There was a time when settling and staying in one place once I got old never crossed my mind. My dream, after all, is to lead a nomadic life, visiting every country in the world and spending my years until I perish adventuring into the unknown. Little did I know that one day I’d come to love the idea of having my own place, a house that I can go home to after every tiring journey and spend my days recuperating. And so, I began searching through listings online but finding my ideal home was not that easy. There were a lot of factors at stake and things to consider. It’s stressful at times but still fulfilling. Let me share with you some of the challenges I encountered which might be the same problems other home buyers face.
Lack Of Information & Diversity In Property Listings
Real estate companies are a rarity in the Philippines unlike in other countries such as Canada and the US where they’re very common and are essential to people who wish to sell, buy or rent a property. This is one of the reasons why I think information about properties up for sale within and outside Metro Manila is kind of limited.
Listings consist mostly of high-end condominiums and houses in upscale subdivisions, if not, housing projects under development. They usually lack the variety that searching for properties in provinces like Bulacan returns with minimal favorable results while cities in Canada tend to have pretty good lists. Say, St Albert real estate and you’ll see an enumeration of several companies with a number of ideal properties listed. The information for each property is quite adequate too. It not only indicates the price but also other essential details like the exact location, lot and floor areas, number of rooms, toilet & bath, garage, etc.
Finding a real estate agent who puts your interest and considers your budget, lifestyle, and actual needs a priority is also rare. This usually becomes a problem as you would most likely rely on their recommendations, trusting they are the experts. When it boils down to making a decision, I’d say trust your instincts and always consider what you think is most suitable and best for you.
The Best Properties Are Hours Away From The City
When it comes to searching for a house, location is one of my main priorities. Being in a good suburb or a safe community is not enough when looking for a home within or near Metro Manila. Access to hospitals, schools, and the market are often second considerations to whether the area is flood-free and away from the fault line. The Philippines after all, is prone to disasters, being visited by several typhoons in a year that sometimes cause immense flooding in low-lying areas. The Big One is another worst-case scenario of a 7.2-magnitude earthquake accompanied by a tsunami hitting Metro Manila and nearby provinces that everyone including me is trying to avoid.
This part of searching for a house was one of the most challenging. There were really good properties but their location is often flooded so that might be a problem when commuting to and from work. And I never would want to live in a place like that. There were also others I consider safe from natural disasters but are tucked away in some place where access to public transportation, hospitals, and schools is difficult. After several trips to find the perfect home, I came across this property that is situated in a place with no known flooding and away from the fault line. It’s also near malls, hospitals, schools, and transportation terminals. The downside is that it’s two hours away from Metro Manila where I work.
Depending on your circumstances, the location of your dream home can be tricky. And from what I found out, the most ideal houses are located away from Metro Manila where work usually is. I suggest taking into consideration the type of adjustments you’ll be willing to take before buying a house. Things like added hours and cost to commute or drive to and from work or if you’re getting a car which entails additional expenditure.
Affordable Houses Are On Pre-Selling And Not Ready For Occupancy
Real Estate rarely depreciates in value so expect prices to be skyrocketing even for the smallest of houses. If you come across a 2-bedroom house with a garage that costs less than P6000 on monthly amortization, think hard. If you find that too good to be true, it probably is. I mean it exists and is really a good deal only if it’s ready for occupancy. Oftentimes, most of these types of houses with affordable payment schemes are on pre-selling.
When looking to buy a house, one of the things to check is if it’s a pre-selling project or RFO. Pre-selling houses are those that have not been constructed yet or are still under construction. It’s not very ideal if you’re looking to move the soonest time possible. They’re quite affordable though but if you’re someone who’s skeptical about putting your money on something that doesn’t exist yet then this could be a problem.
RFO or Ready For Occupancy houses or condominiums are readily available to accept homeowners at any given time. It’s good for those who prefer to see and scrutinize the finished product. Some advantages may also include bigger discounts for cash payments, quicker move-ins, and ready-to-use amenities. Some developers may offer flexible payment schemes but expect for them to be 40% higher in value than when it was on pre-selling.
High Equity/Down Payments
Obtaining a loan through Pag-Ibig is one of the ways a person in the Philippines can buy a house if he/she can’t pay in cash or if in-house financing is not affordable. It’s preferred by many since it offers up to 30 years of monthly amortization at a minimal interest rate. Please bear in mind that they have certain requirements before granting a loan. The loan amount is often determined based on the borrower’s salary/income and the number of years the loan is payable is based on the borrower’s age. Another thing is that not all of the house’s value will be paid by the loan.
After informing your real estate agent of your intention to buy the house and paying for the reservation, you will be asked to submit supporting documents relevant to your financial standing. Based on how much you make each month, they will give you an estimate of your loanable amount through Pag-Ibig. Say the total value of the house is P1.5 Million and based on their evaluation, your loanable amount is only P1 Million, the remaining amount will form part of your equity or down payment which is usually payable within 24-36 months. That’s P13,888 per month. If you’re a 30K household income earner, this amount is quite big so think before you commit.
There you have it, lovelies. Buying a home is one of the most fulfilling things to do. It’s one milestone one can always be proud of. I hope I was able to impart information useful in your search to find your lovely home. Until next time. Ciao!
