Congratulations, bride- and groom-to-be! Are you thinking of buying a house after marriage? If so, you’re on your way to start a life together in a brand new DMCI Homes condo. But before you sign that contract, you need to know these condo buying mistakes newlyweds shouldn’t commit to have a hassle-free condo living experience.
Not getting a good, trusted real estate agent
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Before you newlyweds buy your first home, you need to find a good and trusted real estate agent. Remember, you’re dealing with a big sum of money here so some may be tempted to get a little piece of that. Find out if the person you’re talking to is a certified real estate broker and is knowledgeable about the process of buying a condo.
It would also be great to have someone who prioritizes his clients over getting a quick sale. Having a trusted agent will make the buying processes easier and less confusing for both of you. You might even end up having a good friend after all has been said and done.
Deciding on your own
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Buying an apartment after marriage involves a lot of decision making, such as whose name will be written on the title, as well as who and how will you pay to name a few. This means that everything must be talked about and decided by both of you. That’s part of the commitment of being married.
Avoid making decisions on your own –especially when making big purchases such as buying a house after marriage. By making it a habit to inform your intentions to your significant other and deciding on an action plan together, you avoid unnecessary arguments or, worse, a failed marriage.
Is this the middle ground?
One of the things you and your spouse need to agree upon is the location of your condo unit. Unless one yields, chances are the both of you would like to live somewhere near the workplace of you and your spouse.
Your condo can also be somewhere that’s near your office, hospital, church, police station, or malls and give the best living options for newlyweds. Or maybe the both of you would like somewhere that’s quiet. The important thing is that you decide as one.
Going in without emergency funds
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If there’s one thing in common when it comes to marriage and finance, it would be that both will always have ups and downs. Everything will be great and wonderful during the highs, but your relationship will really be tested when trials come in – especially when it comes to finance. The pending bills such as your condo’s monthly amortization and living expenses will certainly stress the both of you.
That’s why it’s highly recommended to set up emergency funds before newlyweds buy a home. Emergency funds should be at least three times your combined monthly income and must be easily withdrawn for when the time comes. It’s also advised that even if you reach the threshold, you should continue to build your emergency funds. Having this will help you when you or your spouse loses their job or any untoward incidents happen to them.
Forgetting to factor in other expenses
During your married life, you’ll probably be buying and paying for a lot of stuff such as your car’s amortization, car maintenance, living expenses, and other bills. When you’re planning to buy a condo, you need to factor this into the equation to see if you can afford to live in a condo. Remember that your monthly amortization and association dues will go on top of what you’re currently spending on a monthly basis.
Miss out on payments
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Part of being married is being financially responsible. Avoid missing out on your monthly payments so that you don’t have to deal with the penalties or, worse, have your contract canceled. Don’t worry. You do have a grace period based on Republic Act No. 6552 AKA the Realty Installment Buyer Protection Act.
This will allow you to pay unsettled amortization without added interest if you’re able to pay for two years straight. Your grace period can be calculated at a fixed rate of one month for every year of paying installment.
Using your credit card to pay amortization
Credit cards are very convenient. It lets you pay your bills and buy items without the need for cold hard cash. All you need is a swipe of a card. Sadly, this isn’t the way you want to pay huge amounts like the monthly amortization of your new condo unit. While it allows you to pay it instantly and hassle-free, you might pay the price (pun intended) when you miss the deadline.
Why? Two words – interest rate. You can be paying as low as 2% to as high as 3.5% in interest rates if you miss out on your monthly credit card payment. If your monthly amortization is around Php 10,000, that would be an additional Php 200. Sure, that may sound like a small amount, but know that your condominium’s monthly amortization can go higher, depending on the location, developer, rooms, and amenities. Not to mention the possibility of someone getting your credit card details as you hand it to other people to “conveniently” swipe it.
Not making any future plans
There is nothing certain about anyone’s future. The best way to prepare for the worst is to plan ahead. That being said, you might want to get insurance for your condo and your life. It sounds a bit dark, but you wouldn’t want to be left to pay for everything by yourself in case something happens to your spouse (knock on wood).
Having insurance, starting a small business, building your emergency funds, and investing in the stock market are surefire ways to prepare for whatever life throws your way in the future. That includes paying for your condo.
Skipping on parking space
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Whether married or single – one of the biggest mistakes of anyone planning to live in a condo is skipping on buying a parking space for their car/s. New renters or condo owners think that they can simply park anywhere they want in condo spaces, but that’s not the case.
Don’t forget to buy your own parking space. Not only will you have a place to park, but it will also give you peace of mind knowing that it’s safe from carnappers or irresponsible drivers on the road.
Not putting everything in paper or on record
Before thinking of what do newlyweds buy for their brand new condo, it would be wise to have your attorney write up a prenup to protect your personal assets or when you buy a house before marriage. The legal implications will save or protect you with your rights to your property in case of an annulment (again, knock on wood). This will help you to be able to claim what’s yours through a written contract made prior to the purchase, saving your precious resources rather than fighting for it in court.
Buying a brand new condo for your married life is no joke. It would be wise to do as much as you can from this list to avoid making the common condo buyer mistakes, whether you’re married already or about to.
