Buying a Lot instead of a house and lot package

April 27, 2012 | By Fitz | Filed in: General Information.

is it better to buy a land lot than a “packaged” house and lot deal from real estate agents??

PLEASE weigh the pros and cons for me…thanks!!



2 Responses to “Buying a Lot instead of a house and lot package”

  1. ForsakenOne says:

    I can offer a few angles:

    1. loaning the money from a bank:

    Assuming you will be getting the money form a bank loan, it’s easier to get the full amount/cost of buying the lot and building a house on it from a bank.

    Typically if you just buy the land, they have someone assess the value and then loan you that assessed amount at a certain percentage (at the prevailing rate, variable, etc.). However, that assessed amount of the lot is typically lower than the selling price of the developer. So you will still have to dig into your savings to cover the difference.

    If you buy the lot and also build a house on it, the bank can loan you the full amount (i.e. Php 3M for everything – except furniture of course).

    2. Quality

    If the house was mass-produced by a developer (even well-known ones): Due to cost, time, or other constraints you don’t really have a guarantee that you house does not contain substandard materials. I’m not saying it isn’t. Just that there’s a chance that it isn’t, despite the developers “guarantees”.

    If it was a pre-owned house not mass-produced by a developer: be sure to check if it’s still sturdy, if it’s prone to flooding, etc.
    Checking there’s a proper drainage/sewer is also important, but i have no idea how to do that.

    3. If you’re buying it to “flip” it: The blanker the slate, the better.

    If it’s just land, the buyer can do whatever he envisions to it.
    If it’s a house: the less of your personality is in it, the easier the buyer can make it his own.
    Just make sure necessities are there (bathroom, kitchen, bedroom, plus a blank room(s) the buyer can turn into whatever he wants (dining, game room, living room, den, gym, etc.)

    4. If you;re buying to turn it into your home:

    If you have the money, or finances are generally not a problem, you may choose to buy land and build your dream home. Depending on your mindset, you may be staying in this house until your end days so why not make it perfect for you? (caution: ask around first, because houses,even modest ones, can cost more than 1M and even upto 3M. And no, the 3M may not b a mansion yet. Hopefully you can get a hold of someone who has friends in the construction industry so you can get a good deal).

    But if finances are a concern, just canvas around for a good deal. You’ll most likely find that a “package” is the best deal. (caution: really ask around first, and ensure the house is of good quality).

    As a best buy, try to look at a foreclosed property. Banks usually sell foreclosed (repossessed?) houses. Sometimes they aren’t fully built yet. But they’re usually the cheapest. But I’m not sure how to find out about foreclosed properties. Hopefully, someone here does.

  2. abby says:

    thank you so much…I’ve been enlightened

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