Buying your own home is one of the bucket lists every one of us has. Most of us think of that as part of retirement or investment as we work hard every day being a slave for the company we’ve been working for decades. As part of this, I want to share my experience as a real estate property marketer of what are the things we need to be aware of, in terms of the process and payment stages as we go along in paying your house and lot or condominium. This is very important for you to avoid disappointments in the middle of paying your monthly amortizations. To know your expectations of how much is the total price including the interest rate of your property is a “MUST”
Either you loan it from Pag-IBIG, Bank Institution, or In-House financing. You need to know this before engaging in a long-term payment obligation. Developers have its different payment policy, this is just an idea of how the sequence you need to prepare for it.
It all starts with “RESERVATION”
This is a reservation payment to hold the property unit you want. More likely it is around PHP 10,000 or higher. Reservation for some developer is not refundable, so be aware to lost money if you changed your mind not continue in buying.
Next is “EQUITY “
This is the portion of the property you truly owned. The current value of the property at the time you buy it, less the loanable amount from your financial institution. In this process, you are going to sign a contract to sell from the developer and arrange your payment options. Either PDC, bank transfer, on-site payment. The terms of this are mostly 2 yrs. depending on the status of the property you are buying.
A simple formula is like this,
Equity = Total price – Loanable amount
“MONTHLY AMORTIZATION” and its Move-In time
This is the terms of how many years and the interest rates are all computed by the financial institution you’ve loan your property. The most important process you need to understand of how much interest rate you are going to be charged and the penalties of late payment. Most buyer’s overlooked this and realized later how much interest rates they are paying disappoint them.
A sample computation from a BDO Mortgage calculator, see in red the exact amount you will be paying including the interest for its corresponding terms.
Points of View:
It is important to be aware of something you will be investing in so that you will become aware of what you are getting into.