Here’s what NOT to do when you’re planning to buy a property/house

1. Don’t buy a new car/motorcycle!

Did you know that car sales in Negros Occidental, more particularly in Bacolod are one of the highest in the country? The proof is in the pudding, so to speak; you could see signages in front of car dealers announcing that they were awarded top in sales in the region. We Bacolodnons do love our cars! I have a friend who deals with used cars in Manila and Cebu who even told me that he loves buying second hand cars from Bacolod because most often the mileage is low and the cars are newer models. Which probably means we often swap or upgrade our cars?

So if you would rather be decked out with the latest model of the Toyota Fortuner rather than investing in a new home, then you should rethink your priorities; maybe real estate investing is not yet for you.

2. Don’t look for listings outside your price range.

Yes, this may sound unpleasant but you have to stick to your budget. I have clients who really could afford a house if only they didn’t have to pay for hospital bills, a heavy credit card bill, a new car (see above!), the list is endless. So keep in mind what portion of your income you could afford to invest in your home. Yes, it would have been the perfect home for your family, but if the budget is too stretched? Nah! This will save you a lot of heartaches!

3. Don’t max out your credit card!

I think this is self-explanatory. In investing in real estate, the monthly payments can become too steep if you add shopping extravaganza into the mix of your household utilities, school expenses, emergency funds and what not. So just because it’s the twice-a-year three day sale, that doesn’t give you the license to splurge on things you might not really need.

4. Don’t buy things for your yet-to-be new home.

I have buyers who, in the midst of all the excitement, have begun furniture shopping for their new house. DON’T! If you’re starting from scratch, buy just the bare necessities for your home. Leave off the décor until you finally move in. You don’t want to buy that coffee table only to find out it doesn’t fit or look right in the space you imagined it for.

5. Don’t spend your savings.

Unless absolutely necessary, don’t touch your savings apportioned for your dream home. Always allot an extra amount to cover for about 3-4 months of your monthly payments. This ensures that should you fall in difficult times, you can still continue with your investment. It’s always great to have a buffer.

6. Don’t fall in love with the first listing that you found.

One look and you feel that you finally found the one. It often happens in movies and sometimes when luck smiles at you, in real life as well. But for house hunting, keep in mind all your property requirements before signing on that dotted line. As your real estate broker, I want to make sure that I have matched my clients to the right property for their budget, location and size. You will be living on that property for years, so you better be sure.

7. Don’t transact with an unlicensed real estate practitioner.

Real Estate Service Act RA 9646, otherwise known as the RESA Law has been enacted to professionalize the real estate industry in the Philippines. Unlicensed real estate practitioners are colorums. Dealing with a PRC licensed real estate broker assures you that the person you are dealing with is trained and legally authorized to transact with you in the industry.

If you have any more questions on how to go about in investing in real estate, contact your licensed real estate broker. To your happy house hunting, cheers!