Real Estate: Considerations Before Buying, Leasing or Renting Luxury Homes in the Philippines
There will come a point in time when you’ll be looking for luxury homes in the Philippines. In fact, who hasn’t dreamed of living in one! Some people try to make their own dream house from scratch—a rigorous but fulfilling journey to prove that they’ve had an amazing life.
Other people, however, have the means to take it further and beyond. They can buy a luxurious house straight up and enjoy all it has to give! Although it’s not something common, there are definitely people who do this. And who knows? You might have the chance to do so very soon!
That being said, a place to live is one of the most important things that a person should have. But some people aren’t really sure whether they should buy or rent a house of their own because they don’t know a thing about it. Knowledge is power, and this article will give you the knowledge you need in order to decide on your dreams of owning your own home!
The Difference Between Buying, Leasing, and Renting
When it comes to obtaining ownership of a high-quality condominium or a luxury home for sale in the Philippines, you should first decide on whether you’re going to buy it, lease it, or rent it. Most real estate businesses would probably only give you the first two options, but in order to cater to the vast majority of individuals who really want to learn a thing or two about owning a home, all of these options must be discussed.
With that in mind, let’s start off with the difference between renting and leasing. These two are quite similar in nature—they are both legal documents that should be completed before a landlord would rent a property to one of their tenants.
- Lease Agreement
The main difference between a lease agreement and a rental agreement can be found in the structure of the agreed upon terms. A lease agreement is a contract between a landlord and a tenant that covers the renting of property for long periods of time, and it usually lasts for up to 12 months or more. The lease agreement is very detailed, breaking down the responsibilities of both parties while the lease is active. It also includes all the necessary information needed to ensure that both parties are protected.
The cost and length of stay in a lease agreement are strictly followed and cannot be changed once agreed upon. It prevents any kind of sudden increase in rent by the landlord and any attempts of the tenant just leaving without repercussions.
- In the Philippines, modern homes for saleare usually offered up for lease that has very long time periods. If you’re lucky, you might even find one that is lease-to-own!
- Rental Agreement
A rental agreement usually occurs monthly. It’s a short-term agreement that can be renewed each month when both parties still agree on the terms and conditions. Basically, a rental agreement still has the provisions that can be found in your standard lease, except for the added security.
At the end of each month, both the landlord and the tenant can alter the terms of their own agreement. The landlord is free to request the tenant vacate the premises without violating the prior agreement. In this situation, a landlord should give a 30-day notice to end the agreement prior to requesting the tenant to leave.
The choice to rent allows landlords to use properties that aren’t that desirable to long-term renters.
Seldom will you find any luxury home in the Philippinesthat are for rent. Your best bet when finding a place that might be able to fit your luxurious lifestyle is by looking for one of the more high-end Philippine homes and condominiums in areas where land value is quite high—some places worth mentioning would be BGC, Makati and in Cebu.
Of course, if there is one thing that renting or leasing will never give you, it’s ownership of the property. Unlike the prior options, buying your own house and lot or condominium unit will put that property under your name which is something that is worth bragging about.
If you’re the owner of a house, you’ll have total control over everything that the property encompasses; something that you don’t have when you’re only renting a place out. Finally, the best facet that buying a house would give you is the freedom to do whatever you want in your space.
Buying your own property is something that is relatively expensive and hard to pull off. That being said, once you buy one, you won’t have any more problems when it comes to monthly rents and installments.
The choice of either buying, leasing, or renting a real estate property is something that everybody needs to think about. In reality, there are many things that you need to consider when deciding on these, but there is only so much that research and inquiring could do. So if you’re looking for a way to get the luxury home in the Philippines that you want, you would really need to exert some effort into understanding the field of buying and renting real estate.
4 Important Things to Consider When Buying Luxury Homes in the Philippines
A luxury home in the Philippines is not something that you could easily buy. They would probably be very expensive in more ways than one. With that being said, buying a real estate property is not just about having the money, either.
There are many things that you need to take note of, both about your own situation and about what you’re buying. In that regard, here are some of the more important things that you should consider when buying luxury homes in the Philippines!
1. Financial Stability
As it was mentioned, when buying a house, you need a considerable amount of money. And when you are planning on spending money on such a big-ticket purchase, it would usually be under an agreement in which you would pay in installment.
A transaction would almost never be finished in one sitting, with the full amount being paid upfront. If you’re capable of such feats, then you don’t have any problem when it comes to financial stability; otherwise, you’d have to account every little expense that will be put into this purchase.
Before buying a house, make sure that your income is stable. If you’re unsure about the future of your financial situation, then maybe it’s not yet the time for you to buy your own home.
2. Life Situation
Take note of your current position in life. Being in a relationship or enjoying a good position in a big company can bring quite a lot of opportunities to your life within a given time frame.
There’s a chance that you could get an offer to transfer offices, or maybe find that your fiancé wants to live in a different place other than the home you’re eyeing for. Your life situation can change in a blink of an eye. So make sure that you get to buy the property that will fit your current and even possible future situations.
3. The Condition of the Property
Normally, people would want to buy houses that are already fully furnished and decorated. A property that is clean and maintained is a sign of a realtor that is serious in offering you a quality product.
But you can also look at some of the more less-maintained properties as an opportunity to transform an ugly duckling into a beautiful swan. The price will depend greatly on the condition of the property, so choose the property that would fit your needs before your wants. Choosing an already furnished home might be more expensive, but it will ensure you won’t have any more problems with furniture and decorations. An unfurnished property that may or may not be in need of some repair and renovations can be a lot cheaper, but the cost of repairs and decorations might make it not worth your while.
4. Realtor Reputation
Check out the reputation of the developer of the property. Look at their track record and see if they’ve performed well at their job. Sometimes, the reputation of a realtor is a great indicator of quality service. However, you shouldn’t focus primarily on this—trust in what you see more than what is said about them
These are just four of the factors that you need to think about when buying your own property. Luxury homes in the Philippines would probably cost a lot, so one thing that you need to be very alert about is the chance of having hidden costs. Make sure that you clarify every expense that you’ll make for that purchase before deciding on whether or not you’ll buy it.
3 Things to Take Note of When Looking for a Place to Lease or Rent
Looking for a place to rent is a lot easier to do and a lot lighter on the pockets. There are a lot fewer factors to consider primarily because you’ll probably only be staying there temporarily. That being said, you would still want your stay to be as comfortable and cost-efficient as possible, so here are some things that you should consider when looking for a place to lease or rent.
1. Quality of the Property
Pictures found on the Internet are usually edited to look better—never trust those images until you see the property for real.
Make sure that the place you’re looking to rent is of high quality. See if the place is clean and regularly maintained. Just like what was already mentioned above, regular maintenance and a carefully taken care of place show that the landlord is someone you can trust.
2. The Landlord
Speaking of the landlord, you should also take them into consideration when choosing a place to stay. They will be the ones who you’ll have an agreement with for the length of your stay there. If you see that they’re someone that you can trust and someone that is easy to talk to regarding your place, then that’s a great sign of a trustworthy landlord.
3. The Agreement
Whether it’s a rental or a lease agreement, you should study and understand the terms carefully. Make sure it has no surprises and is as legitimate as it can be. The agreement will set the tone and conditions in which your stay will be observed to ensure that you and your landlord will agree to all of the conditions you both provide!
A Lesson in Real Estate Investment
Real estate properties aren’t just acquired as a place of residence. Some people participate in real estate investment when their main goal is to put money in the property today and allow it to appreciate so that you can enjoy a return on your investment in the future. You should be able to turn over a profit that would be enough to cover the risks you place yourself in, the taxes you pay, and the other costs related to owning real estates such as utilities, maintenance, and insurance.
In the most basic sense, real estate investment can be likened to the game Monopoly. To win, or turn over a profit in this case, you buy properties and generate rent to buy more properties—all the while avoiding bankruptcy.
Investing in real estate is one of the best options for you to make money. Not only will you find yourself as the owner of a luxury property for sale here in the Philippines, you’ll also be earning money using those properties.
For you to understand just how investing in real estate can help you earn more money, you need to learn about the ways people actually make money through real estate. Here’s how:
1. Real Estate Appreciation
When a property increases in value due to a change in the market, appreciation occurs. This usually happens when the land around your property is becoming scarcer or busier like when a commercial center is built next to it or when you upgrade your property so that it becomes more attractive to potential buyers and renters.
2. Cash Flow Income
This method focuses on buying a real estate property and operating it so you have a steady stream of rent to collect.
3. Real Estate Related Income
This is income generated by those who specialize in the real estate industry. They make money through commissions from buying and selling properties or real estate management companies that get to keep a percentage of the rents in exchange for running the day-to-day operations of a property.
4. Ancillary Real Estate Investment Income
This includes things like vending machines in office buildings or laundry facilities in low-rent apartments—basically mini-businesses within a bigger real estate investment.
Real estate investment can be a great source of income for those who have the capacity to enter the industry. It may not be that obvious but there is a niche of people looking for luxury homes in the Philippines! tap into this market and see profits flow!
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