So you’ve decided you want to buy a home! Congratulations on taking the first step towards what would be one of the biggest milestones of your life. That’s no easy feat, and your eventual purchase will be a long-term commitment. So before you dive in, let’s answer the first questions you might have in mind:
What Type of House Should I Buy?
There are two common options in the Philippines, especially for first-time buyers: a house and lot and a condominium unit.
House & Lot
When you buy a house and lot, you’re buying not only the house but the land it sits on. Houses and lots are usually built within subdivisions or master-planned communities.
There are two types of house-and-lot properties:
- Townhouses are also called row houses, townhouses are three or more dwellings that sit side by side.
- Single-detached homes are houses that stand alone on an individual lot and are not attached to any other home on all sides.
House-and-lot units can be found everywhere, but more and more subdivisions are being constructed in the provinces. Popular locations near Metro Manila are Cavite, Laguna, Batangas, Rizal, and Bulacan. These areas are popular because they are affordable. You can buy a brand new house and lot from a developer, assume a foreclosed property (a property that someone else bought but did not finish paying for), or purchase a home directly from the original owner.
On the other hand, a condo unit is a private home within a building that is often a high-rise. A condo unit could have just one room and a bathroom (studio type) or one or multiple bedrooms and a small balcony. Condos usually have shared amenities like elevators, outside hallways, parking spaces, gyms, and swimming pools.
Most condos are located in busy areas in Metro Manila and attract students, young professionals, and small families who want easy access to their workplace and basic services like supermarkets, malls, and hospitals.
Buying a Vacant Land and Building a House
A vacant lot is a piece of land situated in subdivisions or estates. This is a great option for those who want to build their own house from scratch. You can either buy the land directly from developers or purchase the land from its original owner or buyer.
Developers like Ayala, Rockwell, Filinvest and Robinsons offer in-house financing by selling residential lands at the pre-selling stage. Buying land at the pre-selling stage can be beneficial for a buyer because there is minimal cash outlay involved. Interested buyers can amortize 10% to 20% of the purchase price in 36 months to 48 months. Then the buyer will take out a bank loan once the in-house payment has been completed. It is possible that the land has increased in value in 3 to 4 years.
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, and self-employed loans. If you have questions, you can email Maria at email@example.com.
Disclaimer: Your full financial situation will need to be reviewed prior to acceptance of any offer or product.