What it feels like to buy land as a 20-something millennial

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Hello readers. How have you been? I purchased a small parcel of agricultural land recently.

As a mere 20-something, with no parcel of land in my investment portfolio yet, this purchase was an exciting one for me. It gave me as much excitement as a purchase of a new handbag or new shoes!

Technically, a condo unit is considered real property, and while I already have a condo unit (construction and turnover pending), I do not own land yet.

The particulars

The real property is agricultural land, measuring 200 square meters, and is located outside of Cebu City. The cost is minimal because the property is only agricultural land, of small size, and the seller is a relative, who gave me a huge discount.

Closing costs

As a buyer, I had to bear all the costs of the sale, including the transfer costs namely: (a) purchase price; (b) capital gains tax; (c) local transfer tax; and (d) notarial fees, among others. The seller may opt to run the errand of getting the transfer done , with the buyer paying a lump sum payment. I chose this option because it was most convenient for me. I was busy with work and didn’t have the time to go to the province and take care of the administrative stuff.

No possible profit

Honestly, this was an emotional purchase. The seller is a close relative who is selling off assets in order to be more liquid (cash rich). I have no plans of starting a farm (hahaha), nor do I anticipate entering the agricultural industry anytime soon. My immediate plan is just to fence off the property in order to avoid any issue with people encroaching on my perimeter.

I only hope to speculate on the value of this property and failing that, hope to pass it on to my offspring, if any. 😊 I do not delude myself into thinking that I will get any form of monthly cashflow from this deal, unlike my other investments in equities.

If anything,  buying real property, like land, only brings me the added responsibility of paying the annual real property tax.  The government always gets its share first. Sigh.

The positives

On the plus side, the property is located along the main road so the location is quite great. The property is land, and since I cannot afford to buy a piece of Cebu City right now, I’m willing to settle, for now.

Land has it benefits. I may construct a structure thereon and store whatever I want in there. I could choose to plant, too. But we’ll see about that. Hehe…

How does it feel?

Like I said, I am just a 20-something lawyer with no prior history of land ownership. I am living a pretty charmed life right now because I have minimal responsibilities. During the meeting for the closing of the sale transaction, I felt nervous (just as I did during the condo purchase). I felt excited, too.

Reading the sale contract, it was a challenge to keep myself from being distracted from my mixed feelings and to make sure to carefully review the contract for any flaws. I finally signed the contract of sale, and that was it (transfer of title pending)! I officially purchased land for the first time. All this before even turning 30!

Growing up, I never imagined I would be a property holder by this age. However , from the look of things, I can believe that being a working professional in the Philippines really allows even twenty-somethings like us, to own real property (provided you don’t live in a saturated place with inflated property values and falling salaries).

What was your first land purchase like?

xoxo,
20 something lawyer

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