2020 was a very trying year for the whole world. We were all thrown a curve ball in all aspects of our lives. Here in the Philippines, a lot of people had to rethink their priorities and saw the importance of owning their own homes. The pandemic has somehow realigned the thoughts of people regarding real estate. Quite a number have started investing in properties because they realized the importance of buying their own homes. Based on a study of Asian Development Bank last 2017 – only a third of Filipinos own their own homes. This leaves so much for the real estate market, if you me. That means there is quite a LOT of opportunities for the real estate market to grow!
Now, when one thinks of buying real estate – first thing comes to mind and that is – money. How much money do we really need to be able to buy our own piece of real estate? To be honest, most of us have no idea – we may have a ballpark figure – but that’s not enough because for sure, we cannot pay the whole amount upfront. It was then that I discovered the Mortgage Calculator!
The first time I came across the word – mortgage was when I first played a game in Monopoly. I didn’t really understand what it meant because I was too young. But as I got older, I understand what it meant. Most of us have lived in rented homes, but eventually we realize that we need to own our own homes. A lot of us rent instead of buying, but having been in lockdown for a year made people realize that they need to want to live in their spaces for longer periods of time. It has also made people realize to having a smaller or a bigger space depending on their needs. If they’re a single, married with and without kids. People have been thinking a lot about their homes lately because hey, they spent most of the year inside it! Hahaha…
The mortgage calculator is site wherein you can punch in values to help you see where you need to be financially in purchasing any type of real estate. It’s a huge help really, try it! The site is quite simple and straightforward, just punch in the values and automatically you’ll see how much one needs to pay monthly. I know the currency in GBP but you can just assume that it’s in PHP as you input the values. Here is an example – let’s say you a have property that is worth P2,000,000.00 and then input the other values like how much you intend to put up as downpayment, the interest rate and how long you plan to pay the property.
Simple right? Simple enough! The site is very helpful really, it has graphs, sample computations and tips even! I know it’s set in the UK market, but generally it gives you an idea on terms and issues with regards to real estate. The site has graphs and loan repayments that will be helpful in the future (or if you currently have a home loan).
The pandemic has got me considering relocating somewhere outside the city. I honestly feel like the city is too crowded already and I guess being on lockdown last year made a lot of us realize a lot of things like family. Do I want to keep my family in the city or do I want them roaming about breathing fresh air? I realized that when I go home, I really want to go home to a peaceful, organized, and quiet environment. There has been talk about properties in the south because there are a LOT of developments there. We have been checking out the site https://www.lamudi.com.ph/ and considering properties like Nuvali from the AyalaLand. Moving further from the city makes you appreciate the little things especially now that we have more time with our families. The newly opened Skyway 3 is now being considered as a selling point to move further outside the city. Time we save in travel is time more spent with family – and where the family is, that is a home – our home. This pandemic lockdown has taught us to value time with family, the value of having things that we really need, to prioritize needs rather than wants. It made us go back to basics and one of the basics is to decide where we want to have our home in. I’m sure quite a lot of us realized too that we need space in our homes.
I noticed though, that during the start of the pandemic lockdown last year – there was a LOT of buzz from people on social media with regards to wanting to move to Pasig, one of the more popular cities in Metro Manila. And that is mainly because of the freshman mayor of the city that has been doing very well for his citizens. His performance has been deemed a gold standard for public service and suddenly, everyone was considering moving to his city! This I think has made Pasig City a more prime location for those of us who can afford to move there. I guess the performance of local government has also become a criteria in choosing the location of your home or business. You may also want to read this article from The Manila Standard about a projection of the PH real estate for 2021.
The Mortgage Calculator has different calculators that can be helpful to everyone. Isn’t it great to have these calculators at our convenience? They’re very helpful! You see, excel is not my friend even if I try to make friends with it. So with these calculators – I just input a value and voila – I get to have all the important figures in making me decide on a certain property! Amazingly helpful, right? Super helpful! Here are the other calculators:
Estimating mortgage affordability based on income https://www.mortgagecalculator.uk/affordability/
A printable amortization schedule https://www.mortgagecalculator.uk/amortisation/
Loan overpayments https://www.mortgagecalculator.uk/overpayment/