Have you already listed down your goals and aspirations for this year? You can focus on improving your health, work toward happiness, or strive to become even better as a family and friend. Then, there’s achieving peace of mind through security. What better way to feel secure about your lot in life than by home ownership?
Of course, wanting something is a good start, but there’s more to owning a home than wishing on a Christmas star or writing it down as your priority New Year’s resolution. We’ve come up with a list below to help you set your mind and your wallet toward the goal of home ownership. Just remember, it’s a marathon and not a sprint. You’ll be investing much of your time and money once you make a final selection of which property to buy. Choose wisely, plan carefully, and enjoy the perks that come with being a homeowner.
Advantages of Home Ownership
Ownership status alone is enough for many people to want to buy a home. There’s a certain air of confidence that comes with home ownership. You know that whatever happens, you and your family will have a place to live. For parents, having a home to pass on to children is a very reassuring way to leave your legacy. However, there are other benefits of being a homeowner outside of acquiring shelter.
You Get Own a Tangible Asset
A house and lot, a condo unit, or an idle plot of land is an asset that will always have value. While the actual house will depreciate over time, land rarely does. Even if humans only occupy 14.6% of the Earth’s total area, the world’s population continues to grow at an explosive rate. Soon, technology will overcome the limitations of where people can build homes. Until then, land will remain a finite resource that will increase in value over time. Unlike precious metals, currency, and other investment instruments, land won’t lose much value.
For those thinking that condominium units have less value, think again. Condos are also built on land, often in an area where demand is high. All unit owners will receive a share of the proceeds if the condominium association ultimately decides to sell the land on which the condo is built.
You Get to Establish Roots in Your Chosen Community
Owning a home means being part of a larger community. This means you can interact and be friends with people you already share the same interest with. Whether you choose to live in a condominium, townhouse complex, a subdivision, or a detached house and lot, you can make friends with the people you live next to.
In addition, your contributions to the local economy help make you an active partner in community building. You shop at nearby retail stores owned or staffed by locals. Your children will likely attend nearby schools. The association dues and barangay taxes you pay go toward improving your local surroundings. It also gives you a voice in choosing leaders in every election.
You Get to Feel Safer and More Secure In Your Own Home
Tenants dread the feeling that comes with living in a temporary home. They know that even if they pay their rent religiously, they’re at the mercy of landlords who can choose to raise rent or evict you any time. Plus, you just can’t make any alterations or modifications that you know will make the house better. Absolute home ownership gives you the freedom to customize your domicile any way you want it.
More importantly, you’ll be paying a mortgage that will eventually stop once you pay in full. Renting means paying for the use of a house until you move out. Nothing out of monthly checks goes toward building equity. And of course, nothing beats the feeling of freedom and accomplishment from paying off your home loan.
How to Accomplish Your New Year’s Resolution of Home Ownership
Manifesting your home ownership goal to reality requires determination and some planning. However, the rewards of coming through with this resolution is worth more than the property’s value. You’ll get to pick up or polish additional skills and value along the way.
1. Make a Realistic Assessment if You Can Afford a Home Right Now
This is the crucial first step when deciding to buy a home. Can you afford the required down payment (usually 20%) and pay the monthly installment required by your chosen property? Alternatively, are you willing to settle on what you can afford? Making peace with this decision can help put you in a better mindset while meeting with the sales agent or signing documents.
Remember, buying a home is a very long-term commitment. There may be cases where your finances will falter and you’ll have problems coming up with the mortgage. In times like these, thinking of your purchase as a means to a dream instead of a burden can help you pull through.
2. Work on Your Down Payment
Normally, you’ll have 20% of the property cost ready before deciding to go through with a purchase decision. Applying for a loan for this will mean paying two loans at the same time once the monthly mortgage kicks in. To become liquid, you might need to sell off current assets or save first.
Thankfully, there are alternatives. Many developers with pre-selling properties will offer down payment financing until they complete the project. This means that you can apply for an in-house loan for the DP. This allows you to pay off the DP first wheel construction is ongoing. After turnover, only then will you start paying off the mortgage you arranged with your bank.
3. Make a Shortlist of Desirable Properties
Take stock of what you want regarding your future home. Your preferred location will often determine which property type you’ll end up with. Wanting a home near your workplace likely means choosing a condo unit. If you prioritize living space for your family, a suburban house and lot or townhouse is a better choice. Just remember, your financial health does have a big say on what you can afford.
Once you narrowed down your choice of location, property type, and budget, start looking at multiple options within the area. Driving by your preferred location allows you to spot available pre-selling and Ready-for-Occupancy properties. You can contact them later by noting the property name, taking an offered brochure, or talking to a sales agent on duty. You can make a simple comparison by noting the price, amenities, turnover date, and financial options.
Achieve Your Home Ownership Dream Easier with Ohmyhome
Of course, you can make house hunting easier by going online. However, visiting individual developers can be a painful process. Comparing properties can be especially frustrating given that developers follow their own web page styles and use different information. Make things easier by visiting a one-stop property tech platform such as Ohmyhome Philippines. Its powerful search tool allows you to shortlist your property choices based on location, property type, budget, and turnover date. You’ll save lots of time making informed comparisons with Ohmyhome even within the comfortable confines of your room or a coffee shop.
4. If You Don’t Ask, You Won’t Know
Once you’ve zeroed in on your desired property, don’t be afraid to ask for specifics. Don’t be shy about approaching a sales agent to ask for details. Their job is to sell properties which earns them a commission, so they’ll be more than happy to answer questions. Remember that selling property is a game of numbers, so not all inquiries will lead to a closed deal. So don’t feel bad asking without committing to a sale. Many developers will offer promotions to entice buyers, especially for pre-selling properties. This includes the above-mentioned staggered downpayment scheme. They’ll also offer special deals or certain discounts for specific units so be on the lookout.
Additionally, ask about the project. There is only so much information you can get from websites or brochures. Ask about the current occupancy, if there are more investors instead of residents, or if there are identified problems this early. Knowing this helps you get leverage when negotiating for the price. Bottom line: information can help you get the best deals for your property choice. You won’t have information unless you look or ask for it.
Ohmyhome’s Team of Sales Professionals Will Be Happy to Help You Achieve Home Ownership
Aside from convenience, Ohmyhome can also help you with your inquiries. A team of licensed real estate professionals are on hand to answer questions about all the properties in their massive listing. This also means you don’t have to go through individual sales agents when asking about different properties. As they’re not tied to any particular developer, they’ll be more happy to tell you the complete story. Ohmyhome sales agents also have access to the various financing options offered by partner banks and lending institutions.
5. Stay Aware of the Hidden Costs of Home Ownership
The purchase price is the major part of what awaits the new homeowner. However, other fees and charges will also be due once you sign your sales contract. The bulk of these charges consist of government–related fees that ensure your property will get properly documented and taxed. This includes the transfer tax, registration fee, and documentary stamps tax. In addition, you’ll be paying for your real property tax every year.
If you’re new to the game, don’t worry. Ohmyhome’s customer service staff can help you with any additional requirements. They can provide assistance with any documentation requirements and walk you through the fees and taxes that come with home ownership. In short, Ohmyhome helps not only before the sale but also once you assume home ownership.
New Year, New You: Start 2024 On the Right Note By Working Toward Home Ownership
2024 promises to become a banner year for Philippine real estate. It’s a great time for prospective new homeowners to start working on their dreams. For busy professionals with little or no time to go through individual developers, there’s always Ohmyhome to help you all the way through. With over a thousand properties from 200 of the country’s top developers, Ohmyhome has the properties you want at the price and location you prefer. Instead of hopping from one developer website to another, use Ohmyhome’s search tools to find your dream home within seconds! In addition, our staff of real estate professionals will be happy to answer your questions and attend to any additional requirements like documentation or financing.
For 2024, do more than the usual New Year’s resolution of eating less, exercising more, and reducing stress. If your ultimate dream is home ownership, now is a great time to invest in Philippine properties. Start your new year with the ultimate home-buying experience. Sign up for a free Ohmyhome account and start your journey toward home ownership!