Tips to Consider in Buying Your Own Property

The global pandemic has really changed our lives. It was really unexpected, there is a positive and negative impact on each and every one of us. 

Since almost all stayed at home, we get to focus more on our home. Some realizations of having your own home or property during the pandemic, and speaking of home, let me share with you some tips to consider when buying your own home or real property.

1. Do your research

Don't rely on what you saw or what your property specialist will say to you. You have to do your own research. It is a must that you have knowledge about it. Remember that it is not just cents, it will cost a lot. So might as well be mindful before getting into it.

I have been researching it for quite some time now as I really want to learn more about investing in real properties. Before we bought our very first investment, it took me more than a year of research. The phase of learning would be different so it is up to you as long as you know how you deal with it.

2. Be aware of the area

When buying a property, you must be aware of the area. The location has a great impact on the pricing. So if you plan to turn your investment into using it as part of a business, try to look into the area if it will fit your needs or plans.

In our case, we bought our first real property as our investment before getting married. We wanna make sure that we have something that we call our own as early as possible. The land is a good investment as it really appreciates over time. Today, the value is around four times higher back when we bought it.

3. Know the underlying costs

When you do the research, you are already aware of the area and you have the ideal location. It's time to integrate the underlying costs of buying a property. 

There are so many things to consider so make sure to list them down. Before I thought it was just the total contract price of a house and lot and the per square meter of bare land. Upon researching, Investopedia is one of my reliable sources. I learn a lot from it. 

Underlying costs depend on what kind of property you are going to buy. One of the possible expenses you have to deal with is the Property Tax. Ask your developer or the seller who will shoulder the said costs during the sale.

Other costs after the sale should also be considered. There will be future home association dues and the likes.

4. Choose the best payment terms

So when you are finally ready to buy your own real property, it is time to revisit your resources.

Normally there are some types of payment terms: cash basis and installment basis. Cash is a spot or one-time payment while installment is a series of payments and most of the time requires a downpayment. Better to take note of this.

When planning on getting a mortgage when buying a property, you need to be realistic on what you can afford. Make sure to be on top of your finances. Consider everything so that you don't have a hard time managing your finances. 

You can also check beforehand on the estimated monthly payments so that you are aware of the amounts in case you need to stretch your budget. You can set the desired amount, rate, terms, etc. so you can play around with the budget that you can apply.

5. Plan the construction or furniture to buy

Now, when you are all set, placed the deal. Next step is to plan the construction if its a bare land, there are many developers to communicate to, so again it's your call. You might wanna get back to Tip #1 as it will help you plan.

For the furniture, I have been always eyeing to buy at Ikea before but apparently, their shipping fee is very costly. Good thing they are already here in the Philippines too! You can schedule your visit online and even shop online. Amazing right?

To sum this up. Here are the important words to take note of Research, Plan, Compute and Execute! 

Good luck on your real property purchase journey. Share your experience in the comments too.