Singleton Planning To Buy A Condo? Here’s All You Need Before You Commit!
As singles, giving into the pressure of buying a condo is all too easy. How can it not be? Condos are sprouting up like mushrooms! Wherever you look, lots are boarded with advertisements of developments with one-of-a-kind amenities. You, yourself probably know someone who lives in a condo and someone who wants to live in one, but as with any investment, buying a condo is a financial commitment with its fair share of advantages, risks, and stress. Here’s the ultimate guide to owning a condo—for singletons!
1 | Invest For The Right Reasons
Buying because of the hype is a big mistake. Get into it with a clear objective:
- Is it a property you will live in?
- Is a condo option the most cost-effective one for your life stage?
- What’s the downside of living in a home?
- If it is a property you want to earn off of as a rental property, have you calculated the risks?
- Have you looked into the rental scenario of the property you’re eyeing?
Once your objective is clear, your risks have been calculated, you’ve accepted the terms, and you’ve found a development that you believe in and feel you want to sink in your earnings into, then that’s the only time to buy.
2 | The Paperwork
If it’s technically your property for your sole use or rental gain, then placing your name on the deed would be the best option. Put the deed in your name unless you’re planning to live with your S.O. who’s paying half of everything. But remember: Complications arise in any legal document the more signatories there are.
3 | Be Picky, Picky, Picky
Here are three things to consider when picking the one: location, reputation, and price per square meter. Location dictates the price and potential property appreciation of your investment. Choose a developer that is reputable in the business and delivers the best product out there. Price per square meter indicates if you’re getting your money’s worth.
4 | My Car Wants Condo Life Too
Here’s the reality: Condo parking isn’t cheap. Prices can range from half a million to a little over a million pesos and that doesn’t even include the corresponding association dues. If a parking space is well within your budget and you actually need it, consider getting one. If you’re getting one to lease out, the average parking rental in common condos cost P36,000 to P50,000 yearly. Will you be comfortable with this set up?
5 | The Cash Cow
Acquiring a condo is not just shelling out P4,800/month as some agent in a mall will have you believe. There are pre-turnover fees and post-turnover fees. Do your research and ask the broker or agent how much the closing fees are for the unit you’re buying. This varies from developer to developer, so it may be good to compare notes. Upon turnover, association dues are the most constant fees a condo unit owner will face, which is charged monthly and computed per square meters. Developers also require a constant fee for fire insurance aside from the association dues. There’s also real estate tax which you have to pay annually.
6 | Loan A, Loan B, Or Loan C?
As a single person with no familial obligations, you should be able to determine what you can afford to pay monthly in case you’re loaning the balance of the condo’s price after you complete your down payment. Loan terms are usually offered for a year, 5 years, 10 years, 15 years and so on. Once you get the figures on the loan’s monthly amortization, keep an eye on how your payment is distributed. Keep those figures in mind and ask if you can make lump payments when you are able to keep the principal loan amount down. this way you’re able to pay for your loan faster and not be saddled by paying too much interest.
7 | Rent-to-Own and RFOs
Since a lot of major developers have already completed a number of projects some offer rent-to-own schemes and RFO (ready for occupancy) units. Aside from potentially getting good deals, there is no waiting period attached to them compared to pre-selling condos. It’s best to visit their sales pavilion and look for seasoned agents who can offer the best deals. Visit the units as well, for it will help you decide if the condo fits your taste and needs. If visiting the site is a hassle, you can always research online.
8 | I Bought It. Now What?
To get the most out of your investment, if your budget still allows it, hire professionals and experts that will transform your unit into your most ideal living space.
Living in a condo and choosing to buy a condo isn’t too tricky with these tips. Just be realistic and practical with your choices and you’ll most likely stumble upon the property of your dreams. Happy condo hunting!
This story first appeared on CondoLiving’s Volume 10.4 2015 issue. Edits were made for CondoLiving.OneMega.com