All things real estate and home inspiration
Real estate is one of the most important decisions you’ll ever make— especially financially. This decision affects a lot of areas of your life too. That’s why it’s important to be knowledgable about owning a real estate investment and to make wise decisions about it.
Here are the top 5 things you have to consider before buying your first home:
We all know the real estate mantra: location, location, location. But what exactly about the factors of location do you have to consider? Primary is commute time from your work or your children’s school. Traffic is an every day reality for most Filipinos. You would want to consider living near your workplace to save up on time.
Second is accessibility. Yes, that includes checking if your new home is near commercial areas where you can buy grocery conveniently. But it also includes checking if your property is near main roads and if it’s easily accessible by transportation.
While reselling is still down the road, you still would want to check if the property’s value would increase or not. If you’re in a desirable location, chances are properties in that area would go higher.
2. Down payment
One of the reasons why buying a house seems so intimidating is because of down payments. Down payment's are made in cold cash. It is usually around 10-20% of the total value of the home. Depending on the developer, there are options where you can pay a lesser downpayment but be weary of the interest rates. You may also opt to get financing or loan from a bank.
Included in the initial payment are reservation fees and taxes.
3. Monthly Payment
Once you’ve made your initial payment, you will now pay for the remaining cost of the house every month in a certain timeframe, depending on your contract. This is called monthly amortization. It’s wise to make sure you have stable income to pay the rest of the cost of your home and your bank loans. Keep in mind that you would have to pay interest depending on the payment scheme you have chosen.
As mentioned, you may opt to loan to be able to purchase your house either from a bank, Pag-IBIG or in-house financing. Almost all banks (BDO, Metrobank, PNB, etc) offer home property loan schemes. Most developers do too. Important note is these institution have strict requirements when it comes to documents and income. If you have been paying your PAG-IBIG contribution for at least 24 months, you are qualified to apply for a PAG-IBIG loan.
As you can probably guess now, there is a lot to decide on when buying a home. And this article is actually just a summary of what you need to know. Having a real estate professional can help you advise on how to pick a home that can best suite your needs and preferences. Of course, choose the right licensed broker (yup, there are what we call collorum brokers) or salesperson (yup, they have to be licensed too now). Believe me, you wouldn’t want to trust your big decision with someone who works illegally.
Of course, choose someone whom you can trust.