Property Payment Terms

Q: What are the typical payment terms when renting an apartment?

A: Most apartments and homes for rent require two months advance and two months deposit

Q: What are the typical payment terms when buying a house?

A: When buying a house in the Philippines there are several payment terms that a buyer can choose from. First is on cash basis. Cash basis is considered the cheapest among the terms. Paying in cash basis usually entitles a buyer to a discount bigger than an individual may get by paying on an installment basis. However, if the buyer does not have money in the bank, paying in cash is not an option.

Another term of payment is via Financing or bank financing. This refers to the getting a loan from the bank and paying the bank via installment. Buyers anxious to get into a desired property but lack cash in the bank will opt for a financial plan. However, in our opinion, paying in cash is the easiest and best route to take.

A third mode of payment for buying a real estate is via financial support from the landlord (or company) instead of the bank. In this term, typically there are different offerings depending on the company. What is common among the agencies' offers is that there is a need for initial or down payment, a certain interest rate for the monthly dues, and an interest only term. The most common rate for interest is 10 to 30 percent.