5 Important Things to Consider When Buying Your First Condo Unit

Some might say that “location is everything,” but nowadays, that may not be so true anymore. While location is a crucial factor in your purchase, there are other aspects you need to consider. Does the unit have all the necessities to make your stay more convenient? Is the noise level around the area acceptable? Also, between the two options in condo buying (Pre-Selling and Ready For Occupancy), which fits your needs better? If you are looking into cheaper payments and you want to make your unit a long-term investment, better opt for a pre-selling condo unit. Meanwhile, if you need to move in right away, go for Ready For Occupancy units.

Everyone dreams of having a three-bedroom unit with a breathtaking view of the city, but the reality is, not everyone is in the financial place to afford such luxury. This is exactly why you should also have a realistic budget when making big, important considerations. And as a potential homeowner, you should not only make sure that the property’s primary cost fits within your budget, but you should also be knowledgeable about the association fees and closing fees that come with the unit.

“Leverage” is the magic word in this scenario. Leverage in finance means “the ratio of a company's loan capital (debt) to the value of its common stock (equity).” In simpler terms, it is the ability to use as much money of others and as little of your own when buying your property. A good technique for first-time condo buyers is to first pay for the reservation fee of a unit. Then, depending on the developer, pay between 10 to 20% of the total price as the down payment for the unit until the turnover date for the project arrives. After paying the down payment, take a loan from your bank (or through PAG-IBIG) to pay for the remaining 80 to 90% balance of the unit. If payment through credit is not for you, there are other payment options that you can also do, depending on your developer. Common options include cash, check, bank deposit, wire transfer, and auto-debit.

Be realistic about the direction of your life. Where will you be in five years? How about in ten years? Will you still be living in the same area? Will you be working somewhere else? Will you be living abroad? Will you still be single? Or would you already have a family by then? Purchasing a condo unit isn’t only an investment, but also a lifestyle choice. These questions will help you make a good decision about which type of condo to buy and the qualities it possesses.

Before signing the fine print, make sure all your questions and clarifications are answered thoroughly. If something isn’t entirely clear to you, ask someone of authority from the developer until you are satisfied. Pay close attention to the contents of the contract presented to you and if it includes all the rules and amenities that were presented earlier. It is your duty as a future homeowner to be in the know and responsible of what’s to come.

Make sure to visit Yoorekka to learn and find out more about the best tips when buying your first condo unit..

Your first condo unit purchase may be daunting and confusing, but if you follow the tips we mentioned above, this adult venture will surely seem like a breeze. And when all is a done deal, this will only be an added notch to your “adulting" belt.