Misconceptions of buying properties in the Philippines
Updated on September 17 2023
Buying a property is a significant decision that requires careful thought and consideration. However, the process can be challenging, and misconceptions can make it even more confusing. Let's debunk some of these misconceptions when buying properties in the Philippines:
1. The Lowest Price is Always the Best Deal
Many homebuyers believe that the lowest price automatically means the best deal, but this is not always the case. The saying "you get what you pay for" applies here. Properties with low prices might have underlying issues like poor location, lack of amenities, high crime rates, or potential maintenance problems.
Rather than focusing solely on price, consider factors such as the property's location, its potential for appreciation, the credibility of the developer, and the overall quality of the property.
2. Renting is Wasting Money
There's a widely held belief that renting a property is tantamount to wasting money, as it does not contribute to an investment. While homeownership has its advantages, renting can be a wise choice depending on your financial circumstances, lifestyle, and plans.
Renting offers flexibility – it's a suitable option for those who are not ready to settle in one place, have an uncertain job situation, or can't afford the costs associated with homeownership.
3. You Need a Large Down Payment
While a substantial down payment can lower your monthly mortgage payments, it doesn't mean you can't buy a property without one. Many banks and financial institutions in the Philippines offer home loans with minimum down payments.
However, be mindful that a smaller down payment can lead to higher monthly payments and possibly the additional cost of private mortgage insurance. It's essential to strike a balance that suits your financial capabilities.
4. You Can't Buy Property if You Work Overseas
Filipinos working abroad often think they can't buy property in the Philippines due to their physical absence. This is not true. Many real estate developers and banks cater to Overseas Filipino Workers (OFWs) by providing specialized services and options for buying property remotely.
5. The Process is Quick
Buying property isn't as simple as handing over money and receiving the keys. It involves a series of steps including property viewing, price negotiation, securing financing, title transfer, and more. Each step takes time, and rushing through them might lead to oversight and costly mistakes. Patience and diligence are crucial in the property-buying process.
6. You Don't Need a Real Estate Agent
While it's possible to buy property without an agent, having a professional on your side can make the process smoother. Agents have knowledge of the local market, negotiation skills, and access to various listings. They can guide you through the process, helping you avoid common pitfalls and legal issues.
7. New is Always Better
Many homebuyers are attracted to new properties believing they're better investments. While new properties offer modern designs and amenities, don't discount the potential benefits of older properties. They are often in established neighborhoods, built with more substantial materials, and have a proven track record of withstanding time. An older property, with some renovation, could offer a better value.
When purchasing property in the Philippines or elsewhere, it's essential to do your research, consult professionals, and think critically about what's best for your specific needs and circumstances. Don't let misconceptions cloud your judgment or lead you astray.