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Owning a home is the ultimate dream of Filipinos.
With various housing options on the market, from young professionals looking for a condo in the central business district, to families looking for a quiet Mivivienda location, coupled with packages that are getting more and more affordable, owning a home is more achievable for Filipinos.
But since buying a house is one of the biggest financial decisions you will ever make, you need careful planning. So how do you know if you’re ready for a purchase?
Are Your Finances in Order?
The down payment on your dream home is likely the single largest money you’ll ever shell out in the process. And the down payment is not the only thing you need to consider to finance the home, but also the unforeseen costs related to your acquisition.
If you’re getting a bank loan, remember that banks in the Philippines usually give an 80% margin. That means you need at least 20% saved up for the down payment.
Is Your Consumer Debt Under Control?
You’re ready for your home if you’re not struggling with credit card payments and other consumer debt. If you still have debt, have a plan for paying off those debts, so that you’re not adding to your problems by buying a new home.
Make sure you can pay for the electricity and water bills, too. You may love to take a weekend getaway every month or have a gym membership to pay for, but give yourself a little financial elbowroom.
Are You Ready to Commit?
Owning and living in a house is a long-term commitment, so make sure you are going to stay for several years or, at least, three to five years. Remember that there are considerable expenses involved with moving into and moving out of a home, so be financially smart by staying there for a long time.
Overall, affordability should be the number one thing to look for in a home, but make sure you are also stable enough. A good rule of thumb is to take the time to analyze the present situation to know whether you’re ready to buy a home.