When speaking about property ownership, we often discuss when is the best life stage to finally make the big step. What often goes overlooked is the important aspect of building a solid foundation of a confident homebuyer, and what it really means to be “ready” to buy a property.
At some point, majority of homebuyers have had doubts and questions cross their mind, and yet still gave it a go. These kinds of thoughts just mean that you are aware of the enormity of the process and responsibility that comes along with a property purchase.
So, what does being ready look like?
✅ YOU HAVE A GOOD SAVING HABIT
In the third quarter of 2019, BSP’s Department of Economic Statistics (DES) revealed in a survey that percentage of households with savings reached a record high of 37.5 percent. This is an encouraging sign that Filipinos are already getting the hang of saving. As a first time home buyer, having a good money habit is an essential character you should already master.
✅ YOU ARE READY TO BE ROOTED
Buying your first property also means you’re ready to finally settle in a location of your choice. You will know this if you’re already comfortable and secured with a city or community and see yourself living in it for the long-term. Whether you’re single or married, a location’s potential for raising a family is also a major factor you consider.
✅ YOU ARE READY WITH THE UPFRONT COST
Most of the time, a property purchase would require a deposit of 15 to 20 percent of the total price. You should also be ready for other costs such as tax, stamp duties or assessment fees. If you have this at hand, then you can get the ball rolling anytime and make it a reality. Our Income Filter will help you be informed about the properties that you can afford with your monthly income.
✅ YOU ARE AN EASY TENANT
There is no need to fear mortgage if you have a good rental history. Being a good and responsible tenant prior a home purchase is actually the best indicator if you can handle your mortgage well in the long run.
✅ YOU HAVE A STABLE AND PERMANENT JOB
Once you’ve signed that deal, there is no walking out. If you intend to get a mortgage for your first property purchase, you have to ensure that you have a solid and reliable employment or source of income that will not fail you. This is also a plus factor for lenders if you’re applying for a home loan.
✅ YOU’RE EITHER COMPLETELY OR ALMOST DEBT-FREE
It’s complicated to tackle a home loan when you’re still tied to other debt obligations. Apart from the interest rates that will eat up your income, having other large debts will make it hard for you to stay on top of bills that will pile up once you have your own home. If you desperately want to purchase your first property sometime soon, it is wise to start pruning your debts in the next few years before taking the plunge.
✅ YOU ARE A MATURE ADULT
Mortgage is a long-term commitment. In fact, it might be longer than your existing relationship. Kidding aside, before buying a home, make sure you are mentally and emotionally ready to commit to a long-term mortgage payment and the other obligations that comes with being a homeowner. It is exciting to move to a new home but you have to be ready to maintain and care for your home as well.
✅ YOU ARE OK TO SLOW DOWN
Slowing down doesn’t just pertain to getting hitched. When you finally decide to sign on a mortgage, you should also realize that it comes with a lot of sacrifices and adjustments. Unless your career is on the upswing and your income is getting bigger every year, you should be ready to cut down on lifestyle and travel expenses.
Purchasing your first property is going to be one of the most memorable experience of your life. It is definitely doable amidst the challenges, but you can make it less nerve-wracking by being self-aware of your readiness and capabilities.
Are you currently looking for a potential first property purchase? Head over to OnePropertee and check out some of the top properties that match your budget using the Income Filter. Happy home hunting!