HELP. Buying a Residential Lot
I need suggestions and pagpapalo from you guys kahit alam kong ang daming cons nito pero I just want to hear your insights para lang ma convince ko rin sarili ko na hindi ko pagsisihan ang mga decisions namin. My boyfriend and I are planning to buy a residential lot.
Pros:
- Affordable Price:
- Lot size: 462.5 sqm
- Selling Price: ₱240,000 (Market Value: ₱592,000)
- Community:
- Close to relatives
- Quiet and safe area
- Accessibility: Near schools, hospitals, and the town center
Cons: 1. Unregistered and Untitled Lot: Only a Tax Declaration is available from the seller. 2. Unsettled Real Property Tax (Amilyar): * Unpaid taxes since 1994: ₱67,533 (to be shouldered by the buyer) 3. Paperwork Responsibilities Fall on the Buyer: Estimated Costs: Around ₱500k * Tax Judicial Settlement: ₱50,000 - ₱100,000 (Patay na ang owners sa Tax Dec at anim sa mga tagapagmana ay patay na rin, pero may mga buhay pa) * Capital Gains Tax: 6% of market value (₱592,000), approx. ₱35,520 * Documentary Stamp Tax: 1.5% of market value, approx. ₱8,880 * Attorney/Legal Fees: ₱30,000 - ₱50,000 * Surveyor Fee: ₱10,000 - ₱20,000 * Transfer Fee: ₱10,000 - ₱20,000 * Registration Fee: ₱8,000 - ₱15,000 * Notary Fee: ₱1,000 - ₱3,000 * Tax Declaration Update: ₱5,000 - ₱10,000 * Assistant Fee: ₱5,000 - ₱10,000 * Titling Fees: ₱100,000 - ₱200,000 4. Lengthy Processing Time: Paperwork processing might take years 5. Limited Accessibility: No direct road access; only a pathway for right of way. (Walang sariling garage if ever)
Maximum Estimated Costs:
Tax Judicial Settlement: ₱100,000 Capital Gains Tax: ₱35,520 Documentary Stamp Tax: ₱8,880 Attorney/Legal Fees: ₱50,000 Surveyor Fee: ₱20,000 Transfer Fee: ₱20,000 Registration Fee: ₱15,000 Notary Fee: ₱3,000 Tax Declaration Update: ₱10,000 Assistant Fee: ₱10,000 Unpaid Taxes: ₱67,533 Titling Fees: ₱200,000 Selling Price of Land: ₱240,000 Total Maximum Estimated Cost: ₱779,933
Main concerns: 1. Worth it ba na bilhin ito since “mura na daw” ito binebenta. 2. My tito, who is helping us in processing the papers, sya rin yung nag refer sa amin kay seller, is suggesting na magbayaran na lang muna tapos tsaka na asikasuhin yung papers pag may budget na since malaki nga ang magagastos. Pero their plan is sa bayaran, hindi muna magpapanotaryo. Parang verbal rights lang ang meron si buyer sa pagbili ng lupa. Wala naman DAW kasing maghahabol sa lupa since magkakamag anak lang din naman kaming nasa compound. 3. If ever may deed of sale na, may risk na the seller may not help us with necessary requirements (e.g., PSA/IDs) for completing the paperwork. :((
UPDATE: Hindi ko na tinuloy ang deal. Hindi ko kaya mag commit sa time, effort, stress, at other unexpected expenses sa pag aasikaso. Thank you po sa pagsagot! 🤍