So in the previous blog post, I have explained to you the various types of houses and some terms in real estate that you might find confusing. I’ve come up with another list of terms to guide you.
Even though your realtors and agents are there to explain things to you, it will still be better if you have a basic understanding of these terms so you will not mistakenly commit to anything beyond your control.
Total Contract Price (TCP) – this is the total amount of the property you are intending to buy. House and lot price in total.
Loanable Amount – The maximum amount that you can loan from the bank, developer or Pag-ibig in order to acquire the property. For example the total contract price is 2 million pesos, the loanable amount is 1.7 million, and this means that the 300 thousand pesos remaining should come from you to complete the purchase.
Down Payment – Required amount for the home buyers to pay before they can move in to the house and make improvements. In most cases, DP is divided into 12 equal payments payable in 12 months. After which the buyers can now assume the property and start the interior enhancements.
Reservation Fee – The fee you need to pay to secure the reservation of the unit right away. After the reservation, you will be given a month to secure the required documents and start the monthly down payment.
Deliverable Unit – The actual turn over unit from the developer. These include the description of what the home-buyers should expect in the unit they will assume. This information is normally printed in the flyers together with other unit descriptions.
Here's a sample turn-over unit of Liora Homes in Cavite.
Monthly Amortization -You need to pay attention to this detail, amortization will be your monthly payment to either Pag-ibig or bank. This is computed based on the number of years you will choose. If you want smaller monthly amortization, choose the maximum payment plan, which is 30 years.
Here are some MyCitiHomes properties with very affordable monthly amortization which you might want to consider for your real estate investment.
Monthly Amortization for this property can go as low as Php 7,291* only. Located at Gen. Trias, Cavite just along the crossroads of Daang Hari and Arnaldo Highway, Liora Homes offers an affordable yet rewarding residential community. This is one of the projects I visited several times when I joined the site tripping of Driven in the past months and I noticed that there are many interested buyers who also availed their very low reservation fee after they've seen the actual project.
Another project by MyCitiHomes is Amaris Homes which offers affordable 2 storey towhouses with provision for 2 bedrooms and 1 toilet in Brgy Molino Bacoor, Cavite which you can get for as low as Php 7,137* monthly through PAG-IBIG!
CALL OR TEXT ME at 0917 739 8227 for inquiries and sample computation. You can also avail the FREE Site Trips to check these units.
These are just some of the basic terms you would normally hear while on the selection process of your future home. It is important that you have a full understanding of these terms because most of them deal with the financial aspects that include long term commitments. Familiarize yourself with these words and you will not be left out clueless!
It will also help you choose the best deals in the market. You can now do your math! Which offer is favorable to you? Don't forget to read my previous posts for affordable house and lot in Bulacan, Laguna and Cavite.
Hi, I'm Apple Allison of Sole Searching Soul, a travel blog dedicated to Make a Difference One Trip at a Time.