Today's Millennials emerge as the biggest generation to contribute to the growth of homeownership in the Philippines, as they express great interest in investing in real estate. Moreover, as mentioned in a virtual discussion launched by one of the biggest property portals in the Philippines, amid the pandemic, more millennials are keen to buy real estate properties than rent, which positively hit the property market.
This shows how Millennials, despite being assumed as the "instant gratification generation," are, in fact, good financial planners. They passionately pursue their ambitions while aiming for a work-life balance and securing stability. According to an article, millennials approach investing entirely differently from their parents and grandparents, as social media availability makes it easier and more convenient for them to learn more about it. Furthermore, given their love for anything tech-related, they can leverage their knowledge when it comes to things that would fulfill their dreams.
In the Philippines, more Filipinos aged 40 and below have purchased a property in 2020, according to the 2020 Home Buyers and Sellers Generational Trends Report by NAR (National Association of Realtors Research Group. This intense interest in property has been a trend correlating with the country's strong economic growth. Recognizing this, many companies have introduced sustainable spaces and allowed flexible payment schemes to meet their market's ability to purchase.
So, how do Millennials prepare themselves for investing in real estate? Here's a friendly guide that helps you decide on purchasing one:
1. List down your preferences
Plan by being keen on knowing what you want in a home. Prioritizing the necessary details like location, property type (condo or house), property size, property status (pre-selling or RFO - Ready For Occupancy), and the developer is a must. There's no harm in including the amenities you want to enjoy or recognizing what kind of neighborhood you'd like to live in. But, make sure that it is still feasible within your budget.
2. Decide on your budget
You may also want to consider this on your top list to set your expectations. But this step is as important as listing down what you want in a home.
One way to estimate how much you can spend for your home is by the rule of thumb or getting 30% up to 40% of your monthly salary. So, for example, if you earn Php 50,000 monthly, you may set a Php 15,000 up to Php 20,000 budget for monthly home loan repayments.
Pro-tip:
You must not forget to think long-term. Consider your financial capacity in the present and look out for inevitable situations that could happen in the future. Then, you could either aggressively take risks or stay conservative when it comes to budgeting.
3. Shop for homes
Research available options for you. Make use of your easy access online by checking out real estate websites or real estate platforms that have property listings near you or your preferred location.
Asking for recommendations from your family and friends is an excellent way to see your options, too.
4. Save up for down payment
Once you're set on your budget and your home choice, you must prepare for the down payment of your future home so you could finally claim your own space.
Some tips for you:
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Open or have a separate savings account for your home budget to avoid getting confused with your other expenses.
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Set aside a fixed amount from your monthly salary, bonuses, 13th monthly pay, or other income sources dedicated to your home budget.
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If you can, find other sources of income by selling online or getting a sideline to help you save quickly.
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Let go of unnecessary purchases. Prioritize if you must.
However, some developers offer special promos like No Down Payment, Purchase Now, Pay Later (flexible payment schemes), and others. So you have to look out for announcements like these and grab it while you can!
5. Apply for a home loan
If you meet your dream home, then there's no way of turning back! Yes, it's time for you to fulfill it!
To finance this purchase, you may get help by securing a home loan through a bank or PAG-IBIG. It's a tedious process but worthwhile. Get help by talking to your agent.
6. Commit
Lastly, be committed to this lifelong journey. It's scary, but nothing's more empowering than owning your dreams. Enjoy the process.
If you're one of the many Millennials who are planning to get your very first home or property investment at a young age, consider investing in Empire East's new condo developments in Mandaluyong (The Paddington Place), San Juan (Mango Tree Residences), and Pasig-Cainta (Empire East Highland City).
Enjoy significant discounts today! Visit www.empire-east.com/promos to know more about our current terms. You may also send an email to inquiry@empire-east.com or call 8810-3333 for inquiries.
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