Investing Smartly: Why Should You Own a Lot First?
Choosing a property to purchase is never an easy option. You can choose from a wide range of options, including condominiums, townhomes, and even a single-detached home. All of these present a fair share of benefits and drawbacks, so first, you must do your homework.
In most cases, though, experts suggest you own a lot first! It can be tempting to jump headfirst into that preselling house and lot offer, but a vacant lot may offer you the flexibility you need in a volatile market.
You can eventually use it as a commercial space or build your dream home, so long as you have the resources to do so.
But the question remains: Why should you invest in a house lot first? We’re here to present the benefits you can later reap:
Enjoy better prices
You may be tempted to look through lists of houses and lots for sale, but if you want to dip your toes into real estate investment, nothing’s better than purchasing a lot. Having land under your name allows you to enjoy better prices, as developers tend to put a premium on development zones.
By acquiring a lot first, you enjoy lower monthly amortizations and avoid unexpected charges like insurance costs. You also get the chance to qualify for various bank loans, as lenders require lesser income requirements for loans.
You can also enjoy better prices by exploring lists of available properties online, such as Pag-IBIG’s lots for sale.
Expect low maintenance requirements
With a vacant lot, you only need to consider the land itself—not the complexities a structure can bring to the picture. Even left untouched, they can appreciate. You don’t need to worry about repainting the walls or redoing the pipes, especially after a long time has passed.
The only upfront costs you’ll need to consider will be the downpayment, potential monthly mortgage fees, tax, and fence construction and grass-cutting services. This gives you plenty of time (at little to no cost) to think about what you want to do in the future!
Design with total creative freedom
If you want to build your dream home on the lot eventually, you definitely can! What’s more, you have the total freedom to decide how your house will look. You can decide if you want a front porch, how big your garden will be, and the overall structure, in and out.
Of course, it’s essential to work within the developer’s means and homeowner’s association rules, but the fact is that your preferences will be honored to your heart’s content. This makes homeownership more fulfilling, as you’ll watch your dream home come to life.
Filipinos dream of owning real estate property for a multitude of reasons. Apart from realizing the homeownership dream, investments are necessary to build wealth. Flexibility also plays a vital role in unpredictable times, so purchasing an empty lot is an attractive prospect everyone should start considering.
Whether you want to build a condominium for profit, a three-floor home, or simply want to keep it as is, it all boils down to your personal preferences and choices!