Buying your own house is everyone’s dream. A place that will be your safe space in where you can be yourself after a tiring and exhausting day at work. Having a house provides shelter for anyone physically and emotionally. It will also be a great achievement in your adult life as a part of your investment or for your own’s sake.
Though it is a long and tiring process, surely it is worth the wait. If you are considering purchasing your own house, there are some factors you need to consider before getting one.
Here are some questions you need to ask yourself before closing the deal:
1. Location
Is the location close proximity to your needs? Is it close to your kid’s school?
One factor to consider is to make sure of the convenience it will offer you. Think and plan your daily routines and consider your travel time. If it is for investment, consider getting a house that you see will have greater growth in the future. This will help increase the value of your property.
If you want to learn how you can determine the market value of your property. You can read it here.
2. Features and Amenities
Is it safe and secure? Does it offer amenities that you can enjoy and that fit your personality?
Make sure that you consider the safety features in your community like 24/7 guards on duty, CCTV cameras installed, and also consider the risk factors such as floods. Consider having amenities that can be visited with the kids and offers a healthy common space for the family to enjoy with everyone.
3. Affordability
Would you be able to afford to buy your house without getting broke? Can you be able to pay off the taxes that comes with buying your home in the Philippines?
Before making the purchase, make sure you have enough funds and also consider all the other charges when getting your real estate. These are the fees that cannot be skipped as this is your duty as a buyer to the government.
If you ticked off some of the items listed, then you can now make your move. As mentioned above, there are some hidden fees that comes with buying your house, apart from the actual contract price of the property.
Here are some of the other charges you need to consider in your budget when purchasing a real estate:
1. Notarial Fees
It is a negotiable cost that you have to pay to be able to have the deed of absolute sale notarized. It is commonly around 1-2% of the property’s value.
2. Local Transfer Tax
Once the deal is done, you have to start the process of transferring ownership of your home. With this, there are other taxes by your local government of the city or the municipality that you need to consider. Each city has its own tax laws. Rates could be around 0.50% to 0.75% of the selling price, fair market value, or zonal value, whichever is higher.
3. Registration Fee
For any conveyance, transfer, exchange, partition, or donation of a real estate property, it should be registered in the Local Registration of Deeds in where the property stands and is located. It is a fee bounded in registering your Deed of Absolute Sale. Computation is around 1% of the selling price and this will show the legality of the transfer of the ownership.
4. Moving-in Fee
These are the fees that you have to shoulder once you are ready to move in. These can be the utilities, association dues and other fees that your own community demands.
5. Documentary Stamp Tax
Other charges that you need to consider when buying your real estate property is the Documentary Stamp Tax. Any paper, document, instrument or contract that signifies the acceptance, assignment, sale or transfer of right or property is required for this tax. The rate of the Deed of Sale of the property will be around 1.5% of the selling price and value. Whichever comes higher.
If you want to read more about Documentary Stamp Tax. Here is an article to learn more about it.
Buying your property can be overwhelming due to the hidden taxes listed. That is why it is important that you make your research before making the decision and ask all the important details to your agent. There are also some other charges you need to factor out that is not shown or advertised in the ads that you see and eventually you will be shocked by these numbers. Make sure to ask your real estate agents with all of these computations before making the deal.
You may think that you as the buyer is just carrying all the taxes. You are thinking wrong. Selling of the property comes with local taxes as well and that they have to pay as well.
These are some of the sample taxes:
1. Capital Gains Tax
It is a tax that will paid in the Bureau on Internal Revenue that the seller has to pay for the transaction of the real estate properties that are marked as capital assets. Computation will be around 6% of the gross selling price or value, whichever is higher.
If you want to understand more on the Capital Gains Tax in the Philippines. Here is an article about it.
2. Broker’s commission
It is usually the agreement of the real estate broker and the owner of the property once the broker successfully sold the house. Commissions can be around 5-10% of the gross selling price depending on the negotiations.
Affordable real estate with Bria Homes
After all the tax computations and considerations, make sure you are with the right developer that can guide and show you all the hidden charges. Good thing we have Bria Homes that is an affordable real estate developer that caters to aspiring Filipinos that wants to have their own home. We are available nationwide and offers convenience at your home that is located with over 50 locations in the Philippines.
Our properties can be purchased through a bank loan and Pagibig loans for an easier and affordable monthly payment fees and terms.
You can talk to our real estate agents to ask all the property taxes and dues. Let us help you achieve your dream home with Bria Homes.
Written by: Yna Faundo
Comments