We all dream of owning a home someday. We all work so hard to be able to buy a house and lot where all our hopes and dreams will come into reality and where we can celebrate the small and big wins as a family.
For us Filipinos, a home means stability and permanence, a place where one can build his or her own family, where they can grow roots, and help one another in building a life together. At the same time, a house and lot that you can call your own means a valuable asset and a lifetime investment that even your children and the succeeding generations can enjoy.
Buying a house and lot might be part of your plans this year. You might have seen a lot of developers offering flexible payment terms, special discounts, and exclusive promos especially for cash buyers. When you search the country’s property listing sites, sure there are a lot of real estate properties listed on these sites that you can easily buy and invest in, which range from ready for occupancy condominiums, upscale townhouses, affordable houses and lots, and other property types that you can choose from.
Looking at these properties would surely make you buy in the soonest possible time. But before you even jump into that decision, you have to ask yourself if you can really afford it in its fair market value. If your answer is yes, do you have any idea on what your money can buy at the moment?
Whether you plan to get a compact studio unit or an affordable house and lot in a safe neighborhood, you will need to carefully plan it out and consider other factors that may or may not affect your buying decision.
Owning a house and lot, or any real estate property in that matter, calls for responsibility and commitment. It calls for a thorough assessment of your lifestyle, finances, and personal needs.
If you are deciding to purchase a house and lot this year but do not know where to start, check out these tips and factors to consider in buying your first property:
1. Conduct a self-assessment
First, ask yourself if you are really ready for this investment. Sometimes, when we see a good offer on the house and lot that we are itching to buy, we tend to be so excited to get it. We do not want to miss out on the opportunity and we want to have the property as soon as we can, even without doing a self-check.
Before anything else, try to ask yourself – do you have enough funds to buy your dream home? Do you have a regular source of income? What is your budget?
A house and lot is usually a considerable investment, and you need to have sufficient funds to be able to buy one. Meanwhile, if you plan to apply for a home loan, you still need the financial capacity in order to qualify for financing schemes that are being offered by banks and developers.
Banks offer loans as well as developers, which could sometimes stretch for as long as 25 years, depending on your age. Check on your financial capacity to manage monthly amortizations, and check how it could impact your cash flow.
Aside from this, you should also think about your present and future plans. What is your purpose in buying a house? Is it for family use, business, or investment? A house and lot costs a lot and it is not easy to dispose, considering the total amount involved as well as the paperwork and taxes it entails when you decide to sell it. This is why you should know the reason and be able to assess yourself why you want to buy the property and how it will fit your needs in the long run.
For instance, if you are planning to move out of the country or you know you might be relocated for work anytime soon, then buying a house is not a wise decision to make since it would only make you less mobile. If you are also planning to have children soon then you may want to consider getting a bigger house instead of a condo unit to accommodate your growing family. Check also if there are any other specifications that you should consider in buying a house and lot like the number of bedrooms or garage provisions.
Moreover, you also have to consider the location when getting a house. Since location also dictates the price of the property, this may help you when you do your self-assessment. Ask yourself what your desired location is. Do you want to live in the metro which is closer to your place of work or in nearby provinces that are far from the busy-ness of the city?
For instance, a townhouse outside Metro Manila may cost significantly lower than a house in the city. You also have to consider the proximity of the house that you are planning to buy to your work, school of the kids, and any other places that you will most likely frequent. You need to consider the location of the property and make sure it is best suited to your needs.
Aside from this, you should also consider how its value is likely to increase over time. Check on the future developments within the area that could possibly affect the value appreciation of that property. Are there any new roads, malls, infrastructure improvements, or other commercial developments that could lead to an increase in the property’s value?
These are some of the most important pieces of information that you need in order to find the right property for you. Once you have identified these, it would be easier for you to narrow down your choices and pick out those that best suit your needs.
2. Do extensive research and narrow down your choices
It is now time for you to look for the right properties that suit your needs and best fit your criteria.
There are a lot of property listing sites and real estate websites that feature various properties for sale. But of course, the process will be a lot easier if you already have a specific developer in mind. You can just search for the name of the developer on Google and check on the available properties so you can compare and evaluate. It is best for you to check all options and compare to aid you in making an informed buying decision.
Once you have shortlisted the properties that suit your requirements, the next thing you should do is to schedule a viewing of these properties so you can actually check the deliverables, location, and community.
Sure you want to know more about the property on site and you also want someone to assist you during the property tour. Time to contact your property broker to help you out.
When buying a property, make sure that everything about the transaction is above board. Check on the title, make sure it is free from encumbrances, taxes should be paid, and association dues should be settled. Make sure also that the house is well built. Do your own research of the property and the seller.
3. Contact a property broker
Real estate developers have rosted of accredited brokers who sell their properties. While most buyers think that the easiest way to buy a property is directly through the developer, it is not, unless you know the process. But if this is your first time to buy a house and have no idea about the processes, charges, and other fees involved in buying a property, then it would be best to contact a broker to assist you.
A broker can help you in many ways with your property search and purchase. A broker facilitates the entire process that covers the appointment scheduling down to securing of legal documents. He/She is also responsible for accompanying you in the viewing of your chosen properties. Moreover, he/she can also give you recommendations and search for more properties that fit your requirements. In case of specific fees and charges, the broker can also negotiate on behalf of the buyer.
4. Secure a copy of the sample computation then pay the reservation fee
Pay the reservation fee if you are okay with the property and comfortable with the computation. Double check the computation and make sure it reflects accurate information.
The computation should include the total contract price, down payment, reservation fee which is deductible from the down payment, monthly deposit, and loanable amount. There should also be a breakdown of the monthly amortization depending on the total tenure of the home loan.
There are computations that include miscellaneous fees, transfer fees, or any other fees that are relevant in the purchase. Make sure that you check on these. If an item is not clear to you, you can always check with your broker. He/She is the best person who can explain to you about these items especially with regard to interest rate.
Once you have double checked all details and everything has been clarified, you can already pay the reservation fee. Most developers require a fixed amount of reservation fee which is deductible from either the down payment or total contract price.
Settling the reservation fee gives you more time in deciding which payment term and scheme to choose and more time to complete your requirements as well. Remember though that reservation fee is non-refundable. A reservation agreement may be issued if the buyer needs more time to analyze the property and the available payment schemes.
After paying the reservation fee, you might also want to know more about the down payment. Developers give options wherein you can pay it in cash or every month until you complete the required amount. Developers usually require up to 20% down payment payable for a certain number of months.
You can actually take advantage of this now because most developers are stretching their down payment terms up to 60 months.
5.Complete the requirements
Make sure that you have already completed the requirements that need to be submitted to the developer. The requirements will depend on the payment scheme that you have selected, which may include the accomplished home loan application form, photocopy of valid government-issued IDs, community tax certificate, recent Income Tax Return (ITR), certificate of employment, and copy of latest three months pay slips.
You have to remember that there are also eligibility requirements, which differ according to financial institutions. Some homebuyers get themselves pre-qualified first by the bank before even searching for the right property. They do this to be able to know the qualifying limits as well as the capacity to pay.
You can submit all the requirements through your broker. Make sure to read and review all documents before signing then secure all the important documents as proof of ownership, which include Contract to Sell, Deed of Absolute Sale, and Certificate of Title.
For safety, you may also want to double check the authenticity of the title. Certificates of title are issued in duplicates, the original copy will be handed over to the owner while a second copy will be submitted to the Register of Deeds. Taxes and clearance fees must be paid before the Title of Certificate is issued.
Buying a house and lot is not an easy process. It is a very big decision to make so you really have to think through the process before making any move. With the help of the right people, it can be made easier. Do not hesitate to ask questions, do your own research, and think about your life plans before buying it.
With these tips, are you now ready to buy that dream house and lot?
If you are interested to buy an affordable and quality house and lot, you can simply check out various properties through Bria’s 360 Virtual Tours available on www.bria.com.ph, reserve the house of your choice through https://onlinereservation.bria.com.ph or inquire through their official Facebook page at www.facebook.com/BriaHomesInc.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.