How To Buy A House If You Make At Least P50,000 A Month
If your family's total monthly income is P50,000, here's how you can afford that home you've always wanted.
CREATED WITH BDO HOME LOAN
A lot has been said about the benefits of homeownership over renting in establishing a family's emotional growth—your home, after all, is where you raise your kids. And although investing in a property takes a lot of effort, it has a great effect to the family's future financial endeavors. Owning a home also teaches parents the importance of proper budgeting, accruing additional wealth, and even tend to have bigger net worth because the property itself lends a hand in growing the family's assets.
But what if you and your spouse only make P25,000 a month each? Add that to cost of living and you're probably already living from paycheck to paycheck. If you think this makes it impossible for you to own a house, think again. Here are a few ways to start on homeownership for you and your family.
Let your savings grow wisely
Sure, you have your emergency funds for rainy days and a few other savings on the side, but why not take that step further so you can save up for your future house? It can be as simple as staving off your budget for signature coffee, or devoting your travel fund into your future home fund. Put these savings into a bank account that gains high interest when not touched over time and you'll probably have enough by the end of the year to cover the downpayment and even the other loan fees such as transfer tax and documentary stamps tax.
Cut down on debt
Another way to save for your future home is to rid yourelf of debt as soon as possible. Clear out your credit card bills and use your credit card responsibly. Get a few side hustles so you can finally pay off small debts. The faster you clear out these debts, the easier it becomes for you to manage your budget and finally gear up for homeownership.
Take time to search for properties
Not sure where to look first? Try checking brand new properties thru developers. Another option would be to check bank's foreclosed assets, which may be offered at a discount. With a bit of research and negotiation, you can easily assess if your chosen house suits your monthly budget.
Plan ahead when getting a home loan
It's not easy for most families to buy a property on the get go without a home loan. Getting a preapproved home loan will not only help you negotiate on a property, it'll also help you plan ahead so you can manage your monthly budget better. This would take a bit more research and prepping on your part but it's a good thing that there are plenty of resources online. BDO, for example, has a home loan calculator based on your family’s monthly income so you can check for your amortization accurately and see how big of a chunk would it take out of your family's monthly budget. If you apply for a home loan within the promo period, your monthly amortization can be as low as PHP 6,550 per month for every PHP 1 million loan payable in 20 years. To know more about the promo, click here.
Get an estimate on how much you can borrow with BDO Home Loan's calculator based on your family's monthly income. Click here!