Finding your "dream house" is not really difficult. There are 3 basic questions to guide you.
What is your purpose in buying a house/condo?
What is your budget?
Where do you want to live?
In this blog, let us consider these 3 basic questions and hopefully, they can be useful guides in your home search.
WHAT IS YOUR PURPOSE?
Purpose. What is your purpose in buying a new house/condo? Is it for personal or family use? If you are from Mindanao, is it a home in Cebu? Is it for rental business? The answer to this question about purpose will determine what type of home that suits your needs and lifestyle. Based on your needs and lifestyle.
If you are still living with your parents, you think that it is time to have your own home. It doesn't mean that cut-off your filial relationship but you are exploring your ability to live as an independent adult.
When you have your own home, you can design the interior with your preferred decor, furniture and appliances. It's freedom to have a final say in your home. Although our parents, especially mothers, tend to help us design our home (often, we like their taste) and let us allow them to help.
In choosing your home, be it a house or a condo unit, what is your preference? Do you want your home near your workplace and free yourself from traffic woes and stress? A home near schools, hospitals, shopping malls, supermarkets, convenience stores, leisure and entertainment places, etc.? Do you prefer a home with lush gardens and parks, abundant fresh air, a quiet place away from the noise and pollution of the city, etc.? The answer to these questions will help you narrow down your search for a property. Based on your personal concerns.
If you are working abroad for years, you have a significant savings for housing. Don't settle for the starter home when you can afford a bigger house. Think of the future.
Think of your family living in a secured and gated subdivision with modern amenities such as the clubhouse with swimming pool for the young and the adult, basketball court and multipurpose court for your teenage children, jogging trail and fitness gym for healthy active lifestyle, parks, playground and lush gardens for your children to play with other kids in the subdivision, among other facilities and amenities.
Your primary concern should be the safety and comfort of your family. Based on your specific purpose.
If you are looking for a residence of your daughter who is going to enroll in the university, you need to consider 3 things: (1) safety and security, (2) convenience and comfort, and (3) cost of the property.
Safety and Security. The primary concerns of parents for their college students, especially daughters, are their safety and security. Between the condo unit and the townhouse, condo living is a lot safer and more secure compared to living in the townhouses which are located in the remote areas of the city.
In fact, it is rare to find a townhouse in the central districts of the city. There are housing projects which are accessible only through the tricycle and habal-habal (motorbike with driver for rent) from the main road where the jeepneys (PUJ) are passing through. Obviously, these are not safe for college female students who may have night classes.
The condominium projects are usually located in the commercial districts near the universities. Thus, even when your daughter is going home late in the evening, you are not really worried of her safety. The condo itself has 24-hour security with CCTVs in strategic locations. It is also safe from floods and fires.
Convenience and comfort. Condo living offers comfort and convenience. Everything your daughter needs is just a walking distance. In some condo projects, there are convenient stores, restaurants, and other service businesses on the ground floor. Some condos are just a walking distance from the university, hospital, malls, etc. Living in a condo, you daughter doesn't worry about the heavy traffic.
2. WHAT IS YOUR BUDGET FOR HOUSING?
Budget. What is your capacity to pay or your budget for housing? As a rule of thumb, you don’t spend more than 30% of your income on housing. The formula can help: Multiply your gross monthly income with 0.30 and the result is your budget for housing.
If your gross monthly household income (include the income of your spouse) is ₱50,000, your monthly budget for housing is ₱15,000. Thus, you narrow down your home search to property with ₱15,000 monthly amortization. Consider the Home Loan.
The monthly amortization refers to your home loan repayment. The home loan provider (e.g. banks, developer's in-house financing, SSS or Pag-Ibig Fund) will assess your credit worthiness (or your ability to pay back your credit/loan) based on your capacity to pay (either computed based on your gross monthly income (household income before taxes and other deductions) or net disposable income (household income less taxes and other expenses), the loan-to-value ratio, or your actual need. Consider the Home Equity.
Aside from the monthly amortization, you need to prepare for the home equity or the down payment.
The down payment is the balance of the price of the property minus the loanable amount of the bank or Pag-Ibig Fund. In most cases, the bank covers only 80% of the Total Contract Price of the property and you need to pay the balance of 20% to the developer/seller, either in cash or in installments up to 60 months without interest. Consider the Miscellaneous Fee.
The miscellaneous fees include the transfer fees (e.g. government taxes in the transfer and registration of the property title) and move-in charges (e.g. water connection, electrical connection, and the subdivision dues).
3. WHERE DO YOU WANT TO RESIDE?
Location. Where you do want to reside? The house you buy is where you are going to spend the rest of your life. In fact, the property is yours for life and beyond as your children and their descendants can inherit the property. So, make up your mind where you want to reside. The location determines the price and the value of the property.
Properties in Cebu City, particularly in Cebu Business Park, IT Park and South Road Properties, are more expensive than the properties in Mandaue City and other areas in the north (Consolacion, Liloan, Compostela and Danao) and Talisay City and other areas in the south (Minglanilla, Naga, San Fernando, and Carcar).
Mactan Island is really a good choice of location to invest because it is a home for the most expensive condo projects (resort-type condo living) in Cebu but there are still a number of affordable housing and condo projects and yet closer to Cebu City.
In Mactan, you can still buy a P2 million townhouse in Lapu-Lapu City. When the Cebu–Cordova Link Expressway or the 3rd bridge is open to the public by 2021, it takes only a few minutes to drive from Mactan Island to Cebu City. Why buy a P5 million townhouse in Cebu City when you can get it at P2 million townhouse in Lapulapu City? Contact us for townhouses in Mactan Island, Cebu.
Instead of Mandaue City, look for houses in Consolacion and Liloan, even Compostela where the big Cebu-based developers like Aboitizland and Primary Homes built their communities. Why Compostela? Well, the Dapdap-Paril road connects Compostela to Cebu City without passing through Liloan, Consolacion and Mandaue City and is now an on-going construction. You need to consider the traffic situation in your future residence.
For more information about the topic or any inquiries about buying a property in Cebu, please contact us at 0908-301-7398 or send us an email at cebuhousefinder@yahoo.com. We help home buyers to find their dream house at the best price and location… for free!