A Guide To Buying Properties In Cebu

With the boom in the real estate industry in Cebu, many people have started to consider buying properties in Cebu City. However, it may be a daunting task if people have no idea on how to go about it. Aside from the budget, which may be the main consideration for a number of people, there are also other things that you would need to think about when you are going to buy your first home.

Apple One Banawa Heights

I am hoping this guide will make your decision in buying your very first property in Cebu easier.

The very first thing that you should take into account is the type of property that you wish to purchase. There are actually three main types of properties that you can take into account when you are looking to buy your first home. These properties are the condominium, townhouse, and residential lot or house and lot. A condominium is basically a building owned by the owners of each individual unit in the building. The common areas, facilities, and other features of the development are owned by all condominium unit owners. A Condominium Certificate of Title or CCT gives an indication that a person owns the condo unit inside the building. A townhouse is basically a house with two or more levels and is attached to another house with a similar design.  Some townhouses may even have a small area at the back for a bit of gardening. A residential lot is essential an open piece of land available for purchase while a house and lot is a piece of land with a house standing on it. The townhouse, residential lot and house and lot are covered by a Transfer Certificate of Title, which shows the ownership of the property.

Your lifestyle may determine the type of property you may purchase. If you are a person who wants to have the convenience of living inside the city, you may want to check out my blog entry about the benefits of condo living within Cebu City. However, People who have families may want to consider living in a townhouse or a separate house and lot when they are looking at buying properties in Cebu. However, they can also consider condominium developments that are designed to accommodate families. Before you decide on buying properties in Cebu, you should consider the type of property available in the market.

MiVeSa Garden Residences

The second thing to take into account when buying properties in Cebu is the developer of the property. Since the developer may play a factor in the increasing value of the property, it is important to look for reputable developers. However, it is also important to consider that some newcomers in the industry aim to stay in the market by offering well-planned, well-designed and well-built properties in the market.  The location of the property is another thing to think about when buying properties in Cebu. It is important to check whether the location does not get flooded or not. You may also consider living in the outskirts of Cebu City if you are not keen on living in a condominium. You can check the surrounding community for any issues on peace and order. In connection to the location, you may also consider whether the property is near malls, hospitals, and schools.  You may also want to check how far the property is from your place of work.

Green Plains

Once you have all of the information available and have decided on the type of property you want, the third thing to consider is to talk to an agent. Although you can talk to the sales department of the developers, you may also consider talking to an independent real estate professional. The sales agents of developers will definitely push for their projects while independent real estate professionals may offer a wider selection of projects for you to consider.  They can offer options that may not be offered by one developer. So, if you do not have any particular developer in mind, you can consider getting in touch with an independent real estate professional when thinking about buying properties in Cebu.

The fourth thing to think about when buying properties in Cebu is the financing options available for the property. Buying properties in Cebu while they are at the pre-selling stage will mean a cheaper price compared to buying properties that are ready to be occupied. Developers may also offer in-house financing with lesser requirements compared to getting a bank or Pag-Ibig loan. However, it is also important to consider that in-house financing normally have a shorter term compared to banks and Pag-Ibig. The interest rates of banks are lower and repayment term is longer compared to in-house financing. But, you may need to gather all the required documents such as pay slips, income tax returns and other similar documents. Although a Pag-Ibig loan has the lowest interest rate and longest repayment term, its requirements may discourage people from taking advantage of it. It will also take much of your time to process the loan due to the huge number of people who may want to take advantage of its low interest rate and longer repayment period. On the other hand, you will not have to go through all of these things if you buy the property in cold cash. Developers normally offer discounts if the property is pay in full.

Apple One Banawa Heights

The fifth step is to buy the property itself. You will have to pay the reservation fee so the developer will reserve the property for you and not to offer it to anyone else for a period of time. The reservation period normally lasts thirty (30) days. The reservation fee is not refundable. Once you pay it will not be returned to you if you do not want to push through with your plan in buying properties in Cebu.

When you pay in installments for the equity or the down payment, it will be necessary to issue PDCs or post-dated checks to the developer. The down payment can range from 15 percent to 30 percent of the total contract price or the price of the property. If you will take out a bank loan in paying for the property, you need to get a certificate of credit approval from the bank. This will show the developer that the bank has allowed you to take out a loan to pay for the property.  Other necessary documents include photocopies of two valid IDs, Tax Identification number validation, and a buyer’s information sheet. These are normally submitted together with the PDCs.

Apple One Banawa Heights

The last step to take when buying properties in Cebu is to make sure to stay in touch with the developer. This will allow you to air any concerns you may have about the property you bought. You can voice out these concerns to the developer to make sure they are dealt with as soon as possible. There are also some real estate professionals who stay in touch with their clients even after they already purchased the property.

Real estate properties are major investments for anyone. Due to this, you should make sure to consider all your options before you hand over your hard-earned money to the developer. The guideline above are just some of the things that you should consider when you are thinking about buying properties in Cebu, and I hope that this will help you find the property you will eventually call home.

Renting Or Buying Properties In Cebu City

Banawa Heights - Villa

To paraphrase a quote from the Bible, man cannot live on bread alone since he also needs a place to stay in. These days having a place to stay in for the night is one of the most important things that a family needs to consider.

However, renting a house may put a strain on the monthly finances of the family and they do not get anything substantial in return. On the other hand, buying properties in Cebu City may also entail other expenses aside from the monthly payments for the property they are buying. This is one option that people who have a regular monthly income can take into consideration.

It is important to take into consideration the advantages as well as the disadvantages of renting or buying properties in Cebu City. You can weigh out these advantages and disadvantages in order to find out which one is better for you and your family.

The biggest advantage of renting properties is that you have lesser responsibilities compared to a property owner. You can leave anytime you want to unless your lease agreement or contract has a minimum rental period. Another advantage is that you do not have to worry about maintaining the property since the owner of the property will take care of it. The only time you have to pay for maintenance costs is when you are the one responsible for any damage in the property. Your water and electricity bills can also be shared with the people living with you.  A third advantage of renting property instead of buying it is that you can live anywhere just as long as you can afford the rent.

Banawa Heights - Mansionette

With the advantages, there are also some disadvantages in renting instead of buying properties in Cebu City. One major disadvantage is the rent itself. Rentals may cost as much as loan payments. If you used the rental payments to pay off for a loan, you would already own the property after a certain number of years.

The landlord can also sell the property anytime, which will force you to find another place to live in. When you rent a house, you cannot make any changes on the house since the landlord may not allow any renovations on the property. Although you will not have to pay for any major repairs on the property, you will have to wait for the landlord to repair any damage on the property. This means, you will be at the mercy of the landlord if the landlord does not opt to make repairs as soon as possible. Even though you can opt to find another place to live in, it may become a bit problematic especially if the rent of another house is higher than what you are currently paying.

Now, let us take a look at the advantages and disadvantages of buying properties in Cebu City. One major advantage of

Banawa Heights - Tower

buying properties is it will be a source of potential income for you. Real estate increases its value over time if the property is well maintained. This means a house that you purchased for P450,000.00 may have a much higher value after ten years.  I know of some properties whose prices have increased in a matter of months. You will also feel secure since you do not have to pay for something that you cannot own in the future.

You will also have the option to make any major renovations on the property.  You can extend the property to cover the extra space at the back. However, you should also take into consideration any restrictions that a subdivision may have on changes made on any property. There are some developments that do not allow any changes on the façade or the front part of the property. But modifications may be allowed on the interior and the back part of the property.

Since you own the property, you can also sell it anytime you want to. You can also have it rented out if you have another place to live in. There are a number of investors who buy properties with the idea of renting them out to potential tenants. A number of these investors have purchased condominium units near commercial districts in Cebu City.

MiVeSa Garden Residences

Similar to renting a house, there are also some disadvantages of buying properties in Cebu City. One major disadvantage is the expenses that you will have to deal with when you are set on buying properties in Cebu City. Paying for a loan or maintaining a house can be quite expensive. But, you should also take note that the cost of renting a house may be as costly as buying it.

Another disadvantage is the fee or the association dues that you may have to pay, especially if you buy a house inside a subdivision or a condominium unit. People who rent do not normally pay for subdivision fees but there are also some instances where these fees are passed on to the person renting the unit.

Although you have the option to sell your property, it may be difficult if the property is located in an area prone to flooding. However, it should also be noted that property developers have already taken this into consideration and have made all the necessary preventive measures to prevent flooding in the properties they have developed.

When you own your own home, you will also have to deal with real property taxes. These taxes are paid each year and are based on the assessed value of the property you purchased.

Banawa Heights

It is important for you to take into consideration the advantages and disadvantages of renting or buying properties in Cebu City. These will serve as a guide for you in making the decision on whether you will rent or buy properties in the city. It may be possible for you not to have the budget to buy properties, which means you may have to settle with renting properties in the city. However, if you have the appropriate financial capability, it may be advisable for you to consider buying properties in Cebu City to give you the peace of mind that your family will finally have a place that they can call home.

Buying Properties For Investment In Cebu City

Property development in Cebu City is currently on an upswing with numerous developments within the city, which makes it practical for people who have a good amount of extra cash to consider buying properties for investment in Cebu City. With the rising population in Cebu City due to the increasing job opportunities brought about by the business process outsourcing industry, there is a huge demand for rooms, condos, and even houses for rent.

Apple One Banawa Heights

The real estate industry in Cebu is currently experiencing a boom as the industry has seen a number of companies being created solely for property development. These companies include Apple One Properties, Grand Land, GoldPeach Properties Inc., and Worldwide Central Properties. These new developers have dominated the real estate industry, according to a report from inquirer.net.

Apple One Properties launched its condominium development in the Banawa area that is patterned after the San Francisco Bay Area. The Apple One Banawa Heights offers three options for people who aim at buying properties for investment in Cebu City, the Tower, Villa and Mansionette.  Since the property is tucked away along the hills of Banawa, it offers potential owners a quiet and relaxing atmosphere while staying close to the commercial and entertainment areas in the city.

Grand Land, which is a part of the Gaisano Capital Group of companies, is set to offer a six-tower condominium development in the Mabolo area. The City Homes brand of the company is also the residential housing offering of Grand Land located in Mactan, Mandaue and Minglanilla.

The second flagship development of GoldPeach Properties Inc. is the City Soho located along B Rodriguez, Cebu City. The name of the development stands for Small Office, Home Office and offers a total of 233 residential units along with 225 commercial units.

On the other hand, Worldwide Central Properties is offering its first residential condominium development in the same area as the Apple One Banawa Heights albeit nearer to the main road. The Sundance Residences will provide Cebu City with at least 208 condominium units by 2015, the projected turnover of the units of the first two towers of the development.

Midori Residences

Aside from these newcomers in the industry, there are also some well-established developers offering good investment options for potential investors.  Two of the biggest developers in Cebu are Cebu Landmaster, Inc. and Primary Homes, Inc. Cebu Landmasters, Inc., has a number of condominium and housing developments in and around the province of Cebu. The Midori Residences of the company is set to be turned over by the end of the year while its Baseline Residences is already completed and only a limited number of units are available for sale. Its latest development for people looking at buying properties for investment in Cebu City is the MiVeSaGarden Residences. This condominium development is actually a good place to consider for people aspire at buying properties for investment in Cebu City. Located in the middle of Veteran’s Drive and Sanson Road, hence the name MiVeSa or middle of Veterans Drive and Sanson Road, the MiVeSa Garden Residences is just one ride away from the BPO center of Cebu City, the Cebu IT Park. It is also one ride away from major malls, commercial district, and even the downtown area of the city. This is actually a noteworthy development for people who aim at buying properties for investment in Cebu City.

MiVeSa Garden Residences

Primary Homes Inc. has a number of developments that are available for people looking at buying properties for investment in Cebu City. It offers middle to high-end projects for potential investors or even condominium owners. Among its middle-market developments are the Lahug Garden Flats, Woodcrest Residences and the Mabolo Garden Flats. Its Avalon condominium development is mainly aimed at the high-end market, and rightly so since right inside the Cebu Business Park, across Ayala Center Cebu.

Buying properties for investment in Cebu City is actually the best way for people who are thinking of the best way to invest their hard-earned money. For instance, purchasing a studio unit through bank financing may cost around P10,000.00 to P12,000.00 each month. The current price for renting studio units in Cebu City is at least P15,000.00. This means the property owner can actually earn around P 3,000.00 each month their property is being rented. Since contracts for renting would normally have a minimum term of at least one year, the property owner will not have to worry about paying for their investment for one year.  All they have to do is to make sure that someone would rent their units. This is where property management companies come in. These companies would take the responsibility of making sure that the studio unit is made available for rent. The best way to have it rented is to get a reputable property management company that has numerous partner-companies to ensure optimum coverage in terms in making it available to potential clients.

The influx of BPO companies in Cebu City has made the city a prime investment area in the real estate sector.  Due to this, it is essential for anyone who has a good amount of extra cash to become a part of the industry by buying properties for investment in Cebu City. Given the chance, I would definitely invest my hard-earned money in properties in Cebu City.  However, for the moment, I am still trying to work hard in order to get the money that I can eventually use in buying properties for investment in Cebu City.

Pre-Selling Or Ready-For-Occupancy - Purchasing Properties In Cebu City

Green Plains

Owning a house is one of the best investments that a family can make since provides security as well as potential profit in the future. Deciding to purchase a house is one of the biggest, if not the biggest decision that any family can make. Heck, it may even be the only major decision that anyone can make. This is especially true to heads of middle-income families who have to deal with other financial responsibilities associated with raising a family.

Although there are numerous options available for families looking to own property that they can call their home in the future, one major factor that affects the decision in purchasing a piece of property is the cost. Living within Cebu City is quite costly with the rising prices of properties inside the city. The same thing can be said for properties within Metro Cebu or in cities and other locations around Cebu City such as Mandaue City, Talisay City, Consolacion, Lapu-Lapu City, and even Minglanilla. Due to this, it is essential for potential home owners to weigh out the advantages and disadvantages of purchasing any piece of property,

The price of any property will depend whether or not the property is still on its pre-selling stage or is already ready-for-occupancy. Properties that are still on their pre-selling stage is actually cheaper than ready-for-occupancy properties. The main reason for this is the fact that these properties are not yet livable or are still under construction. On the other hand, properties that are ready-for-occupancy are properties that are already, well, ready for occupancy or the buyer can move in once the down payment is made.

MiVeSa

The main advantage of purchasing properties that are still on their pre-selling stage is the price. More often than not, the prices of these properties are at least twenty to thirty percent cheaper than properties that are ready-for-occupancy. However, potential home owners will have to wait for the property to be finished before they can move in.

This is actually good for buyers who may not have the cash ready to pay for the equity or the down payment of the property. Normally, the property buyers are given twenty four months or two years to pay for the equity. There are even some property developers offering a down payment period stretching to thirty-six months or three years. But, one major drawback for buyers is that they will spend more each month since they will have to deal with their monthly rental for the place they are currently staying in while paying for the down payment. Due to this, it is essential for buyers to consider whether or not it is more cost-effective for them to purchase properties at their pre-selling stage or purchase ready-for-occupancy properties.  This situation is actually advantageous for people already living abroad and planning to purchase properties in Cebu City. They can purchase properties at their pre-selling stage while continuing to work abroad and once the property is already finished, they can return to Cebu City and enjoy the fruits of their labor.

However, there may be some instances where the down payment of a particular property is low since the total contract price of the property is low. This will be advantageous for people who are temporarily renting a house within Cebu City since the down payment may not put a major dent on their finances.

Shine Ville 2

Purchasing ready-for-occupancy properties is another option for potential home owners. All they have to do is to pay for the down payment and they can move into the property already. It is essential to take note that the down payment should be fully paid before they can move in. This situation is beneficial for people who have money set aside for the down payment of properties they want to purchase. However, for most of us who may not have the cash ready to pay for the equity or the down payment, we will have to continue paying for the down payment before we can move into the property. 

The major factor that affects the decision of anyone in purchasing properties is the cost. Due to this, it is important for future home owners to weigh out the pros and cons in purchasing the property. They should take into consideration the monthly expenses, especially if they cannot pay for the down payment at one time.

Apple One Banawa Heights

For me, I would rather purchase properties that are still at their pre-selling stage since the price is cheaper. It may be possible for property prices to increase by twenty to thirty percent once the property is already ready for occupancy. There may be instances where the price may go up by as much as fifty percent. Since I do not have the cash to pay for the down payment at one time, purchasing the property at its pre-selling stage may be more cost-effective for me than purchasing a property that is already ready to be occupied. Although my monthly expenses will increase due to this, I can have the peace of mind that after two or three years, I will have a house that I can finally call my home.

Living In the Outskirts Of Cebu City

Sometimes I wonder whether living in the outskirts of Cebu City is the best thing for me or not.  Although living within the city has numerous advantages compared to living outside the city where I work, living outside does have some benefits for me especially during the weekends.

These days, it is not too difficult to find a place on the outskirts of Cebu City that is suitable enough for me to live in. In fact there are a number of options that I consider comfortable enough for me if I decide on living in the outskirts of Cebu City. These places are far enough from the hustle and bustle of the city while near enough for me to easily shuttle back-and-forth without much difficulty.

Astana

One of these subdivisions is the Astana Subdivision, which is located in Lapulapu City. The Astana Subdivision is close to a Montessori School, the Opon Church and the Birhen sa Regla Church. It is one ride away from the Mactan International Airport and two of the major malls in Cebu City, SM City Cebu and Ayala Center Cebu.  Students studying in the University of San Carlos-Main Campus, University of Cebu-Main, University of the Visayas, and the Asian College of Technology will not find it difficult to commute to and from the subdivision. The subdivision is currently on its pre-selling stage, which means it is still cheaper compared to units that are already ready-for-occupancy. Another advantage in getting an Astana Subdivision unit is the fact that buyers can already move in once a loan is taken out for the payment of the unit and fifty percent of the down payment is already paid. This makes it an ideal place for anyone who is considering living in the outskirts of Cebu City.

Velmiro Heights

Another subdivision that can be taken into consideration when one is thinking of living in the outskirts of Cebu City is the Velmiro Heights subdivision.  This subdivision is also in the pre-selling stage. Although Velmiro Heights is located in Tunghaan, Minglanilla, it is quite accessible since it is only ten minutes from the South Road Project. The subdivision offers a number of amenities that allow unit owners to relax after working for an entire week. The development has set aside forty percent of its 8.8-hectare area for amenities and facilities. Among the facilities that unit owners can use if the two-storey clubhouse that features an adult and kiddie pool, fitness gym, lounge area, playground and multi-function rooms. The main road of the subdivision is twelve meters wide and has a grand entrance with a guard house for security. The subdivision is also located sixty meters above sea level, which makes the risk of flooding minimal.

Modena

The Modena Subdivision in Lapulapu City is another development that anyone can take into consideration if they want to enjoy living in the outskirts of Cebu City. The development features a landscaped entrance and sophisticated gate along with an elegant guardhouse. The curbs and gutters are all cemented while the sidewalks are paved. Since the Modena subdivision features an underground drainage system with individual rainwater catchments, flooding is minimized especially during a heavy downpour.  The development also features a multi-functional hall and a convertible basketball court.  One thing that makes this development stand out is the fact that the developer does not wait for buyers to make their initial payment before they start to build the units. This makes it quite convenient since potential unit owners can actually start to live in the living in the outskirts of Cebu City immediately after they finish paying the down payment of their housing units.

These are just three subdivision developments available for people aim to live just outside the city without having to deal with the hassle of travelling long distances just to get to their place of work.  People who want to have a relaxing weekend can take these developments into consideration if they want to have a place to live in that is not too far away from the city. Living in the outskirts of Cebu City is more convenient due to these recent subdivision developments.

Benefits Of Condo Living Within Cebu City

Owning a property within Cebu City is costly these days. In fact, it is cheaper to live outside the city and travel to and from the city each day. However, travelling to and from the city will take its toll on anyone who has an eight-to-five job in the city. Waking up early in the morning can be tiring for anyone who has to beat the morning rush and get to the office on time. One way to deal with this daily grind is to find an affordable yet convenient place to stay within the city without having to pay an unreasonable price. This is where condo living within Cebu City comes in.

MiVeSa

People may not have the right idea when it comes to living in a condominium. Some people think that condo living is costly and only reserved for the upper crust of society. However, this does not have to be since there are numerous condominium developments that have sprouted all over the city. In fact, nearly all major areas in the city have an existing condominium or are currently being developed. Due to this, the price of a condo unit has become more affordable to many urbanites.

Condo living within Cebu City has become more convenient with the numerous choices available for buyers. Condo units can be purchased for as low as around one million for the basic studio unit to as high as twenty eight million for the high-end penthouse units.

There are a number of benefits of condo living within Cebu City and one of them is the peace of mind that it is fully secured 24 hours each and every day. Imagine having your own security force guarding your property. You do not have to spend thousands each month for 24-hour-security for your property.  You will have the peace of mind each time you go out of your unit each day or night.

Another benefit that condo owners will have is the convenience of condo living within Cebu City itself, which is probably within minutes from their workplace. People working at the IT Park have a number of condominiums they can opt to purchase. Some of them are located within the IT Park itself while others are a stone’s throw away from IT Park. There are also a number of condo developments that are just one ride or minutes away from the major IT area in Cebu. Among the options that potential buyers have are the Calyx, Lahug Garden Flats, and the Mivesa Residences.  These condo developments are within or a few minutes away from the IT Park. For people working within the Cebu Business Park, they can select from the Mabolo Garden Flats, Persimmon, and Avalon. Uptown urbanites also have a number of options available for them including the Fuente Towers, Horizon 101 and Apple One.

Apple One

Condo living within Cebu City is also advantageous for people who are not into the habit if cleaning up the entire property each week. One of the benefits from the condo dues that owners have to pay each month is cleaning the common areas inside the building. This means the reception area, hallways, and other common areas will be maintained by the staff of the condominium. All the condo owners have to think about are their individual condo units, which may not require much work to maintain.

Although fire may be the bringer of life, it is also one thing homeowners are very concerned about. As the saying goes, “it is better to be robbed than to have your house burned down.” Current condominium developments offer some sort of protection against fires. Aside from the obligatory fire exits, condominiums also offer a sprinkler system that can prevent fires from burning the entire condo unit, if not the entire building itself. Some condominium units even offer heat detectors that will warn if not stop a fire from getting out of hand.  This makes condo living within Cebu City a bit safer than living in a house outside of the city.

Condo living within Cebu City may also have some disadvantages. One disadvantage is the limited space that a standard condo unit offers to its owners. Most studio units have a total floor area of 22 square meters. This makes it impractical for a family of four to live in a studio due to the limited space. However, it should be taken into consideration that property prices in the city have skyrocketed in recent years.  Purchasing an entire house inside the city may be more costly than purchasing a condo unit within the city. If you find the space too small for you and you cannot afford to purchase a house within the city, you will have to deal with the daily grind of waking up early in the morning just to ensure you are not late for work every single day. Condo living within Cebu City is a convenience that will allow anyone to have a good night’s rest without having to worry about waking up early the next morning.

MiVeSa

Another disadvantage of condo living within Cebu City is the threat of fires. Yes, I listed this as one benefit of living in a condo within the city. However, some people are still concerned with fires that may happen in the building they call home. They think that they will not be able to wake up in time to get out of their unit before the fire spreads. This is the reason why you should make sure that the residential condominium unit that you are thinking about purchasing has all the necessary fire safety systems. You can also take into consideration purchasing a house that does not have a fire alarm or sprinkler system that will reduce the effects of fire in your property as compared to purchasing a condo unit with all the necessary fire alarm and sprinkler systems to deal with any fires that may happen inside the building.

Living inside a residential condominium does have its own advantages and disadvantages. However, it would all depend on the needs of the person who wishes to purchase a piece of property within the city. In the end, I find condo living within Cebu City more appealing and convenient for me compared to acquiring a house outside the city and having to deal with the daily routine of waking up early just to get to work on time.