9 Ways to Know You’re Ready to Buy a Condo
The real estate market in the Philippines has been remarkably prosperous in recent years. In fact, a new survey by the Urban Land Institute and PwC recently revealed that Manila is now considered as one of the top real estate investment sectors in Asia for 2014.
Owning a condo in the Philippines used to be a possibility only for the extremely affluent, but these days more and more real estate developers are offering reasonable terms and smaller down payments to accommodate investors who are on a budget. Others also offer condo units that are available for renting.
Because condominiums are one of the leading investment markets today, people are becoming more aggressive in pursuit of owning a condo unit in one of the key locations in the country. Condo prices may be rising, but along with comes increasing financial opportunities—making condominiums one of the safest bets in investing.
Still, investing in real estate is a huge personal decision that would drastically impact your life. That is why it is very important that you’re mentally, emotionally, and financially capable before taking this big step.
So, you think you’re ready to buy your first condo? These 9 signs will tell if you really are.
1. You know you can afford it.
Buying a condo is a long-term financial commitment, and it’s important that you have a reliable source of income to back you up. The little extra expenses that come with condo living can sometimes be overwhelming to someone who’s still struggling to keep his finances in check. But if you’re confident about where you stand financially, investing in a condominium of your own looks like a great idea.
2. You have a substantial amount of money saved.
Having a sizable emergency fund is a great sign that you’re ready to buy your own condo. It is important to be sure that you can still pay for your monthly dues during times of unexpected financial distress. You need to have enough cash on hand to keep you going even if you encounter a slight disturbance in your steady income.
3. You have a good credit record.
There a lot of things to remember when buying a condominium in the Philippines. A decent credit history is a good indication that you know how to manage your money well. If you have your debts in check, and you know that you won’t need to max out your credit card during tough times, then you’re a step closer to being ready.
4. You’re ready to manage your own space.
Moving into your own place entails a lot of new responsibilities; you won’t have a landlord to call if something breaks. Simply put, you are responsible for your condo unit’s upkeep. So before considering buying a place of your own, make sure that you will have the time and energy to maintain it.
5. You have found your lifetime partner.
If you have a wife or fiancé, it may be the right time to buy a condo. Having two incomes to cover your expenses creates stronger financial security—something that would come in handy should one of you loses his or her job.
6. You’re ready to make a solid commitment.
Unlike with renting, you can’t just leave your condo when your contract is done. As mentioned earlier, buying a condo is a long-term commitment and usually takes at least three to five years of active financing. So if you think you’ll be staying put in one place for a while, you may be ready to buy your own condo.
7. You’ve done your research.
If you already have a fair idea of what type of condo best fits your needs—studio type? one, two, or three-bedroom? —and if you’ve done significant amount of research about the real estate developer you’re eyeing, you may be well on your way to becoming a ready buyer. Knowing what you want, as well as knowing all the pros and cons of actually purchasing it, is a good indicator that you’re making sound decisions.
8. You’ve considered a practical location.
Feasibility is a crucial determining factor that you’re ready to buy a condo. Before making a decision to purchase, considering best condo locations in the Philippines is very important. Make sure that the location of the condo unit is well within the area of your workplace, and is near key establishments such as health and leisure centers.
9. You see it as an investment.
Owning a condo is not cheap—it requires a sizeable down payment—but it is a great economic asset in this day and age. With the many financial opportunities of condo investment, you will find a multitude of ways to make use of your property for your financial benefit. You can rent it out, make it a venue for business, or seek capital gain and liquidate it after a few years. The possibilities are countless—and if you recognize this, then you are indeed ready to purchase your own condo.
So there—if you think you possess all these signs, then it seems like you’re ready. Make sure to talk to a trusted realtor, and seek favorable terms before taking the plunge. Be very thorough in your condo search, and never settle for less than your ideal unit!