Five Things to Remember: Why You Need to Own Property and How to Do It
Filipinos, well at least a significant number of, are hardwired to seek anything that is affordable and attractive. Take for instance our insatiable demand for anything sachet or in small packs vs. regular-sized items that, after a careful calculation, we may discover to be cheap after all. Real estate and housing to be specific happens to be one of the key necessities that fall victim to our sachet-mentality or preference with rent over actual ownership.
Needless to say, owning your own property or home should be your long-term goal. If not for investment, a sense of security vs. the every changing rent prices. How do you ready yourself and your pocket for your cross over the property Rubicon?
Program your earnings and expenses
Nothing wastes more money than unplanned purchases and unmonitored expenses. If you've experienced scratching your head upon finding out your buffer isn't where it is supposed to be, chances are you have the same problem.
Programming your earnings and expenses does not entail rocket science, you simply have to list down what you've received from your paycheck, and other sources of income, and what you're supposed to set aside for things like bills. What remains should be divided between savings for your new home and daily expenses, ideally 30-70. Savings should be stored where it will remain untouched like time deposits or on joint deposits with a spouse or partner. Include as well savings from daily expenses.
Set target date for the property purchase
A Filipino phrase captures the essence of proper planning: "Kung gusto may paraan, 'pag wala, maraming dahilan." (If you like something, there's always a way [to achieve it], if not, you always find excuses.) If you really want to own a property, make a proper plan, including setting target dates. A goal-less and time-less "plan" always ends up unfulfilled and drowned in a pool of excuses or finger-pointing.
Also, when setting target dates, be sure to set a realistic one. While not having a plan thwarts a desire, having an unrealistic plan crumble over you also does the same, or even worse.
Choose your location carefully
While moving close to business districts, especially where you work, sound ideal, the ever increasing property prices often gets in the way. Perhaps, you can consider a proximate location with transportation and road access to your workplace.
For example, if live in BGC, perhaps you can consider condo units along C5 or one of those property projects in Taguig or Parañaque. Sometimes, you may also find gems without leaving your city of choice. For example, you may find cheaper options in Palanan or San Antonio, Makati if you work in Makati Central Business District. Less obvious choices include Vertis North with its access to the Unified MRT-LRT Common Station or Arca South, host to soon to open Taguig Intergrated Terminal Exchange.
Ensure everything is ready and checked
Once you are ready to purchase a property, make sure the terms and conditions have been explained to you, especially on your payment terms. If you're getting a housing loan, be sure to have it approved first before signing any document.
Nothing waste your time and a real estate agent's time than a signed contract that has to be cancelled. Not only will you waste money as well for forfeiting your reservation fee or initial deposit, but also your agent's sales targets, especially if this has already been logged. Remember, the real estate industry, even with thousands of agents on the field, is still a relatively small one. Be sure to keep a good relationship with your agent or broker by avoiding these instances.
Get a trusted broker and stick with him
If you already have a broker in mind to facilitate your transaction, be sure to have him/her onboard right from the start. Brokers know the real estate in the Philippines inside and out, so having them early on would prove helpful.
Sometimes, stalled property purchases are caused by misunderstanding, especially if you talked to an another broker or agent before getting your choice broker onboard. Making every aspect of the transaction open to your broker would help you avoid documentary and regulatory roadblocks. Just like financial transactions, a property transactions are also a trust based activity so don't do anything to break your broker's trust, in the same way they should not break yours too.*