One of the hardest parts of buying a condo is finding the money for it. Condo units can be very expensive, and ones located in cities like Makati sell for almost double the price of similar units elsewhere. Not everyone who wants to purchase a condo can muster up the cash required within a short span of time, which means they must seek out financing options. The possibilities of getting this purchase financed are different from getting money for an apartment for rent in Makati.
Loans
One of the obvious choices for financing a Makati condo purchase is with a loan. A bank is the most common place to get this, though there are other lenders that one may look into. Some organizations have specific options for people or families who want to purchase a condo unit in the Philippine real estate market, with terms that are normally easier than those that a bank would impose. There are generally two types of loans that a person can get for buying a condo: secured and unsecured.
A secured loan is one where there is some form of collateral on the line. This means that the person buying a condo is giving up some form of solid financial asset as a guarantee that the terms of the loan will be met and paid for. This can involve anything from a mortgage on a house to a car. Some institutions will also accept stocks in companies. It is much simpler to get a loan for any purpose if there is some form of collateral at stake. Should the debtor be unable to make the payments, the lender has the legal right to claim the collateral as their property.
For those who are buying a condo and treating it as an investment rather than as living space, it is possible to get it with a secured home loan. This requires putting up one’s house or another property as collateral in many cases, but the terms are far less difficult to meet than an unsecured loan. Once the loan has been approved, it is then used to pay for the Makati condo. Unsecured loans are best for those who have no collateral whatsoever, but these require very good lines of credit. Lending institutions will look more closely at a person’s financial history if they apply for an unsecured loan.
Buying a condo often means getting a loan from somewhere. There are different places to go for this and different ways to secure the financing. Since a Makati condo can be expensive, learning how to live with a loan is the best option.
