Start by buying a house....

@pagibig (298)
Philippines
February 14, 2007 1:16pm CST
I'm 25 years old and i still live with my folks. In my country that is perfectly normal. But lately, i just wanted to have my own space. Move out, be completely independent and basically have a better environment. Somewhere quiet without anybody disturbing me. So today i went house hunting. I saw a fully furnished ready for occupancy 1 bedroom condo unit. The asking price? 880,000. Tough. But hey they have financing options. The scenario i pay them 156,000 up front and i pay the rest in 5 years time. 17,000 a month. In my country, that is a lot. You'll be lucky to earn 15,000 a month. I decided to research on other financing options and getting a home loan from the government is way too expensive than in-house financing. Now i'm back to zero. I want to move out, but financially i can't. I realized i might be stuck here forever. I need to find a job outside the country, so i can save up and get my own house. I was supposed to start a new life, starting with buying a house... i guess i have to put that 'new life' on hold for now.
6 people like this
21 responses
• Philippines
14 Feb 07
hey kabayan! :) try to buy those pre-selling condos for starters, although your money will be stuck with them for a while; but in a few years time you can have your own unit. or try those rent-to-own condos, there's one in cubao -new york mansions, although its not a really good environment since it's besides a market, the fact that the 1 bedroom condo unit will cost you 8,300 a month and you can move in immediately. and a years time that can be yours also.... i know this, because when me and hubby went condo-hunting we came across this. its a good offer if you have limited funds. but we didn't got a unit there, fortunately, the bank grant us a loan that we bought for a much expensive unit. Good luck to you!
1 person likes this
@pagibig (298)
• Philippines
15 Feb 07
thank you! cubao unfortunately is too far for me. I want to move out but not be that far from my family. this is just me wanting to be independent and on my own. the one i'm looking at, the 880k, is like 5 minutes away from my parent's place. :D and my friends say if i'm gonna be that close, why should i move out? but a house is always a good investment i believe. i'm still house/condo hunting in the area. the pagibig fund home loan will charge me 12% interest, i need to pay them 21k a month for 5 years. that's too steep. way too steep. with in-house financing, 0% interest 17k a month for 5 years. so in-house financing is cheaper and better i guess.
• Philippines
16 Feb 07
yeah, try other bank's housing loan. ours have 9.75% interest p/a on BPI.
1 person likes this
• New Zealand
18 Feb 07
I think you will find that for a first time homebuyer - the term of loan should at least be 20 years. Then you should be able to afford to pay the amortisations. I think 5 years is too short.
1 person likes this
• United States
15 Feb 07
Hi, may be you just take a simple step at a time. At first, just rent a place to see if you can handle it. There are things that you may not be think of, such as cleaning the house, doing dishes, laundry, yard work, paying bills...etc. Once you get the hang of it, and become more financial stable, move to a bigger house. I have rented couple places before, and realize what is working and what isn't working in the house. So, when you finally have your dream home in the future, you will know what to invest instead of buying a lot of useless items.
1 person likes this
@pagibig (298)
• Philippines
15 Feb 07
Thank you for your suggestion. I actually do that in my parents' home actually, clean the house, do the dishes and pay the bills. basically i'm their main provider. and truthfully they are taking advantage of me already. so i decided i need to move out and be on my own. both my parents are still strong enough and young enough to work. they actually still work, but what they are doing is they spend their salaries on themselves. mom goes out shopping and dad, i don't know where he spends his salary. So that leaves me to support everybody and provide for them. I have a 6yr old brother. I pay the bills, i pay my brother's tuition, school needs, i buy the grocery, i cook the food, i clean the house. it's actually rather tiring. i get 2 hours sleep a day. on top of that i have to work. it makes me wonder how i could still make time for my bf on top of the responsibilities at home. i'm not running away from my responsibilites though, i want something near enough so i could help out if needed.
14 Feb 07
Hey. I still live with my parents and i'm 19. Here the cost of houses have raised and debt is a quite often followed. We're planning on renting from our council until we can afford to put in a deposit. Goodluck with your plans and i hope you can save up enough =) Kudos! ~Joey P.s we're saving up to but we haven't go as much as we'd like. (it's fun tho) =)
@pagibig (298)
• Philippines
14 Feb 07
The problem with living with my parents is this, i save up a bit for the month and then an emergency will happen and they end up 'borrowing' what i saved up. Without ever returning what they borrowed. of course i can't ask them for it. it wouldn't be right in my country, you'll be labeled a bad child. sigh. and i am already a bad child because i can't provide my folks a lot.. just basically making ends meet. sigh. well hopefully and im really hoping, i get to save up enough.
• United States
14 Feb 07
Hi! Sometimes things just don't work out that fast. I believe that if you have worked hard for your goal, you'd reap a sweeter reward. I would presume you're a Filipino because your ID says "pagibig". I'm a Filipino, working here in the U.S. Since you wanted your own space, and you mentioned trying to find a job in another country, that could be the answer to your problem. You get higher pay (like in here) than in the Philippines. Just keep your mind on your goal and work hard for it, you'll do fine! Good luck!
1 person likes this
@pagibig (298)
• Philippines
14 Feb 07
Yes, i'm a Filipino. I'm hoping to get a job in the U.S., but i'll need tons of work experience first. Although any other high-paying job (Filipino standards) will be ok. Truthfully, i don't want to go out of the country. I just love it here. But i'm a practical person, and i know i need to do something or else i'll grow old without accomplishing anything. My goal now is to save up enough to get my own house.
• United States
15 Feb 07
I guess living in an apartment (flat), is out of the option for now...I would consider it though, because it will give you the privacy you need, while you can still save up for a house. It seems that what you are paying is a bit expensive...especially if it were that much in dollars. I hope that you can get it all together, and then move out, and be free to relax and do whatever you want.
@huxdsz (33)
15 Feb 07
I am in China and the house price is also very expensive,about 1 million RMB for an apartment in Beijing,Shanghai(1 dollor is amolst equal 8RMB),as I know,such price is a big burden for those office workers,also impossible for labour workers.But you have to live,you need to marry,you need to feed your babies,you can not always live in rented apartments.
1 person likes this
@runsgame (2031)
• India
15 Feb 07
well, the future planning is a must for every one and that we live for our kids and loved ones , but let us live with some stylish . i agreed , the plan is mainly depends upon your pocket and cost. ur pocket may not permit full financial assistance , u may need to go for some loan from banks or instituitions . just remember only one thing. before u act in this line . first be secure in your job or work where u are working , make sure that the new investment proposal will not affect your day to day expenses. and go for loan only upto where u can accommodate. do not over buy and create or fall in trouble. all the best
1 person likes this
• Philippines
15 Feb 07
i think you have to rent for a while, then save whatever you earn to buy a new house for the future. it is tough but there is a saying that if there is a will there is a way be careful on your finances, goodluck,,,
1 person likes this
• Philippines
16 Feb 07
hello, Did you try availing for a loan thru PAGIBIG? (for the benefit of foreign readers this is a government financial institution in the Phil.) If you have the money for the downpayment PAGIBIG could take care of the balance. That is if you have been approve. 17,000 for monthly amortization in 5 years is indeed stiff. It you opted for a longer term like say 10 years this would amount to 8,500. For 15 years this would be roughly around 6,000. Do try PAGIBIG HOUSING LOAN no harm in trying. I just made a loan for 1.3M and my monthly is 15,000 for 20 years. for 880,000 I know it would be much lower than that.
@pagibig (298)
• Philippines
16 Feb 07
Yes i tried pag-ibig. i can't get over the 12% interest. I researched on it, tried their amortization calculator and at 12% for the 880k for 5 years, i pay 21k per month. If you think about it, it's much more expensive than the in-house financing being offered by the developers. I'm currently looking at the rent-to-own options. Also somebody suggested to get a pre-selling property. I might try that. it can go as low as 7k per month without downpayment. But i need to know if once it's finished, they'll furnish it as well. because the 880k condo unit i'm looking at is a 1 bedroom unit that is fully furnished. complete with it's own laundry room and utility room. bath and toilet with shower/tub. as in complete. with a balcony as well. and it's 5 minutes away from my folk's place. i fell in love with that unit. it's just tough that it's so stiff.
• Philippines
22 Feb 07
PAGIBIG FUNDS just lowered they're monthly interest to 11%. If you really want to own a house or condo or whatever there is no better time than now. Prices will always go up. You can save and save all you want and by the time you have saved enough the price would be different. Your savings can never catch up with inflation. Unless you work abroad or won a lottery. Just make a calculated and very much thought-of risk. Even marriage is a risk, but we plunge into it anyway. You can also try asking the banks that have repossess house and lot. If you found a repossess house and lot that you really like here is what you can do. If you know any banker friends try asking them to help you write a letter. I know of someone who bought a repossess house from a bank. The bank's bid price is 1.8M and he's counter offer was 1M. The bank made another offer 1.5M and he again counter it with 1.3M. And they settle at 1.4M, not bad eh... Know how to bargain, and I thought this stuff happens only in the flea market of Divisoria. Now I know this happens even in the banking institutions as well.
• Philippines
16 Feb 07
Uy sis! I can undertand you. Condo these days are much too expensive. There are other housing projects that are less expensive though. With a lot of developers popping out of nowhere, you're bound to find a good deal. If you can't afford it yet, then don't. You might end up having to live a hand-to-mouth existence. Consider the odds first. And you're not alone. There are a lot of people who are still living with their parents.
@pagibig (298)
• Philippines
16 Feb 07
i'm considering the pre-selling or rent-to-own. i talked to my bf regarding it, and he did a double-take... like whoa this is too much of a commitment kinda look. weird how guys could be, a few months ago he asked me to marry him and now he's changed his mind. oh well. hahaha. there are also share-a-condo deals i found over the web, but it's a bit dodgy to me. there is one in bacolod, you get a 2 bedroom house with garage plus the lot for 8.5k a month, payable for 15 years. that includes the construction of your house, the materials needed for the construction and the lot. that's the best deal i've found so far, but it's way too far. :D
• United States
25 Apr 07
I'm currently saving for a downpayment on a house too. In order to help me save enough, I've started blogging about it. However, you do have one advantage over me. I'm currently renting an apartment. You can save the majority of your income for a downpayment. Also, another alternative that I'm looking into is to purchase a duplex or at least a two bedroom house. I will be able to have a tenant (paying rent), which will help to defray the mortgage costs. However, I totally understand your pain. I'm struggling to get out of my college life and into adulthood. Good luck! And keep us posted!
@Gemmygirl1 (2868)
• Australia
4 Apr 07
Have you thought about moving a little further out from the city - usually the further out you go, the cheaper the houses are! Otherwise you could look at renting while you save up but make sure the rent isn't too high or saving would be too hard. Perhaps, if you decide to stay at home for a little longer, you'll be able to save up even more money & be able to put up a bigger deposit which would then make the following monthly repayments smaller than you thought! Good Luck!
@maribel1218 (3085)
• Philippines
18 Feb 07
Buying a house is not a very easy decesion because you have to look for every angle as much as possible. The price matters the most and the terms of payment follows. My husband and I was on the process of looking for a good house that is reasonable and not so far from manila and we found one in rizal which is a 1 ride away to ortigas but we really see to it that we really think of the matter and made some major if's before we sign in the contract to buy. It was a good move that you have to halt for awhile and think of a good way and search for more house that is reasonable or a rent to own in that way it will not be a heavy burden in the pocket.
• United States
15 Feb 07
Buying a house is a big investment. You not only have to worry about the financing the home. you also have to worry about the down payment, hazard insurance, and taxes on the porperty. and you must be able to qualify for a loan by your assests, income and credit. Housing prices are slowly decreaseing only because of the type of market we are in know. But over here in md, dc, or va the housing prices are still high. What u may want to do is to do a rent with option to buy. That way if you choose to buy the property later down the line some of the rent you payed would go toward the loan amount.
• Indonesia
15 Feb 07
Hi pagibig, There is always options for you. One, you could rent a place, to move out of your parents to get your independent. Two, you could get married and hopefully start your own life with a responsible spouse. Three, you could find a better job or abroad job that pays good. I wish you all the best, and in time, I pray you would have your own house, regardless where it would be (i.e in your country or somewhere else nice).
@MGjhaud (21957)
• Philippines
15 Feb 07
house - dream house
when i graduate first thing i would save for is for my own house. i ever wanted to have my own house. i wanted to personally design it myself. i have some friends who really own where they're staying right now and i thought it would be such success to someone. i know buying own house is a bit costly enough but i would try my best to have at least not that big.
• India
15 Feb 07
hey pal i can i say i m also in the same phase i m also planning to buy a house and currently the interest rate on the home loans are also increasing this the time when u have to be indepedent and to be independent you haveto have your own house and its not an easy task at this stage to have a house of your own without the home loan so what are you planning then when are you going to get the house of your own
@fizzytom (753)
• Maribor, Slovenia
15 Feb 07
It is the same in the UK but people are being creative to try to solve the problem. For example, do you have any friends who are also looking to buy a property? Probably they are in the same situation as you - you could buy a home between you. Of course, you need to set out clearly what you will do if one of you wants to move and whether you will be offred first chance at your friend's half of the house. This method of buying is very popular in the Uk and there are even websites where you can find details of people in your area who want to share the cost of buying a first property. I don't know what your family's situation is but could they help by buying half of the property and then you pay the loan and afterwards pay your parents for the money they put in.
@Aditza (76)
• Romania
15 Feb 07
Hello!I wish with all my heart to have your own space!And I wish that for me too!But I know that I can't buy one,maybe after my wedding.I think that you have right and it is true,that you start a new life with a house only for you and for your partner but in my country it is very difficult and the houses are very expansive and that is not very easy for an young couple.I hope that I would buy an house only for me and for my future wife this year.
@myfield (25)
• China
15 Feb 07
The price of buyinghouse is rising more and more recently. It is horrible that i dare't face it. So i ignore it that i would live with a little happy.