By Danielis Fermín
El Inmobiliario
After five years of dating, José and María (not their real names) decided to take a crucial step toward starting their life together: buying their first home. They were so excited that they could only think about the day they would receive the precious keys to their "love nest.".
They knew it would be a big commitment, but they were willing to work as a team to achieve it. They spent entire nights dreaming about their ideal home and searching for properties in different areas of Santo Domingo, researching both online and in person.
After several months of searching, they found a cozy apartment that met all their expectations. It cost US$100,000, was still under construction, and had a delivery date that allowed them to plan ahead and achieve their dream.
The first thing they did was review their income and expenses to create a solid budget and set aside an amount for the down payment. Maria, who has always been organized with her finances, suggested creating a joint account where they could both deposit the agreed-upon amount. Jose proposed cutting back on some unnecessary expenses, such as eating out every weekend or buying new clothes every month.
However, in their enthusiasm to buy the house, they didn't consider all the aspects involved in purchasing a property. During a meeting with a real estate agent, they learned about the additional costs they would have to factor in: closing costs, transfer taxes, legal fees, and other necessary procedures. José and María looked at each other in surprise, as they hadn't budgeted for this and had only allocated 20% for the down payment.
Despite the unexpected setback, they didn't let it discourage them. They realized the importance of thoroughly researching and adjusting their savings plan. They knew they needed to focus and dedicate more time to understanding the home buying process and improving their income, so they consulted with financial experts to create a more realistic budget. Thanks to this research process, they reviewed their finances, adjusted their lifestyle, and established a new savings goal that included additional expenses.
The example of José and María reflects the reality of many Dominicans who, by not considering all the expenses or the proper advice, are forced to postpone the purchase of their home or even give up on it.
If you're on the path to buying a property, it's essential to create a savings plan and a realistic budget that includes all expenses, cuts unnecessary ones, and sets monthly savings goals. This planning will allow you to better understand your financial situation and define the type of commitment you can afford.
Furthermore, it's essential to research and seek advice on all aspects of the purchase. Meeting with experts who can guide and help you choose the ideal property is key.
Another aspect to consider is inquiring about government incentives, such as the First Home Bonus. At each meeting, be sure to ask about legal requirements, applicable taxes, closing costs, and other associated expenses that could exceed your budget and lead to over-indebtedness.
Always be prepared for additional expenses that may arise during the buying process. Including them in your budget from the beginning will ensure that the total amount doesn't exceed your financial capacity, avoiding stress and delays. Remember, the key to truly owning your home is to create a solid savings plan that includes all the necessary costs.
Cover photo: Pexels.
