Most OFWs have the financial capability to buy a house-and-lot in Cebu. Most likely, you can afford it! And you start thinking of buying a house for your family.
But how do you know what type of house can you afford to buy? Where you find these best homes for your family? What are the important things to consider since you are residing abroad?
In this blog, we offer some practical tips for OFWs, and hopefully, they enjoy the home search even when they are living abroad. Check it out!
TIP 1: BASED ON YOUR INCOME, WHAT TYPE OF HOME CAN YOU AFFORD?
When an agent asks you about your budget for the house-and-lot, don't think of million pesos rather think monthly. When you heard a P5 million house, you immediately think that you can't afford, right? However, when you check the home loan monthly amortization and you take into consideration your income, you can really afford it. Take for example the first house (below) with P4.9 million price tag. How much is the monthly amortization? P28k. Can you afford it or not? This home loan requires gross monthly income of P90,000. If you are earning more than P90,000, then you can afford this beautiful house. This house is better than the starter house, like a townhouse with 2 bedrooms. Don't settle for less when you can afford a more permanent house that has 4 bedroom and in a gated community with resort-like amenities. To help you determine your capacity to pay or budget for housing, follow this formula: You get your household's gross monthly income (your income plus your partner's income) and multiply it by 30%. The sum is your monthly budget for housing. To illustrate, if your gross monthly income is P85,000 and your spouse has P75,000, your household gross monthly income is P160,000. Your monthly budget for housing in P48,000. Based on the example above, you can search for a condo or house-and-lot with P48,000 or less monthly amortization. With this budget, you can buy a single detached house, which is the biggest house in the subdivision with modern amenities such as swimming pool, community playground (basketball, children play area, etc.) and other resort-like amenities. Below are the type of house-and-lot that you can afford. This 2 Storey Single Detached House-and-Lot is a good choice for your family. It is located in Pajac, Lapulapu City.
Lot Area: 125 sqm Floor Area: 106 qm
3 Bedrooms 2 Toilet And Bath Price: 4.9M Reservation: 30,000 Equity: 161,487/month for 6 mos Home Loan: 27,486/month for 20 yrs
If you prefer a low-density housing project, consider Breeza Scapes in Pooc, Lapulapu City, near Opon Public Market. It has complete amenities: clubhouse, basketball court, children playground, entrance gate and guardhouse, 24/7 security.
Lot Area: 134 sqm Floor Area: 127 sqm Master’s Bedroom with Balcony 2 Bedrooms 2 Toilet And Bath
Price: 6.8M Reservation: 60,000 Equity: 36,213/month for 36 months Home Loan: 37,522/month for 20 years
TIP 2: CONSULT AN AGENT
You can consult us for the available properties that fit your budget. We will help you find the best home for your family. We shall discuss the pros and cons of the selected properties. You can also check our website for property listings.
TIP 3: APPOINT YOUR REPRESENTATIVE
You need to appoint your attorney-in-fact. Make sure that you can rely on him/her. Your attorney-in-fact can be your spouse, child, sibling, or a close member of the family to represent you in the homebuying transaction.
You can appoint him/her by executing an Special Power of Attorney (SPA) in the Philippine Consulate office near your work. Consularization is the process of authenticating legal documents with a seal and red ribbon while on foreign soil.
Basic requirements are:
Tax Identification Number (TIN)
Proof of Income for three monthsEmployment contract in English
Certificate of Employment and Compensation (consularized)
Post-dated checks
Proof of billing in the Philippines
Photocopies of passport and other identification
TIP 4: COMMUNICATE THRU EMAIL
This is advisable for documentation purposes. If you talk to the office staff, make sure that whatever agreements must be put into writing or must reflect in the documents that you or your representative affix your signature.
TIP 5: OPEN A CHECKING ACCOUNT IN PH BANK
If you have a local bank account, ask your representative to open a checking account in your behalf. You will use it in the issuance of Post-Dated Checks for the monthly down payment.
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!.