The Philippines continues to experience a buoyant real estate market as seen from the numerous condominiums that are being built all over the metro today. According to a report from Colliers International, another 5,000 residential units are expected to be completed by the end of 2014.
With so many options, how will you choose where to purchase your new home?
One of the most important factors to consider when buying a condominium is to know the reputation of the property developer from which you are planning to buy your home. After all, you need to choose the most reliable company among the hundreds of players in the country. You don’t want to be just another statistic of people who have fallen prey to hyped sales talk, easy payment schemes, or even eye-catching model units because they failed to verify if these developers can deliver on their promises.
Here’s how you can compare the track records of real estate developers:
1. Know who they are.
The first thing you need to do when conducting your research is to read about the company’s business profile. This will provide you a background on how they started and grew in the industry. It will also give you an idea if they are visionaries who really want to create better homes for the Filipinos, or if they are just joining the condominium development bandwagon to earn a quick profit.
You may do this by browsing through their website’s “About Us” page. This contains an overview of their mission and vision, history, and other pertinent information about their works in general.
You may also read business magazines and other printed publications such as Philippine Daily Inquirer or Philippine Star, which have dedicated section for news on the real estate industry. Other online news portal including ABS-CBN and GMA Network also features news on them as well.
2. Find out their experiences in the industry.
Discover how long the real estate developer has building homes in the Philippines as well as the type of developments they have made. Are they experts in a specific niche market such as high-rise condominiums, traditional horizontal homes, or are they more into commercial developments? This will give you an idea as to their credentials and qualifications in building real estate properties.
While a longer track record doesn’t always translate to a better output, you probably shouldn’t trust a company whose first-ever venture into real estate development is the one you are eyeing.
3. Research their financial stability.
It is essential to know how financially capable a property developer is in developing and finishing a project because you don’t want to end up with a substandard home camouflaging itself as a high-quality building, or to have problems moving in because of a delayed turnover.
To do this, you may check the financial reports of developers online in their investor pages, which contains company disclosures as mandated by the Security and Exchange Commissions.
If you have connections with trusted real estate brokers or investors, you can ask them for advice since they are privy to current news about industry performers and non-performers. You may also inquire directly about how many properties they’ve completed and sold as well as what other projects they have lined up. This will tell you how in demand their properties are to the general public.
4. Familiarize yourself with the past projects they’ve delivered and the time frames for each.
You must also look through the company’s portfolio carefully. Find out what types of projects they have completed and if these projects sold out quickly or not. Condominiums that are not able to attract more buyers may likely have problems that you have to be wary of.
Another thing you have to check is the time frame allotted for each development. Were they able to meet deadlines or deliver properties within a reasonable time frame? If not, did the developers inform home buyers or post construction updates to keep their clients abreast of their delays?
5. Look up property developer reviews or get testimonials from people.
It is important to get as much insider information as you can so you can give an extensive and fair judgment. Hear real stories from clients, and ask what they can say about their experience with a particular developer.
You can do this by asking trusted friends or family members who have also bought a new home. Or you can search online forums and discussions because public opinion will give you insights on how well the property developer was able to deliver. Note that when you read these reviews, don’t forget to be critical in your assessment. You don’t want to make rash decisions solely on a glowing recommendation or an isolated negative feedback.
The endpoint
Shopping for the right home is no easy task. With so condominium developers in the market today, it is really important to choose a reputable company that will meet your expectations and needs, if not exceed it. And in order to do that, you should conduct a thorough research on their track record and determine their ability to deliver the right home for you and your family.
How does your real estate developer compare? We’d love to hear your thoughts. Share it with us by leaving a comment below.
