5 Tips in Buying a Condominium Unit

Living independently is not a norm in the Philippines since Filipinos are very close to their families. However, you will reach a certain point in your life wherein you want to move out of your parents’ house to live independently. Thus, many consider this phase as both a life and a financial milestone. But transitioning to this new phase of your life requires hefty preparation and research.

The major question you would be asking yourself is “Do I have the capabilities to live on my own and let my decisions not be influenced by my parents?” After you answered this one, the next questions you’d ask are where do you want to live and what’s the best set-up for you.

You may rent or buy your own place, if your financial resources allow you to do so. You should also have answers on where you want to live, in a condo, townhouse, village, among others. The internet has a lot of guides to help you but it feels overwhelming to be saturated with multiple guides.

The safest and most practical way for you to live alone is to live in a condominium unit. It has a lot of perks and is best suitable for millennials who are not planning to settle down in a couple of years. Many view this as an investment since you can have it rented in the future if you want to live in a “real” house.

These 5 tips can help you decide if buying a condo unit is for you.

1. Assess what you can afford

Condominium units in the Philippines especially in Metro Manila ranges from Php 2,000,000 to Php 10,000,000 depending on location and developer. Sometimes, it can go beyond Php 10,000,000 if you choose to live in a prime location. Most likely, buildings in Central Business District (CBD) are more expensive than the rest of the cities in the metro since it is nearer to different offices, and are accessible to almost everything you want and need.

Developers offer different payment schemes to pay off your condo unit. They can offer in-house financing, housing loan with partner banks, and also spot payment or paying the whole cost of the unit in one go. Downpayment for the unit is usually 20% of its total cost. However, you need to also consider other documentation and miscellaneous fees upon signing the contract. You should be able to cover the downpayment because this is not covered by any financial schemes. If you can already afford this, you’re halfway through the financial burden.

Now, the next question is if you can afford to make monthly amortization. It is advised to allot 30% of your monthly income for your mortgage. If you don’t have the means, try to look for other options that would suit your budget.

2. Set your negotiables and non-negotiables

After you assessed your financial resources, the next things to consider are the negotiables and non-negotiables. Create a checklist of what you can and cannot have when choosing a condo unit.

You may consider these things as negotiables and non-negotiables:

Negotiables:
1. Number of rooms in the unit- it is normally expensive to have more rooms in a condo unit, and the difference between the prices can be a million pesos. You can opt to buy a studio unit with enough floor space, then have it look bigger when you are decorating it.
  
  Pro Tip: Buy a divider to separate your sleeping area to your living area.
2. Amenities in the building- if you just bought your space to have a place to sleep at night, the amenities in the building won’t matter. The usual amenities in the building are recreational or study rooms, gym, well-lit lobby area, and swimming pool. If you already have a gym membership or always with friends for out-of-town adventures, you can choose a building with fewer amenities because there’s a high chance that you won’t be using it for your entire stay
3. Separate toilet and bath- if you’re not sensitive to sharing a space for the toilet and shower area, you can pick a unit that shares a toilet and shower area.

Non-negotiables:
1. Security and safety- this should be your first non-negotiable item on your list. When you’re talking to your agent, make sure to ask about the security and safety features of the building such as fire exit, smoke detector, generator sets, electricity breaker in each unit, 24/7 security, and also CCTV especially on each floor. Make sure also to check the surrounding neighborhood if it is situated in a safe place.
2. Water and electricity lines- make sure that your electric and water lines are in prime condition. Ask your developer if they have their own water tank to supply the water requirement of the tenants since it is rampant to have water interruption during summer.

3. Set a schedule for a site visit

Site visits are a must before you sign the contract for your condo unit. It can help you assess if you want to live in the unit and building. Prepare questions beforehand so you won’t miss out on important details when you’re touring the place. Also, make sure that before you move in, you’d be able to see the unit to be turned over to you. During this time, you can also ask for some modifications to suit your needs.

Pro Tip: Ask for the rules and regulations in the building when doing the site visit.

4. Read the contract carefully

Your contract contains a lot of legal terms so make sure to read it thoroughly so you won’t be shocked in the future that some matters are in your contract or some items were not listed there. It is best to consult a lawyer if you’re having a hard time understanding the contract.

5. Hire an interior designer or DIY your place

Hiring an interior designer will cost you more but it has its benefits. A professional can transform your place by maximizing the available spaces and making it look the way you’d want it. If budget is an issue, you can choose to DIY your own unit and get inspiration online.

Corporate Profile		Corporate Sustainability
History		Awards and Accolades
Mission and Vision		News
Investor Relations		Careers
Corporate Governance

5 Tips in Buying a Condominium Unit

1. Assess what you can afford

2. Set your negotiables and non-negotiables

3. Set a schedule for a site visit

4. Read the contract carefully

5. Hire an interior designer or DIY your place

Follow Us

About PNB

Trunkline

Customer Care

Bank Hotline

PNB Cards