Affording The Home You And Your Family Deserve
In an ideal world, we would make housing more affordable for everyone. Doesn’t everyone deserve to own a house when they start a family? It’s the dream, and across the globe, it’s becoming hard to reach. The Philippines is no different. On the plus side, the cost of living in the Philippines is 51.74% lower than in countries like the UK. Even better, the cost of rent is 77.35% lower. A substantial difference. But, there’s still a significant discrepancy between the average annual wage, at 15,863.00 ₱, and the cost of apartments, at 68,191.33 ₱. Things may be better, but they can still seem impossible when you’re attempting to get on the property ladder.
The cost of living drives many of us into renting, but that’s a vicious cycle, and it’s far from cheap. A one-bed apartment in the city can set you back 11,741.29 ₱ a month. That amount soon adds up. Before you know it, you’ll have forked out enough for a house, without having anything to show for it. But, that’s the trap, isn’t it? High house prices and low salaries mean we pay over the odds for housing that will never lead towards our dream. This can be especially disheartening if you have a family. We all want our kids to have a safe place to return to. That’s just not a reality when it comes to renting. So, how can you afford the home you and your family deserve? These ideas should go some way towards helping you.
GET A MORTGAGE
In a lot of ways, a mortgage can seem like another trick. Again, you’ll have to pay a substantial sum each month. The difference with a mortgage is that you know you’re working towards a goal. The end game can make the fight worth winning. Plus, you’ll be able to rest easy that your home is, for the most part, your home. Bear in mind, though, that the average mortgage interest rate is 7.36. You need to be careful here and work out a way to pay it back as soon as possible. That said, you also need to consider how much you can afford each month without breaking the bank. Realistic payments are essential. If you’re hesitant about taking this step, arrange a meeting and talk it through with someone. They can discuss your options and allay your fears. In reality, this is a better choice than throwing money at a rented property.
SAVE A DECENT DEPOSIT
With the prices mentioned above, saving for a house can seem next to impossible. But, it’s a step worth taking if you want a house of your own one day. The more you can pay towards a deposit; the less your monthly payments will be. As such, the sooner you’ll be able to own your home, and the less you’ll have to pay in the long run. Take the time to work out a way to save the money you need. If that involves going without for a few months, or living with someone else, then do it. If you have a clear plan in place, the process won’t seem like such a painful one. Again, you’ll be able to see the light at the end of the tunnel.
GET A MORTGAGE
In a lot of ways, a mortgage can seem like another trick. Again, you’ll have to pay a substantial sum each month. The difference with a mortgage is that you know you’re working towards a goal. The end game can make the fight worth winning. Plus, you’ll be able to rest easy that your home is, for the most part, your home. Bear in mind, though, that the average mortgage interest rate is 7.36. You need to be careful here and work out a way to pay it back as soon as possible. That said, you also need to consider how much you can afford each month without breaking the bank. Realistic payments are essential. If you’re hesitant about taking this step, arrange a meeting and talk it through with someone. They can discuss your options and allay your fears. In reality, this is a better choice than throwing money at a rented property.
SAVE A DECENT DEPOSIT
With the prices mentioned above, saving for a house can seem next to impossible. But, it’s a step worth taking if you want a house of your own one day. The more you can pay towards a deposit; the less your monthly payments will be. As such, the sooner you’ll be able to own your home, and the less you’ll have to pay in the long run. Take the time to work out a way to save the money you need. If that involves going without for a few months, or living with someone else, then do it. If you have a clear plan in place, the process won’t seem like such a painful one. Again, you’ll be able to see the light at the end of the tunnel.
BUY LAND AND DEVELOP
An alternative to the deposit route would be to look for land for sale and develop your home from scratch. There’s no denying that this option involves a lot of work, but it’s a sure way towards your goal. And, you’ll be able to make some money back if you decide to move on in the future. If you aren’t afraid of a project, this is the perfect option for you. Land prices are much lower than a ready-made house would be. Though, bear in mind that you’ll need enough to buy the land, and then build on it too. This may be a slow-burning method, but patience is the name of the game when it comes to the property market. Plus, you’ll have a much more active say in how much you spend this way. You can make your house as extravagant, or basic, as your budget dictates. As mentioned above, getting your money under control is your best route towards this goal. Work out how much you can set aside each month. Then, consider how long this goal would take you to achieve. Bear in mind that prices could change during your saving process. Watch the market for a while before coming to a decision. If prices rise again during your observations, consider how workable this option is. In truth, though, house prices will likely rise during that time too.
CONCLUSION
There are a few different routes you can take to get yourself on the market, and each has its downsides. But, each can also work given the right circumstances. It’s all too easy to lose sight of your goal when there’s such financial pressure. But, remember how much your family home meant to you when you were a child. Don’t you want the same thing for your kids? Plus, while getting on the market is hard, that’s only the case for the first step. Once you own property, those rising house prices will take on a different meaning to you. You’ll be able to sit back and see your money return to you, and some. Remember, too, that your first home doesn’t have to be perfect. Few of us can afford the house we want straight away. Decide what you’re willing to compromise on for the time being. You may find that removing one of two essentials from your wish list brings prices down in a major way. And, once you’ve gone without those things, you may realize that they weren’t as important to you as you thought. Or, if not, you can always look out for them in your next property. The point here is to get on the first rung of that ladder. The rest can come later.
There are a few different routes you can take to get yourself on the market, and each has its downsides. But, each can also work given the right circumstances. It’s all too easy to lose sight of your goal when there’s such financial pressure. But, remember how much your family home meant to you when you were a child. Don’t you want the same thing for your kids? Plus, while getting on the market is hard, that’s only the case for the first step. Once you own property, those rising house prices will take on a different meaning to you. You’ll be able to sit back and see your money return to you, and some. Remember, too, that your first home doesn’t have to be perfect. Few of us can afford the house we want straight away. Decide what you’re willing to compromise on for the time being. You may find that removing one of two essentials from your wish list brings prices down in a major way. And, once you’ve gone without those things, you may realize that they weren’t as important to you as you thought. Or, if not, you can always look out for them in your next property. The point here is to get on the first rung of that ladder. The rest can come later.
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