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As teenagers grow into their much more mature stage in life, a recurring issue that is prevalent among their age range would be the allocation of the new money from their freshly-released paychecks. Even though it is highly possible that there would be multiple financial advice from the guardians in their family, it is still a huge probability that they would turn to splurging and unnecessary spending that might not benefit them in the long run. From here, the idea of doing real estate investments arrives as an option to wiser financing and properly saving up assets for the future.
Real estate, as sometimes referred to as ‘real property’, is the land ownership below and above the ground, including all tangible things upon and within the land like the building or house planted on it. On a more business-like point-of-view, it is the producing, buying, and selling of property. Land with the mentioned building, houses, septic system, or anything similar are often referred to as ‘improved’ land while land without it are considered to be ‘unimproved’.
Under this article would be a general guide to real estate investment, especially to those who are still foreign to some technicalities and basic yet necessary information regarding land ownership.
IN THIS ARTICLE:
To start, there are four types of real estate that every buyer should know:
As consideration with the term, residential real estate pertains to properties for residency, both with newly-constructed buildings or houses and resale homes. With the high demand in quality housing within the Philippines, there are multiple residential properties that are willing to keep up with the demand.
Under commercial real estate are buildings and properties that are utilized for business purposes and public use. It could include hospitals, shopping malls, educational buildings, and hotels. Apartments, although they are residential, are also considered to be under commercial real estate properties as they are possessed to gain income.
Industrial real estate are also owned for business purposes, however, industrial real estate properties are more on the larger part of enterprises. This could include factories, warehouses, or anything that could be used for research, production, storage, and distribution of goods and products. This is differentiated from commercial real estate as properties under this category are dealt with a different approach and assessment.
Vacant land is simply vacant lots or any property that is not utilized for any specific purpose at the given time. Under vacant land could be undeveloped, undergoing early development or reusage, subdivision and site assembly. In reference to those, vacant land could either be improved or unimproved land and might be used by someone else.
First thing to learn would be the real estate laws within the country. Considering that real estate is no easy commitment and investment especially financially, it is very favorable to have the assurance that these laws provide. After all, the money that one will spend in their investments will range from thousands to millions of pesos — basically, never an amount to fool around with and carelessly misspend.
Documents are the most important when it comes to dealing with transactions of properties and contracts. Granted that there is a lot needed to provide and accomplish in binding with a seller-buyer contract, there are also certain documents that buyers should be aware of. It is important to check that the basic ones are already given to the buyers in order to show the eligibility and legalization of oneself as a new owner of the real estate property. Under this section are some of the documents that a buyer should have:
This document is produced in order to provide the indication for transferring the property’s ownership, granted that the people involved in the transaction are successful in completing the necessary requirements of the deal.
This binds up the transaction as it includes the terms and transfer of ownership between the seller and the buyer. Deed of sale is a formal document that certifies the responsibilities and authorization of the buyer once they have acquired the property. This further legalizes the transaction and is given right when the payment is complete.
Issued by the Land Registration Authority (LRA), the Condominium Certificate of Title is documented proof upon one’s ownership over a condominium unit. There are multiple documents to be submitted in order to receive this certificate, however once received, Condominium Certificate of Title affirms that the property bought is free from previous lien, mortgages, and encumbrances or any equipment or apparatus.
As mentioned, paying taxes is important in buying a real estate property. A Declaration of Real Property is a document that ensures the records and assessments that are used as reference for the market and are needed for the evaluation and collection of the property’s tax. It is also considered a strong proof to a transferred ownership of a property.
It is very important to ensure that documents like these are all in the hands of the seller that your real estate agent would be referring to and keeping in contact with. It is extremely risky if the basic documents are not shown to you as a client as it decreases the credibility of the agent, the seller, and the supposed trust in dealing with any financially abundant transactions.
There is a lot more to consider when handling real estate investments such as finding and ensuring the legitimacy of the real estate website that you are going to look into. You can check out some of the legitimate real estate websites and dealers in the Philippines here: 7 Formidable and Legitimate Real Estate Property Websites in the Philippines and hopefully discover the type of properties that you are more drawn investing into.
As a young adult, there is a lot to invest into as there are a lot of suppressed wants and needs that former teenagers only have the freedom to buy upon earning their own money and not depending on any adult or elder figure. However, nothing beats the preparation and the insurance for a better future just like a real estate investment; as it eases the problem of acquiring one’s own property that you could use for a future business or even utilize for the benefit of a future plan of your family.