Davao Real Estate : Tips, Traps, Tests

After a long hiatus, the team behind the Davao-Real-Estate.com has finally decided to add a new twist to this website.

Instead of presenting you with a never ending list of real estate properties for sale in Davao, we now focus on providing you with the right tools that will help you to become a smart real estate investor.

Sorry to disappoint you, but you won’t be seeing here an overwhelming showcase of the good, the bad, and the ugly properties that are currently being sold in the local real estate market of Davao.

House Rich and Cash Poor? Don’t be!

Davao Real Estate Guide -- House rich and cash poor? Don't beBuying a house is a decision, which involves a long-term financial commitment. Before you buy, do these:

  • Save up for the down payment. Don’t be tricked into paying it in 12 months installment. It’s a trap!
  • Save money for the closing expenses: Title Transfer, Capital Gains Tax, etc. Plus, don’t forget you’ll be buying furniture and appliances, too.
  • Make sure your employment or business is stable for the next 10 years.
  • Shop around for the best housing loan. Never, never use In-House Financing Scheme!
  • Use your commonsense. It’s your money that is at stake, so be careful!

For more Money Saving Tips and Investment Lessons, please go to:

PeraTree.com

It’s written by a Davao-based, SEC-Certified Investment Solicitor. That’s the official designation used by the Securities and Exchange Commission to refer to a Mutual Fund Advisor in the Philippines.

He is the “Reluctant Real Estate Broker” who also runs this website.

Introducing the 3-T Formula for Real Estate Investing

Instead of home listings, we would rather give you our so called 3-T Formula. It’s not really a formula in the mathematical sense of the word, but it’s a team-crafted guide that provides a direction for any potential real estate buyer so he/she can avoid stepping on a landmine.

3-T stands for Tips, Traps, Tests. We never intend to apply a patent on this invention and so anyone can copy it. You have our permission! And we won’t be surprised if other brokers will also use the same formula to help their clients. That would be a great honor for us here at Team Davao-Real-Estate.com.

The 3-T formula is used in conjunction with a particular real estate project – be it a subdivision, a condominium complex, a strip of townhouses or a beach resort community. First, we provide an overview of the project, which also serves as a short review. And as previously promised, we will be doing it for old and new projects alike. So whether you are buying from a new development with all the bells and whistles, or you intend to settle in an older neighbourhood, you’ve got us as your Un-bias Davao Real Estate Guide.

To explain the formula further, here is what you can expect to find as you read on the pages of this website.

Tips — For Real Estate Buyers and Sellers Alike

Whether you are buying or selling, we never run out of tips to help you out in the your decision. Some tips that we provide include the following:

  • How to select your representative if you are based abroad and who to properly handle the transaction.
  • How to know if the broker is really on your side and helping you.
  • Buyer/Seller/Developer/Broker tricks you should try to recognize and avoid.
  • How to uncover the hidden fees.
  • How big your deposit should be.

Traps — Don’t skip this part if you are planning to buy

Agents and Brokers are very good sources of information, especially on the listings of available real estate properties on a particular area.

Unfortunately, they will not tell you the defects of the house, the disadvantages of a particular subdivision, the restrictions imposed by the developer, etc.

Here we will tell you some facts that your agent is too polite to tell you. Some examples:

  • How to detect if the property is overpriced.
  • Property restrictions you may not be aware of.
  • Are you working with a reliable builder?
  • Is your developer making promises it can’t deliver?
  • Do they have a good after-sales support?

Tests — Buy like an investor

This is a simple, 7-point test that helps you evaluate a property and that anyone can use. Real Estate Investing – the way big-time investors really do it – involves a very complicated process requiring a thorough knowledge of Zoning, Torts, Appraisals, Accounting, Building Codes, and not to mention dealing with people and the bureaucracy.

Our simplified, 7-Point Test answers the following:

  1. Livability. Is the community ready to live? How many residents are there already?
  2. Neighborhood. The surrounding neighbourhood is also a very important factor to consider when buying a piece of property.
  3. Water Source. This is very important specially if you are planning to take a bath at least once a day. It’s very strange that in spite of claiming to have the 2nd best potable water in the world, there are still some areas in Davao where water supply is problematic.
  4. Accessibility. Is public transportation available in the area? Aside from private cars, what are the home owners’ alternative means of transportation going in and out of the community?
  5. Promixity. This refers to the distance the community is located relative to the most important landmarks and establishments in the city.
  6. Property Title. The land or condominium title is the single most important piece of document an investor can possess. It’s a little surprising how some buyers are buying on a property where the individual titles can’t even be guaranteed by the developer or seller.
  7. Financing. Unless you are buying in Spot Cash, home financing could take up the most expensive part of the property acquisition cost, sometime even triple the selling price of the property itself. There’s a lot of money to be saved if you know how look for the right kind of financing.

We will never stop here. We will continue to add more and more relevant contents related to real estate topics particularly in the Davao City area. We want to equip you with the right information to help you in your real estate dealings.

Thank you for visiting the website. We hope that you will find our articles useful in your real estate dealings.

Subdivision Projects in Davao we have profiled and evaluated:

Other Projects we will soon evaluate:

  1. Bambu Estates in Mintal
  2. La Vista Monte
  3. Villa Azalea in Maa
  4. Mountain Haven in Eden, Toril
  5. Ilumina Estates in Communal District
  6. Ponte Verde Estates
  7. Orchid Hills
  8. Ocean Cove in Dumoy Toril
  9. Playa Azalea in Samal Island
  10. Ocean View
  11. The Magallanes Residences
  12. The Palmetto Place
  13. One Oasis
  14. The Avida Towers
  15. The AbreezaPlace

That’s a lot already, but there’s more. We will feature each project one at a time. So keep visiting this website and stay in touch.