August 9th, 2021 | Updated on March 11th, 2022
As you’re buying your first condo, things can appear overwhelming if you don’t know where to start. Whether or not you have prior experience in buying a condo, it’s essential to have the necessary information to be in the right direction.
Buying your first condo is an empowering decision, but you need to know what you’re getting yourself into and what to expect upon doing so.
Considering factors like location, finances, and environment is one step to making the right condo-buying decisions you won’t regret. In the following, we’ll be discussing everything you need to know when investing in real estate.
Reasons To Buy Your First Condo
Everyone has different reasons for buying their first condo, just like you have your personal reasons for what convinced you to push through with it.
You might want to buy your first condo to live independently on your own terms, and it’s one of the most common reasons to invest in real estate.
There’s something unique and empowering about the experience of owning your home and choosing one within the location and budget that fits your standards. Because of their suitability to your situation, they’re also generally cheaper to purchase than other types of properties.
If you don’t want to commit to purchasing an entire property but want to live independently, condos are perfect for that purpose.
When deciding on a real estate investment for you, note that the condominium market may be an underrated market, but it is just as in-demand as every other real estate property.
Metro Manila’s condominium stock is expected to reach approximately 158,300 units by 2022, which is 22% higher than 2019.
Tips For First-Time Condo Buyers
1. Consider The Location
When you find a guide to buying a property or condo, you may find the location of your new condo is a very essential factor to consider, especially if you want to keep your accessibility to where your loved ones are or where you work. Your location and environment can determine if you’ll be satisfied with the condo of your choice.
Even if your condo has all the features and amenities you desire, if the location isn’t accessible to the general public or is far from your office, then it’s a purchase that may not be worth it.
It’s recommended to buy a condo where you can conveniently go to malls, visit your loved ones, and go to work without any difficulty because of the location.
2. Assess Your Budget
While condos are generally much cheaper than houses, it’s still not a cheap purchase. If you don’t assess your budget before purchasing your first condo, it can be an overwhelming expense for you.
Don’t make the mistake of spending your entire budget on your condo alone without saving financial resources for your daily needs or emergency funds.
If something unprecedented happens to you or your family, you won’t have any money left for emergencies. Try not to make an impulsive decision buying a condo, no matter how much you badly want it.
A lot of people make the irrational decision of emptying their savings and bank accounts to purchase the property of their choice, without assessing if their budget fits.
It’s not just the cost of the condo you need to worry about, but you have to consider other expenses like association fees and essential kitchen equipment to make condo living even more convenient. There’s no need to rush yourself into buying your ideal condo if your financial status says otherwise.
This also means calculating your sources of income. If anything happens like your financial sources getting cut off, think about whether you will have the stability to live through your daily means.
You can ask for a loan, but you shouldn’t be entirely dependent on it because of what we call the debt-to-income ratio. This is the basis banks use to decide whether they’ll lend you a loan for your condo. There’s an existing rule that your debt-to-income ratio shouldn’t go beyond 43%.
3. Purchase Within Your Means
It’s easy to make the mistake of giving in to your temptations after receiving your paycheck and spoil yourself with all the things you’ve always wanted to buy. However, you need to remind yourself to live within or lower than your means when you’ve decided on buying a condo.
You need to think and act smart when buying your first condo, and you can’t be impulsive or irrational with your financial decisions. It’s important to have the discipline and self-control to resist the urge to buy things you barely even need.
4. Work With A Real Estate Agent
No matter how much you read about the real estate market or purchasing your own condo over the internet, the best thing to do is to get a professional opinion from someone who has expert knowledge on the matter.
A real estate agent will help you choose the right condo based on your standards, and they’ll remind you about real estate valuation.
You will see condo prices fluctuate over the years, and it’s crucial to choose the perfect timing in buying one. Real estate experts noted the decrease of condominium prices in Metro Manila in the fourth quarter of 2020 was 8.4%, which outweighed the increase of prices in houses.
If you have a real estate agent by your side, they’ll give you accurate insights regarding the drop of condominium prices, including certain real estate market trends you should consider.
Purchasing your first ever condo is a great investment, just as long as you carefully assess all the factors involved such as the property location and your budget.
Know that, when purchasing your ideal condo, prices fluctuate throughout the year. When the prices drop, that’s your window of opportunity to push through buying your condo.
Living within your means is also crucial as buying your own property isn’t a cheap decision to make, and you need to learn to separate your needs from your wants.
It’s not just the cost of your condo that you have to consider when budgeting and planning your finances, so best to consider all the aspects to maximize the benefits of owning a condo.