Owning a house is a dream of many Filipinos. After all, nothing beats having a property under your name, and that you can truly call your own. But before investing in real estate, the first thing you need to prepare is yourself, as well as your finances. That way, you can be fully prepared for the expenses that will surely come, and ensure that you make the right financial decisions along the way.
1. Review Your Financial Health
Before you start scouting for the perfect house, you should first take a serious look at your finances. Purchasing a home is not an easy feat, as there will be ongoing expenses even after moving in. Make sure that you have an emergency fund that can cover at least six months’ worth of living expenses. There will be unforeseen costs along the way, and having savings on hand will prevent you from facing these unprepared.
You should also check if you have healthy streams of income. If you are employed, try to augment your salary by having other streams of income, which can help provide for your forthcoming expenses.
You should also consider getting an insurance plan, as this can help further enhance your profitability while giving you the assurance that your beneficiaries will be well provided for, in the event of illness or death.
You should research the different kinds of life insurance policies available in the market, so that you can choose which best suits your lifestyle and investment objectives. For example, if you are looking for a way to be protected but also want to start an investment fund, you may consider availing of variable unit-linked plans (VUL). Apart from getting to enjoy life insurance coverage, VUL plan holders have the opportunity to grow their income through strategic investments made by professional fund managers.
2. Know Your Goals
Why do you want to purchase a house? What kind of house do you see yourself living in? Do you see yourself living in the city, or in neighboring provinces? It is important to ask yourself these questions so you can have specific and realistic goals that will guide you throughout your home purchase journey. These will also help you identify a feasible budget, as well as a savings plan, that can help you stay on track.
3. Prepare for the Upkeep
Investing in a home is more than just purchasing a house and lot. It also means preparing your budget to purchase items that you will need for your home, such as furniture, appliances, and monthly water and electricity bills. Remember - the bigger the space, the larger your expenses can be. Make sure to include these items in your budget, so that you can be well prepared for when you finally have to make these purchases and payments.
4. Work with a Professional Real Estate Agent
A professional real estate agent can not only help you find your dream home, based on the budget and specifications that you provide, but also help you with the administrative tasks that go along with buying a house, such as filing the necessary paperwork with banks and government agencies. By working with a professional agent, you can get the peace of mind that your investment will be both sound and legitimate. Bear in mind, however, that the agent may charge service fees so make sure that both of you are clear on the scope of work and corresponding charges so that expectations are well-managed.
5. Define Your Plans
Do you plan to keep the house for a long period of time, or do you plan to sell it in the long run? While real estate is generally regarded as a good investment, you must also consider the main purpose that you are investing in the house. If you will be residing in the property for the long term, you may wish to invest in home insurance so that you can be prepared for any maintenance or damage-related expenses in the future. However,if you are buying the home for investment purposes, your main goal is to ensure that the property is in clean and sturdy condition, to make it more attractive for potential buyers.
6. Consider the Location
As a working professional, location should be one of your primary considerations when purchasing a home. While houses outside the city are marginally cheaper than those within the metropolis, you also have to consider whether the area you are looking to buy property is accessible, and would not have you stuck in traffic for hours on end. Moreover, check out the general community as well - will your future home be near commercial areas, schools, and hospitals? It would serve you well to survey the area, as this will be your new home moving forward.
Is the house located near a fault line? Do the roads get flooded during heavy rains? You should also consider how the area is affected by the forces of nature. You wouldn’t want to buy a cheap house, only to realize later on that it’s right in the middle of a landslide-prone area.
Do you have kids, or plan to have children? If you do, then you should think about which schools are closest to the house. Is the environment safe for children? Are there any hospitals nearby? When you buy a house, you’re not just buying the structure. You’re moving into a new community.
7. Watch Out for Other Fees
Whether you plan to live in a condominium unit or in a gated subdivision, be prepared to pay association dues. Be sure to ask around and gather all possible information so that you’ll be fully prepared before you move in. There are also additional taxes that you would need to pay, so make sure to ask your agent for advice.
8. Scout the Market
Though it will be good to get the help of a professional, you should also arm yourself with enough information. What are the current market trends when it comes to houses and other real estate properties? Check out websites and listings. Ask for advice from friends and family members who have had experience in buying property. You can only make informed decisions when armed with the right information. Don’t be afraid to ask the right questions.
Take all the time you need to ensure that you’re fully prepared before deciding on a house, especially as investing in one requires significant thought and preparation. To help supplement your income, and make you even more prepared to purchase your very own home, you may consider investing in Maximal Power, a single pay, unit-linked insurance product that provides for superior lifetime insurance protection while growing your wealth through investments in a variety of expertly managed funds.
Following these strategies will help make the process a lot easier, so make sure that you implement them well. However, remember that purchasing a house is just the first step - the next challenge is to be able to cultivate your home.