Property is expensive. If you’re a millennial searching for your first condo, chances are price is the least attractive thing about the entire process. The joy of home ownership is offset by the dread of having to sacrifice a significant chunk, if not all, of your life savings in order to pay for it.
This may also restrict you from travelling, buying that new phone or simply shopping freely until your budget is recalibrated. Of course, the benefits of buying a condo are significant as well. You’re making an investment and one that will bear fruit in the coming years.
Property increases in value meaning if you decided to sell the condo, you’ll be rewarded with the return on investment. There is also the opportunity to keep it when you’re ready to upgrade your home and instead rent it out to someone else. This might even be the foundation of your very own real estate empire.
See more: Benefits of buying a condo in your 20s
But before that empire is built, you’re going to need to buy something. Here are three ways millennials can save money when buying their first condo.
1) Pay more upfront
Your down payment will ultimately determine how large or small your monthly mortgage payments are as well as how much you end up handing over to the bank in interest. By putting more money down on your first condo, you will realize significant savings when it comes to interest along with the terms of your monthly payments.
The downside is that doing this may require you to dip even further into your savings or even parting with 13th month pay. However, doing so will provide you with more long-term financial flexibility due to smaller monthly payments and being able to pay the mortgage off faster. More importantly, you will pay significantly less money over the entire life of the home loan. So why not pay a little more today and save a lot tomorrow.
2) Be flexible on location
Those prime locations come at a premium price. And while it may be your dream to live in the heart of Makati or overlooking the water in Bay Area, you should adjust your sights to save money when buying your first condo. Suburban locations may not be sexy, but they do offer value for money. And in Metro Manila, the rapidly improving infrastructure means travel will be easier than ever before.
Don’t forget, this is your first condo and not the last one. By forcing the issue now, you run the risk of having to settle for less down the road.
3) Negotiate with confidence
Negotiation is a bit of a lost art among millennials. And while it’s understandable as to why you don’t want to take part, you could be costing yourself money in the process. Most real estate agents and sellers set their asking price above what they would actually accept. Hence the term asking price.
This is actually an area where you can save a great deal of money when buying your first condo. Be confident, set your price and work from there. This is a dance most real estate transactions involve. If you agree to a price you’re both satisfied with, excellent. And don’t be afraid to walk away if you aren’t happy with the terms. Agents and sellers who really want to move their property will call you back in a few days if no other offers come in.
Millennials can save money when buying their first condo, but you have to be willing to make sacrifices. Every last peso counts. If you’re looking to make a move, check our Dot Property Philippines and our database of high quality listings. The process of buying your first condo is one click away.