World Introvert Day Jan 2nd 2024 👆🏼

Many working-class Filipinos believe that buying a home is only for the wealthy. While it’s true that acquiring any type of property can be expensive, it doesn’t mean that an average Filipino cannot achieve the dream of being a homeowner.


If you want to start the process of buying your own home, here are the most important things you need to know:


Building your finances


Saving money is the most challenging part of buying a house, especially for Filipinos who barely earn enough for their everyday expenses. However, it is not an impossible feat.


Whether you are saving up for a downpayment or aiming to buy a house in cash, here are some financial strategies that you can consider:


  • Find more streams of income.You can get another job, start a sideline, sell your assets, or apply for a higher-paying job.


  • Stick to your budget.Following a reasonable budget every month frees up more money for your house fund.


  • Avoid new liabilities.While saving up for a home, you don’t want to take on more liabilities e.g. new cars, new gadgets, new loans, etc.


Knowing what you can afford


Before you start looking for potential property, such as asingle attached house for sale in Cavite, find out how much you can afford. This way, you can set your sights on an affordable home and manage you and your family’s expectations.


So, how do you know how much you can afford?


  • The 2.5 rule


Withthe 2.5 rule, you must multiply your yearly income by 2.5 to determine how much you can realistically afford.


For example, if your family’s net monthly income is 45,000 per month, that should fall around Php585,000 per year (including 13th-month pay). When you multiply this value by 2.5, you will arrive at roughly Php1.5m, which you can use as a basis for finding properties that you can afford.


  • The 28% Rule


This rule states that your housing expenses (amortization, rent) shouldnot exceed 28%of your monthly disposable income. So if you have a monthly income of Php 45,000, your housing expenses should not go over Php12,600.


Factors to consider when choosing a house


Here are some factors that you should consider before you start looking at properties:


  • Location.Think about the perfect place for you and your family. Are you going to live in the city or the province? Is the property near your work, your kids’ schools, and the necessities? Is the area safe and in a non-flood prone area?


  • Price.Using the rules stated above, can you afford the house? Don’t forget to consider other expenses, such as taxes, fees, and repairs.


  • Features.Does the house cater to your needs and preferences? Is there enough space for you and your family? Is the house easily customizable?


  • Timing.Don’t rush into decisions that you are not ready for. If the timing feels off, suspend your house-buying plans for now.


With this guide, buying a house never seemed so achievable before. You can be one step closer to achieving your dream of becoming a homeowner.