Advantages of Buying a Residential Land
It is not a secret Overseas Filipino Workers (OFWs) are the strong majority of real estate growth in the Philippines. Majority of OFWs and migrant Filipinos dream of saving enough money from working abroad to build their dream house and settle on a better life. And to build family roots that can last several generations.
For this dream, they endure the loneliness of being away from their families while working abroad for many years. They would only return to the Philippines for vacations and important family occasions. Reuniting with their families is always a sweet event because they rarely get together as a whole.
Location
Finding a good location to build a home is important. Some prefer to have their house in the mountains, others by the sea or even within the city center. It depends on the buyer’s preferences. Keep in mind property prices within the city are more expensive compared to the countryside.
Finding a reliable and trusted real estate agent
Finding a licensed real estate agent or broker to act as the middleman between the buyer and the seller can ease a lot of headaches. Especially if the buyer is still new to the real estate industry. A real estate broker is vital in making sure all the papers and requirements for land purchase are ready and accounted for. They can also instruct the buyer on what to do during the purchase process, what to do next, etc.
Land taxes, titles, and fees
Buyers need to be aware of the taxes that must be paid during real estate transactions. It always involves more than one fee such as:
- Title Registration Fee: Generally around 0.25% of the sales price
- Transfer Tax: Depending on whichever is the highest zonal value or fair market value: 0.5% to 0.75% of the sales price
- Documentary Stamp Tax: Depending on whichever is the highest zonal value or fair market value: 1.5% of the sales price
- Capital Gains Tax: Normally paid by the seller but can sometimes be included in the sales price. 6% of the residence’s sales price
Affordability
There are two ways to purchase a residential property. The buyer can either pay for the residential property in full or get a loan from the bank or apply for a housing loan from Pag-IBIG. Unfortunately, not many Filipinos can afford to pay the full price so they can opt for loans instead.
Overall, buying a residential lot or land is a great investment. Real estate land will never lose value. Instead, its value will rise over some time. It has sustained smart investors for years. And can be used as an extra source of income.
Talk to us!
At Vistaland International, we can help you find the right lot property where you can finally build the home of your dreams. You can look through our different properties and read our blogs for timely news and trendy topics. Send us a message today!
