ASK A PRO. ASK A BROKER: I CAN HAVE EXTRA AMOUNT FROM MY MONTHLY INCOME THAT I CAN INVEST IN REAL ESTATE. HOW MUCH WOULD BE THE IDEAL AMOUNT FROM MY INCOME CAN I DISPOSE?
Ideally, if you want to invest in real estate, particularly in pre-selling properties and plans to avail the flexible payment terms offered via installment, it is advisable to set a monthly budget equivalent to 30% of your gross monthly income for the monthly down payment. This is also the amount of monthly amortization approvable by the banks if you plan to finance the remaining balance of the total contract price of the property.
Also, for better chances that the whole amount of the remaining balance will be covered by the bank for financing, it is advisable to avail at least 20%-30% down payment, no more lower than that. Otherwise, the bank will only approve you partial amount of the balance you intend to loan and you would need to shell out a lump sum amount to cover the remaining payment needed. You may get the services of a licensed broker to guide and help you in finding the right investment for you. Feel free to reach me. All the best to you!
Michelle Madarang is a graduate at De La Salle University-Manila, an Entrepreneur and licensed Real Estate Broker, whose been in the real estate industry since 2012. Integrity, honesty and genuine care for clients are the core of her work ethics.