FIVE REAL ES­TATE NO-NO’S

PUR­CHASE PROP­ERTY WISELY: AVOID real ES­TATE MIS­STEPS WITH TH­ESE TIPS

Real Living (Philippines) - - Front Page -

Buy­ing prop­erty can Be nerve-wrack­ing, what with all the de­tails to check be­fore plunk­ing down hard-earned money. So, be­fore you sign any pa­per­work, be aware of th­ese five com­mon real es­tate mis­takes—and how to avoid them—as ad­vised by real es­tate bro­kers.

1. NOT DO­ING YOUR RE­SEARCH. ac­cord­ing to real es­tate bro­ker elvin ocampo, one of the most com­mon mis­takes when buy­ing pre­vi­ously owned prop­erty is not check­ing with the registry of Deeds if the ti­tle is “clean.” This means that the tax dec­la­ra­tion is up­dated and real es­tate taxes have been duly paid. aside from taxes and ti­tle, buy­ers should also check if util­ity bills have been set­tled. “i per­son­ally en­coun­tered a case where the wa­ter bill still had pre­vi­ous bal­ance to be paid when the client and i bought the prop­erty,” shares bro­ker alan Bautista.

2. IM­PULSE BUY­ING. You have to take a long, hard look at your fi­nances be­fore plunk­ing out cash for a prop­erty. oth­er­wise, you might be bit­ing off more than you can chew. The rule of thumb is that your mort­gage should not cost more than ap­prox­i­mately 32 per­cent of your gross monthly in­come. “Dou­ble-check the com­pu­ta­tion for all the pay­ments re­quired for a trans­ac­tion,” adds elvin.

3. BE­LIEV­ING IN FALSE AD­VER­TIS­ING. Don’t get tempted by the “no down pay­ment scheme.” in re­al­ity, this scheme only means that there is no lump sum amount re­quired for the down pay­ment, ac­cord­ing to bro­ker rochelle granali. “This is be­cause the down pay­ment of the prop­erty is stretched out to the al­low­able term of the de­vel­oper. De­vel­op­ers usu­ally re­quire twenty per­cent down pay­ment, and the rest can be bank- or pag-iBig-fi­nanced. in the ‘no down pay­ment’ prac­tice, buy­ers are al­lowed to pay the twenty per­cent in in­cre­ments over a pe­riod of sev­eral months or years. it is only when that twenty per­cent has been com­pleted and when a loan for the re­main­ing eighty per­cent has been taken out that the buyer can move in to his prop­erty. So es­sen­tially, there still is a down pay­ment re­quired.”

4. NOT HAV­ING FORE­SIGHT. not con­sid­er­ing your needs for your space can be a costly mis­take. as­sess first if you and your fam­ily’s ac­tiv­i­ties and life­style are best suited in a ver­ti­cal space or sub­ur­ban vil­lage. “The thing with prop­erty is that you’ll use it for long term. it’s some­thing that should grow with your needs. The space should al­low ad­di­tional al­ter­ations even­tu­ally,” adds rochelle.

5. OVER­SPEND­ING. You may think that in­stalling a Jacuzzi or bar in your home will bring up its mar­ket value, but a move like that can hurt your prospect since a po­ten­tial buyer may deem that upgrade un­nec­es­sary. “Spend­ing more than you can af­ford is also an­other mis­take,” cau­tions rochelle. in­vest­ing in qual­ity ma­te­ri­als and fix­tures for the hard­work­ing parts of the home, such as the kitchen, is bet­ter than spend­ing for recre­ational ad­di­tions that not ev­ery­one will ap­pre­ci­ate.

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