Are You Ready to Buy Your Own Home?

Are You Ready to Buy Your Own Home?

Are you really ready to buy your own home? Purchasing a property is exciting yet overwhelming. It's a big decision that requires research and planning.

Are you financially ready?

A good rule of thumb is to allot a maximum of 30% of your monthly income for amortization . If you plan to buy your first home, consider going for a house loan for more practical payment plans. Nowadays, bank and Pag-IBIG offers almost the same interest rates.

How much Cash do I really need when buying my own home?

Nowadays, it is very affordable to get your own home thru Bank or Pag-IBIG financing.  Reservation fees are also very low which can range from 5K to 20K depending on the house type. Downpayment are usually 10-20% of the Total Contract Price and can be paid in terms like 12-18 months especially if it is preselling.

Let us assume that you get a P1Million House and Lot. Assuming 10% Downpayment, 5K Reservation and 12 months Downpayment terms.

House Price - P1,000,000

Downpayment - P100,000

Reservation Fee -   10,000

Net Downpayment - 90,000

Monthly in 12 months - P7,500

Loanable Amount: P900,000

Monthly thru Pag-IBIG in 30 years - P6,500

So in the given example, the cash out that you only need is P5k for the reservation, and then P7,500 monthly in 12 months. and then P6,500 for the rest of 30 years.  Instead of renting, this is now a best way to get your own home.

When can I move-in?

Since most of the housing development are preselling, a Buyer can move-in, once he has paid the 10-20% downpayment, the house is 100% completed and the housing loan of 80-90% has been taken out already from Pag-IBIG or Bank.

With the payment terms that different developers are giving, it is now very affordable to get your own house and lot. It is much more economical to get a home than renting.