Purchasing a home is more than a financial decision—it’s an emotional journey that impacts your life and the lives of your loved ones. To make this experience fulfilling and stress-free, consider these three crucial questions:
What is your purpose in buying the property?
What is your budget?
Where do you want to live?
Understanding Your Purpose
Finding the true purpose behind your property purchase transforms it from a simple transaction into a deeply meaningful investment. Imagine the joy and fulfillment of moving into a home that perfectly aligns with your aspirations and lifestyle. Clear goals ensure you choose a property that enhances your life, bringing you not just comfort but a profound sense of achievement and satisfaction.
Case Example: Buying a Home for Your College Daughter
Visualize the pride and relief of supporting your daughter as she starts her college adventure. The right home can make all the difference, providing her with a nurturing environment that supports her academic and personal growth. By carefully considering these factors, you ensure her college experience is not only successful but also joyful and secure:
Type of Home: Condo or House?
Safety and Security
Convenience and Comfort
A. Why a Condo Might Be the Better Choice
A condo near USC-Main Campus isn’t just a practical choice—it’s a thoughtful gesture that enhances your daughter’s well-being and happiness:
Proximity to University: Picture her comfort in knowing she’s just minutes away from her classes, reducing the stress of commuting and giving her more time for studies, social activities, and relaxation. This close proximity allows her to immerse herself in campus life, making every day less stressful and more enjoyable.
Affordability: Affordable condo options mean you can provide her with a beautiful, secure home while staying within your financial means. This balance brings you peace of mind, knowing you’re giving her the best without overextending yourself.
B. Safety and Security
Imagine the profound relief of knowing your daughter is living in a safe, secure environment. Condos offer advanced safety features like 24-hour security and surveillance, providing you with the comfort of knowing she’s protected around the clock. This added security isn’t just about protection; it’s about the emotional assurance that she’s safe, allowing you to focus on supporting her dreams without worry.
C. Convenience and Comfort
Think of the daily joy of living in a home where everything you need is within walking distance. From convenience stores to dining options and public transport, condo living makes life easier and more enjoyable. This convenience not only reduces daily stress but also enriches your daughter’s college experience, giving her more time to focus on what she loves and less time dealing with the hassles of city life.
Determining Your Budget
Setting a budget isn’t just about numbers; it’s about creating peace of mind and security. Envision the comfort of knowing your home purchase fits seamlessly into your financial plan. By managing your budget wisely, you ensure a future free from financial stress and enjoy the satisfaction of a well-planned investment. This financial stability allows you to focus on enjoying your new home and the experiences it brings.
Example: Townhouse in Mactan Island, Cebu
Choosing the right financing option is more than a financial decision—it’s about securing your future with confidence and peace of mind. Imagine the comfort of understanding your payment options and selecting a plan that aligns with your budget. This knowledge empowers you to make informed choices that ensure long-term satisfaction and financial stability, allowing you to enjoy your new home without financial strain.
(a) Buying the townhouse through the Pag-IBIG Housing Loan Total Contract Price: P2,900,800 Reservation Fee: P15,000 Home Equity/Down payment: P506,800 (payable for 42 months)
1st - 12th month: P 9,000/month
13th - 24th month: P 11,500/month
25th- 36th month: P 13,500/month
37th - 42nd month: P 16,467/month
Note: This is a ladderized equity payment scheme. This is good because you start only at P9,000 per month in the first year.
Home Loan: P2,379,000 (also called the loanable amount)
30 years @ P 13,322/month
25 years @ P 14,432/month
20 years @ P 16,197/month
15 years @ P 19,281/month
10 years @ P 25,671/month
5 years @ P 45,305/month
You select your loan term. If you can afford the 10 years term, get it because you only pay a little amount for the interest. Get 15-20 years of options if you can afford them. If you are tight on budget, get the 25 years or 30 years options. These figures are only estimates of your monthly amortization.
(b) Buying the townhouse through bank home financing.
Total Contract Price: P2,900,800
Reservation Fee: P15,000
Home Equity/Down payment: P275,080 (payable for 28 months)
Monthly Equity: P9,824/month
Home Loan: P2,610,720
20 years @ P 17,959/month
15 years @ P 21,332/month
10 years @ P 28,333/month
5 years @ P 49,868/month
These are the two options for home financing (Pag-IBIG or bank). It's up to you which financing program is fit for your budget. These figures are only estimates of your monthly amortization.
The monthly amortization refers to your home loan repayment. The home loan provider (e.g. banks, Pag-IBIG Fund, etc.) will assess:
your creditworthiness (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 fewer taxes and other expenses),
the loan-to-value ratio, or
your actual need.
Aside from the monthly amortization, you also need to prepare for the equity/down payment and the miscellaneous fees.
The home equity or 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.
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 subdivision dues).
Choosing Your Location
Selecting the right location is more than finding a place to live—it’s about finding a place that feels like home. Visualize the joy of settling in an area that supports your lifestyle and aspirations. Whether it’s the vibrant pulse of Cebu City or the serene beauty of Mactan Island, choosing the right location enhances your daily life and provides a lasting sense of belonging and satisfaction.
Where do you want to reside?
Location. Where you do want to reside? The house you buy could be where you spend most 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 about 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 those in Mandaue City and other northern areas such as Consolacion, Liloan, Compostela, and Danao, as well as Talisay City and other southern areas like Minglanilla, Naga, San Fernando, and Carcar.
Mactan Island is an excellent location to invest in because it hosts some of the most expensive condo projects (resort-type condo living) in Cebu. However, there are also a number of affordable housing and condo projects closer to Cebu City.
In Mactan, you can still purchase a PHP 2 million townhouse in Lapu-Lapu City. Once the Cebu–Cordova Link Expressway , or the 3rd bridge, opens to the public by 2021, it will only take a few minutes to drive from Mactan Island to Cebu City. Why buy a P5 million townhouse in Cebu City when you can get a P2 million townhouse in Lapulapu City? Contact us for more listings of townhouses in Mactan Island, Cebu.
Instead of Mandaue City, consider looking for houses in Consolacion, Liloan, or even Compostela, where major Cebu-based developers like Aboitizland and Primary Homes have built their communities. Why Compostela? The Dapdap-Paril road connects Compostela to Cebu City without passing through Liloan, Consolacion, and Mandaue City, is currently under construction. You should consider the traffic situation in your future residence.
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This discussion is for educational purposes only. Consult your lawyer for advice on your specific case. For any questions, contact us.
If you’re planning to buy a residential lot, house-and-lot, or condo unit, get in touch with us at 0920 207 5035 or email cebuhousefinder@yahoo.com for free assistance.
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