Purchasing your first house and lot is a significant achievement that should be celebrated as it signifies independence and maturity. However, people who purchase their first home may have financial struggles because of the costs of buying a house and a lot in the Philippines.
If you plan to buy your first home, knowing the costs of having a house and lot is best. There are known costs when buying a property. However, there are also hidden or unknown costs that come along with being a homeowner. In this article, you will learn about these expenses and how to prepare to move into a new home.
What are the upfront costs of buying a house?
If you are going to buy a house from a real estate developer, there is a chance that you will pay a reservation fee. A reservation fee is a non-refundable fee that the homebuyer pays to secure the property’s exclusivity. In the Philippines, reservation fees can go from as low as PHP 5,000 to PHP 25,000 or higher, depending on the property.
On the other hand, a downpayment is one of the most significant expenses when buying a home. Real estate developers usually require a downpayment of at least 10-30% of the property’s purchase price. Let’s say you are planning to buy a home worth PHP 5,000,000. Your downpayment would be PHP 500,000.
First-time homebuyers should know that a spot downpayment is required when buying a house. Afterward, you have to pay the whole downpayment for months. On average, a real estate developer would need you to pay for the property’s downpayment in 24 months.
First-time homebuyers should remember the monthly amortization that comes with purchasing the property. Monthly amortization is the amount you must pay monthly to pay off your real estate property. You must pay monthly amortization for years until the house is fully paid.
These are the upfront costs needed to buy a house and lot in the Philippines. Most of these expenses are on every ad for house and lots for sale. On the other hand, here are the additional costs you should expect once you buy your first real estate property.
Other fees first-time homebuyers need to pay
Notary fee
The Deed of Absolute Sale is a document that transfers the real estate property from one party to another. This serves as proof of transfer, and this document needs to be notarized. Notary fees usually cost around 1-2% of the property’s value.
Documentary stamp tax
The Documentary Stamp Tax is a tax that the homebuyer should pay for the real estate property sale documentation. This tax is levied on documents, loans, agreements, and other documents needed for sale. This tax amounts to 1.5% of the property’s selling price.
Registration fee
This is the fee that the buyer has to pay to the local Registry of Deeds where the house or property is located. It is about 1% of the selling price of the home or property. This is a legal way to record the change in ownership.
Loan Transfer Tax
This is the tax that the buyer has to pay when they purchase real estate properties. Local Transfer Tax can cost 0.50% of the property’s value in the provinces and 0.75% in Metro Manila.
Moving in fees
Moving-in fees refer to the cost that the buyer has to pay once they are living in the real estate property. These include homeowners’ association fees and connectivity of utilities in the property.
Other expenses first-time homebuyers should know
Essential home appliances
Let’s say that you have moved into your first home. Your expenses don’t stop there. You have to have the right appliances for your home.
The best way to cut expenses when moving into a new home is to determine the essential appliances you need. For first-time homeowners, a bed frame and mattress, washing machine, couch, kitchenware, stove, dining table, and chairs are the first things that can be considered essentials when moving to a new home.
Some people would add their TV to the list, which is perfectly fine. The best way to cut off expenses is gradually adding appliances to your new home. Your house can look different from a bachelor/bachelorette pad right away.
Utilities
Electricity, gas, water, and internet are the essential utilities that homeowners need. First-time homeowners would have these utilities installed, and these installations have a fee. Among these utilities, water and electricity are the most needed.
How does Camella help first-time homeowners?
Camella is one of the best real estate developments for first-time homeowners, as we have house models that cater to the budget of starting families and first-time homeowners. Our Criselle house model has two bedrooms, one toilet, and a bath for only PHP 3,383,000. For a house in an exclusive subdivision, this unit provides an economical option for starting families.
We also know that you would want to have starting appliances as first-time homeowners. Camella’s way of welcoming you to our green and accessible community is by giving homebuyers AllHome gift certificates for every home purchase. These certificates are worth PHP 40,000 minimum and will increase depending on the unit purchased.
Installation of utilities can also affect your finances as a first-time homeowner. This is why Camella projects offer free move-ins for first-time homeowners. You don’t have to pay for water and electric installation because we have you covered. Once your property is ready for turnover, all you have to do is move in.
Having your first home comes with expenses. With Camella’s 45 years of giving Filipinos their dream home, we know what it’s like starting in life. This is why we offer these promos and deals to homeowners. You deserve to come home to a real estate community that cares about your finances.
Come Home to Camella today and find your starter home in 147 key cities and municipalities across 49 provinces in the Philippines.
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