3 main factors to consider when choosing a property
REAL estate provides a very rewarding return on investment in planned and done right, but there’s more to it than purchasing the first decent property that you see. With the current economic climate, there’s no shortage of properties with ideal attributes to choose from. Although this is good in providing more options to buyers, it makes choosing the right property slightly more complex.
Here are the most important factors you need to consider when you are considering your home purchase:
1. Affordability It takes a good amount of fortune to invest in real estate. This is why before choosing a property the main concern of most is whether they can afford it or not. The first to consider before buying a property is your debt to income ratio.
Most often than not, banks or Pag-IBIG will be financing your property purchase. They will pre-approve you for a housing loan, will let you borrow the amount that they think you can afford to spend for your house. However, this is not an indication for you to borrow the maximum amount because eligibility and affordability are two different things.
2. Convenience and amenities Real estate is truly about location. It’s common knowledge that the nearer a property to industrialized and business districts, the more expensive it will get. Also, landed properties are more expensive than a condominium unit in developed areas such as Bonifacio Global City, Makati, and Cebu due to land scarcity.
3. Brand new vs sub-sale property Sub-sale properties require more scrutiny than a newly built and dispersed property. However, they’re more affordable and many can be in strategic locations. Before jumping the gun though, make an effort to inspect the property and its surrounding. Will you require extensive renovation that might cost you more money than buying a newly developed property?
Impulse buying is definitely a no-no, especially when it comes to a real estate. Before purchasing a property, you should always do your homework first. iMoney.PH