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Buying your first home is a big challenge but knowing the key factors might turn your purchase into a successful long-term investment. Filipino families see a house as a place where parenthood is cultivated and a child’s character is shaped accordingly.
As a first-time home buyer, you should be well prepared because buying a home is not only a major investment, but also an asset that will play a major role in your everyday living. We have listed the measures you should take to make your first home a well-thought-out purchase.
1. Choose a house that matches your needs.
With the diverse choices in size, style and structure that houses nowadays offer, it is important to figure out what type of property you really need. Are tranquility and spaciousness your main concern, or are you the type of person who would rather have a compact home conveniently situated in the heart of the city? Do you want a place ready for occupancy or would you want to tailor and design it yourself? Do you need a two-storey house, a bungalow, or a high-end condominium? These are the questions you need to answer to ensure that your choice will suit your needs as a resident.
2. Study the real estate market.
Countless choices are available in the property market, so sorting out those that fit your needs is crucial. Figure out which property is close to convenient public transport stops. Research the property’s neighboring commercial, financial, and medical facilities. Study the area’s architectural design and determine whether the home will be safe from fire, earthquake, flood, or other natural disasters. Know which developers have credible reputations, and carefully select which one deserves your trust the most.
3. Be guided by the experts.
Make sure you listen to the advice you receive from real estate professionals. For the first-time home buyer, it is important to seek the help of brokers and agents as they will steer your way into meeting your preferences, weighing how reasonable and fair the offer is, and negotiating its financial terms and conditions.
4. Determine your budget and stick to it.
Understanding your own financial situation will be key to setting a budget for a major purchase. Consider your income and how much you can afford to shell out for setting up your new home. Experts suggest that home buyers should limit their expenses on principal, interest, insurance, and taxes to 30% of their gross monthly income. Home buyers should also allocate approximately 1% of this budget for maintenance and association dues.
5. Close the deal and stabilize your finances.
Financial stability would always involve constant asset and liability monitoring as well as saving. First things first, make sure that all the settlement and mortgage costs are finalized without a glitch. You wouldn’t want to encounter problems with your new home afterwards, so make sure you get all the necessary documents, payments, and inspections done.