Planning for First House - Any Tips?

**jut703** · May 19th, 2014 10:41 PM

Hi guys, I'm hoping to be able to work towards having my own house in the next 3-5 years. Thing is, I'm pretty clueless on where to start.

Currently
- I'm able to save about half my monthly income
- I have an emergency fund of about half a year's worth of expenses
- Rest of my savings goes to investments
- Single-parent home with 2 siblings still in high school/college
- No own home, currently renting
- Planning to get married in about 5 years

Not so keen on getting a condo since it's pretty hard to dispose in the long run. I must say though, I'll really miss the convenience of being near everything.

Right now, am pretty overwhelmed with the thought of home ownership.

1. How does one start looking for a house?
2. Is it still possible to live in a decent neighborhood in the metro for under 10M?
3. Where's a reasonably good place to live?
4. Is it better to buy a built house or just a vacant lot and have a house built (I have an aunt with her own construction firm, I might be able to save a little on building costs)?

I'd appreciate any inputs on this..thanks!

Posted via Tsikot Mobile App

**Manilablock** · May 19th, 2014 11:03 PM

Since you have the money, i say buy a lot, fence it first, plan the area of your house, rest of the are start your landscaping. Possible din na ung future house location ay lagyan mo muna ng nipa hut, para maging rest house nyo.

on planning your house, itaas mo ung floor to ceiling height, sa weather natin ngayon mas mataas ang kisame mas magiging malamig ang haws mo.

**EQAddict** · May 19th, 2014 11:04 PM

All i can say is start early. Land and condo prices are going up and up and up. The sooner you start, the sooner you can lock in the price. Think of it as forced savings.

With 10m as your budget you have many choices open to you. Check out sulit.com and browse like mad for the next month or so. Go on site trips. Take a feel of the communities as much as you can.

Personally, i went the empty lot route. Then built a house. Then upgraded over time. Now im investing in condos and other real estate but live in a house. Im in QC. But many other places in the south or east that you can look into as well.

The trick is to do this while youre young. If you will avail of a housing loan, you dont wanna do this in your fourties believe me. By then you just want to relax. And by the time you finish paying of your loan, your property would have doubled or tripled in price.

Get in while you can.

A property today will most likely be cheaper than the same property a year from now.

Posted via Tsikot Mobile App

**jut703** · May 19th, 2014 11:07 PM

Thanks for the inputs. Forgot to factor in the whole aspect of loans.

How do I go about it? I can't imagine saving up first to pay for a residential lot in cash, baka super mahal na by then..

Posted via Tsikot Mobile App

**EQAddict** · May 19th, 2014 11:14 PM

Yup. Leverage via banks is key. They drive the economy.

Take advantage of low interest rates while you can. Condos have good deals where you can put 20% down spread over three years and then can get a bank loan for the next 80% after that. This plays into the fact that you know (or are confident ) you will be earning more in three years time and hence can afford the amortization fees then.

Its a bit trickier for land as you normally have to pay for it in full . Bank financing helps but your stuck with the full amortization from day one. Nevertheless this is the route i took myself. Never regretted it.

Look around, there are some developers who sell house and lots or even just lots with longer downpayment terms.

Posted via Tsikot Mobile App

**jut703** · May 19th, 2014 11:26 PM

Originally Posted by EQAddict

Its a bit trickier for land as you normally have to pay for it in full . Bank financing helps but your stuck with the full amortization from day one. Nevertheless this is the route i took myself. Never regretted it.

Look around, there are some developers who sell house and lots or even just lots with longer downpayment terms.

Posted via Tsikot Mobile App

What's the process ba if I wanna buy a lot now? Sorry for being super clueless about this.. 😂

Posted via Tsikot Mobile App

**EQAddict** · May 19th, 2014 11:33 PM

There are a ton of real estate agents who will happily separate you from your money - ahem, i mean start you on your path to home ownership. Shop around . They will give you more help then i possibly could. Go to skyscrapercity forums and there lots of tips there.

My 2 cents:

Be honest with yourself as to:

1. How much downpayment you can afford
2. How much monthly amortization you can afford
3. Project how much future earnings you will have (i.e. Yearly bonuses that you can partially use to fund lump sum payments to lessen monthly amortization)
4. These budget parameters will more or less dictate what locations and areas you can potentially invest in. Whip up that ipad, load the sulit app and browse to your hearts content.

Again, not all downpayments are lump sum. I.e. They spread the 'downpayment' over X couple of months or even years.

Posted via Tsikot Mobile App

**EQAddict** · May 19th, 2014 11:38 PM

The key here is your bank as they will finance it for you.

After you have found your dream parcel of land or condo or house and lot, work out the financing details between you, the developer and the bank. You will have to have ITR and other financial documents ready. The bank will also appraise the property. Be prepared to pay some modest fees.

Its really painless at the start. Most developers want it that way and have made this into a science. If you are prudent with your money, it will be painless for the entire term.

Just do not bite off more than you can chew.

Posted via Tsikot Mobile App

**EQAddict** · May 19th, 2014 11:42 PM

If you get married, then its hopefully double income (and not double expenses). And then the monthly payments can be shared and will feel a hell of a lot lighter. You will be able to start building your house much faster.

Posted via Tsikot Mobile App

**yebo** · May 19th, 2014 11:52 PM

And, before paying a single centavo, make sure:
1. It does not flood. Ask around. Do not rely on the owner's words, or even the neighbors as they may be in cahoots. Ask as far away as 1 or 2 blocks from the property, behind and front. Check the map, especially the metro flood map.
2. Check for squaters around the area. It is not just on the property itself but around the subdivision also. Their presence not only lowers the property value, they also put the security of the place in question.
3. Check the papers are legit and that there are no encumbrancies. You will need to get a true copy of the title amd then verify it at the local register of deeds.
4. Make sure the real estate property taxes are up to date. If not ask them to pay first, baka mamya for auction na pala yung property.