Buying your own property soon? Financial expert offers sound advice

MANILA, Philippines - The country’s real estate industry is on a sustained boom, thanks to the higher purchasing power of consumers. But how can we gauge financial readiness for such big purchases?

“You have to make sure you have financial independence,” wealth management expert Johner Fernandez said.

“If you are earning enough to cover your daily needs and still have enough left to invest without short-changing yourself, then you are ready.”

He said one common slip-up of people planning to buy their own house is mistaking saving and investing as similar concepts. While both are interrelated, the two are entirely different from each other.

“Before you can finally buy your very own house, you have to keep away 10 percent of your regular monthly income for short-term savings and 10 percent for long-term savings. The money that you should use for your property should be on top of these,” Fernandez pointed out.

With calls to decentralize Manila gaining traction because of its chronic problems, property developers are now actively eyeing other locations as possible new growth hubs.

Fernandez shared: “It’s all about location. With efforts to distribute services and resources in Manila, the provinces near it are the ones most likely to receive its growth traffic.”

“You also have to consider the possible progress of the place. Think of Ortigas. Prices of properties there were very affordable before. Nobody would have thought it would grow into a business district.”

Sto. Tomas, Batangas is among South Luzon’s provinces that have been showing significant progress. Supported by strong infrastructure and its competitive location, the once rural town is steadily transitioning into the next business and social hub with industrial parks, global companies, and lifestyle centers breaking ground on its soil.

As a response, more and more property developers are eyeing the area to support the influx of people that comes with its growth.

Terrazza de Sto. Tomas, a residential development of Ovialand Inc. in Sto. Tomas, Batangas, offers value-for-money homes and a premium brand of living in its sprawling 5.8-hectare location.

Finding a developer that offers flexible transactions can make purchasing a home more manageable. For its maiden project Terrazza de Sto. Tomas, for example, Ovialand offers competitive packages and professional financing assistance to ensure that buyers are properly assisted during the whole process. In addition to having reliable partner banks and an in-house financing system, clients are also assigned their dedicated account officers who will coordinate all the details of the sale.

“This is where the credibility of the property builder comes in. You need to study the company, see how they work, and how they build houses,” Fernandez said.

“Buying a property should be viewed as a form of business partnership with your developer. To make the venture a success, you should look for the best partners,” he added.