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6 Steps of Real Estate Acquisition

It's profitable to invest in real estate when the business environment is stable, and the macroeconomic fundamentals are within their limit. The right time along with valuable investment instruments can result in future yield.

Besides the accumulation of wealth due to investments, acquiring a property allows you to build your assets. Having a condo near Makati gives you a home for your growing family. When the time comes, you can entrust your investment to your existing family members.

Before that happens, you need to be aware of the steps in the process of acquiring real estate properties.

1. Presentation



It can be a proposal or a sales package. It can be a presentation or a document where you find the relevant details of the project. It contains the physical aspects of the project as well as other marketing components.

It must include an analysis of the surrounding location and target market. Some contain market leads, but most will have a breakdown of risks and opportunities, completion date, and property design. It also states it financial sources.

The project presentation often hints at the yield and profitability.

2. Site Visit


Arranging a property visit is a significant turning point for the buyer and seller. It allows the investor to see the entire development and unit. If it satisfies their standard and taste, there's a chance of closing a deal on the spot.

A site visit allows investors to take a hard look at the project. It gives them a chance to assess the quality of each unit and lot. It also provides a view of the features of the property such as the exact floor area, construction materials and position of various structures.

3. Documentation



A reliable development comes with certification and awards. It has supporting documents to prove its eligibility and standards. It should accomplish local and international standards. Moreover, it is a regulated construction site.

The property must also be fit for home living or occupancy. Providing updates on the project through proper documentation is a great way to keep investors and potential buyers up-to-date. On top of that, the development must have land titles and deed of sale at hand.

4. Marketing and Administrative Briefing



Real estate agents and sale facilitators give out the list of requirements to buyers and investors. Buyers should start to consider the fees involved in a sale. The basic one comes in the form of downpayment.

Other fees that come with the sale are monthly fees, property tax, and amortization. Thus, the transactions and payment facilities must be secure for both parties. Agents and other people handling the sale may assist the buyer in some aspects.


5. Completion of Requirements




This part concerns buyers and investors. They must be able to provide all the necessary documents to proceed with the deal. The requested papers allow the clients to reserve a slot in the project before others. The earlier they submit their requirements, the faster is the process of application.

Requirements may be different from each agency and development. Thus, sure buyers must be ready for requests and changes in the demands regarding the property.

6. Downpayment



After completing the requirements, buyers can move on to the down payment. Investors with valid documents can look forward to the move-in and turnover dates. These dates determine their next move.

It all boils down if the developer is an RFO or still pre-selling. RFOs or ready-for-occupancy enables investors to use their fruits of labor. They can offer it for rent or use them for personal purposes.

Meanwhile, pre-selling offers are an incomplete construction that depends on the completion and turnover dates. The completion is crucial these properties comes at a lower price compared to RFOs.

There are still fees to settles after the down payment. Buyers need to consider monthly rates, move-in charges, and amortization. A loan can cover the remaining expenses. Be sure to file applications as early as possible to avoid delays.

There are six steps in real estate acquisition. Some of the steps overlap during the process. If there's a problem while in any of the process, you can ask the agent assigned to you or legal counsel to settle the matter.

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