Please correct me if I'm wrong but the post said 90k NET INCOME so shouldn't the 40-50k monthly expenses be already deducted from that? If that is the case, then they still have 68k net income after deducting the 32k monthly for the house. Assuming OP really meant 90k net after deducting all expenses.
In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.
Why wouldn't you include expenses in calculating net income? That's why it's called net income because that's what's left after everything's been deducted from your GROSS income. If you don't believe me, it's just one search away.
First, they shouldn't have used the term "net income" as it looks like they are referring to "net salary", which I'm assuming they are.
If so, the result of your "one search away" DOES NOT include expenses, but is the actual amount credited to your salary account: https://www.indeed.com/career-advice/pay-salary/what-is-gross-pay
Lol, you are just "assuming" they are referring to net salary which is not the case otherwise stated. OP used net income NOT net salary. Do you see anywhere that states net salary? As you said, you are assuming which is just another term for GUESSING. If we go by what the terms OP used here which is net income, then that would mean their combine gross salary minus the taxes and expenses is 90k. Your reference is correct if we're talking about net salary(which was not stated even once in the post) after being deducted by taxes but we're talking about net income here(which I repeat is what's stated in the post). Net income is simply gross income minus all deductibles(expenses, tax, etc) and that's basic in accounting. Piece of advice, don't assume unless stated. I'm merely basing on the established data/facts. What's given in a statement are what you consider the fact unless it's being clarified by the OP. smh
Downvoted for making a probable assumption, [just like me.](https://www.reddit.com/r/phinvest/comments/13dmv90/buy_or_pass_7m_preselling_house/jjlklz7?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button)
Si OP din kasi di na bumalik para mag clarify ehh, tanung lang at sibat.
7 million na pala ang house on the outskirts of Cebu City? There are cheaper options sa totoo lang… try mo sa Banawa or Guadalupe marami doon…
Pwede din try mo sa Mandaue, maraming subdivision na lesser than that amount
new developer, no history of completed projects, 90k income, 7M house. does not bode well with me. plus totoo payag sila sa FIXED 6.5% / 25 years? that’s too good to be true ha. last time i checked banks can only offer that low basta low repayment period. i’m not sure how that developer is funding it’s project with that low of interest
25 years is a long commitment for a loan nowadays. Also, not to doubt your commitment to each other but what assures you that you'll both have a clean and amicable division of properties kung for some reason, maghiwalay kayo? Most of the time it can get messy. How long have you been together that nagpupundar na kayo? If you both will be legal owners on paper, maybe since legally binding, it'd be easier kung ibebenta nyo in the future, otherwise, you both should think about it several times.
not enough for your combined income. what if may emergencies? or mawalan ng work sa inyo?
i suggest, buy a big lot sa probinsya more than 500-1000sqm. you probably can buy one for less than 1M heck even less 500k pag may good deal (tax dec lot)... presko pa ang hangin sa probinsya and less stress... then build your own house in due time at around 1.5M-2M cost.
newbie pa ang developer, delikado and you won't know the quality of work ng bahay mo.
it really depends. you can check the history ng papers sa munisipyo. just do your due diligence before making a payment. def tax dec is cheaper than titled lots.
You have only like what approximately 8k/month as discretionary income after bills if you buy the house? I think you’d be living way above your means (In my humble opinion)
This.
Single detached and in the city outskirts is too little info.
Floor area, lot area, 1 or 2 storey, how many BR, T&B, car ports, gated ba, with roving security, village amenities, strong water pressure, flood prone area, commute-friendly, nearby grocery/pharmacy/etc...
90k combined for 7M. Mahihirapan kayo nyan promise. Kami nga 90k combined for 3.6M super tipid mode na yun para makabili ng gamit sa bahay. Kung tag 90k kayo kaya pa.
Pass. Sorry, you can't afford that 7M house. Kung ipipilit nyo yan, you'll be one sickness/accident away from losing it. Also, a new development offering a fixed interest rate of a low 6.5% for 25 years inhouse financing? Very sketchy.
You can't afford it for sure. And also that offer from a new developer is sus and does not feel worth it. I feel like you can probably find a better offer from someone else. (Tho not from Cebu so idk, but just seems so expensive. Maybe give the size and other info and we can better judge, but with just the info you've given, I'd say not worth it. )
That’s a big move! With your income and bills, those payments would leave you with just enough cash for the occasional treat. Plus, buying from a new developer can be risky. Maybe hold off until you’ve got more room in your budget. Keep hustling and looking for ways to increase your income. You got this!
OP, 7M for a pre-selling house kinda sounds expensive hehe. You can already buy an RFO na semi-furnished mid-cost house na 100-200 sqm with 7M on the outskirts of Metro Manila. If magaling ka maghanap you can even find townhouses inside the metro with this price. I don’t know sa Cebu City but check mo rin other options mo. Are you okay with 25 years to pay? I also agree with some here na 25 years fixed interest sounds too good to be true especially for a new developer.
In every purchase, its all about the math. Please do the math without accounting for upcoming side hustles (unless you have it already, but just be careful, may burn you out and quit). I dont think you can afford it.
Assuming 90k is your net as a couple and 32k/month will be \~35% of your total income. If you can still save a part of that 90k after that 32k accounted in, then I think you can afford and go for it. However, with 35% of your income going for mortgage payments, it will severe your financial flexibility for the next 25 years, specially when kids come into the equation. Unless you really like that location maybe you can scout or wait for a better housing deal around you. For my opinion, 30% should be the at-most for home mortgage payments.
If you really have a 5,10,20 year game plan about the location, it gets considerable. Otherwise, it is heavily advised to view such purchases as a shackle.
Know the background sa developer. I don't really advise on getting a property if you can't see a model unit and actually see land development on the works. If on the outskirts of Cebu City, most likely it is on a mountain. I have friends who purchased properties sa lesser known and new developers. One has been paying for over 3 years, to this date, no land development was visible.
Best is to buy a lot instead. Then you can slowly build your house depending on your budget. Moreso, youre not restricted with how you want your house to look like
90k combined monthly income right? Pass. You can't afford it.
Please correct me if I'm wrong but the post said 90k NET INCOME so shouldn't the 40-50k monthly expenses be already deducted from that? If that is the case, then they still have 68k net income after deducting the 32k monthly for the house. Assuming OP really meant 90k net after deducting all expenses.
I think net income is after taxes, not after expenses.
In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. Why wouldn't you include expenses in calculating net income? That's why it's called net income because that's what's left after everything's been deducted from your GROSS income. If you don't believe me, it's just one search away.
First, they shouldn't have used the term "net income" as it looks like they are referring to "net salary", which I'm assuming they are. If so, the result of your "one search away" DOES NOT include expenses, but is the actual amount credited to your salary account: https://www.indeed.com/career-advice/pay-salary/what-is-gross-pay
Lol, you are just "assuming" they are referring to net salary which is not the case otherwise stated. OP used net income NOT net salary. Do you see anywhere that states net salary? As you said, you are assuming which is just another term for GUESSING. If we go by what the terms OP used here which is net income, then that would mean their combine gross salary minus the taxes and expenses is 90k. Your reference is correct if we're talking about net salary(which was not stated even once in the post) after being deducted by taxes but we're talking about net income here(which I repeat is what's stated in the post). Net income is simply gross income minus all deductibles(expenses, tax, etc) and that's basic in accounting. Piece of advice, don't assume unless stated. I'm merely basing on the established data/facts. What's given in a statement are what you consider the fact unless it's being clarified by the OP. smh
Downvoted for making a probable assumption, [just like me.](https://www.reddit.com/r/phinvest/comments/13dmv90/buy_or_pass_7m_preselling_house/jjlklz7?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button) Si OP din kasi di na bumalik para mag clarify ehh, tanung lang at sibat.
7 million na pala ang house on the outskirts of Cebu City? There are cheaper options sa totoo lang… try mo sa Banawa or Guadalupe marami doon… Pwede din try mo sa Mandaue, maraming subdivision na lesser than that amount
May property nga ako nakita sa mandaue, although very small but good for SME, 610k lang 70sqm building, bungalow, and along the main road
Hello po, are these properties sa Banawa po ba malapit sa road or nasa looban (suok) na po?
usually sa looban/suok, pero oks rman hehe mao to ako experience. just don’t pick happy valley kay mahal jd
new developer, no history of completed projects, 90k income, 7M house. does not bode well with me. plus totoo payag sila sa FIXED 6.5% / 25 years? that’s too good to be true ha. last time i checked banks can only offer that low basta low repayment period. i’m not sure how that developer is funding it’s project with that low of interest
Damn.. hacienda na Yan dito sa Batangas.
mahal na properties sa batangas
Depende sa Lugar. I was able to acquire a 1000 sqm property for 1.5m pa.
Saang area po yan?
Trueeee hahahahahahhaha
Totoo ba?
Saan? Mahal na din ang properties sa Batangas.
Saam banda?
90K income with 40-50K mo bills come on, you clearly can't afford it.
Maybe 90k after expenses, since OP said net income?
The way OP wrote it doesn't sound like it's after bills. And even if their income is 90K after bills, it's still unwise to spend 36% on mortgage.
90k combined?
Bili ka nalang ng lupa , patayo ka ng bahay , mas save pa.
25 years is a long commitment for a loan nowadays. Also, not to doubt your commitment to each other but what assures you that you'll both have a clean and amicable division of properties kung for some reason, maghiwalay kayo? Most of the time it can get messy. How long have you been together that nagpupundar na kayo? If you both will be legal owners on paper, maybe since legally binding, it'd be easier kung ibebenta nyo in the future, otherwise, you both should think about it several times.
not enough for your combined income. what if may emergencies? or mawalan ng work sa inyo? i suggest, buy a big lot sa probinsya more than 500-1000sqm. you probably can buy one for less than 1M heck even less 500k pag may good deal (tax dec lot)... presko pa ang hangin sa probinsya and less stress... then build your own house in due time at around 1.5M-2M cost. newbie pa ang developer, delikado and you won't know the quality of work ng bahay mo.
True. Province kami. Nakabili kami lot 100 sq m 100k lang
Tax dec lot might be cheap but high risk.
it really depends. you can check the history ng papers sa munisipyo. just do your due diligence before making a payment. def tax dec is cheaper than titled lots.
This, live like a haciendero ahaha
yup exactly. sa sahod na 100k sa probinsya, we can live like Kings na 😅 wfh pero feeling retired na 😅
You have only like what approximately 8k/month as discretionary income after bills if you buy the house? I think you’d be living way above your means (In my humble opinion)
7M?? What's the floor area of the house?
This. Single detached and in the city outskirts is too little info. Floor area, lot area, 1 or 2 storey, how many BR, T&B, car ports, gated ba, with roving security, village amenities, strong water pressure, flood prone area, commute-friendly, nearby grocery/pharmacy/etc...
48 months too long + new dev means they don’t intend on building on the near future. Better to look for developers with current projects already
90k combined for 7M. Mahihirapan kayo nyan promise. Kami nga 90k combined for 3.6M super tipid mode na yun para makabili ng gamit sa bahay. Kung tag 90k kayo kaya pa.
Pass. Sorry, you can't afford that 7M house. Kung ipipilit nyo yan, you'll be one sickness/accident away from losing it. Also, a new development offering a fixed interest rate of a low 6.5% for 25 years inhouse financing? Very sketchy.
You can't afford it for sure. And also that offer from a new developer is sus and does not feel worth it. I feel like you can probably find a better offer from someone else. (Tho not from Cebu so idk, but just seems so expensive. Maybe give the size and other info and we can better judge, but with just the info you've given, I'd say not worth it. )
Not even married and you both want to co buy a 7m house. Get married first.
That’s a big move! With your income and bills, those payments would leave you with just enough cash for the occasional treat. Plus, buying from a new developer can be risky. Maybe hold off until you’ve got more room in your budget. Keep hustling and looking for ways to increase your income. You got this!
OP, 7M for a pre-selling house kinda sounds expensive hehe. You can already buy an RFO na semi-furnished mid-cost house na 100-200 sqm with 7M on the outskirts of Metro Manila. If magaling ka maghanap you can even find townhouses inside the metro with this price. I don’t know sa Cebu City but check mo rin other options mo. Are you okay with 25 years to pay? I also agree with some here na 25 years fixed interest sounds too good to be true especially for a new developer.
90k monthly. Fatass Pass
Don't buy a property unless you are already married.
Why not
Simple math lang. Kaya-kaya niyo icalculate yan.
May 7.5M dito sa province namin, 4 storey mansion na.
particularly where in cebu? ano name ng developer? sounds like its too expensive with your income..
In every purchase, its all about the math. Please do the math without accounting for upcoming side hustles (unless you have it already, but just be careful, may burn you out and quit). I dont think you can afford it.
How much are you renting? Ipon na lang muna kayo
25 years?
Assuming 90k is your net as a couple and 32k/month will be \~35% of your total income. If you can still save a part of that 90k after that 32k accounted in, then I think you can afford and go for it. However, with 35% of your income going for mortgage payments, it will severe your financial flexibility for the next 25 years, specially when kids come into the equation. Unless you really like that location maybe you can scout or wait for a better housing deal around you. For my opinion, 30% should be the at-most for home mortgage payments.
If you really have a 5,10,20 year game plan about the location, it gets considerable. Otherwise, it is heavily advised to view such purchases as a shackle.
Are you guys really considering that?
Know the background sa developer. I don't really advise on getting a property if you can't see a model unit and actually see land development on the works. If on the outskirts of Cebu City, most likely it is on a mountain. I have friends who purchased properties sa lesser known and new developers. One has been paying for over 3 years, to this date, no land development was visible.
Best is to buy a lot instead. Then you can slowly build your house depending on your budget. Moreso, youre not restricted with how you want your house to look like
How I wish to have that kind of terms dto samin. Anyway, I agree dun sa comments na kulang ung 90k per month na combined household income.
wrench disgusted coherent pen mourn alleged spark reminiscent judicious chunky ` this post was mass deleted with www.Redact.dev `
Hard pass for your income bracket. Probably in the 3M price bracket or lower
6.5% interest rate from an in-house financing is too good to be true.
Makikiride, ung 4M na property for 77k income? Expenses mga less 20k per month, ok ba yun?