Looking for and buying an forever home can be one of your stressful choices in life.You could be already planning your short-term housing needs such as apartments or transients but it is eventually time to decide on the kind of house you'd prefer to reside in for the rest of your life or long term kingdom valley Islamabad location.There are two kinds of homes that you can choose from: condominium units or a home and lot.In addition to these options, there are the financial and timing requirements required.To help you narrow decisions allow these comparisons to guide you.
Condominium
If you'd like to be part of the bustle of the city life, perhaps an apartment is the perfect choice.Though, there are good features that condos provide such as amenities or the chance to lease or rentable, there are more or less, numerous disadvantages that could pop-up in the near future.Most developers sell units during the planning stage of the condominium, which implies that an apartment is likely to be more affordable in relation to its location.While this may sound appealing to your ears But don't leap in just yet.
Benefits
According to the Global Property Guide, with the Philippine mortgage market still relatively insecure, "most of the houses are sold for cash or pre-sold".For condos there is a choice of ready-for-occupancy (RFO) units as well as pre-sold units.
Many buyers choose the option of pre-selling because of its cheaper introductory cost, which can be 30% less than the final price of a model.On top of that developers will offer a discount of 10% to 15% or offer flexible payment plans where the down payment could be as low as 10% payable for 3 years with the lump sum paid either through a bank financing, a government sponsored home loan (Pag-IBIG) or through the developer's in-house financing options.
If you are an investor in real estate selling condos before they are sold is an investment that is worth it since they can appreciate in value when they are completed.If the market is favorable and a favorable market, you could sell the constructed units for double what you paid at the pre-selling phase.
Risks
A condo unit that is being sold pre-sales is full of terms like "more or less" and "subject to change without prior notice".If you don't check the progress of construction periodically the conditions you have agreed to may no longer be valid when the building is finished.The main risk associated with an existing condominium is that the finished unit may not be what you had in mind.The materials can be changed.It is also possible to see changes made in unit sizes flooring plans, floor plans, finishing features, or other amenities about which you may not be notified.It is possible to pay for a unit that is lower than your expectations, thus negating your "promising investment" claim.
Another risk is the delay in the process of completion and turn-around if the developer may not deliver on time.Pre-sale contracts have delays clauses that permit developers to be late up to a 1 year or longer.The downside, however it is that you might not get a refund for your deposit in case the pre-selling venture doesn't go ahead or the developer goes bankrupt.
OFWs that plan to buy pre-selling condos in foreign countries face the highest risk.A lot of them have lost their deposits and their payments due to corrupt representatives or agents who profit from their absence, and then use complicated forms to collect "fees" from them.
House and Lot
If commuting or travelling is not a problem in your life, perhaps buying a house and lot situated a short distance from the city is the best deal for you.
The purchase of a home and lot could be a wise investment as it will be your future and your legacy.The style, features and the overall appearance the house is completely yours to decide.You only need a reliable professional or company to guide you through the legalities and come to a deal with you to negotiate an "win-win" or good deal.
Benefits
Finding a reliable real estate firm can simplify the process of buying land on your own and choosing the best style.They create home plans that are designed to fit the land with the proper sun orientation and driveway layout.
The majority of buyers of homes have a land agreement with a land developer , and a building contract with the builder.There are two methods a home builder could simplify the process for you.The builder can wait for you to settle on your land, after which they can conduct soil testing and a feature survey, so they determine site costs and finalise the contract.Alternately, the builder can fix the site costs to produce the building contract when the land contract is in place.This approach is not necessarily applicable to all new homes being built, however it's more effective since the lender can obtain finance to build the house and land at the same time.
It is possible to save thousands and thousands of pesos.Creditors or financial institutions that are reputable could be able to let you skip some of the costs for both mentioned situations.The only thing you have to do is pay stamp duty on the property's worth as the home is still been constructed. Moreover, you can also claim various depreciable assets, including the cost of construction, the fixtures , as well as the construction itself.
Risks
One possibility you're having to pay for someone else's profit.When you buy any brand new property, included in the cost is the developer's profit margin as well as part of the higher marketing expenses that are associated with selling this type of property.The hidden costs may be as high as several years ' worth of investment growth making you behind the eight ball from the beginning.
Another danger is the poor place.The majority of homes and land packages are located at the edge of the city and in areas that have an lots of land as well as weaker economic drivers and an absence of infrastructure.Capital growth , therefore, is typically more difficult to attain.It is possible that you're facing uncertainties.When you purchase off-plan, you really don't know how well the finishes will meet your expectations or the surrounding facilities and properties will look similar to.There is also the uncertainty that the final value of the bank won't stack up.
In order to make a profit, you should look for an investment property that has a significant percentage of land value as this is what will drive capital growth.In the case of new properties however, the bulk of the value lies in the building itself and not in the land which will hamper investment growth as the structure is depreciated.A property that is 30 years old located on a large block situated in a suburban area may not seem like a glitzy one when compared to an all-new property, but chances are it's a better investment in the longer term.
When building an investment investment, you won't get any income during the time it's in design or construction stages.But you will be paying interest on any funds you had borrowed prior to this date.
It can be stressful to build delay in construction being a frequent occurrence.The most surprising thing for new builders is the amount of cash that must be spent to get the house completed.
In the end, smart investors understand that adding value to a property through renovations is an important way to speed up the creation of wealth process.However, this possibility may rarely be available with new properties.
Considerations
The land and house packages might have attractive additions, however some new estates offer small lot sizes.Based of your spending budget, do have the choice of selecting different lots offered by the developer.Check to see if the block of land you choose will satisfy your requirements for years to come, particularly when you are planning to start an extended family.
New estates are often constructed in areas which aren't in city proximity, where employment opportunities and public transportation might be limited.The developments are often advertised as a commutable distance to the urban area.It could be minutes or hours of driving (or more if you are in traffic).Are you ready to take on the long commute to work each day?
Selling your property for profit could be difficult in the near term, especially when your home and land combination is part of new estate.Values of homes in the countryside or away from the city typically rise at a slower pace because of the weaker economic forces and lack of infrastructure.The developer continues to build new homes in the area at affordable costs, capital growth becomes more difficult to find.
After weighing up the advantages and disadvantages, if you believe that a land and house package is appropriate for your needs then the next thing you should look at is comparing the plans for your house.Also, take your time when searching for and selecting an established development company or builder.
