To many Filipinos, owning a home is the ultimate dream.
Apart from the security it affords you, having your own home allows you a place to truly call your own. Regarded as a hallmark of success, homeownership is inevitably a life goal for many. However, while there is much to be said about the dazzling allure of finally having a place to call your own, it is also true that home ownership is one of the biggest and most pivotal financial commitments you will ever make in your life. In this regard, buying real estate property should not be the kind of decision you make on a whim. It should be a careful and calculated decision–one where you weigh your options first before pushing through. Sure, that condo in Ortigas listing may look attractive today but you have to consider what it entails before fully committing to buying it. Between the payments you make up front, the maintenance costs of ownership, taxes and other fees, there is a myriad to consider before you sign on the dotted line.
If you are not careful, a real estate purchase might be something you could potentially be paying for the rest of your life. With that said, taking a realistic look at your finances is paramount. Whether you are looking to buy a primary residence or a rental, it is imperative to determine that the property you wish to buy is not only a smart investment but whether the purchase is the right decision for you at the time. It may sound like the most hackneyed phrase ever but home buying is a big financial commitment that needs careful decision making. For that reason, you need to ask yourself some questions before taking the plunge.
With that said, here are some of the critical questions you should ask yourself before fully committing to buying real estate property:
1.) Am I financially ready to buy?
Before you even look at any real estate property listings or even take a gander at lots for sale in Cavite or elsewhere, you may want to sit down and determine first whether or not you are financially ready to make a real estate purchase. To do this, you need to take a realistic look at your spending and financial habits. Are you spending more than you are saving? Do you have other important expenses at the moment? These questions help you determine not only whether you can afford a home but also whether it is the right time to be buying a home.
2.) Is it better for me to rent instead?
While homeownership indeed has that certain allure to it, purchasing a home is not always the best financial decision. When you are deciding whether to buy or not, it is always best to take into account the rental prices of real estate properties, how long you intend to live in the property you wish to buy and whether or not the sales market is overvalued. Having a home might give you a place to call your own but in the long run it might make more sense to rent a cheaper condo in Pasig if you do not intend to stay for a while in the property.
3.) Am I making a decision based on rational thought?
Pivotal decisions that impact your finances should be made with critical thinking and rational thought. Unfortunately, quite a lot of people tend to let their emotions take their lives by the reins and make the decisions for them. When you are scouring the market for real estate properties, do not get attached to the way a home looks as much as whether it is structurally sound and in a good location that would benefit you best. Moreover, you should buy a home that would not only suit your needs but would also be potentially attractive to a buyer when you do decide to sell it in the future. Do not only look at a home based from what you want but also look at a home from an investment standpoint and ask yourself how much rent you could charge for a home in that particular neighborhood.
4.) Do I understand my wants versus my needs?
More often than not, buyers tend to blur the line between their wants are their needs and make a decision based on that. When it comes to buying a home, it is important to consider your needs first before your wants. Before doing that, however, you need to be able to identify what those are. Aside from that, you also need to determine which ones have flexibility to make your home search easier and faster. Keep in mind that there is never a completely perfect home–even if you did custom-build the home from scratch. You need to be able to know where and when to compromise. With that said, sit down with your agent and review the things you consider as must-haves in your home.
5.) Do you trust the people you are working with?
It is a given that people have various reasons for purchasing a home but one of the most important factors to consider is whether or not you trust the people you are working with. Home buying is a pivotal decision to make and is a significant financial commitment. Having the house of your dreams is an endeavor fraught with many challenges. With that said, you need to be able to have someone trustworthy enough to see you through your endeavor. With that said, your real estate agent’s biggest responsibility is to help you find the perfect home for you. In this regard, you need to be able to trust your agent. If you cannot, then you might want to consider looking for another agent.
When it comes to home buying, everyone needs to have an end-goal with their purchase. After all, real estate properties are not purchases you make on a whim. However, you also need to consider that everyone is different. What works for others may not necessarily work for you. With that said, have a defined goal and make sure that you can articulate that well. Prioritize your needs and know what you want. With all that considered, you should be able to arrive at a well-informed decision as to whether or not you should buy a home.