Many of us dream of buying or building our own house. In fact, it can be considered one of the most common long-term goals for Filipinos. There’s nothing wrong with renting, of course. In fact, renting a house or condo unit might be wiser in some situations. Young and unmarried professionals who work in urban centers, for example, may find it easier to rent and maintain a small condo unit than own a house. Globetrotting individuals or couples who are always looking for adventure may also love the relative freedom that renting provides.
So the question is, how do you know that you already need to take advantage of the benefits of housing loans Philippines lenders offer? Aside from your financial and mental preparedness, here are a few signs that can clue you in.
You’re Paying Too Much in Rent
Depending on where you’re staying and the size of the property, the cost of renting can actually be more expensive than the monthly amortization of a housing loan. In this case, you might want to consider getting a place of your own. The key thing is to make sure that the payments won’t eat up more than 40% of your income.
The advantage of getting a housing loan is obvious in this case. Once you finish paying the loan amount, you eliminate one huge expense from your budget and the property becomes fully yours. You have to take care of other fees like taxes and insurance, obviously, but these are much easier on the pocket compared to sky-high rent.
You Want to Settle Down
Settle down, in this case, doesn’t just mean getting married. It also means you already want to stay in one place permanently and put down your roots. Buying or building a home of your own in this case isn’t just about the practicality. It can also be about your feelings of wanting to stay and grow old in a location that’s close to your heart. Say for example, you really wanted to reside in a house that feels very warm, cozy, and has an amazing neighborhood in the south. Definitely, we recommend you this House and Lot in Cavite. Not only it will make you feel at home but also will make you feel secured as well.
Your Family Is Growing
As your family grows, so does your need for space. If you only have one child, perhaps the small space that you’re currently renting would suffice. If you’re welcoming another child, however, or even new pets, you should probably already consider taking out a housing loan. When you’re renting, you have limited options to expand your living space since you don’t own it. At most, you may be allowed to install temporary dividers or additional shelving. With a housing loan, you can either purchase a bigger house or have an extension built in your current house.
Your House Needs Repairs or Improvements
Some people who may not be familiar with how housing loans work might think that these are only for purchasing a house or a condominium unit. However, housing loans can also be used for renovations. You can even use the proceeds of a housing loan to acquire an empty lot where you can then construct your dream house. If your house is in need of renovations, you can take out a housing loan and use the proceeds to make the needed repairs and improvements.
Do note, however, that if you’re planning to buy new furnishings or appliances, you need to take out another type of personal loan. Housing loans are usually used for the following purposes: purchasing a house and lot, a vacant lot, a townhouse, or a condo unit; constructing or renovating a house; and refinancing an existing housing loan.
You Already Have a Plan for Your Future
This doesn’t mean that renting is equivalent to not having a plan for the future. Rather, this means that the choice of whether or not you should take out a housing loan to buy your own property depends on your plans for the future. Are you single and simply want to enjoy single-hood for a while? You might want to consider renting first. Are you married and plan to have children soon? If so, then getting a housing loan is much more ideal.
Getting a housing loan might seem complicated, especially if it’s your first time to make such a transaction. However, as long as you’re properly prepared (especially in the financial aspect), it can be the first step toward achieving a huge life goal.
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