Buying your dream home

Most, if not all, couples aspire to put an end to their renting days or their staying-with-parents/in-laws phase.  There’s pride, joy, and satisfaction in finally owning a house, especially after years of working to be able to pay for it.  House-shopping, however, is not as simple as clothes- or grocery-shopping. Since it may well be the biggest investment you’ll ever make, it requires massive planning and decision-making, serious budgeting and all-out commitment.
Edgardo A. Caisip, licensed real estate broker, and owner and general manager of E.A. Caisip Realty in Quezon City, says the process of possessing your dream dwelling will be easier and less complicated if you first decide on these:
•    What you want to buy.  What are your needs and requirements? Do you prefer a condo, a townhouse, a bungalow, or two-story digs? Brand-new accommodations or old but well-maintained? How many bedrooms and TBs (toilet and bathrooms)? Do you need a garage and a garden? Is a big space for the kids and your pets a necessity? Choose a place that will suit you and your family.          
•    Where you want to buy.  What are your priorities? Should the place be near your children’s schools or your workplace? Other things to keep in mind are proximity to relatives and certain conveniences (shopping centers, churches, etc.), commuting time, and availability of public transportation, especially if you don’t have a car.  Consider the environment, too.  Is it clean and safe? Does it get flooded when it rains? For some people, a not-so-perfect house in the right neighborhood is better than the other way around. Other folks, meanwhile, forgo nearness to offices and schools for larger, more affordable houses some distance away.
•    How much you can afford.  How much can you pay in cash or installment? Look at your savings portfolio.  Are the funds ready or anticipated? Will you need a mortgage? How sizable a down payment can you put up?  Set a reasonable budget/price range for the property being eyed.  
    
Identifying these “essentials” will make house-buying more expedient—no more rushing to every property development you pass by, or wandering around neighborhoods and ogling houses way out of your league.  
Aside from the positive factors, weigh the negative factors, if any, as well, “if these have serious effects or if they are tolerable,” says Caisip. If tolerable or manageable, the need “qualifies.” Once the buyer determines his needs, other “wants” may be considered like areas for business, work or play/exercise, space for a swimming pool, a panoramic view, etc.  There should also be no valid objections from members of the family about the chosen residence.

Click here to read on about location and tapping the pros.

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Read on about location and tapping the pros.

LOCATION, LOCATION, LOCATION!
Where a property is could make it effortless or tough for a buyer to accomplish his daily activities, depending on the accessibility of basic facilities, services, and establishments/entities.      
Properties in highly developed areas (like the Makati Central Business District, Forbes Park, Bonifacio Global City, and Tagaytay Highlands) thus command higher prices, reports Caisip, because of the tremendous investments they attract and the presence of luxurious features and amenities.
On the other hand, residences in underdeveloped parts and known criminal havens may see their worth pulled down. Caisip cites as example a home with a view of the Manila Bay area, desirable if not for being situated near Smokey Mountain.
Caisip defines a good location as one “which satisfies all of the buyer’s needs and many of his wants (with the property).”
Executives Mima and Philip Macahilig definitely kept this in mind when they bought their three-bedroom townhouse in 2004.  Among the many questions they asked before committing themselves were:  “Do we honestly like our new address?” “Do we feel safe?” “Will we be able to afford the monthly payments plus the other costs (taxes, homeowner’s association dues, renovations, upkeep, etc.), aside from our usual household expenses?”  
“We made sure the answers to all our questions were ‘yes,’” admits Mima.    
Pick a place that would be easy to resell if you need to transfer in the future. A new job or a growing family may compel you to look for another residence after five years or so.

TAPPING THE PROS
A first-time buyer could easily be overwhelmed with the many questions, verifications, safe-guards, financial remedies, and documentation processes that come with closing a sale. If impatient for this or find the legwork too tiring or time-consuming, seek assis-tance from a qualified real estate agent.
“[Our broker] knew the requirements of the bank, the city hall,  the LRA, etc.,” Mima reveals.  
To protect your investment, do business only with reputable real estate agents and deve-lopers/owners with known track records of finished projects. According to Caisip, established real estate project units, lots, or house and lots are normally pre-screened of documentary preparations and often, the progress or completion of the project is what buyers watch out for.  Brokers in the Philippines, he says, are usually paid by the owners or developers upon completion of a sale on a “no sale, no pay” scheme, except when they have allowance privileges and other sales incentives. He stresses that all brokers are required to be duly licensed real estate practitioners.
Buying your first home need not be complex and stressful. If you plan well, save sensibly, budget wisely, and do your homework, it won’t be long before you summon the moving van and prepare for your house warming.

Click here to learn more about payment schemes.

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Read on to learn more about payment schemes.

Payment schemes
Only a select few have the dough to pay in full right away. Otherwise, here are other payment options:
•  Spot cash – with discount, paid immediately or with a grace period of seven to 10 days.
•  Deferred cash – a payment considered cash if paid within one to 15 days, but without a discount. Payment period may vary with different property developers and owners.
•  Installment scheme – entails the following:
a.  Initial reservation – The preliminary payment, short of the required reservation fee, to hold a particular lot, unit, or house and lot for three to seven days.  This fee is forfeited if the buyer defaults, but will form part of the reservation fee and of the full down payment if the buyer pushes through.
b.  Reservation fee – is the payment required for a buyer to hold on to a property for two to 30 days, and which forms part of the full down payment. The fee is forfeited if the buyer defaults or decides not to continue with the purchase. A reservation fee is also called an option payment.
c.  Full down payment – is the partial payment of the gross selling price or total contract price (TCP) of a unit, lot, or house and lot, usually 30% of the TCP or lower.  Also known as the paid up partial payment, it includes the initial or full reservation fee.
d.  Gross balance – is the remaining amount of the TCP after the full down payment has been paid (inclusive of the initial and full reservation fees) and deducted. This is typically paid in monthly amortizations from one to 25 years depending on the loan qualifications of the buyer with Pag-IBIG, or from one year (or less) to 15 years with some banks. Interest charges average from 13.5% to 14% per annum.

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