Ever wonder what will be your suitable Monthly Amortization based on your Salary? Personally, I also question about it few years ago. In this article, we will show you a very quick and easy formula for you to determine the right and ideal Monthly Amortization you can afford.
The formula is very simple, all you need to do is divide your Gross Salary to 30%
Monthly Amortization = Gross Salary / 30%
For example, if you have Salary of P25,000 per month (Gross) your ideal Monthly Amortization will be at P7,500 per month.
We guarantee, that based on this computation you will no longer be wondering if your application will get denied due to lack of income.
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Buying a property for the first time can be sometimes a bit challenging, this article will help you get ready to purchase your dream property. Just to remember, if you’re a foreigner you cannot purchase land property in the Philippines. But you can purchase a Condominium unit and/or lease a land for a maximum of 50 years, it can be renewable after 25 years.
Deal with the trusted Developer
It is always better to start with a well known developers, because it gives you confidence that the property you will purchase will be finished, and you can be sure that the project is handled very delicately and well constructed. Below are the list of Developers that you may want to consider:
Take note that this developers mentioned above are the companies we have dealt before and has a good track record in serving our clients.
Ofcourse there are times that you won’t be dealing with the said developers, just to remember that you need to research the developer to make sure that your hard earned money will not go to waste.
Investigate the Developer
On the previous section, I mentioned you need to research the developer which is one of the most important aspect when buying a property. Below are the list of questions that you need to answer in order to make your mind at peace.
How long is the Developer in the Industry?
If the Developer just starting or less than 5 years, it is recommended that you talk to a Real Estate Broker to get insight about the Developer. Because most of the time Brokers always communicate with the developer to ask the status of their business and updates on the current projects.
The longer experience the Developer has, the better.
What is the status of the current project?
Check if they are atleast started ground breaking the property. Because seeing atleast the land is being constructed means that project you will be buying is now under construction.
Check if houses around the property has started its construction. Constructed houses means that the project you will be buying is in good shape.
Do they have any issues for the past years?
Go over the internet, and search about the Developers like News, Scandals, Issues over Banks, and Government issues. Hopefully, you won’t be able to find any. If you find them in any of the negative news, you may want to contact the Developer and ask about the certain event.
These 3 questions will definitely give impact on your decisions. And if you are still in doubt, contact a Real Estate Broker and we guarantee that you will be buying a property that will fit to you and a good project at the same time.
Ask for a Computation
Sample computations that you always saw over the internet are the lowest price that the project can offer. Though the computation is definitely correct, but most of the time you will be wanting a better location and a larger property size. If that’s the case, there will be a significant changes on the price of the property. So it is important that you ask for the property’s Total Contract Price based on the size of the property and location.
Here’s a good example of a sample computation you may saw over the internet:
Monthly Amortization: P5,321.00 /month for 30 years Lot area: 50sqm. Floor area: 70 sqm.
Now the property you like has a Lot area of 70 sqm. The new computation will be:
Monthly Amortization: P7,399 /month for 30 years Lot area: 70sqm. Floor area: 70 sqm.
As you can see, this is on a same project but the prices are changed depending on the property size. And sometimes, the closer you are in a Commercial space or on the Amenities the higher the value. So always remember that you ask your Real Estate Broker / Sales Agent about the computation on the property you specifically liked.
Always talk to a Licensed Realtor
Here in the Philippines, there are thousands of unregistered Realtors that are roaming around. The problem on dealing with them is that once you got problem with the property you don’t have any chance on fighting with them. Because they are not licensed and they don’t care as long as they got the commission. If you’re dealing with a PRC Licensed Realtors, you are certainly sure that your Property is being taken care and you have the rights in case the Realtor went off and scammed you.
How can you verify if the Realtor is legit? Ask for the PRC Number and go to PRC Online Verification and click on the tab you wish to verify (Recommended: Verification of License (By Name). Below is a sample result of a verified Realtor.