Urbanization and rapid population growth have changed the face of real estate in the Philippines. Gone are the days when houses and apartments were the property of choice for Filipinos. These days, more and more people are opting to live in condos and the market is also attracting an ever increasing number of foreign investors.

Today, both high-rise and low-rise condominiums are being constructed in most metro areas. The demand for residential condos is increasing: between the third quarter of 2012-13, capital values of existing residential condominiums grew by 3.4 per cent. Pipeline supply for the next five years grew 12 per cent in the same period.
To help you get started in this growing market, here are a few simple tips to consider before buying a condo.

• Do your research

Before you even go to open inspections and condo tours, remember to do your research and conduct a background check on the property developer. This way, you’ll become acquainted with the company’s portfolio, client testimonials and the developer’s current projects. For example, check whether they have a history of finishing their other projects on time. Always remember to invest in a company that has an excellent track record and a good reputation.

• Consider property management

It can be hard to distinguish one good property developer from another. One tip is to check whether the property management services they offer meet your standards. It is one thing to be able to finish the development within budget and on time. But once construction is completed, what will matter more is the company’s ability to manage the property well.

“All information and copyright is reserved to Lamudi.”

www.lamudi.com.ph

The post Five tips for buying a condo in the Philippines appeared first on Mac Realty Services.

The first rule of real estate: if a deal sounds too good to be true, then it probably is.

Like all industries, the property sector attracts its share of scammers hoping to con would-be buyers and renters out of their hard-earned savings. Fortunately, there are ways you can safeguard yourself against property fraud.

To help you spot the fraudsters, here’s a rundown of the most common real estate scams – plus some advice on how you can avoid getting ripped off.

• The fake rental listing scam

These scams take advantage of the online real estate marketplace by copying legitimate property listings, reposting them elsewhere and posing as the agent or landlord who is leasing the property. The scammers will usually ask for the security deposit or another down payment upfront. Often they will ask you to wire money in advance while a contract is being drawn up.

How to avoid getting scammed:

1.Never agree to wire money to someone you have not met in person.
2.Always try to verify the identity of the person you are dealing with and confirm that they are a licensed real estate agent.
3.Look for properties listed by well-known real estate agencies and trusted websites such as Lamudi.

• The out-of-the-country scam

In this common scam, the prospective landlord or current owner says they are out of the country and unable to show you the property before you sign the lease or contract. They usually promise to send you the keys in the mail once the deposit has been paid in advance.

How to avoid getting scammed:

1.Always insist on inspecting the property yourself.
2.If the landlord or agent says this is not possible because they are overseas or unavailable, then walk away from the deal.

“All information and copyright is reserved to Lamudi.”

www. lamudi.com.ph

The post Five common real estate scams – and how to avoid them appeared first on Mac Realty Services.

Did you know that only about 40 per cent of Filipinos own their own home? This figure, from consumer banking firm Citibank, is one of the lowest in the Asia-Pacific region.

But with the price of rent increasing, buying property outright may make better financial sense. So how do you decide whether buying or renting is right for you?

• Consider all the costs

Some say rent money is wasted money. Renters pay a large bill every month and, unlike with investing in property, you never recuperate any of the costs. But owning property comes with several additional fees and taxes that you need to take into account when deciding whether to buy – think closing costs, repairs, regular maintenance and interest on your mortgage.

In the Philippines, documentary stamps tax of 1.5 per cent is levied on the sales price or market value, whichever is higher. Buyers must also pay a transfer tax of between 0.5-0.75 per cent. Remember to take these into account when calculating how much your new home will cost you in the long run.

• Use the price-to-rent ratio

If your only concern is your budget, then there is a great measure for checking whether buying or renting makes more financial sense. Calculating the price-to-rent ratio is pretty simple:

Step 1: find two similar properties, one available to buy and one to rent.
Step 2: divide the price of the property for sale by the annual rent for the second property. This is the P/R ratio.
A P/R ratio above 20 means the cost of buying the property will likely exceed the costs of renting, according to the New York Times.

“All information and copyright is reserved to Lamudi.”

www.lamudi.com.ph

The post Buying versus renting property: which is right for you? appeared first on Mac Realty Services.