How to budget for your dream family home

There is no place like home! And, I'm very grateful that we have a place we can call home and live comfortably, especially during the pandemic. But you see, it's not really ours. We've been living with my in-laws in a condo for a while now. They also have a family home, but we opt to live in a condo because of its many perks, such as its safety - 24/7 security and resort-style amenities that the kids can enjoy anytime. But, this pandemic has got us thinking about getting our own place. Of course, we've been dreaming about our perfect family home for years, but it's only now that we've given this some serious thought. We’ve even drawn up a few sketches of what we imagine it to look like.

But, you might be asking, "is buying a real estate property a sensible decision during the pandemic?" Well, my husband and I have been reading about it, and the answer is, yes! Why? Low-Interest Rates, Discounted Prices, and Flexible Payment Schemes In spite of several challenges impacting both global and local economies, the Philippine real estate sector had a good start this 2022.

No one knows what the future holds and buying a new home might seem out of reach. But it doesn't have to be! In this blog post, we'll show you how to budget for your dream home during these uncertain times. So read on and learn how to make your dream a reality!

Calculate how much you can afford to spend on a home

When you're ready to buy a home, one of the first things you need to do is figure out how much you can afford to spend. This includes not just the mortgage payment, but also taxes, insurance, and any other associated costs. I’m not good at math so my advice is to calculate this using a mortgage calculator like MortgageCalculator.uk. This site also has a mortgage affordability calculator which will take into account your income, debts, and other financial obligations to give you an accurate picture of what you can afford.

As its name implies, the calculator on the site originally caters to the UK market but the math works the same almost everywhere, with only the currency units and home prices changing.

Consider your down payment and monthly mortgage payments

Buying a home is a huge investment, and there's a lot to consider before you take the plunge. One of the most important things to think about is your down payment. This is the amount of money you'll need to put down upfront in order to purchase the home. The size of your down payment will affect your monthly mortgage payments, so it's important to consider how much you can afford. Another thing to keep in mind is the interest rate on your mortgage. A higher interest rate will mean higher monthly payments, so it's important to shop around for the best rate. If you're looking to save money, you may also want to consider a shorter loan term. This will increase your monthly payments, but you'll pay off the loan sooner and save money in the long run. Whatever you decide, be sure to do your research and choose a payment plan that's right for you.

At the end of the day, buying your dream home is a huge investment. But if you take the time to plan and save for it, you can make it happen. So get started on your budget today and in no time at all, you’ll be living in the home of your dreams with your family by your side.