May 29, 2020

Real Estate Q&A: Will You Hold Off on Recently Purchased Condo amid COVID-19 crisis or Continue Paying/Buying?

Hello there! Welcome to another real estate related post. Here I will answer a question I saw posted in a local investment group:

Question:

Nakabili na ba kayo ng condo nito lang? Pa'no na yan may COVID-19/pandemic and recession, etc., ano tingin nyo? Itutuloy nyo pa ba or hindi na?

Anyone recently purchased a condominium? With the recent pandemic and recession slowly starting, how do you feel about this? Will you hold for now or continue to buy?

My Answer:

Filipino:

Naka-promo n mga ibang developers now. If you plan to invest, now is the best time to do so.

Real estate value will always be low NOW than in the future. Yan po lagi ko pino-post online and sinasabi s property clients ko. Kahit saan kau mag-research yan tlga ang totoo. 😊

As long as kaya nyo bumili kasi solid na ang financial base nyo and alam nyong kaya naman matapos na bayaran, go for it. If not, I always say, ipon muna and increase your income. Also have an emergency fund, life insurance and then pag covered na yun saka ka pumasok sa investments.

If nakabili na kayo you have three (3) options:

1. Kung d na kaya bayaran, resell mo na.

Ito ung tinatawag nilang pasalo/assume balance. Look for a trusted and licensed real estate agent/broker to help you.

2. Kunin mo yung kalahati ng ibinayad mo.

Meron tayong tinatawag na The Realty Installment Buyer Act or Republic Act 6552 (Maceda Law). Sa section 3 and 4, eto nakalagay:

Sa section 3 nakasaad na kapag na-cancel na yung contract, ang buyer may karapatan makuha ang refund na 50% ng total na binayaran kung nakapagbayad na ng installments/monthly amortization sa loob ng dalawang (2) taon.
Sa section 4 nakasaad na meron kang palugit na magbayad sa loob ng 60 araw mula sa installment due date mo if less than 2 years ka pa lang nagbabayad. Otherwise mkakakuha ka ng cancellation notice or notice to pay bago ma-cancel ang inyong kontrata.

Advice ko lang: Kontakin niyo yung agent/broker nyo or -i-check nyo po muna sa direkta sa developer kung ano yung cash surrender policy nila bago kayo gumawa ng kahit ano.

3. Ituloy mo lang kung may pambayad ka naman.

Kung kaya ituloy bayaran, just continue kasi tataas value nyan few yrs from now. Just like nung 2008 market crash, few yrs later tumaas din mga value ng properties. Tingnan m n lng presyo ng mga condo ngayon as compared to more than a decade ago.

Real estate is a long term investment. Bibili at bibili ang mga tao ng titirhan or kaya rerentahan. Hindi mawawala yan. Kaya pag bibili o bumili ka ng condo/property dapat may plano ka na kung ano'ng gagawin mo with it in the future. 😉

English:

Other developers already have a promo now. If you plan to invest, now is the best time to do so.

Real estate value will always be low NOW than in the future. That's what I always post online and what I say to my property clients. Anywhere you research, that's the truth you'll find. 😊

As long as you can afford to buy and you know you can finish paying then go for it. If not, I always say, save first and increase your income. Also have an emergency fund, life insurance and then once those are all covered then you go into investing.

If you've already bought a condominium, you have three options:

1. If you can't pay anymore, resell it

Sell it under what we usually call assume balance. Look for a trusted and licensed agent/broker to help you.

2. Get half of what you already paid for.

The Realty Installment Buyer Act or Republic Act 6552 (Maceda Law) states the following in sections 3 and 4:

Section 3 states that upon contract cancellation, the buyer has a right to a refund of 50% of the total payments made as long as he/she has paid at least two years of installments.
Section 4 states that you will get a payment grace period of up to 60 days from installment due date. That's if you haven't reached at least two years of paying your monthly amortizations. You'll also get a cancellation notice or notice to pay before the contract gets cancelled.

Word of advice: Better contact your agent/broker or check directly with the developer first on what their cash surrender policy is before you do anything.

3. Keep it up if you have the money to do so.

If you can continue to pay for it, just keep on doing so because the property value will increase in just a few yrs from now. Just like in the 2008 market crash, a few yrs later property values increased. Just look at the current price of condos now as compared to more than a decade ago.

Real estate is a long term investment. There will always be people who will buy a place to live in or rent. That's not going to stop. So, if you're buying or are going to buy a condo/property you should already have a plan on what you're going to do with it in the future. 😉