Buy the property, not just the promo
There is something interesting happening in the Philippine real estate market. Developers are becoming increasingly creative, sometimes even aggressive, in making property ownership more accessible.
Low or zero down payment schemes, extended installment periods, flexible payment arrangements, cash discounts and ready-for-occupancy (RFO) units at attractive prices are becoming difficult to ignore.
But before we get carried away by the prospect of owning a property with little or no money upfront, perhaps we should ask a more important question: Can we actually afford it?
Long-term decision
However, believing in property ownership does not mean advocating for buying at all costs. As a financial literacy advocate, I often remind homebuyers to distinguish between a good property deal and a good financial decision.
The opportunity is there. And the numbers tell a story.
According to Leechiu Property Consultants’ Q3 2026 Philippine Property Market Report, Metro Manila condominium sales rose by 17 percent to about 8,400 units, while inventory declined to 28 months of supply, its lowest level in two years.
The report also highlighted cash discounts of up to 60 percent on selected RFO units.
These developments suggest that buyers have more room to negotiate and acquire properties at attractive prices and payment terms.
But let us be clear: A 60-percent discount is not an industry-wide price reduction. It applies to selected offerings, and buyers must still examine the property’s original pricing, prevailing market value, location, developer track record and resale potential.
Examining the economy
While real estate opportunities are becoming more attractive, the broader economic environment calls for caution.
The Philippine Statistics Authority (PSA) reported that headline inflation rose to 7.8 percent in October 2026 from 7.2 percent in September. Year-to-date inflation stood at 5.6 percent.
For prospective homeowners, inflation affects transportation, utilities, maintenance and other recurring household expenses.
Meanwhile, economic growth has moderated. The PSA reported that Philippine gross domestic product grew by only 2.1 percent year-on-year in the third quarter of 2026. Household final consumption expenditure rose by 2.4 percent, while gross capital formation fell by 0.2 percent.
These figures suggest that households and businesses face a more challenging economic environment.
Cost of borrowing
Adding to these considerations, the Bangko Sentral ng Pilipinas (BSP) raised its target reverse repurchase rate by 50 basis points to 5.50 percent earlier this week.
While the BSP policy rate differs from bank home loan rates, monetary policy changes can affect borrowing conditions and financing costs.
In other words, while developers may be making it easier to enter the property market, the cost of acquiring and maintaining a home may not necessarily be getting cheaper.
Price of homeownership
One of the biggest misconceptions among prospective homebuyers is equating affordability with the upfront cost of acquiring a property.
Consider the full cost of ownership: monthly amortization, interest, association dues, real property taxes, insurance, utilities, maintenance, repairs and other expenses.
For investment properties, additional costs include vacancy periods, tenant turnover and property management fees.
An investment property should not be evaluated solely on projected rental income or anticipated appreciation, but on its potential returns after accounting for actual expenses and risks.
Reality check
Perhaps the most important exercise for prospective homebuyers is to review their personal finances. I encourage buyers to consider the stability of their cash flow. Here are five key considerations.
1 .Review your actual disposable income
Start with your take-home pay, not your gross salary. Deduct existing loans, credit card obligations, household expenses and other financial commitments. What remains shows how much you can realistically allocate toward a property.
2. Stress-test your future amortization
Do not base your decision solely on the developer’s introductory installment. Determine your eventual monthly amortization under the financing terms. Can you still afford the property if interest rates rise, expenses increase or your income temporarily declines?
3. Preserve your emergency fund
Buying a home should not mean exhausting your savings. Maintain sufficient funds for emergencies, job disruptions and unexpected expenses. A beautiful home without a financial cushion can become a financial burden.
4. Evaluate the property based on its purpose
Are you buying a family home, reducing rental expenses or generating investment income? Your purpose should guide your choice of location, property type, size and budget.
For homeowners, accessibility, safety and proximity to work or schools may matter more than rental yields. For investors, rental demand, occupancy prospects, costs and resale potential become important.
5. Understand the opportunity cost
Consider whether buying now would compromise your retirement savings, children’s education or other financial goals.
Owning property is one component of wealth creation. It should complement, rather than undermine, your overall financial plan.
Financial readiness
Remember, the best investment is one you can afford to keep.
Real estate has always rewarded patience, sound judgment and long-term thinking. But it also requires discipline, especially when market conditions create a sense of urgency.
I remain an advocate of homeownership and property investing, believing that real estate can help build financial security and long-term wealth.
But the decision to buy should be driven by financial readiness, not marketing urgency.
Buy the property, not just the promo. Build equity, not unnecessary financial pressure. The right home is one you can afford to buy today and comfortably keep tomorrow.
The author (CIS, CSR, CTP, CUSP and CFMP) has 20 years of experience as an entrepreneur, real estate investor, stockbroker, financial literacy advocate, radio show and podcast host, and a multi-awarded and sought-after investment educator and public speaker. He is the vice president and the Division head of Digital Solutions and Investor Engagement of First Metro Securities Brokerage Corp., a member of Metrobank’s Financial Education Editorial Advisory Board. Email via [email protected]
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