Ever thought of placing your money on something worth spending and has a good effect in the coming future? Ever bought something that you have regretted after a while simply because, you realized, it’s out of your budget? Many people experience impulse buying due to the feeling of urge to buy something, may be because of peer pressure. Something like my-friend-bought-something-so- I-should-buy-it-too attitude.
Here are some things you might want to keep in mind on your next purchase:
Visual Purchasing When buying a house, most usually settle for something that is visually appealing such as the size, number of bedrooms, design and color of the house, but we usually forget about our budget. Visual Purchasing can be defined as everything the customer sees, exterior and interior, that creates a positive image of a business and results in attention, interest, desire and action on the part of the customer (Source: academia.edu ).
SO, WHAT DO WE NEED TO CONSIDER WHEN WE DECIDE TO PURCHASE A HOUSE?
We can talk about your dream house all day, but the question is, are you ready for it? What should be the monthly income of a working individual to buy a home? One common mistake of people buying a house is not computing their Net Disposable Income. Net Disposable Income (NDI) is the amount left of your income after you have deducted all the monthly expenses such as loans, membership contributions to finance institutions, other payments and related expenses (Source: thebillionairewarrior.com).
Knowing your NDI before shopping will give you confidence that you’ll be able to afford the house that you are trying to get. Usually, banks consider 30% percent of your monthly salary as a portion you can allot on your extra expenses, such as your monthly payment for your house.
Let’s take for example a regular employee like Tess Lopez. Tess is a Human Resources Head at Accenture (a BPO company in the Philippines) and earning a net income of Php 65,000 monthly. She is 33 years old, single, and still lives with her mom in Marikina City. She doesn’t have a lavish lifestyle and knows when and where to spend her hard-earned money. Even before she was promoted as HR Head of her company, she already has a goal of providing a better home for her mom but she doesn’t know where to start.
To simply assess if Tessa is capable of buying her dream house on her own here is how we can compute: Considering that she has no existing loan, multiply her net monthly income by 30%. The result, which is Php19,500, is the maximum amount of her monthly amortization. This means that Tessa can easily pay this amount for her amortization. If, for example, her dream house is a ‘Marga’ unit from Camella, which has a Total Contract Price of Php 1,829,000, and has paid the whole 20% (365,800) downpayment in cash, but opts to apply a loan to finance her 80% balance, her Required NDI on her Php 1,463,200 loanable amount is Php 13,983 (using 8% interest, 15 years) . Since her actual NDI is greater than the required NDI, it is most likely that her loan will be approved. (This is presuming she has no negative findings in her credit standing.) That means, Tessa can own her dream home!
CHOOSING THE RIGHT DEVELOPER
Camella has been in the industry for almost 40 years and has been providing their clients quality service for their homebuyers - from planning, purchasing, to loans acquisition, and owning. With their friendsly staff, they make sure that you are well-assisted in your home purchase. Through the years, Camella has established its five pillars which have propelled the company as the country’s most preferred home brand:
Excellent Location – Not only giving you the best geographical location to live at but also gives you a great environment to live in.
Convenient and Self-Contained – Camella now offers a complete and a Masterplanned community where you can literally find everything you essentially need everyday such as schools, church, hospitals, etc.
Safe and Secure – Camella has its 24/7 roaming guards to ensure its homeowners’ security and well-being.
Wise Investments – Thinking of having a family soon? Or asking yourself where to put the money you have saved all these years? Having your own home is either preparing for your retirement or preparing to sell it for a better cause in the future. Every Camella home is an ideal investment because its value appreciates over time.
Affordable and Value for Money - They say that buying your own house is your biggest decision to make. Camella makes sure that you get more than what you pay for because you’re not only buying a home; you get the lifestyle that you have dreamed of.
For more information about Camella, call their hotline at 02-Camella (226-3552) or 09178576494. Check out their projects at www.camella.com.ph. Like “Camella (Official)” on Facebook and follow “@CamellaOfficial” on Twitter.