That is true, but before we do that we need to make sure that the company is 100% reliable or else it's a big risk. Don't forget that most likely they are building with the money they are getting from us.
There are some serious downsides into buying into this type of new build community. In the very beginning it is not so bad and your risk is low, after all you are buying a brand new home. Some of these homes have quite the price tag. In most of these developments there is usually some sort of management company that will handle the common interests of the owners, in a new community these association fee's are usually not that high and the place looks great. Or as good as it could look for a new build community. You better believe because the builder has a huge stake in the property that the common expenses are kept very low. Here is the thing though, as time progresses and these communities get closer to peak occupancy you will start to see the fee's from the association creep up. You could get an assessment if the builder really had things to low. You will also see hopefully the value of the home increase as well. Sadly as more time progresses the expenses of living in these places will increase as the needed repairs will start to become due. Roofs do not last forever, nor do doors or windows or furnaces. Sadly some of these new builds use the minimal required materials when they are constructed so it is not unusual to see all sorts of issues start to crop up. Some of which can be pretty costly. For example in one of the townhouse communities we manage I went to a home and was shown where all the floor tile had started to heave because the sub floor was never properly prepped for tile installation. The price for repair was crazy expensive. My point being be aware that the costs do rise and be ready to sell if you think that the value of the area is starting to decline past the investment point you feel you are comfortable with. Having a rental option is a great thing if you can get it, a real nice B plan if you can swing for a new residence for yourself.
Great advice. It's always a good idea to not trust any real estate agent any further than you can throw them, and to have your lawyer involved in any transactions to (at the very least) look over all paperwork with a fine-tooth comb.
We have a family friend who ventured in constructing a building right in the business district of Makati. He is a Japanese businessman who partnered with some Americans and Filipinos. They built at 10-story building for residential condominium. The sale of the pre-constructed units was brisk so it looks good. However, the corporation ran out of cash and the construction was stopped. The work stoppaged lasted for 10 years due to the court case filed by the buyers. Our friend almost landed in jail.
The home will take about 4 months to build as soon as we make an offer and I don't mind this at all. We are under a year lease at our current home and we are probably going to have to pay 2 months worth of rent to break our lease anyhow, which is going to mean saving a little money up.
Just make sure to take everyone's advise here, and double check on everything. I think you have a good deal with being able to pick the floor plans and all, but it might be a good idea to take a list of all the questions you want to ask the realtors and builders before you actually begin to do the work. it could be a good thing, or it could be difficult depending on what you are looking for. I hope you can save up the money in time.
What an exciting time @Rosyrain. One good thing about a new-build is that they almost always come with a warranty. So if anything goes wrong within a certain period of time (usually 5 years round here), the developers are usually liable. Just be sure to get any issues that arise in the first few years ironed out before the warranty period ends.
I didn't know about that warranty of 5 years. From what I hear around here, the warranty by the developer is only 1 year on structural defects. However, that warranty doesn't cover architectural flaws since the architectural design was supposed to have been reviewed by a competent architect so errors that might appear in actual construction is not the fault of the developer.
The warranty on a new build is probably one of the main reasons people buy these kind of properties as it pretty much gaurentees that your home will be secure whatever happens. Buying an older proprty will probably be cheaper in the short term but after you've factored in any potential costs you may have to pay out for things going wrong, then a more expensive new build probably works out better value in the long term.
