The Payment Ins and Outs of Purchasing Real Estate

By: Marie Claire Lagrisola
The Payment Ins and Outs of Purchasing Real Estate

Finally, the time has come for you to try real estate investing for you and your family to nurture a loving and humble (or not, if you are into the understandable extravaganza lifestyle) home. You have got the finances, the mindset, and perhaps, your furniture and other house appliances are already begging to be packed. However, you should always bear in mind that buying a condo or a house and lot for sale is arguably the most important family decision you will make in your life as a parent. To add, it is expensive and you should ought to be well informed about where your hard earned money will go so that you will not be overwhelmed and that unwanted surprises will not occur.

In this article, we will discuss just that. When it comes to paying for your soon to be condo or your purchase of a new house and lot for sale, it is more than just buying a house and lot. Read more to make sure no stones are left unturned.

Apart From the Condo or House and Lot for Sale ‘S Actual Purchase Price Property Value and Down Payment Between the Real Estate Agent and You, the Real Estate Investors, Here Are Some of the Other Costs That You May Not Yet Know About:

The money secrets when buying an investment property


First, we have the local transfer tax which is the tax that one must pay for any ownership transfer of any real estate. The cost depends on the location or municipality of your house and lot for sale or condo, but an estimate of 0.5% usually is the cost of such tax at the province, while residential housing in Metro Manila values 0.75% transfer tax.

Next, we have the unresolved cost that must be paid in order to have the Deed of Absolute Sale notarized, the Notary Fee. This usually 1-2% of the total value of your home. The Deed of Absolute Sale is the statement that a person is transferring their rights of a particular land to another, meaning, when you get hold of the property, you indeed have the full right to use the estate you have purchased.

The world never gets tired of having registration fees, doesn’t it? Unfortunately, such the thing also applies in buying your home. In purchasing so, you are therefore getting the local Registry of Deeds. This legalizes someone to indeed transfer ownership.

Once you and your family can finally live in your newly purchased home, you are exercising the rights you have gotten when you paid for the Moving in Fee. This includes the association or subdivision dues, and the accessibility to necessary utilities. An example of this could include a car sticker so that you can get a pass on private roads within the premises of the subdivision where you bought your house and lot property.

Amounts around to 1.5% of your home’s market value, The Documentary Stamp Tax is the tax you have to pay for the documentation of the sale. The actual advertising that the house or condo is indeed for sale.

The Capital Gains Tax is also important to take note for a real estate investor. This is the tax in the tax table that the seller needs to pay for the transaction of the properties since residential properties are considered as capital assets. This is probably the highest percentage of tax you can get with a total of 6% of your soon-to-be home ‘s selling price.

Monthly Dues in Owning a Home may it be a Rental Property or Entirely Owning the Unit


The work does not stop there. Rental properties or owning a house or a condo takes lots of commitment. The following are the estimated prices on the costs you will encounter when owning property or doing real estate transactions.

When you loan, mortgage is an agreement between the lender and yourself that gives the former the right to take your property if you fail to repay the money you’ve borrowed plus interest. This mortgage payments, you have to pay monthly.

Of course, you cannot own a home with a fully peaceful mind if you do not have property insurance. You must really consider in purchasing real estate insurance so that when accidents happen, you can easily bounce right back up (especially financially). Although this is another monthly expense you must do, indeed you must do it for the sake of always being prepared for the quality of lives of your loved ones.

Next is property tax which is colloquially known as amilyar. Having property automatically entails you to pay the government to own real estate. This tax is the most affordable of them all which roughly amounts to just a little bit over 1 thousand pesos.

Of course, just like what was mentioned earlier, you should also expect association fees especially when your subdivision or condo has a country club which adds to the thrill of your living experience. For a house and lot for sale, this commonly translates to around 500 pesos whereas you need to pay around 2 thousand pesos mostly for a condo unit when it comes to these additional fees.

The utilities, such as electricity and water, have monthly dues as well. This is probably the most basic and self-explanatory fee to take note of but it never hurts to gently remind.

If there is one thing than purchasing a home, it is arguably maintaining and taking care of the said home. This is why you must set aside money for maintenance. Such maintenance fees include cleaning, and repairs.

To conclude, renovation is also another factor you should consider. With the world evolving ever so swiftly, you and your home should, too, every once in a while. Every single member of your family deserves an upgrade and glow up every now and then. Experts recommend to set 12 thousand pesos for your renovation at the minimum for minor things that you want to fix or improve within the interiors or exterior of your purchased real estate property.

Those are pretty much the unsurprising costs you need to remember when paying for your home and maintaining it to the highest level. Such payments are necessary to secure the best of homes and environment with the best kind of people.

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