AS YOU can imagine, there's nothing quite like purchasing your own home—from finding the perfect location, planning the design and structure, choosing all the fixtures and finishes and finally, moving in. It's an exciting, life-changing adventure all its own.
While most people aspire for owning a home, the prospect of buying one can still seem daunting for some—whether first-time or second home buyers. For one, you need to get your finances in order, know all the facts and figures even the possible hidden costs and be prepared to take on the series of responsibilities that come with buying/owning a home.
Costs of Owning A Home
When buying a real estate property, it is important to remember, that it’s not just the upfront costs (reservation fee, downpayment, etc.) you should prepare for. There are also the costs and charges that you must settle after you’ve finally purchased your new home. By being aware of these expenses, you can fully prepare your finances.
Here are the most common closing costs and other fees involved in buying a home.
Real Estate Tax or Amilyar
This is a government tax that real estate owners are required to pay every year in order to retain ownership and title of the property.
Tip: When you pay your Real Estate Tax early, you can enjoy tax discounts of as much as 20%, depending on your city.
Condominium fees
For condominium owners, in order to enjoy the shared facilities, one must become a member of the condominium homeowners’ association. Thus, a membership fee and monthly association dues are required. Other condominium-related expenses include utility connection and deposit. This payment is needed to get electricity and water connection up and running since not all developers take care of these utilities before turnover.
Miscellaneous fees
These are extra fees incurred after you have successfully purchased your new home such as home insurance, moving services, maintenance fees, etc.
The costs might seem overwhelming, but the thing is, you don't need to have a large income in order to own a home. Just a good savings plan, the right financial partner and the commitment to make it possible.
A home within reach
With BDO Home Loan, you can move in to your desired home much sooner!
BDO partners with the biggest and most trusted names in the real estate industry, giving you a wide array of options ranging from single detached homes to mid and high-rise residential complexes perfect for independent bachelors and bachelorettes or for your growing family.
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