HOME BUYING TIPS

BUYING OR RENTING a residential property necessitates considering multiple factors, topmost of which is one’s priorities, according to real estate services provider KMC MAG Group.

“Matching the location to your lifestyle is very important. Singles and young professionals would want to stay close to transportation and entertainment hubs and spots like gyms, malls, restaurants, etc., while most married people would prefer villages or subdivisions that might be far from the city center, but offer proximity to good schools and quiet neighborhoods,” Angela Manese, KMC MAG Group Residential Sales and Leasing manager, shares on her two-part “A Guide to Residential Spaces in the Philippines” Web series posted on KMC MAG’s blog.

Investopedia, which offers financial content online, says that since one’s home is also an investment, its location is vital in determining its future value. Besides the proximity to work, leisure spots, medical services and schools, it adds that safety is a must at the top of the list. “You’ll often pay less to live in an area with higher crime, but if you’ll have to live in fear or if you one day become a victim, no price discount will be worthwhile. It may also be harder to resell your home or get a good price for it if you decide to sell,” it says in its “Buying A Home: Choosing Your Location” article.

Homebuyers may opt for either a house and lot (single- detached, single-attached, duplex, or townhouse) or a condominium unit ( lowrise, mid-rise, and high-rise) depending, of course, on how much they can shell out.

“Another important consideration is your budget. Purchasing a property that’s not within your means may only cause a bigger problem, and in the end, you might just end up losing it while swimming in debt,” KMC MAG’s Ms. Manese emphasizes.

She advises that one must have a debtto-income ratio that falls between 10% and 30%. Debt-to-income ratio measures one’s ability to manage monthly payment and repayment of debts. This is done by dividing the gross monthly income by the fixed monthly expenses. For instance, for someone who receives a monthly salary of P150,000, P30,000 of which goes to food, transportation, rent, and other bills, the debt-to-income ratio is at 20%. This makes him fit to get a house or a condo unit that requires P15,000 a month, Ms. Manese explains.

She adds that the third consideration is so- called deal-breakers, as it is truly difficult, if not almost impossible, to find the perfect home that can give one everything he wants.

“Narrowing down your absolutes will be a sure way to avoid wasting time on unsuitable properties, and instead allow you to determine exactly what you are willing to compromise on and what you simply can’t live without. The key is to ask yourself: ‘ If you only have a certain amount to spend, how exactly would you use that money to best benefit your needs and reflect your lifestyle?’” she notes.

She recommends that expatriates choose condominium units that are close or right within the vicinity of the country’s central business districts or CBDs. “The value of these properties do not easily go down, especially since they provide convenient access to airports, hospitals, offices — basically the entire city center,” she says, adding that these CBDs have the living conveniences similar to those places these expatriates are originally from.

For starting families, house and lots that are a little father from the CBDs are advisable as these locations have larger and more affordable spaces, according to Ms. Manese. Young professionals, she says, may look at apartments and condos near the CBD though those who eye a unit offered at lower price may choose one outside the CBD. “You might also want to invest in a condo that’s close to main transportation ( i.e. MRT, LRT, bus stops) to make it easier to get to and from the office,” she adds.