Real Estate market has continually faced challenges due to the COVID-19 pandemic. And because of that, many potential homeowners are not seeing the asset of buying their property and making an income out of it. Particularly here in the Philippines, many people are still having second thoughts about getting their property or investing in a house and make a profit out of it.
For young professionals who want to venture to have their property, the lack of funds and the diminishing opportunities make someone don’t pursue making real estate plans. Some factors might also trigger people to not invest in a real estate property:
- Because of the lockdowns happening, many employees lose their jobs; pushing them to go back to their provincial residences with their immediate family members
- Getting a property in the city may be unwise for people, especially due to the unnecessary expenses that come to real estate costs.
- With the work from home set-up, people now are getting used to their place without considering moving to a better location to live in.
Richard Raymundo, managing director of Colliers International Philippines, stated in one of his interviews, that the more vacant corporate offices in the metro increase, the lesser the demands of many real estate properties. And until the threat of this pandemic has come to end, many properties will lose their potentials to bring assets to clients and landowners.
Despite the economic trials our society facing, there are still people who believe in the power of what real estate markets can do to set potential income to their clients. And one of the best options for you to get your dream home is through a mortgage.
According to the dictionary, a mortgage is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Many people failed to manage their debts once their mortgage is due. With that, I would like to share some best tips on how you can make the most out of your real estate ventures and make a profit from these properties while managing your mortgages.
Create a Stable Financial Port Folio.
For potential homeowners, one of the major factors that come to play in buying a property is MONEY. And because of that, it is wiser to create a financial portfolio that will better create suitable plans for your real estate journey.
Getting a mortgage for example. If you’re planning to loan for your dream property, it is best to first estimate the mortgage affordability based on your income. With that, it will be easier to adjust your money management and start creating a stable and effective plan for your debts. As a person with an average income, it is best to seek a real estate agent to help you find better options that will suit your needs.
Diversify your knowledge about Real Estate Mortgage
With all the hassle and complications that come with a mortgage, young professionals should learn more about how to manage their debts and see how far should they limit themselves. Because a mortgage is both a privilege and a responsibility, people should understand the pros and cons of availing one for their property.
The best way to know what amount of loan should fit their credit score (based on the country they’re residing in), is to get help from reliable tools that will easily calculate from the cost of your loan to the time frame should you pay. It should also have graphs of loan repayment along with monthly and yearly amortization tables. With that, managing your mortgage will be more systematic and effective for you to handle.
So if you’re planning to buy a home or considering refinancing the remortgage, then having a mortgage calculator would be best recommended for you. This global pandemic should not stop everyone from looking for real estate and own a house of their dreams. All it takes is a fail-proof and effective mortgage plan.