When purchasing a property, paying in cash is a luxury most of us don't have, especially for young professionals looking to build their real estate portfolio without breaking the bank. Thus, pre-selling properties offer a viable option with a light term and a flexible downpayment period spanning three to four years.
In the case of pre-selling properties, the payment term is commonly structured as 20-80. This entails a 20 percent downpayment and the ability to loan the remaining 80 percent of the total contract price through lending institutions. Noteworthy options include banks and Pag-IBIG, offering annual interest rates ranging from 7 to 8.5 percent and 5.5 to 6.5 percent, respectively.
Another alternative worth considering is the National Home Mortgage Finance Corporation (NHMFC), a government-owned entity under the Department of Human Settlements and Urban Development (DHSUD), focusing on the secondary home mortgage market.
NHMFC not only provides financial options but also emphasizes green building and sustainable property development, promoting cost-efficient and energy-saving communities. This is where BERDE comes in. The BERDE (Building for Ecologically Responsive Design Excellence) certification, awarded to developments promoting sustainable housing in secure communities, stands as a testament to this commitment. Opting for a BERDE-certified community through NHMFC can result in the lowest interest rates in the market, as low as 3 percent per annum fixed for up to 30 years.
I'm pleased to share that we are accredited with one of the two BERDE-certified residential housing developments in the Philippines: Una Apartment of Sevina Park in Biñan, Laguna, just five minutes away from Nuvali.
Developed by Arthaland, the only real estate developer in the country with a 100 percent certified sustainable portfolio, the Una Apartment is an IKEA-furnished condo development with studio units and one-bedroom options priced at P7 million and P12 million, respectively. The unique advantage lies in a downpayment payable over four years, and the 80 percent balance can be financed through NHMFC's BERDE Program, boasting the market's lowest interest rate.
While Una Apartment may have a higher price tag compared to other condos in the area, it delivers well-designed units with high-end materials, a carbon monoxide monitor, and is situated in a self-sustaining community complete with its clinic and smart amenities. You get what you pay for since the BERDE Program ensures significant long-term savings while investing in a high-end, sustainable community.
Therefore, it is crucial to consider the long-term benefits when purchasing a property. The focus should not solely be on immediate gains but on the enduring advantages.
Jireh V. Mamaclay, 27, is an industrial engineer by profession. Recognized as The Property Geek across Facebook, TikTok, and YouTube, he has transitioned from a banking role to a dedicated realtor in the South. Presently, he manages a team as the sales director of a realty enterprise. He intends to assist fellow Filipinos, particularly those within his generation, in attaining their property investment goals.