Finally gathered the courage to start inquiring on real estate investments? Here are some of the questions that need to be answered from the get go.
Talking to real estate agents could be quite intimidating, especially if it's your first time exploring the housing market.
They can get your mind tangled in different investment jargons and have you nod to compelling sales pitches you barely even understand.
Thankfully, I grew up with a father who was fond of visiting open houses. I can still vividly remember when we traveled to Sto. Tomas, Batangas to view an Avida house and lot that was facing Mount Makiling. We also had a trip to Tagaytay to see the luxurious Crosswinds condominium units. It seems that I sort of made his dream come true as our Nuvali house by Avida is also facing Mount Makiling. I hope he's smiling up there in heaven :) If I am able to afford a Tagaytay condo unit in the future, he'll most likely celebrate with his angel friends over beer out of sheer joy.
Questions, questions, questions
When you meet your agent for the first time, start off with the basic Qs:
1. What is the reason for selling?
- If the house is not brand new, you have to know its history.
2. What are the developers' plans for this location? Are there future plans for commercial amenities?
- If the house is in a remote location and your developer is one of the biggest names in the industry, it is quite expected for them to erect malls or mix-use developments in the future. This can help elevate market value in the area. Otherwise, if the developer does not plan on building roads, malls, etc. nearby, well, then, it's a bummer. Lol. Imagine how lonely and impractical that must be for the years to come.
3. What are the unit sizes? How many square meters are the livable spaces?
- Balconies are not 'livable' spaces. So if an agent tells you the unit is 22sqm big and has a balcony, chances are the actual livable space where you can put furniture and move around is somewhere between 18 to 20sqm only. Also be weary of columns as they eat up space and are obviously not livable.
4. How much per sqm?
- If you are buying a condo, chances are the higher the floor, the more expensive the price tag. Also it depends on the view from your unit. An inner unit could cost less than half of a unit that's facing Manila Bay, for example.
- If you are buying a house, the price differs if you are buying a lot only versus buying a house and lot. It also varies if the property is nearer the clubhouse, guard house, and gates.
5. How many per cent is the downpayment?
- More often than not, 20 per cent is the required downpayment. However, there are banks that allow 10 per cent DP. Ask your agent about this. There are also different options that are commonly available among different property developers when it comes to paying the down: a) spot cash is a lumpsum, usually 10 per cent of total contract price b) staggered down is usually 20 per cent of the total contract price payable in 36 months. This is applicable for pre-selling units.
6. When is the turnover? How many months is the allowance?
An agent's job is to lure you into signing the contract, so sometimes they tend to give you the nearest turnover date possible. Life does not always turn out as we want it to be, so much so that turnover dates in real estate also does not always meet the initial schedule. Ask your agent how many months is the usual allowance from the planned date of turnover so you can manage your expectations.
If the answers to the above appear satisfactory to you, then it's time to ask the secondary questions below:
7. How much is the association dues per sqm? What are the inclusions?
8. Is there free parking for me and my guests? How much if I rent or buy?
9. How tight is the security? Are there CCTVs in common areas? Are there roving guards?
10. What are the restrictions with exterior designs? Are there bond fees to pay when I want to deviate from the style?
11. Is the rate for utilities like power and water commercial or residential rate? Is it wifi- and cable-ready?
12. How much is the ongoing leasing rate in the area? (just in case you want to monetize)
13. Are pets allowed? What types and how many are okay?
14. How is the garbage collected? How are deliveries taken care of?
15. What else can you tell me about the neighborhood? Does it flood here? Is it near important sites like hospitals, schools, churches, malls, etc.?
Good luck on your property hunt. I know you must be quite anxious about the whole process that's why you're spending your precious minutes reading my amateur blog. :P You may be able to formulate even more follow up questions as you go along your inquiry stage. Just keep calm and absorb every detail before you commit. Ensure you have other properties to compare it to and be neutral when listing their pros and cons. It's an exciting journey, to be honest.
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