subject: Things You Need To Know When Buying A House And Lot [print this page] If you are planning to buy a house and lot, you need to look into the following things before you proceed with the purchase such as: value is increasing, strategic location costs more, direct purchase and real estate agent varies in some aspects, and modes and terms of payments may come in various forms.
Investing in a house and lot is a good business venture because the value does not depreciate as time goes by. Unlike any other assets, the longer it becomes existent, the higher the worth will become. Therefore, there are few things you need to make certain when buying to ensure you made the right choice.
Here are some things you need to know about house and lot namely:
Value is Increasing
If you are the kind of man who loves to venture into guaranteed and profitable business; buying a house and lot is the right choice. One good thing about buying a property is that it continues to increase its value as time passes by. This means that if you bought it for $100,000 last year, it could be as much as $120,000 - $150,000 on the following year.
Strategic Location Costs More
When the property is located strategically where commercial institutions are just nearby such as hospitals and malls; expect a bit costly rate compared to those located in the rural areas. This is due to the difference in the costs of appraisal of assets per zone. The moment you decide to resell your property, always refer to the zonal value to determine the appropriate costs for your house and lot.
Direct Purchase and Real Estate Agent Varies in Some Aspects
There is a big difference in price when you purchase a property directly from the proprietor and through a real estate agent. However, there are advantages and disadvantages accompanying both types of transactions. When dealing with the owners, the price might be cheaper; but the buyer will be responsible for the facilitation of documents. On the other hand, a higher cost is obvious if course through an agent; however, a hassle-free transaction is what you will get.
Modes and terms of Payments may come in various forms
Several modes and terms of payments are applicable when buying any kind of properties, which are as follows:
Spot Cash
If you have a fat wallet, you may opt to pay in cash and even avail of a discount depending on the decision of the owner.
Installment Payment
However, if you can make arrangements with them, you can pay it with equal monthly payments for a specific number of months or years. A required down payment is also specified by the owner, which is deducted from the total value of the house and lot.
PAG-IBIG Fund
PAG-IBIG fund is a program offered by the Philippine government that is aimed to help the people anywhere in the country like in Cebu, Manila, and Davao to acquire properties through salary deductions. If the seller approves, you can also purchase through PAG-IBIG and have it deducted from your monthly salary for 25 - 30 years. However, since not all sellers agree to transact through a government program, they have the right to refuse such dealings.
