Money Matters

Can You Afford to Buy a New Home?

Let these important tips help you make the right decision

Original Article: Paula de Guzman Photography: Ocs Alvarez/ACME Visual Productions Interior Designer: Kat Villanueva-Lopez and Pam Tan

Are you really ready to buy your own home? Is your savings account ready? Purchasing a real estate property is exciting yet overwhelming. It's a big decision that requires research and planning. Here are tips from real estate broker Rochelle Granali that can help you:

Make sure that you are financially ready

A good rule of thumb is to allot a maximum of 30% of your monthly income for amortization ( If you plan to buy your first home, consider going for a house loan for more practical payment plans. Bank home loans vary and usually allot a 15-year term payment for a condominium and 20 years for a house and lot. If you find bank interests too high, consider PAG-IBIG which offers Risk-Based Pricing Adjustments.

RL Tip: Keep in mind that the amount loaned does not include association dues and parking fees.

READ: Loans That Can Help You Get Your Dream Home

Be aware of your rights as a real estate buyer

The Maceda Law, also known as The Realty Installment Buyer Act or Republic Act 6552, is a law that is a “public policy [that] protects buyers of real estate on installment payments against onerous and oppressive conditions.” Meanwhile, PD 957 is commonly known as Subdivision and Condominium Buyers' Protective Decree. It protects condo and subdivision buyers against misrepresentations and fraudulent activities of developers, sellers, and operators.

Don't fall for the "no down payment" promise

This only means that you are not required to pay the full amount in one go. The actual equity price is paid in increments over a period of several months or years. It is only when that 20% payment is completed and when a loan for the remaining 80% has been taken out that the buyer can start moving into his or her property—so in a way, a down payment is still required.

READ: Helpful Reminders When Looking For a Condo Online

This snippet originally appeared on the August 2015 issue of Real Living Magazine. Minor edits have been made by the editors. To learn more about your real estate concerns, download your digital copy of Real Living on the Real Living App. Log on to for more details.

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