You’ve already fattened your piggy bank. Now it’s time to crack it open and enjoy your hard-earned money. While you might find it hard to actually spend your savings, the decision to do so may become easier especially if you’ll be investing it in something worthwhile such as your first new condominium unit.
But with an overwhelming number of new and existing residential developments being offered in the market, how do you know which is the best and wisest option for you?
SMDC recently held a Facebook webinar called The Real Deal: Condo Buying for Beginners where industry and finance experts discussed the importance of investing early in real estate for Millennials and younger generations and things to consider when buying your first condo unit. The webinar was hosted by Nikko Ramos and featured motivational speaker, photographer and digital creator Nate Punzalan, content creator, financial coach and founder & CEO of Peridot Consulting Yani Moya, and Associate Director for Research Division of Colliers Philippines, Joey Bondoc.
Since it’s that time of the year for 13th month salary and performance bonuses, now might be the best time to put your hard-earned money into real estate. It can be a bit overwhelming, so let these experts share some tips that can help you get started on unlocking your achievement of owning your dream home:
Get your finances in order
Sure, you’re familiar with your own spending habits. You know how much you make and how much of your cash flow goes toward your needs and wants. But how intimately do you really know your finances?
Before buying a unit, you’ll need to know a lot more than your net worth. In fact, to determine what sort of property you can actually afford—and how you ought to start saving—you’ll need to take serious stock of your personal finances.
“My advice is to have a financial freedom fund. It’s the money you allocate for investments,” said Moya. “Regular employees can start setting aside 10 to 20 percent of their monthly income.” In short, you’ll need to know how much you’re truly capable of setting aside on a monthly basis before you can start shopping around.
“While it’s good to treat yourself, you should always remember the concept of delayed gratification…If we make the difficult decisions now, we could end up with a much easier future,” Punzalan added.
Do your research
It pays to fully understand what you’re getting into. Make sure to do a thorough research on what kind of development you’re eyeing, whether it suits your desired lifestyle and if you can use it in the long-term.
“Filipinos spend about 11 hours every day surfing the internet. 11 hours is enough for you to do your own research,” said Bondoc. “Don’t be afraid to ask a broker or your friends. They’ll be able to give a tip or two on how to make that major investment.”
Bondoc also advised buyers must see to it their future home is in a location that affords them proximity to business establishments, emphasizing these are the things that will give more value to one’s property especially when they want to sell or rent it out “The Philippines has one of the highest yields in terms of investing, meaning if you buy a unit now, you will be able to make a good yield or return,” he said.
Among the projects you should consider would be those by trusted property developer SMDC, which has long been in the business of creating communities that prioritize value for money, security, convenience and sustainability.
Wide open spaces and corners where one can take a breather make SMDC a suitable home for professionals and growing families. Their developments are integrated with a commercial establishment and are right beside or close to an SM Mall, schools, offices, hospitals, and transport hubs. Amenities such as swimming pools, children’s playground, gardens, jogging paths, and basketball courts are all located within their properties.
Explore flexible payment schemes
Scout for the best, most flexible payment schemes that will fit your budget. “A lot of developers offer attractive, extended payment terms so they’re making sure millennials or young investors are able to afford the monthly installment payments,” Bondoc said. “Take advantage of these payment plans because before the pandemic, many companies didn't give these out.”
And of course, you’ll be able to take advantage of higher capital values or prices in the future and if you want to earn passive income, you’ll be able to rent it out.
Indeed, buying a home need not be such a daunting experience. Even during a pandemic, with careful research and determination, the keys to that dream home can be yours.