Our Learnings And Tips In Buying The Home Of Your Dreams

 

Are you thinking of buying a house? the home of your dreams? A place where you can call your own. But due to an unexpected pandemic, it seems all is lost. There can be benefits in finding homes during a period when your area or region is closed. There may be less competition for homes in areas where you may want to move and sellers can be more motivated to sell and more flexible in pricing. When you find that you have time to hunt more thoroughly online, it may be helpful to begin your search virtually in property portals like Lamudi or MyPropertyPh  for properties in the Philippines.

 

That extra effort can give you a head start in finding a home in your price range that you like. In Inquirer’s article, Philippine real estate opportunities in a post-pandemic world: Why intelligent investors should act now, “despite the economic slowdown, land values have continued to climb across Metro Manila, including in Makati, Taguig, Pasig, Mandaluyong, Quezon City, and Alabang” (source: Inquirer.net).

 

This is an indication that despite the pandemic situation in the Philippines, property prices are still increasing. Once the crisis is over, there may be more house hunters in the market and prices may rise due to a more competitive market that benefits sellers rather than buyers. So taking a few steps forward might be the right step for you.

 

If you are reading this blog post, this is a confirmation that you are on the right path. Buying a house really needs an ample time of research and commitment. Me and my partner purchased and moved to our house last 2018. To give you a quick background, we just hit our 30’s and are in the process of embracing our adulthood and leaving YOLO behind. We are also an LGBT couple which really added additional flavor to the experience. Looking back, despite the challenges we encountered, we gained positive learnings in finding and buying our own house.

 

Here are some tips that I can share with you:

 

1. Set a realistic budget

Money doesn’t make the world go round but it makes you go around. This will not be a challenge to those who have saved enough money to pay the house in full cash. But for those who are planning to have it in installment, these are the fees you should prepare for:

• Reservation Fee –  A home buyer will generally need to pay a reservation fee to secure the property they want, whether it is a pre-sale or a ready-to-move property. This is to ensure that the property will not be sold to other buyers. Costs vary between property developers in the Philippines. Some developers charge a booking fee of as little as 5,000 to about 25,000 or higher depending on the value of the property. Also note that reservation fees are often non-refundable and may only be valid for a specific period of time.

 

• Equity/Down Payment – This is a type of payment scheme that property developers in the Philippines offer to home buyers. The usual initial payment is 10% to 20% of the total contract price. Some homebuyers who cannot pay the full down payment immediately negotiate half the down payment and spread the remaining half in installment for a specific period of time. Home buyers usually choose this option to lower their monthly down payment.

 

• Miscellaneous Fees –  if you are planning for bank financing,  there will be loan charges that you will also need to pay. This is necessary for the issuance of a bank guarantee, which ensures that the bank covers the home buyer’s payments in the event that they either fail to make payments to the seller. The amount depends on the size of your loan. There are some developers who haven’t included in the total contract price the fee for installation of water and electricity. Some may call this Move-in fees.

 

• Monthly Amortization Fees – If you haven’t prepaid the full value of the property, you will most likely need to take out a home loan. Here in the Philippines, you have the option of obtaining your home loan through bank financing, in-house financing or through Pag-IBIG housing loan. Basically what happens is that a financial institution pays the seller/developer the full amount of the property. You as the borrower, pay the financial institution over time. With financial institutions, you have to pay off your debts over time in what are known as monthly repayments which includes interests. Buying a house is a massive financial step and requires a lot of preparation. Mortgage calculators can give you ideas on what will be the projected monthly amortization. 

 

2. Finding the right location

   Think about the certain services or facilities that you need to be close to. If you are working at the office or a physical business, you should have accessible transportation going to and going home. If your family has a chronic illness, how close are you to hospitals? If you have school age children, you might want to be in the best school district in the area. Also, consider your access if the location has good internet providers and has signals for mobile especially if you are working or studying at home.

 

3. Functionality and Style

   Imagine yourself buying a luxurious dress that you can’t wear. This has the same analogy even in buying your house. There should be a balance between functionality and style in choosing your house. You may have the widest pool but your car won’t even fit in your parking space. You have many bedrooms but your senior citizens can’t even go to their rooms on the third floor. It will help to have a checklist while doing house hunting so you will not miss significant details that you need. 

 

Finally, when you are all set and found your dream house, don’t forget that after that you will move to another exciting chapter which is designing your interiors. Enjoy every part of your journey!