Every first time real estate buyer has a lot of questions. And here at Property Pilipinas, we try to answer them one by one.
Sometimes, when you get a flyer from a real estate agent, you'll notice a small piece of paper labeled as "Sample Computation". So what exactly do the numbers in the Sample Computation mean? Let's take a closer look.
Below is the copy of the old sample computation for La Breza Tower.
DISCLAIMER: Rates and discounts varies from the type of property that you are after and the developers behind them. The numbers below does not indicate the fixed universal rate that is followed by all real estate companies. You will find that while some companies follow the sample computation stated here, others would omit or add several items that cannot be found in others. It is best that you ask your real estate agents about the details of your payment and have them explain about anything that confuses you.First would be the "Total Area in Sq.M.". Other computations, like those for residential lots, would have "Lot Area". This would indicate the sample lot area that would be used in the computation. This may or not be the smallest available lot or unit, so it's better if you just ask your agent/broker about.
TCP refers to the Total contract price. This is the exact amount that you would be paying to get the property. When you're interested in the property, you would need to pay the Reservation Fee. How long the reservation fee would be in effect also varies. Most of the time, this is valid for 30 days.
Now, if you pay the entire amount on the spot, or pay the down payment within a set period (usually 7 days), you will be entitled to a certain amount of discount. In the sample above, the discount you may get is 10% of the Total contract price.
DP represents the down payment. Like the discount, you calculate this by multiplying the rate against the total contract price.
You'll then notice the two Options: Option 1 and Option 2. These two represent the payment options that you can use in paying the total contract price. There are usually two options available, with different payment terms. But other companies or projects could give an additional third option or more. (See disclaimer above)
After paying the reservation and down payment, the property is "technically" yours. "Technically", because unless you have made full payment, the ownership of the property still remains with the real estate property. Of course, we would want to be able to make use of the property we bought as soon as possible, right? But that's not the only reason why you should pay the remaining balance soon...
To be continued in Part 2...
