By Freddy Manihoru
Advice to First Home Buyers in Papua New Guinea. Firstly,The rate and term of Mortgage/ loan repayment against your ability to repay is important to measure before committing to buying a house.
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| First Home Buyers tips for PNG |
Secondly, is to look at the quality of the material used in the building and construction. This will ease the burden of repair and maintenance. You don't want to over commit to an expense apart from repaying your loan and other expenses. I've talked to some people who were first home buyers and they've shared their experiences of going into a new house in the first year and seeing defects on the second year which has cost them a lot of money to do repair and maintenance hence be cautious about your choices.
Thirdly, the location, to make future gains in property valuation. Valuation gains will depend entirely on the location. Whilst, some locations have greater prospects over others, it is equally important to consider future developments that may give rise in valuation to the land/house in near future.
Most First Home Buyers are influenced by the style of the house and its features that easily draws their conscience away from reasonable thinking in which they end up over committing themselves and their budget. Make your own comparison analysis before committing.
There is that PNG "Big Mahn Mentality" where we all want to have a big house, big this and big that. It's ok for those who have cash and have the ability to repay their debts.
For us small people, I encourage you to buy within your budget, start small and gradually build up once you have the capacity and ability to do so. YOU WON'T GO WRONG!
As a responsible Superfund and Developer in housing project, we at CTSL have been educating our members and interested parties on the importance of Mortgage Financing and it's associated risk so that they make the right choice.
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