Since the new year is nearly here, you’re all probably starting to make resolutions. These commitments can be as small as saving a few bucks a day or as consequential as buying a home.
If you have set your sights on the latter, you need to go through a long process of thought, ideating ways to afford this new asset and recalculating. Here are a few tips for those who resolve to make the biggest investment of their life in 2023.
Decide what your capacities are
Can you spend less or earn more? A traditional rule for home hunters is the “25-percent rule.” What you should be paying monthly for your house should not exceed 25 percent of your take-home pay. It’s also wise to consider your debt-to-income ratio, i.e, you can take on more financial responsibility as long as your monthly debt, including the mortgage you will take up, does not exceed a third of your gross monthly income.
Consider all fees, including those in the “fine print”
Some people just grab the next property with a low down payment, unable to consider the other costs that come with real estate investment. Beyond the down payment and monthly obligations, consider: (1) closing costs or expenses to finalize your mortgage; (2) expenses for repairs, upgrades and furnishings; (3) property taxes; and (4) a buffer or emergency fund, which could help you when you hit dire straits. The calculations differ for pre-selling and ready-for-occupancy units.
Examine the payment options available
Study existing loan options, and check how resilient they can be to factors like inflation and recession. There are loans offered by banks and those by the developers themselves. There might also be loans designed to assist a first-time homebuyer.
You will also need to consider the tenor or the length of time you’ll be paying your loan. Many homebuyers cannot withstand the toll of a five-year payment scheme, so they opt for an arrangement that lasts a decade or two. However, you will also need to check how a longer tenor can affect your interest rates.
It’s practical to consider the monthly expenses when buying a home but to ignite hope and inspire yourself to keep going on, you should also consider what the future holds for your prospective address.
Try to walk around the neighborhood and see if you have access to good schools and other vital institutions, or if the place is walkable and has parking, among others. Also, examine if there could be emerging business districts or tourist destinations nearby, as well as existing and upcoming infrastructure linked to them.
Choose the lifestyle you want
Do you want a condominium unit or a house-and-lot property? Will you thrive in a home near bustling cities or in addresses by beaches or lakes? Ask yourself what will make you content in your home. One place you can start looking, just so you get the full depth and breadth of options is the portfolio of trusted builder Sta. Lucia Land.
Sta. Lucia Land and the entire Sta. Lucia Group has more than 300 projects nationwide, many of which have become forever homes for thousands of households, thanks to superb masterplanning and building practices. For more than five decades now, the company has elevated its products by anchoring them on special features and experiences like manmade lakes, resorts, golf courses, clubhouses and race tracks, among others. The company can cover any lifestyle you choose and give you capital appreciation for them.