3 types of homes for the first time buyer

Therese Reyes

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3 types of homes for the first time buyer
There are different types of homes, and it’s not all about the design

MANILA, Philippines — Buying a home for the first time is a significant milestone, whether it is for a young professional, a newlywed couple or even an older family.

But where do you even begin? Merrill Edge Financial Solutions Advisor, Wesley Gunter, and real estate expert Michael Corbett suggest that it is best to first ask yourself, “What’s the purpose of the home?” Then you would be able to figure out what house size would be appropriate for your family as well as the type of loan to avail.

Deciding on that dream house will be shaped by several factors. Some of the major ones to consider are lifestyle, a set budget and family size.

Lifestyle check

Are you always on the go or do you like staying at home? The kind of lifestyle you have will not only determine the type of house that’s ideal for you, but it will also give you an idea on what parts of the house to spend more money on and allot more space for. For instance, homebodies would appreciate a larger living area while those who are often out during the weekend might want a more spacious bedroom instead.

Consider budget

A house is a major investment and financial experts recommend that purchasing one shouldn’t be at the expense of draining savings.

For first time buyers, nailing down a budget also has a practical purpose – you won’t be looking into houses that you can’t afford to begin with, and you’ll have a greater appreciation of a house that matches your expectations but is also within budget.

Setting a budget will also prepare you against “bill shock”. Be sure to include additional materials, transportation of materials to site and even emergencies in your computation.

In availing a home loan, be sure to consult with financial experts. This will provide you with a clearer estimate of how much you can afford for monthly amortization. Try to look for exsiting promos, read up on how to apply for a loan, or use online tools such as a loan calculator to be a step closer to owning your dream home. 

Solo living or with family?

Family size is a very important factor. More than just buying a home, you want to make sure that you and everyone else in your family will be comfortable in that home. If you have young children, it’s vital to consider security and space.

Hold a family meeting, discuss what it is you all look for in a home, and consider everyone’s concerns when making your decision.

Once those three factors have been considered, deciding on the type of home should be easier. For first time homebuyers, these are prime considerations.

 1. A house and lot at a nearby province
Some shy away from the idea of buying a house and lot thinking that the prices are too steep. For more affordable options, look into ones you can find in nearby provinces like Cavite, Rizal, and Bulacan. Land in these areas cost significantly less than the average lot price in Metro Manila but are only about one to two hours away from the city.
According to Colliers International’s most recent data, a house and lot in Bulacan and Cavite average at P2.4 million and 2.6 million pesos respectively, as opposed to the 8.6 million it would cost you in Metro Manila.
If you’re not keen on leaving the Metro and want to stay closer to your workplace, properties in Taguig that are outside Bonifacio Global City are relatively cheap and near two bustling CBDs. This way, you can dedicate a larger amount of your budget to construction or topnotch materials and fixtures. 
 2. A condo unit in the heart of the city
If time is an issue and you’re looking into moving in right away, a condo would be your best bet. To optimize your finances, you can choose to rent out a room or your entire unit for a few months to help you pay for the mortgage. Condos are also ideal for early nesters or smaller families.
Condominiums by established real estate developers tend to be pricier, but you can still find units for as low as P49, 849 per sq m. Most condominiums are very accessible and are close to commercial centers and transportation hubs, so convenience is on your side. Cleaning and maintenance is also relatively easier.
 3. A family friendly town house
A condo unit might feel a little too cramped for bigger or growing families and if you’re not quite ready to let go of garden space just yet, investing in a town house could be the way to go. Townhouses in Makati will cost anywhere from P2.7 to 14.5 million. San Juan on the other hand offers a wider range of options that go from 4.9 to 20.8 million.* 
Most town houses cost less than it would to get a house built from the ground up, and if you want to stay in the city but aren’t too keen on high-rise developments, they provide a nice middle ground. 
Once you’ve figured out which type of house will suit your needs, make sure it’s an investment you can truly afford (Read: Cost saving tips for your first home purchase). Banks nowadays offer attractive home loan offers that could help you easily finance your home. You can even find one that will waive things like registration and service fees, helping increase your savings. Whatever house you choose, keep in mind that it’s a happy family that makes a happy home. — Rappler.com
 The Metrobank Dream Loan for Your Dream Home promo allows you to save up to P200,000 or 1% of your availed loan amount. The waiver includes registration fees, documentary stamps on REM, service fees and OPE, and variable fees like special power of attorney, additional title fee, and notarial fee. To get an idea on how much you can loan for your new house, use the Metrobank Loan Calculator. 
*Based on data provided by Metrobank
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