As an OFW, you might be wondering if you can afford a house-and-lot in Cebu. The good news is, you probably can! If you're thinking about buying a home for your family, this guide will help you navigate the process, even from abroad.
Tip 1: Determine Your Affordable Home Type
When talking to an agent about your budget, focus on the monthly cost rather than the total price. For instance, a PHP 5 million home might seem out of reach, but when you break it down into monthly payments, you might find it's more affordable than you think.
Take this example: a house priced at PHP 4.9 million has a monthly amortization of PHP 28,000. If your gross monthly income is PHP 90,000 or more, you can comfortably afford it. This means you don’t have to settle for a smaller, less permanent home.
To calculate your budget, use this formula: Multiply your household’s gross monthly income (your income plus your partner's) by 30%. This is your ideal monthly budget for housing.
For instance, if your household’s gross monthly income is PHP 160,000, your budget for housing would be PHP 48,000. You can then look for homes with a monthly amortization of PHP 48,000 or less. 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 3: Appoint a Trusted Representative
Designate a trusted person, such as a spouse, child, sibling, or close family member, to represent you in the transaction. They will handle the process on your behalf by executing a Special Power of Attorney (SPA) at the Philippine Consulate near you.
Basic Requirements for SPA:
Tax Identification Number (TIN)
Proof of Income for three months
Employment 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: Use Email for Communication
For documentation purposes, always communicate via email. Ensure that any agreements are documented and signed by you or your representative.
Tip 5: Open a Checking Account in a Philippine Bank
If you don’t already have a local bank account, ask your representative to open one for you. This account will be used for issuing Post-Dated Checks for your monthly payments.
This guide is for educational purposes only. Consult a lawyer for advice on your specific situation. If you have any questions or need personalized assistance, contact us at 0920 207 5035 or email cebuhousefinder@yahoo.com. We're here to guide you every step of the way, ensuring a smooth and confident buying experience.
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