Investing in real estate is one of the best ways to have money in the Philippines. Real estate properties appreciate over time, and owners can preserve their investments for future generations. In the Philippine real estate industry, buying lot-only properties (primarily undeveloped land) have vast returns on investment.
Overseas Filipino Workers and retirees are mainly those who buy lot-only properties. If you belong to this category or are a first-time land buyer, you want to avoid mistakes done in purchasing land. Here are the common mistakes when buying lot-only properties in the Philippines.
Buying lot-only properties for home design
Buying lot-only properties in real estate projects is an excellent way to build a home with your preferred design while still having the features of living in an exclusive community. Many land buyers think that if they buy a lot only properties inside these communities, they can get away with any design they prefer.
However, real estate developments usually require the exterior home design to follow the community’s theme. For example, Camella projects, most of the time, have Italian-Mediterranean-inspired communities. If you purchase a lot-only package, you must build your own home from scratch, complying with this theme.
Yes, you can have your design for your home. However, this design should only fall under the “Mediterranean” category. Real estate companies have this rule to have uniformity within homes.
Blindly following the crowd
One of the biggest mistakes a land buyer could make is buying land for the sake of it. Most of the time, they buy land because they see their colleagues buying these properties or someone close to them told them to do so. This decision is a mistake because they must figure out what to do with the property.
Unlike buying a house or commercial real estate, buying a lot-only property gives the investor a blank slate. The best way to get a high return on investment in purchasing land is by planning what you want to do with the property before purchasing. You should also know the type of land you are buying.
Some lot-only properties are in residential areas, and the best property around them is residential real estate. On the other hand, properties close to cities can be used as a place for commercial and trade. Some lots are perfect for farming because of soil quality.
The best way to get the most out of your investment is to know what type of lot-only property you need and your buying purpose. Then, search for the specific type of land in your area.
Accepting high-interest rates
Pay only a little interest if you decide that getting a loan is your best option. Sometimes a lender will give you a high-interest rate, which will make your land cost more overall.
When you need a loan, your first goal should be to find one with low interest. You want to avoid paying much good when you could have saved some money. If you agree to spend a lot of interest, it will be harder for you to pay back the loan, and it could hurt your chances of making more money in the future from the land.
Asking someone who has done this is a great way to learn more. You can know more than you think from someone who has bought the land.
Buying land without inspection
Another mistake that a land buyer could make is buying land without inspection. There are land buyers who have yet to make plans after purchasing land. On the other hand, some investors know what they want to do with the land but choose to only inspect the land after buying it.
Sometimes, an investor buys land but cannot execute their plan because the land quality needs to be more suitable for their intentions. This situation is avoidable if you inspect purchasing lot-only properties. When buying land, soil tests, percolation tests, and zoning codes are essential.
Soil tests determine if the land is suitable for farming and percolation tests determine a land’s water absorption capability for building a septic drain field. On the other hand, zoning codes determine what you can do on your land. These codes can be hidden within the sales contract or deed. It’s best to seek advice from a lawyer or real estate agent before signing anything.
Buying land without considering environmental conditions
Environmental conditions are elements that no one can control. Some investors ignore these conditions making it more difficult for them in the long run. The problem with dismissing these hazards is that these hazards will indeed affect your plans with your purchased land.
Some of the most common conditions ignored in a land purchase are being in a flood zone, having unstable soil, and being close to a fault line. Before purchasing lot-only properties, it is best to know if the land has these conditions. Knowing the environmental conditions on the ground gives you a better understanding of whether the property price is worth it.
Historical conditions also affect your plans for the land. There are lot only properties that used to be a graveyard or are currently considered an endangered species or archeological sites. You will only want to buy property if you can do what you want with it. You also want to avoid having to fix any problems with the environment that can be expensive.
Buy lot-only properties with value for money
There are benefits to buying lot-only properties. First, purchasing lot-only properties cost less than house and lot packages. These properties are also low in maintenance, and you can incorporate designs you please for your house and lot.
If you are looking for lot-only properties that will give you the best value for money, you can avail lot only packages from Camella with a reservation fee as low as PHP 15,000. Camella has always been the trusted real estate brand in the Philippines. With 45 years of giving Filipinos their dream home, you can trust that our lot-only packages are the best for your family.
Check out our Houses for sale in the Philippines
Discover our house and lot for sale in the Philippines
