Perhaps the ultimate modern Filipino dream is to own a home especially for first time condo buyers. It instills a sense of security in every Filipino family, ensuring that no matter what happens, there will always be a roof over one’s head. However, as with any dream, the path to achieving this goal is frequently daunting, and the first-time homebuyer is almost always tempted to settle for the first house that falls within his or her price range without much thought.
To compound matters, the plethora of taxes and fees that must be settled, as well as the paperwork that must be sorted, are enough to make the first-time buyer hesitant, confused, and nervous.
As with any major purchase, purchasing a home requires extensive research, plenty of assistance, and an endless supply of patience. Additionally, you would be wise to consider these suggestions.
1. Recognize Your Needs as a First Time Condo Buyer
To begin, let us consider the following: What are your criteria for a home? Or, more precisely, what type of condo is best suited to your lifestyle especially for a first time condo buyer like you?
There is a vast array of condo available, and selecting one is likely the first significant decision. Consider whether you want to live in a low-rise, mid-rise or high-rise condo. But should you also consider the location as well as the presence of amenities that you might need for your lifestyle.
Additionally, consider the overall utility you desire. Do you require a four-bedroom condo? How many bathrooms are there? Do you desire a separate family room for the enjoyment of your children or a den for your privacy? Will you be needing a work space? How opulent or spacious would you like your kitchen to be? Arrange these characteristics in ascending order of importance.
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2. Market Research
Once you’ve determined the type of condo you desire and require, it’s time to conduct market research to determine what is currently available. Avoid settling for the first one you come across. Indeed, the Philippine real estate market is booming, with developers stockpiling units.
This is also an excellent time to conduct research on the area or location in question. Is it well-connected to public transportation, hospitals, schools, banks, and commercial areas? More importantly, is the municipality or city in which the property is located well-equipped to protect residents from flooding and other natural disasters?
3. Establish a budget
The second step is to create and adhere to a budget especially for first time condo buyers. This requires a thorough examination of your financial situation. Determine the price range you can afford and the amount of cash you have available for the deposit and other costs associated with the purchase. This will enable you to ascertain the type of condo property that you can afford whether it is pre selling, ready to occupy or even rent to own.
As a general rule, save at least 20% of the purchase price to qualify for an 80% loan-to-value ratio and an additional 5% of the purchase price to cover fees and other closing costs.
Once you’ve established your budget, you’ll be able to determine the type of property and location that you can afford. Do you want the largest and best house possible in the best neighborhood, or do you prefer a more conservative overhead and debt?
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4. Seek Assistance
As first time condo buyers, you should naturally seek assistance from real estate professionals. These are the individuals who can and will undoubtedly assist you in making that purchase successfully as a first time condo buyer.
Real estate agents will locate several homes that meet your criteria, assist you in selecting the best one, assist you in negotiating the purchase terms and conditions, and generally assist you throughout the process.
Mortgage brokers can also assist you in locating the best mortgage loan terms for your situation. Closing services will organize and manage the paperwork to ensure that the transaction goes smoothly.
While first-time buyers are frequently nervous, relying on professional advice can alleviate some of their anxiety. Inform the professionals of your desires and allow them to assist you.
5. Become acquainted with Your Developer
This is especially true when purchasing a pre-sale property. According to Swiss lawyer Rene Philippe Dubout, a resident of Thailand, developers fall into two broad categories. To begin, there are the top developers, the majority of whom are publicly traded and have significant capital and a track record of success. Purchasing a home from one of these developers is virtually risk-free, as they are concerned with their reputations.
On the other hand, you have inexperienced developers who, while not all of them are bad, are operating against the odds. First-time developers lack prior experience in real estate development, and their inexperience makes it difficult, if not impossible, for them to obtain commercial loans to finance their projects. Once the initial capital has been spent, the project’s construction and development will be financed by their clients. As sales decline, the developer either runs into financial difficulties as cash flow falls short of expectations, or the project construction suffers increasing delays as a result of rash spending. These developers have a slim chance of success, and their projects are almost certain to fail due to a lack of experience, knowledge, and capital.
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6. Assurance of Financing
If you are obtaining financing for your home purchase through a bank, ensure that you have all required documentation, such as tax returns, payslips, or employment certificates as a first time condo buyer. Obtaining a mortgage loan can also be quite complicated, so plan accordingly. Additionally, it pays to seek the assistance of a mortgage broker, as not all loans are created equally. Consider loan shopping, which entails speaking with several institutions and comparing their interest rates and terms. As loan approval is also highly dependent on your credit history, ensure that it is in order before applying for one.
7. Save to Finance
Finally, the process of purchasing your first home does not end with the completion of the transaction even if you are a first time condo buyer. Along with the mortgage payment each month, there are additional expenses to consider, such as repairs, association dues, and insurance — the list goes on. The general rule is that you should not spend more than 30% of your monthly income on mortgage repayment; any more than this and you will struggle to meet your other expenses.
Check the Best Start up Condo Investment at Camella
Camella is now offering its high-quality and exclusive midrise condo developments across the Philippines specifically located in the most developed cities outside Metro Manila such as Lipa, Caloocan, Puerto Princesa, Bacolod, Butuan, and Davao City.
The newest brand, Camella Manors, is already offering pre selling, ready for occupancy or RFO and as well as rent to own or RTO condo units. Find out the best location with Camella Manors for your start-up property as first time condo buyers or property investors in the country.
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