While buying a condominium unit is one of the best long-term investments you can make, it’s an intimidating idea, especially when you’re single. If you’re excited to own one soon, here are things to consider to help you make a smart choice.
1. Remember the 20% Rule.
To secure a condominium for sale, most real estate developers require a 20% down payment.For example, if the unit is valued at Php2.5 million, you’ll need to shell out P500,000 upfront.
The good news is that many developers implement a staggered payment scheme, especially if it’s for a pre-selling project. You’ll be able to settle the deposit in two year’s time.
2. Look for a unit you can comfortably pay for with a single income.
Keep in mind that there’s no spouse or significant other to help out with the payments. Banks might be lending you a smaller amount since there’s only one income on the table.
Make sure you can afford the monthly amortizations even if you experience setbacks like losing a job or a lingering health condition, which could affect your financial health.
3. But wait, there’s more (gastos)!
The expenses don’t end with the actual unit price. You will need money to spare for things like broker fees, property taxes, home insurance, association dues, moving in expenses, and furnishings – unless you prefer to sleep on the floor or eat out every day.
Are you really financially (and mentally) prepared? Take this quiz and find out.
4. Clean up your credit history.
If you’re applying for a home loan, keep your credit history spotless. A credit history tracks how you’ve used credit over the years (i.e., credit cards and personal loans, among others). It shows how responsible you are in settling your debts. Banks will review your credit history to determine whether you’re capable of making payments on time or not.
Apart from having an excellent credit history, there are ways to speed up the approval of your home loan application.
5. Don’t be afraid to start small.
Studio units exist because there’s a market for it: people like you who are planning to move out of the family home and live independently for the first time. So it’s perfectly fine to go for a “starter” unit.
Cheer up! Take comfort in the fact that you don’t have to stay in your first condo for the rest of your life. Your salary will increase, you’ll (hopefully) have more savings, and you’ll eventually be in a position to make sound financial investments. You can always move to a bigger place and get the unit layout that best suit your new needs when the time comes.
6. Prioritize your safety.
If you’re single in the city with a busy career and social life, chances are there’s no one in your unit most of the time. Make sure the condo is in a peaceful neighborhood.
Check also if the property developer has deployed security measures such as CCTV cameras, 24/7 roving personnel, and elevator access cards exclusive to unit owners.
7. Does the property complement your lifestyle?
Are you a gym buff? Are you a foodie who likes to try out new restaurants in the neighborhood? Is it close to where you work and to places where you love to hang out with your friends? Choose a property that lets you live the life you want.
8. Consider the future.
Look a little further down the road. You might relocate overseas or transfer to a new job in a different city. Who knows, you might not be single a few years from now; you could be married and thinking of starting a family.
Think of these possibilities while shopping for a condo and look for a unit that can function as your primary home and eventually, as an investment.
Ready to own your first condo? Check out units for sale here.
