Many aspiring homeowners are getting more attracted to the practical living that condo ownership entails. For one, it is relatively cheaper than a traditional home. If you’re on a budget, buying a condo in Calamba is undoubtedly a smart choice. But what if we tell you that there are more clever ways to save even more money before the actual condo purchase?
In this blog post, learn how you can get the best value for money with these savings tips from Asterra, a midrise condominium brand with a growing presence in emerging locations in Greater Manila Area (GMA) and regional areas nationwide.
8 Money Saving Tips for Buying a Condo Property
From setting a strict budget to practicing money-conscious habits, here are some great tips to help you save money when buying a condo and later enjoy your newly purchased personal sanctuary.
1. Start saving early
One of the most logical things to do is to commence saving early and way ahead of your condominium property purchase. Practicing this disciplined savings habit early on not only helps you save money for your anticipated condo buying, it’s also a long-term commitment and saying yes to financial success at an early age, especially for younger investors.
Saving money early, no matter how modest, can tremendously help you achieve your goals if made consistently. It could accumulate to a sizeable down payment until, the next thing you know, you’re all set to buy your first home while still having some money left for monthly payments.
2. Prioritize being debt free first
Before you commence your journey toward condo ownership, it’s essential to first settle existing debts that are hurting your financial health, be they credit card balances or personal loans. It frees up your cash flow, helps you save on interest payments, and strengthens your financial standing.
In addition, paying off your debts on time increases your creditworthiness for a major purchase that you will venture into down the road, like buying a condo for compact living. Being debt-free also gives you more flexibility in managing your finances.
It allows you to allocate more resources toward your future condo without the heavy weight of your debt obligations. This is a strategic approach to ensure your transition into condo property ownership is nothing short of smooth and successful.
3. Decide on a budget
As an integral part of your planning and preparation, establishing a clear and realistic budget for your condominium purchase will help ensure you will not overspend more than you could afford. As such, it’s very important to first assess your current financial situation, such as calculating your monthly income, expenses, and allocated savings.
Take into account your long-term financial goals and commitments so as to determine how much you can comfortably allocate for your dream condo unit without compromising or straining your other financial obligations.
Setting a budget also narrows down your options and enables you to focus on condo types and offers that align with your economic capabilities. After all, the investment goes beyond just the purchase price. It also includes taxes, condo association fees, etc.
4. Opt for foreclosed units
Foreclosed properties are those that have been claimed back by lenders because the owner failed to pay for the loans as agreed upon. Foreclosed condo units are usually cheaper and are perfect for budget-conscious prospective condo buyers who want to take advantage of such a deal.
However, it’s critical to conduct your due diligence by making inspections to make sure that the foreclosed property remains in excellent condition. You surely want a property at a significantly discounted price, but it should not be made at the expense of quality.
Foreclosed units being cheaper aren’t really cheap if there will be major renovations and refurbishments that you need to undertake. But all in all, buying a foreclosed unit is a cost-effective investment if you do your research and are given proper guidance.
5. Consider pre-selling properties
Just like foreclosed units, pre-selling condos entail lower prices and are a practical investment for money-conscious individuals. Pre-selling units are those whose construction is yet to be completed.
While this is not ideal for those who are particularly looking for ready-for-occupancy units, it’s catering more towards those who don’t mind and are keener to secure a condo unit at a significantly reduced purchase price. Saving up from the lower cost allows prospective buyers to allocate resources for the down payment and other costs associated with the actual condo living.
But that being said, condo buyers need to research the developer’s track record to make sure that the project will be completed on schedule and to the promised specifications. This way, the investment for a pre-selling condo unit would be truly worth it financially.
6. Research the developer’s payment terms
Condominium developers like Asterra have flexible payment terms in place to help prospective condo buyers attain their homeownership dream without being too financially burdened. There may also be discounts and promotions that you should not hesitate to ask when speaking to a condo representative.
Along with it, consider consulting with different condo developers to make sound comparisons in terms of their payment options and exclusive offers that’ll help you decide which one fits your budget, all while without compromising on your personal preference for a property’s exclusive amenities, convenience of location, thoughtfully designed spaces, and quality of the condominium itself.
7. Factor in additional costs
What must be part of your savings plan is anticipating that there will be more than just the purchase amount. Think about additional expenses such as property taxes, monthly condo association and maintenance fees, and even a decent allocated fund for future upgrades.
Factoring in these other potential costs will help you have a better understanding of the total expenses that lie ahead and not be financially challenged later on. As such, it shall give you the idea that you need to increase your savings program allocation in your bank account.
In addition, you must aim to save enough money for a higher down payment amount for a lower interest rate, which is yet another money-saving tactic in your condo buying journey. All these can help make sure your condo purchase and ownership won’t give you financial troubles down the road.
8. Engage in a side hustle
A practical solution to really get you to save more money and even increase your creditworthiness to attract mortgage lenders is to increase your source of income by engaging in a side hustle. Needless to say, this is in addition to having a full-time job. It could be a part-time work with fixed working hours or a freelance job with more flexibility.
It would be great and rewarding if this side hustle is something you also happen to be very passionate about, like graphic design, content writing, and anything that could be done remotely and during your week off. This lets you have extra money to put in your savings account for your future condo starter home purchase, which could be sooner if you’re saving earlier and spending money lesser.
If you’re on the lookout for compact spaces in provincial areas posed for growth, like Asterra’s presence in Pampanga, Cavite, and Laguna, you can save money in our value-packed condominiums. Enjoy the growing cityscape mixed with open greens, alongside sceneries and quality amenities, including a fitness center, community lounge, sports court and play area, tranquil landscapes, and pool.
Whether you’re a hardworking young professional in the city or one of the overseas Filipinos wanting to invest in the quality and practicality of vertical homes, there certainly is an Asterra property that’s perfect for you and your budget. Let’s talk about your condo goals more in a consultation with one of our representatives. Get in touch today!
