Congratulations! You’re now finally on the road to buying your own property. Whether it's a house and lot or a condo, purchasing one is a huge milestone. It can be daunting, too, because of the long list of considerations you’ll have to factor in. But don't worry, because we've covered five of the most important ones to help make this milestone as hassle-free as possible.
Choose your ideal location
When shopping for a property to live in or rent out, consider the amenities, services, and the community surrounding the area. You may even take it further by researching possible developments in and around the neighborhood in the next few years. Also, check how accessible the location is. It's an important thing to note as the cost of transportation continues to rise. A place accessible to public transport is definitely more desirable than one that is not.
Choosing a good location can make your investment much more valuable, especially if you decide to eventually sell it. Aside from that, your budget will also be a definitive factor in what you may consider “ideal.” While some locations offer better services than others, they also come with a steeper price tag.
Consider other things, too, like the community outside your property. If you live an active lifestyle, for example, you might want to consider one with a gym, pool, and open spaces where you can jog or run.
Be aware of additional considerations
Buying a condo? You may need to consider a few more things. If you have pets, for example, ask the developer whether or not they allow pets in the building before you put down a reservation on a unit.
You may also need to choose between a bare or fully furnished condo unit. The former offers you the convenience of simply moving in and not worrying about anything else. On the other hand, you can customize an unfurnished one according to your taste. But before you proceed, get the developer's approval for your preferred design.
Budget for the down payment and mortgage
Also, make sure to have your down payment ready, so you can immediately lock in the property you want. Developers may accept down payments of as little as 5% of the property’s cost.
Remember to factor in the property cost and the mortgage term, or how long you need to pay your loan on the property. This could spell the difference between whether or not a low-down payment is worth it. For example, a 5% down payment on a property worth P4 million may seem attractive, but if the term is only five years, it could mean paying over P60,000 per month. In that case, you might be better off saving up for a bigger down payment and getting a longer mortgage term to keep your monthly costs manageable.
Factor in other expenses
Your other expenses will depend on the type of property you have, they will generally include association dues, taxes, and utility bills. Then there's property tax or amilyar, which you need to settle annually. Many cities and municipalities offer incentives and discounts if you pay early so try doing that if you can. Of course, it's also best to consider how your property-related expenses will relate to other financial responsibilities like your health and, if you have children, the cost of their education.
Find a developer you can trust
Choose one that you could actually talk to. It means having one that is easy to contact when you need them and provides prompt and accurate answers to your queries. Agents also give you a hint about developers. Find an agent who deals with you with a high level of professionalism.
Showrooms and promotional materials could also provide you with the information you need about a developer. While they are not contracts, they can show you what to expect and demand after purchase.
Still, it would be wisest to get testimonials from friends who have bought properties from the developer you're considering. Try to be as detailed about your inquiry as possible. Do not stop at the aesthetics. Ask about their promptness on the turnover, their faithfulness to the contract, whether or not they stay true to their maintenance schedule, and if they act on repairs promptly. These will give you a better insight beyond what brochures, showrooms, and agents provide.
Get property insurance
Buying a property is a huge investment, so it makes sense to protect it. One way of doing this is getting property insurance. AXA, one of the top insurance companies in the Philippines, offers property insurance that can cover you in case your property gets damaged because of fire, lightning, riots, and strikes, or natural calamities, such as earthquake, flood and typhoon.
As with any other investment, it’s important to understand the details and terms of the property you’re looking into. The more you know, the better and more empowered decisions you can make.
Know you can game plan your way to owning your first property today. Contact an AXA financial advisor to get started.
