Important finances to settle when moving to your new home

MANILA, Philippines — There is nothing quite like purchasing a home—from finding the perfect location to planning the design and structure, to choosing the fixture and finishes, and finally, to moving in. It is an exciting, life-changing adventure on its own.

But it can also be daunting, most especially for first- or second-time home buyers who need to get their finances ready.

Moreover, it is not just upfront costs like reservation fee and down payment that they need to be prepared for. There are also post-purchase fees and charges that must be settled.

Here are three of them:

Real estate tax or "amilyar"

This is a government tax that real estate owners are required to pay every year so homeowners could retain the 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 percent, depending on your city.

Condominium fees

For condominium owners to enjoy the shared facilities, they 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. These payments are 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. These include home insurance, moving services, and maintenance fees, among others.

The costs might seem overwhelming, but there is no need to have a large income to own a home. What you need are 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.

For more details, click here.