4 Practical Ways on How to Own a Condo Unit in the Philippines

Condo Living.

The fear of the unknown in these pandemic-stricken times have posed a real challenge for anyone to invest their money into something useful and practical.

With the limitations that the pandemic has posed such as leisure travels, people are now looking for different ways on how to own a condo, searching for reasons why condos are a good investment and learning about the potential income of such properties.

In fact, a study on the demands of condominiums shows that in the second quarter of 2020 alone, 62.7% of the real estate loans in the country are used for acquisition of condominium units.

Why is buying a condo property appealing to people amid the pandemic?

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The pandemic has made most, if not all people, value the spaces, facilities, and amenities one can access despite the given quarantine measures. While most houses and lots have outdoor spaces such as gardens, lawns, and parking garages, not all have health and wellness facilities including swimming pools, gyms, and playgrounds.

This is where condos outshine others. Most condo complexes including the ones developed by DMCI Homes have these amenities which makes them appealing to homebuyers.

Aside from lifestyle amenities, there are other compelling reasons why property buyers should invest in DMCI Homes condo units — one of these is the opportunity to earn passive income.

How to Own a Condo Unit in the Philippines

If you are interested in learning how to own a condo in the Philippines, you would probably agree that one of the major challenges to achieving your goal may be the budget.

If you cannot afford to purchase your dream condo in one payment, this article lists all the possible ways on how you can buy and own a unit:

1. In-house Financing

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In-house financing is when you take out a loan from the property developer who developed the condo complex where you want to purchase a unit. Usually, you can ask your real estate agent to arrange the in-house financing options offered by the developer.

In-house financing requires less paperwork compared to other housing loan options. Usually, a document that proves your primary source of income such as a certification of employment is enough to qualify you for a loan. Due to the simplified process, you are at low risk of being rejected.

If you are learning how to own a condo unit, then you must know that compared to bank loans, interest rates in in-house financing are higher — it is around 14% to 18% and the whole loan should ideally be paid within five to 10 years. This is not a disadvantage because these interest rates are not affected by economic factors so they remain the same.

2. Bank Loans

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Buying a condo in the Philippines is a true commitment. If, upon checking your finances, you realize that you need more years to pay off a condominium unit, then it is best to opt for a bank loan.

Unlike the first option, choosing to purchase your desired condo unit via bank loan means acquiring for yourself a longer loan term that ranges from 10 to 20 years with low interest rates that may change within 3 to 5 years.

However, a lot of paperwork is needed if you want to avail a bank loan because banks want to make sure that you can pay off your loan. Aside from proof of your finances, a good credit score is important for banks.

So if you are interested in acquiring a bank loan for your new condo, make sure that before your application, you have the reputation of someone who is prompt at paying credit bills. That way, your chances of getting approved are higher.

3. Pag-IBIG Fund Housing Loan

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Purchasing a condo is a big milestone one can achieve, however, similar with other investments, it comes with a price — millions. For minimum wage earners and budget conscious individuals who are concerned about buying a condo in the Philippines, acquiring a Pag-IBIG home loan will help you get the property of your dreams without breaking the bank.

Being a Pag-IBIG member with at least 24 months of savings no older than 65 years old and more than 70 years old at the maturity of the loan is a requirement if you want to avail this loan along with other housing loan requirements.

Applicants can avail up to PhP 6,000,000 for the purchase of a condo unit they want so long as the unit is not less than 18 square meters.

For those who want to learn how to buy a condo in the Philippines using a Pag-IBIG home loan, here are six simple steps you can do:

  1. Collect and complete the requirements to apply for the loan.
  2. Accomplish and submit your loan application.
  3. Receive the Notice of Approval (NOA) and Letter of Guaranty (LOG)
  4. Complete all the requirements in the Notice of Approval within 90 calendar days.
  5. Receive your loan proceeds within 10 working days.
  6. Start paying your loan exactly one month after the release date.

The interest rate of a Pag-IBIG Housing Loan is much lower compared to the interest rates of the first two options mentioned above. Interest rates range from 5.750% to 9.875% for a 1- to 30-year period. If you are interested in acquiring the Affordable Housing Loan for Minimum-Wage Earners, the fixed interest rate is 3%.

4. Rent-to-Own Payment Scheme

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Are you still contemplating if the unit you want is the right fit for you? If you are truly suited for condo living? Before settling down, you have to make sure that the location suits your lifestyle, and that you have good relationships with your neighbors since a solid wall is the only thing that separates you from each other.

One way you can test out a condo you want without making the huge payment is via rent-to-own payment scheme, which is a new option DMCI Homes is offering to its future tenants.

Rent-to-own (RTO) is renting a property for a definite period of time while also paying a fixed and higher rental fee as a portion of your payment goes to the downpayment for the property.

After the agreed period, the renter has to decide whether to purchase the property by paying for the remaining balance of the condo unit in cash or another payment scheme.

All unsold ready for occupancy (RFO) units are offered for the Lease with Option to Purchase (LTO/RTO) on a first come, first serve basis.

If you are planning to own a condo in one of DMCI Homes’ development under a RTO scheme, it is required that you lease the unit of your choice on a standard 24-month period which can be extended to 36 months but with a 10% increase in rental fee starting on the 25th to 36th month.

Requirements for owning a condo under DMCI Homes’ RTO Payment Scheme:

  1. Accomplished Tenant Information Sheet
  2. Proof of Income
  3. Proof of Billing
  4. Valid IDs
  5. 1 month advance (equivalent to Reservation Fee)
  6. Signed Lease with Option to Purchase Contract
  7. Chosen Payment Method for Lease
  8. 2 months deposit (Cash or Check)

When paying for your lease, you can choose between post-dated checks (PDCs) which are issued during contract signing or via Auto Debit for a more convenient experience.

Once these documents and payments are settled and you have received your Move-In Clearance from the condo management, you can move-in into your unit to experience the not so costly high life at DMCI Homes condos!

Good knowledge about the different financing options on how to own a condo is a great help to become a condo owner.

If you’re ready to start your journey, the first step is to check out the different properties offered by DMCI Homes located in key cities of the Philippines.

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