Cebu Real Estate News

Information on Asia's Best Property Market

House and Lot a Better Option

Avida Cebu House and Lot

Avida Land, one of the property brands under Ayala Land Inc., is aggressively pushing its house and lot packages in its developments citing the advantage for homebuyers.

Avida Land  is strengthening its South Luzon projects through the  launch of the second phase of a  21-hectare residential development in Batangas.

Herbert Herrero, Avida assistant vice president for Project & Strategic Management Group, said the company has observed majority of buyers of their previous  subdivision projects purchase just lots.

Herrero said about 40 percent of Avida property buyers are overseas Filipino workers, mostly preferring lots over a full house and lot package.

“This year, we want to aggressively push our house and lot and tell our buyers the advantages over buying just a lot,” said Herrero.

The most evident advantage of buying a house and lot is it takes away all the hassles the owner has to deal with as it shortcuts all the steps in building the house.

Herrero said a lot owner once he decides to build a house on the property needs a planner who will put flesh into his vision of the house: the number of rooms, the  relationship of the living room to the dining and kitchen, the relationship  to outside living if he wants a garden or a lanai.

While some planners do design and build, a lot owner will have to hire a reliable contractor to execute the plan.

Herrero said once  construction begins, the lot owner is faced with the temptation to source his own finishes which in the long term would be more expensive. With the Filipino traditional habit of watching the construction,  lot owner would hang around at the construction site which will take up a lot of his time.

Another downside faced by lot owners when they build a house is the permitting process in local government units (LGUs). While the contractor assists the lot owner in obtaining permits, lot owners are more often than not have to go to the LGU and talk to building officials.

“If  (a lot owner) buys a house, he  skips all these   processes.  The developer not only achieves economies of scale but it will take care of the planning of the house. The plans of the architect are spread across multiple houses which means instead of collecting a full fee, he would only be paid royalty,” Herrero said.

Herrero also said developers like Avida can screen the documents of contractors and check on their track record. They also have procurement groups that can negotiate for better terms on construction materials and get the best suppliers.

For permits, he said, developers have  well-established processes with LGUs.

Herrero admits there are still gaps in all these steps but advantages far outweigh those gaps.

Herrero said it is  important to highlight to buyers the  flexibility of buying a house and lot for a family’s future needs.

A buyer can start with a  right-sized house based on present needs and budget and  then do home improvement after five years.

Herrero said lot owners will have a tendency to max out the space and plan the house for 20 years which might not be cost-efficient.

“Based on experience, a home owner will change his mind once he lives in the house. He will then remodel the house and change the configuration. Our (advice is)  buy a right-sized house you can expand, a house which can grow on you. Plan for the needs and expand it when the family grows,” Herrero said.

Last but not the least, Herrero noted the need to explain to a buyer the financing advantage offered by a house and lot purchase.

“Some don’t realize it but  before a lot owner  can  build a house, the lot should be fully paid. But if one buys a house and lot, at the onset he could finance the entire house (construction).  While it is true that acquiring the land is a lot faster, the lot owner would have to raise more funds to finance the construction. Mortgage on the lot will not be proportionate to the cost of the house the owner wants because always, the cost of a house is more expensive than the lot,” Herrero said.

He added: “It might be true that buying just a lot is cost efficient in general but you have to make think the buyer think that it becomes a better decision in  the long run (to buy a house and lot) as the use of his  finances is better and the investment potential (on the property) is better. “

Avida is making this aggressive push for the second phase of Avida Settings Lipa.

“We encourage more buyers to consider house and lot packages. In the long run, they come out as more convenient investments than just lots. They also gain more flexibility in customizing or expanding their properties in the future with less hassle,” Herrero said.

According to Avida, most house and lot clients are growing families with discerning taste seeking living spaces that can accommodate every family member. They also require a quiet and secure community that is accessible to major points of interest.

House and lot offerings, in particular, have a consistent demand in South Luzon. The option saves time in house planning, supervision and construction. Financing is also made more convenient as it can be done for both house and lot.

Avida Settings Lipa is the company’s seventh project  in Batangas. With 20 projects across Batangas, Cavite and Laguna spanning 690 hectares in area, Avida has become one of the largest property developers in South Luzon.

Avida launched the first phase of Avida Settings Lipa in the fourth quarter last year.

Avida Settings Lipa features house and lot packages of 52 square meters (sq.m.)  to 82 sq.m. ranging from P4.8 million to P7.2 million, and lots only at 125 sq.m. for P1.6 million up to 300 sq.m. for P4.6 million.

Land value at launch was at P14,600 per sq.m. and has risen to P15,800 per sq.m. in just three months.

Avida Settings Lipa also offers three modern-contemporary design house models. The exterior was designed to bring in more natural light and ventilation while the interior spaces were carefully planned to have more livable spaces.

As with all Avida residences, the community will feature landscaped parks and open spaces, multipurpose hall, adult and children’s swimming pools, basketball court and other sensible amenities and facilities.

For the second phase, house and lot and lot only offerings are located adjacent to the community’s linear park and 1.4-hectare amenity area.

Avida is confident the premium location of these second phase offerings will help sell out its inventory worth P604 million.

Avida Settings Lipa sold out 70 percent of its first phase in just one month.

Avida is  the mid-range residential brand of Ayala Land. It  has long been growing its South Luzon portfolio. Aside from Batangas, the developer has eight projects in Laguna, as well as five in Cavite.

“South Luzon represents the largest area contributing to Avida’s overall house and lot sales today. We see how these areas’ growth potential has driven high demand for residences. Avida is ready to fulfil this demand with our complete residential portfolio offered in South Luzon,” said Herrero.

Avida now has over 10,700 thriving households in these residential communities.

Other Avida residences in Batangas are located in Batangas City, Lipa, Sto. Tomas and San Pascual.

Malaya | April 06, 2017

error: Content is protected !!