How do you prefer to have your condominium or town house? Do you want to be the first occupant, or do you not mind living in a place that was previously owned by other occupants? Do you want to see the actual finished product before purchasing, or would you not mind investing in a building that’s yet to be finished?
Those are just some of the concerns often heard and talked about as clients scout for options regarding condominiums, house and lots, as well as town houses. Good for real estate developers and clients, there are two types of properties available in the market. Let us give you some useful information on what these options are.
What is Pre-Selling?
The term “pre-selling” refers to the condominium units or townhouses/house and lots that are sold prior to its completion. Real estate developers wanted to cater to clients who might not exactly have the budget to purchase the finished unit but has money in the bank enough to pay for a spot in a physical property.
One setback in pre-selling units is that you don’t get to appreciate the finished infrastructure because you don’t really get to see it until it’s really done. In fact, your expectations may be a tad different from what you will see when the final product is ready.
However, the good news is that there are dressed up and turn over condominium units, model townhouse units/ house and lots that your agent or broker can show you. It means that you don’t really need to do guesswork or blind buy into something costly.
Given these considerations, you might also want to get in touch with a developer with a good track record in terms of infrastructure and design so that you can at least enjoy the aesthetics as you envisioned it to be.
Is RFO for you?
After the building or property has been completed, it will be sold and RFO or “Ready For Occupancy.” If you need a roof on top of your head as soon as possible, then RFO is the way to go.
If you’re the type of client who wants to be guaranteed of quality in terms of construction and design before making a purchase, then RFO will allow you to examine the physical aspects – amenities and facilities — of your property. It will be easier for you to judge whether you will push through with your investment if you have seen it.
The potential issue with RFO is that most of the good units or home properties with good views and prime spots have been sold during the pre-selling stage. That would mean that the units that have been left will be your only choices.
Making your smart choice
Now that you’re well-versed in these terms, you can better weigh your options in case you’d like to invest in a real estate property. Pre-selling is financially more accessible to most potential clients, but it has its risks. RFO has lesser risks but indeed it’s heavier on the pocket.
Again, we advise you to get in touch with a real estate broker or a developer that has a good record that you can trust so that you will have more chances of making the right choice.
The cost of transferring a land title in the Philippines
We will be bringing you a series of articles that discuss commonly asked questions regarding real estate in general. One of the most commonly asked questions we encounter whenever we conduct trainings and orientation seminars for those interested to get into the real estate industry is “How much does it cost to transfer the land title”?
Buying property is generally considered one of the biggest steps a person can take in life, typically due to the large amount involved. But unlike other purchases that one can make, real estate is not something you can normally have by paying for in one quick transaction. Along with the property’s price are other expenses that come as part of the purchase. In this respect, the most important is perhaps the cost to transfer the land title.
For buyers or sellers, transferring the land title can prove to be a challenging experience. The paperwork involved and the fees that need to be paid can be daunting for first timers. With that said, let’s start off by discussing the fees associated with purchasing property. Let’s start off with the cost of transferring the land title. This fee needs to be paid whenever property is purchased, sold, donated or inherited. Having the land title under your name is very important as it serves as your proof of ownership of the property, regardless if you are a buyer, a donee or an heir. The absence of this document can lead to the ownership of your property being disputed. Therefore, it is imperative that you ensure the correct processing of this document. And one of the ways to ensure this is to pay all the required fees and taxes.
The following are the fees and taxes that you need to be aware of. The amount of these fees and taxes are based on how much the property cost at the time of the transaction or transfer:
Any Unpaid Real Estate Taxes due – always check if the property you are buying has any unpaid real estate taxes particularly if you are buying property directly from the owner
Capital Gains Tax (CGT) – this is computed as 6% of the selling price specified on the Deed of Sale or the Zonal value, whichever amount is higher
Withholding Tax – this only applies when the seller of the property is a corporation (e.g. a land Developer)
Transfer Tax (Local Treasurer’s Office) – this is tax imposed on the sale, barter, or any other method of transferring of the ownership or title of real property, at the maximum rate of 50% of 1 percent of a property’s worth (in the case of cities and municipalities within Metro Manila, this is 75% of 1 percent)
Transfer Tax (BIR) – Transfer taxes may also be owed to the Bureau of Internal Revenue. If the property was donated, the Transfer Tax is in the form of Donor’s Tax. If the property was transferred via inheritance, this is in the form of estate tax.
Documentary Stamp Tax – this is commonly set at 1.5 percent of the selling price, or the zonal value or fair market value, whichever is higher.
Registration Fee – commonly set at 0.25 percent of the selling price, or zonal value or fair market value, whichever is higher.
Commission of the Agent and/or Broker
Incidental and miscellaneous expenses – typically any expense incurred in the registration process, such as notary fees, etc.
The total amount of all these fees and taxes is the cost of transferring a land title. As you can see, all these fees and taxes can quickly add up.
Now, closely related to this topic is another question often asked immediately afterwards: “Who should shoulder the Land Title Transfer expenses?”
The common practice in the Philippines is that the seller is responsible for the following:
Capital Gains Tax
Withholding Taxes
Any unpaid real estate taxes that are due
Commission of the Agent and/or Broker assisting in the completion of the transaction
The buyer on the other hand, takes care of the following:
Documentary Stamps
Transfer Taxes
Registration Fees
Incidentals and miscellaneous expenses incurred in the registration process
This arrangement is considered standard practice. But in other cases, the buyer and seller can also mutually agree on who pays for what during the negotiation period, when the Deed of Sale (a.k.a. Deed of Absolute Sale) has not been signed yet. This document shows the legal transfer of real estate property ownership and is submitted to the Registry of Deeds for filing after the buyer pays the Documentary stamps, transfer tax and registration fees for the aforementioned Land Title Transfer.
As you can see, the entire process and everything involved can prove to be very burdensome to both buyer and seller. Since most buyers are willing to pay millions to buy property, it is sometimes worth it to engage a company that specializes in land title transfers in order to take the burden away from the buyer and seller. This also ensures that the transfer is done correctly and completely.
Are you planning of buying a property in Laguna or thinking of migrating into the South area for the purpose of work or other personal matters?
Let me share Southwoods City as one of my apple of the eye for its accessible location and establishment availability. We are always in the area for walking and jogging activity since 2010 and the area is developing very well. There is condominium constructed at the center of all the vicinity. A prime lot you can buy if you are a rich type of person who wants to invest in real estate property.
I made a list of tested insights on what Southwoods City can offer you…
Ease of access to SLEX both South and North
The area is very convenient for entry and exit if you are going to Manila or Calamba
Accessible road going to Governors Drive going to Carmona, Cavite, or Tagaytay
A passing road inside subdivisions that will shortcut you going to GMA and Governors Dr.
Accessible road going to the service road of Binan Laguna
A road going to National Rd. if your way is going to Binan, Pacita, San Pedro, or other Laguna areas and wanting to avoid toll gate fees
A walking distance Mall, School, Church, Hospital, Resort, and businesses
Sto. Niño De Cebu Church, Southwoods Mall, Colegio San Agustin, Unihealth Hospital, and Splash Island Resort can be found in the proximity of Southwoods City
Explore the vicinity by watching this video…
Future Development from Megaworld
Southwoods City is the largest and only fully-integrated township with a golf course to rise in the South of Manila. This 561-hectare prime property will imbibe the LIVE-WORK-PLAY-LEARN lifestyle concept pioneered by Megaworld to position it as the next residential, business, commercial, and leisure hub in the South of Manila located in the boundaries of Cavite and Laguna. As a mixed-use development, Megaworld’s Global Estate Resorts, Inc. will add the “golf” component as the 125-hectare Jack Nicklaus-designed Manila Southwoods Golf and Country Club is located right at the heart of the township. Southwoods City will also feature a central business district, commercial and retail stores, lifestyle malls, schools, church, a cyberpark, a medical facility, open parks, leisure facilities, and its own transport hub.
Within Southwoods City, the company is introducing Pahara, a 26-hectare sprawling residential village, which consists of 602 available lots ranging from 239 square meters to 523 square meters on hilly terrains with spectacular views of the golf course and the Laguna de Bay. This residential village will feature a Mediterranean-inspired architectural theme with its own exclusive amenities such as a clubhouse, swimming pool, function halls, children’s playground, an outdoor circuit gym, jogging paths, landscaped parks, as well as green open spaces.
If you have a knack for marketing, buying-and-selling, and you have that client-comes-first, positive attitude and never-say-die personality, the real-estate industry is one of the most rewarding jobs you can venture into right now.
Most people who are really good at selling normally start out on a small scale. You’ll see a lot of enterprising individuals (a lot of them OFWs) who sell their hand-me-downs for affordable prices on FB live and make a good profit. They’re usually good at building rapport with their target audience and this is a critical skill for anyone in the buy-and-sell business.
A lot of aspiring real-estate sellers have experience and good people skills, but why are most of the folks I talk to hesitant to get into real-estate selling? One of the biggest challenges I have observed with the people I’ve interacted with boils down to the fact that they get overwhelmed by the price tag of what they’re selling. Most of them have been used to selling items that range in the hundreds to couple of thousands of pesos. But in real-estate, they suddenly have to sell properties that can be anywhere in the hundred of thousands up to several millions of pesos. And the price tag somehow intimidates most of them.
I’ve been in the same boat before, so I can understand how they feel, I used to be part of a startup IT company earlier in my career. One of my roles included coming along with the marketing team to present our proposal to clients. As a technical person, that was the time I had to quickly learn how to explain and justify to clients why the solution they were buying was so expensive. Trial by fire experiences come one after another, some worse than others, but I took it all in stride, because I learned what I did correctly, and more importantly, I learned what NOT TO DO in the future. So here’s my unsolicited advice to all you aspiring real-estate sellers…
You are selling something of great value to someone. It is not just a structure built out of concrete and steel, it is a FUTURE HOME of a family. It is where fond memories will be built upon and preserved. These intangible things are PRICELESS and cannot easily be assigned a monetary value.
If you are still not convinced, think of if this way: Do not look at the total contract price, think in terms of Monthly Downpayments and Amortizations instead. It becomes easier as you look at the bigger picture. Also, your client is making an INVESTMENT that can pay for itself in the future if they decide to rent/lease out their property. Real-estate very rarely depreciates in value after all.
And if you do your job well and show your client that you actually care about their dream of finding a HOME, then just might be pleasantly surprised at repeat business and referrals from your happy clients!
HAPPY SELLING EVERYONE!!!
About the author:
Jay Dominic Sto. Tomas is a board member of PHILREP Realty Corporation and a certified IT Architect at IBM
Planning to acquire a property but not in a hurry to move in? That’s good thinking and your best option is the Pre-Selling properties! In real estate, a pre-selling means a property is sold before it’s completion, during its construction, or while still in the planning stages. Know these two advantages of buying a pre-selling property that will benefit you at the end.
Pre-Selling House and lot or condominium are cheaper
Since it is the planning or construction stage, the developer offers a 30-50 percent off for all the buyers. One of the reasons for these is the additional fund that they need to be added for the construction, and to be able to do this is to attract buyers to buy now while the building is still under construction. It is like you became an investor and a buyer at the same time. It is a win-win situation for the developers and the buyers as there is a lot of offers for this.
You have the wide option for your preferred unit location
You can choose the best part location for your house and lot, whether you want it facing the sun, near the gate for the subdivision or corner lot which is most buyers is looking for. Same as in the condominium, you preferred what floors and views facing your unit.
We at Philrep Realty Corp. has a wide connection for the different developers. Let us help you by finding the right home you are looking for.
Every Filipino has a dream of owning a house of there dream and as part of the benefits of becoming a Pag-IBIG member is the privilege of home financing. We here at Philrep Realty Corp. is committed to guiding you from start to finish in buying your dream home. We want to help you understand the process of dealing with the application smooth and less hassle. See this summary guide on where and how you can start applying for your Pag-IBIG home loan.
Before we start, let’s check out first the requirements.
Have made at least 24 monthly savings. The lump-sum payment of the required 24 monthly savings is allowed.
Not more than 65 yrs. old, and not more than 70 yrs. old at maturity of the date of the loan application.
Have the legal capacity to acquire and encumber real property.
Have passed satisfactory background/credit and employment/business checks of Pag-IBIG Fund.
Have no outstanding Pag-IBIG Fund Short-Term Laon (STL) in arrears at the time of loan application.
Have no Pag-IBIG Fund housing loan that was foreclosed, canceled, bought back due to default, or subjected to dacion en pago. (Dacion en pago is a Spanish term that means the giving back of the property mortgaged to the lender in exchange for the discharge of a mortgage debt.)
Click Here for Requirement Checklist or Pag-IBIG Checklist Note: Better to complete first all the requirements before submitting.
Schedule an appointment through Online Housing Loan Application (OHLA) Click Here
Note: A special lane in Pag-IBIG Fund branch offices is available for those who made an online schedule. They will be given priority over walk-in applications. But you can still apply over the counter if you like, you can file your housing loan application personally at Servicing Department, 2/F JELP Business Solutions, 409 Shaw Blvd. Mandaluyong City, or at any Pag-IBIG Fund brand office.
After submitting all the documents required. Wait for your approval – Pag-IBIG will notify you within 17 days
If approved, you will receive the Notice of Approval (NOA) and Letter of Guaranty (LOG)
Sign your loan documents and complete other documents needed for check release
