Dream House vs Practical House

When you’re a mom and a Filipina, family comes first. This takes centerstage when considering a dream home. A fancy condo with all the amenities sounds great. But you need to give way to the practical needs of our children, and of course, the affordability of the property. What cannot be bargained away however, is their safety and comfort.

Search for the ideal property

Finding the middle ground between practicality and comfort can prove to be challenging, especially if you are on a tight budget. There is nothing wrong however with aspiring for something beyond your means. Perhaps try to spend some time to think about what your dream home would be like. It is good to write this down on paper, so that you can create an existing goal.

It is perfectly all right if you are not yet sure what this is for you. You might not have considered it yet though it would be great to have a concept in mind. When thinking about its points, be sure to include some basic features that would make any residential property desirable. A well-built house in a gated community which is near schools, grocery stores and medical facilities is definitely advisable for your growing family. It would be perfect if it is also close to your place of work. This would you give you more opportunity to be with your loved ones instead of having to spend your time commuting on the road.

Here are some fundamental characteristics that a model home should have:

  •     Relaxing and comfortable
  •     Good architectural design
  •     Nice location
  •     Near establishments

Back to reality

Having your dream home will come soon enough. Until that time, you and your family need a good place to call their own. It might not have all the bells and whistles however that come with such prime piece of real estate but why would that matter? Besides, sprucing it up yourself is part of the fun. Why let someone else do it when your personal touch is what your family will appreciate the most?

A practical home might not have the exact architectural design you are looking for. It might not even be located in that posh village or condominium tower that you secretly wonder about. What is important however is what is inside of it. Your family certainly will not be less happy just because they do not enjoy free gym amenities or an infinity pool. Just make sure of course that you have access to some basic everyday necessities and reliable public transportation if you do not own a vehicle. It would defeat the purpose of living in a sensibly priced home without such characteristics.

Housing loan

When you have been able to find a good balance between your wants and needs, it is time to go out and get that house. It is all right if you cannot afford to pay for the entire amount in full. There are other means available that your family can look into. One of them is through the Pag-IBIG fund otherwise known as the Home Development Mutual Fund (HDMF). It is an accessible housing scheme created for the average Filipino homebuyer.

You may already be a member by virtue of your employment. There are mandatory as well as voluntary members who can benefit from loan amounts ranging between Php 500,000 to Php 6,000,000. This would depend on how much your actual contributions to the fund are, your actual need, capacity to pay and loan-to-appraisal value ratio. It will usually take about three weeks to process your loan. When you are ready, take note of the Pag-IBIG loan requirements in order  to secure your chances of being approved.

Interest rates as of July 1, 2018:

Period Interest Rate
1 year 5.375%
3 years 6.375%
5 years 7.270%
10 years 8.035%
15 years 8.585%
20 years 8.8%
25 years 9.05%
30 years 10%

 

You may also consult the Pag-IBIG Fund Housing Loan Affordability Calculator. It will provide a clearer picture of your estimated monthly amortization and interest expenses against your loanable amount and payment period.

Live within your means

The price of your desired starter home can hopefully be covered by your Pag-IBIG loan. It will help you comfortably pay for your residence while still meeting other household expenses. This might even allow you to put away a little something each month to eventually get your dream house someday. What is important for now is that your children have a place to call home. It is where they will have fond memories while growing up and would cherish remembering when they are older. You do need a place to perfect your family’s adobo recipe, right?

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