The Philippines has one of the fastest growing economies in all of Asia. Evidenced by its rising wealth of human capital, which is only second to Jakarta, the country was hailed by Deutsche Bank as one of the “strongest performing economies in Asia today”. The economic growth rate of the country is second only to China, and this stellar growth has had an immense effect on the real estate market.
More and more foreign investments are coming in. Government spending on infrastructure projects is increasing. The average income is going up. The buying power of the people is getting stronger. All these are resulting in an increasing demand for space both for residential and commercial purposes. From condominiums to shopping malls to business parks, there is one thing in common that they all need: land.
Opportunities for investment are looking positive over the next twelve months due to an encouraging economic environment. Due to the growth in the business process outsourcing (BPO) and information communication technology (ICT) industries, more jobs are becoming available leading to more disposable income and more savings. What better way to invest your money in than to buy land?
Land values, especially in the Central Business Districts (CBD) are increasing on a yearly basis. What you buy now will be worth more later – a lot more. Average prices in the Makati CBD are now PHP 433,750 per square meter, while prices in Fort Bonifacio, Taguig range from PHP 273,000 to PHP 5000,000 per square meter. However, the highest value appreciation is in Ortigas Center where the average price of land is at PHP 161,500 per square meter. Prices in these areas, as well as in other major parts of Metro Manila, such as Quezon City, Muntinlupa, Manila, and Parañaque are expected to increase from 6% to 12% in the next coming years.
This is why the most lucrative time to invest in a land for sale is now. As an individual, a lot of your own can be where you build your dream house on. Both house and lot can become a valuable asset that will benefit not only your children, but also future generations. If not, you can always put it up for rent, especially since there is a strong demand for it. As an investor, a commercial lot for sale can be something you can develop into residences or retail establishments. You can fully utilize it to generate profit.
Buying a lot for sale in the Philippines can be a simple process of reaching an agreement. However, there are certain things you need to be wary of before investing your
money in it, especially since it entails a huge amount. When it comes to big investments such as this, one should always take care and practice due diligence.
First and foremost, ensure that the lot you intend on buying has been declared alienable. This means that the government allows for private individuals to own the piece of land. To check, simply go to the Department of Environment and Natural Resources (DENR), which is the country’s land management bureau and ask. If the property has been declared inalienable, there is nothing much you can do about it as this means that it is still government-owned and not for private use.
Next that you should do is to check if the lot you are interested in can indeed be used for the purpose you intend it for. Know what the construction and land-use ordinances are in the specific area. What can and cannot be done? What can and cannot be built?
Last but not least, always ask for the original Certificate of Title. There are many cases where “professional squatters” try to sell you land, and use their Tax Declaration to show proof of their ownership. A mere Tax Declaration is not and will never be enough. The Certificate of Title is your surest proof that the seller is indeed the owner of the property you are interested in buying.
Purchasing real estate is a costly transaction, and therefore requires careful consideration. Aside from inspecting the property itself, you also need to ensure that all documents are in place so that the transfer of ownership goes as smoothly as possible. But this is not always the case; there are people who were unfortunate enough to have purchased properties with fake land titles.
Arguably one of the largest transactions most buyers or sellers can make, the transfer of property is understandably a cumbersome process. Apart from the significant sums exchanged during a sale, there is also a myriad of paperwork and fees that need to be completed and paid for. Among these fees is the cost to transfer of a land title, which is, of course, done when a property is bought, sold, inherited, or donated. If you are a buyer, an heir, or a donee, a new land title under your name is important as it serves as proof of your ownership of property.
The Home Development Mutual Fund (HDMF) or more popularly known as the Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya, at Gobyerno Fund or the PAG-IBIG Fund is a fund dedicated to the creation and establishment of a national savings program and an affordable shelter financing scheme for Filipinos.