buying a house

Busting Common Home-Buying Myths in the Philippines

There are a lot of misconceptions abound when it comes to buying property, and having this information can prove detrimental to your process of correctly finding your dream home. It can affect how you discover or choose the one you’ll purchase. When starting your house search, make sure you are aware of these common house-buying myths so that you can not only avoid them but also identify those who use them for their own gain.

  • “House and lot packages are pricier than condominiums.”

This idea is a common belief perpetuated because of images of lavish homes constructed with the most grandiose installments and elements. However, many properties on the market are at a reasonable rate and provide enough space for a comfortable home. It all depends on the location and demand.

For example, you can find a condominium in the metro, with prices exceeding eight million pesos. Still, if you go a little farther south, a house and lot for sale will cost you a comparatively smaller amount of around two million pesos (and occasionally even a little less). Plus, if you’re looking at it from the investment side of things, landed properties are seeing a much higher growth rate in significant sectors.

The amount you spend in total will also boil down to upkeep and practical lifestyle choices.

  • “Loans can’t help much in today’s market.”

As long as you are approved and you have a stable income that can consistently pay off your debts and mortgages, other property loans can cover you for up to 80% of your home’s appraised value. You simply need to prepare the downpayment amount yourself and leave some extra funds to pay for the next few months, inclusive of utilities and the like.

The real expenses with homeowning will come down to the monthly expenditures that go on top of the mortgage that you have to pay off. The thing to watch out for is the interest rate, which can go up to 10% with fluctuating market prices affecting the tide. The lowest rates dance around the 6% mark, though recent economic shakeups like the coronavirus crisis will influence these rates.

  • “Foreigners can’t own property in the Philippines.”

The confusion here lies in the specific details of this regulation. Foreigners residing in the country can purchase their own home or property and have full legal ownership of it. However, they cannot own any land. That clincher makes it seem complicated and may come off as a restriction from landed properties, but a workaround that exists is to simply make use of the structure itself and lease out the land beneath.

The way that workaround exists legitimately is based on the Investor’s Lease Act of the Philippines, which lets foreigners enter a leasing agreement with a local landowner.

Now that you’ve got all of these myths in your back pocket, you can use the knowledge to help you with your search for the right home. You can make a more well-informed decision without a lot of worries in the future.

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