Updated: October 8, 2020
Are you thinking of buying a house soon? If so, then understand that once you decide to purchase a home, then it will be difficult to back out from the financial responsibility that comes with it.
Knowing the type of home, your budget, and the features you prefer is not enough; there are many other factors to consider, and most of them start with yourself.
This is a big purchase and you really might need to work on a few things first to be ready. So ask yourself these questions, which Lamudi Philippines compiled, to make sure that you’re prepared to finally buy a home.
1. Are you financially responsible?
To start, one must be financially responsible before making such a big purchase. You must be mature enough to sort out your finances.
Moreover, it’s financially sensible to conduct research on the property, its location, and the seller or developer. Doing due diligence before making a purchase will greatly reduce your risk of getting scammed.
2. Are you patient?
Be patient and do careful consideration before making a final decision. Talk to experts and ask them questions if you must.
Buying a home is a slow and tedious process, and it should be. It’s best to tarry a bit during homebuying, lest you make an impulsive and expensive purchase that you’ll regret later.
In addition, you must be patient in dealing with people as you’ll talk to brokers and sales agents, and bank and loan officers. Then there are visits to the BIR, the Registry of Deeds, and various government agencies — expect your patience to be tested here.
3. Do you know how to maintain a home?
Being a homeowner means you’re now responsible for everything that goes inside your property. This time, there will be no landlord to call when there’s trouble.
Hence, you must know how to solve basic home problems and emergencies such as a leaky faucet, broken fixture, clogged toilet, and water-stained ceilings.
Knowing how to clean, maintain, and fix a home gives you confidence that you can take care of it for a long time.
4. Are you ready to settle down?
It’s not recommended to buy a house if you’re thinking of moving to another place after five years. It will be another long process should you ever decide to sell your house.
Furthermore, selling a home property within five years rarely produces any significant profit. On top of that, there’s the hassle and costs of moving to another house.
If you feel that you’ll be required to move to a new location anytime soon, then it’s better to put off buying a house and just rent for now instead.
5. Are you financially stable?
Keep in mind that you would have to shell out money throughout the whole process of buying and living in a house.
Searching and coordinating with an agent will incur expenses. It might take months before you can get your hands on your desired property, all the while eating at your budget.
And once you’re done with the purchase, a steady flow of income is necessary to pay the mortgage if you applied for one; as well as to pay the maintenance costs, association dues, property taxes, and other costs of being a homeowner.
6. Do you have enough cash savings?
Never purchase a property without considerable savings. Relying on your monthly paycheck to pay for the loan can leave you bone-dry, especially if a financial emergency happens.
Your savings can cover the costs of sudden repairs when needed. It is your safety net in case an unexpected expense happens so that your monthly budget and mortgage responsibilities remain intact.
7. Are you free from debt?
When buying a house, it’s ideal to have no standing debts. Although not all debts are bad (a mortgage, after all, is a form of debt, so too are credit card purchases), your cash flow should be healthy and you’re not revolving any short-term credit.
With a mortgage coming into the picture, it’s best if you can set aside around 30% of your income for the monthly loan repayments. This will give you enough elbow room to take care of other expenses.
8. What is your ideal home?
Know what you’re looking for. Ideally, it should be something that you both need and want. More importantly, it should be something that you can afford.
In real estate, the second most important adage is “drive and drive until you qualify,” and this is very much true in the Philippines.
Homes within the city are expensive and become more unaffordable as you drive further out. However, this does not mean that an affordable home is difficult to find.
A little research, a good dose of grit, proper money management, and lots of patience could lead you to your dream home sooner than you think.
This article is written by Nivelle Dumlao, a content writer for Lamudi PH and MyProperty.ph, two of the Philippines’ largest real estate websites