 1459). The condominium you buy or invest is yours forever as long as the building exist (Full details in my next post). Second type is the Leasehold Ownership(leasehold) means more like you are renting a condominium unit with a payment of the full rent 50 years in advance, after which you can either, renew the deal for another 25 years or hand over back the unit to the owner.

5. Choosing a Trusted Agent/Broker

According to statistics in real estate industry 90% sales people failed in the business and only 10% become successful. For me this 10% are the only trusted people. Most agent over promised but under deliver. Buyers dont invest first not because of the project but because he/she trusted the agent/broker. Its difficult to trust a stranger, know the background of the Salesperson, its moral, family, and sales record or previous companies they are connected with. Verify to the company by calling them if the agent is really connected to avoid real estate scam. And know if they are registered with PRC and HLURB, these are government regulators in real estate business.

I am grateful to all my clients and friends for choosing me as your agent even though I am not perfect and have some lapses in my job but I am striving my best to improve every single day. For real estate investment and consultation, give me a call 09155958784 or email me, bayarcalalbert@gmail.com or abayarcal@beresidences.com.