Should you buy a home during Covid-19 economic recession?
Covid-19 broke out early 2020 and it has been a few months being stuck at home with limited movements outside the homes. There has also been changes on work set-up as well has school set-up for the kids with everyone following quarantine restrictions. Covid-19 has definitely disrupted our life as well as our plans for this year as well as the Covid-19 economic recession in the Philippines. If you’ve been planning to buy a house, it is understandable if you have some reservations to move forward. After all, the recession could mean a lot of financial changes. Here are some factors to help you decide to buy a home during Covid-19 economic recession and why it is still best to buy now despite the pandemic outbreak.
Do people buy a home during Covid-19 during recession?
Yes. In fact, Bangko Sentral has lowered the interest rates for loans including home loans to help the Philippine economy. But make sure to be diligent in preparing your documents as banks have become stricter with credit standards. Filipino Homes have been busy with work as people making the best of their time to look for a better house for the family.
READ: Check out What happens during a recession and how to survive from it
Is real estate stable?
Real estate is one of the stable form of investment you can get for yourself and your family. Property market value is not directly affected by the pandemic. Finding a home that is ideal for the current situation is gaining attraction for some people. Having realised their growing needs after staying at home for a few months, people are more adamant to buy a home during Covid-19. A property close to the marketplace, malls and banks is the most ideal. You do not have to travel far to buy supplies for the family.
Can I afford it with or without recession?
One the things being stuck at home has brought us is the ability to stay at home and not spend too much. Going out and eating out takes a good percent of your money without you even realizing it. Having that option taken away from you will give you more room for your savings to grow. But buying a house is not just have the money and the ability to save. It is also knowing that your income stream is not easily disrupted. If it does, you need to have enough money to cover the financial obligations. Do you have enough saving or funds to pay for the mortgages if your income stream is affected? If yes, you are in a better position than those you might be affected. It is the best time to look into your finances and work on saving and raising funds when needed.
READ: Take a look at the Financial Crises in the Philippine Real Estate Sector to better understand the economic downturn brought by the COVID-19 pandemic
Will buying a house do good to my family?
Since you’ve been staying at home more, you tend to see the limitations you have in your current home. You find the need to have bigger outdoor space, an extra room for your growing kid, a larger living space for your family and etc. A house is not just a space to sleep and eat at but also safe-haven where your family can grow and be nurtured. It not only gives you a new space but it is a better and bigger space that will fit the needs of each of your family member.
A founding member and blogger of Filipino Homes. Lai Marie is a digital creative sharing helpful and useful travel tips at Pinay Travelista and sharing life hacks and stories on her You Tube channel.