As ZipMatch discovered in a recent study, Filipinos tend to put off buying a home in anticipation of a major life milestone or change. This is understandable, of course. If you are going to experience a change in income or family, you will want to wait to buy a home until these changes are done.

We have also found out in a subsequent study is that this principle especially applies to Filipinos who live at the home of their parents or extended family. Living at home with one’s parents in the Philippines is not stigmatized, unlike in the United States or other Western countries. In fact, staying at the parental home is preferred, and in many cases, encouraged by the hosting parents or family.

What Living at Home Means to Philippine Real Estate

This cultural tendency brings with it interesting questions. For instance, does the Filipino tendency to live at home with one’s parents affect the real estate market? At first glance, it may seem to discourage homebuying, as one is given unlimited and indefinite use of free housing. What incentive is there to buy a home when you in a way already have one, just not in name?

On the other hand, it may actually encourage homebuying. If Filipinos are living at home – presumably for free – they get to save on the money that they would otherwise be using on rent. In this scenario, such Filipinos would be able to save more money than renters, so when the time comes that they do want to buy their own home, they can more easily do so.

From our subsequent study, we have ranked the top five reasons that would push Filipinos to start their search for a home in earnest.

5. Having a child having_a_baby

Having a baby means having one additional person in what may be your childhood home. Your parents may also tell you how to raise your child, which could create a power struggle. Yet our respondents may have ranked this lower as grandparents are often preferred to be pro bono babysitters.

4. Getting a job in a different city job_in_a_new_city

Our study also showed that our respondents would move out of the family home if their careers forces them to move to another city. The core reason that could be derived from this is convenience. Rather than bear the commute from your parent’s home to wherever your new job is located, you would rather just buy a home nearby.

3. Getting engaged getting_engaged

So you’ve just proposed (or have been proposed to) and are making plans for your dream wedding. You and your future spouse are excited over your wedding, your honeymoon, and then it hits you – you are still living at home. Unless you make plans to buy a home soon, you face the prospect of getting married only to return to live with your spouse in your childhood home – certainly not the most romantic of visions.

2. Following marriage getting_married

If getting engaged doesn’t motivate you to begin looking for a home, our study revealed that some of our respondents will be moved to buy a home if they are newly married. The reality of living at your childhood home as a newlywed will get you to begin touring homes with a broker or agent faster than you can say, “I do.” In addition to the motivation of wanting to live on your own as newlyweds, there may be a financial reason as well, as weddings often yield the couple a sizable lump sum of cash.

1. Getting promoted at your current company promotion

The number one milestone that would cause Filipinos to look for a home is getting promoted. A promotion generally comes with a significant monthly raise and additional benefits. The rationale behind this reason could be this simple: If you are able to live comfortably on your previous salary, you could use the increase in compensation to help pay for the downpayment and monthly amortizations on a home.

Knowing these reasons – and how Filipinos tend to use them as a crutch for not buying a home – can help keep you from doing the same. Homebuying is a long-term process that you must begin at the nearest available opportunity and not just when your life forces you to.

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  • milotimbol

    Traffic made me leave my parents home.haha After years of going back and forth to makati and antipolo, waiting forever in line for the shuttle only to get one without aircon, and getting the worst seat where only half of your butt is seated, I finally decided to rent.

    • Hahaha! Nice one, Milo. Yup, that almost forced me to rent a place too.

      But I agree with what the author said that “If Filipinos are living at home – presumably for free – they get to save on the money that they would otherwise be using on rent.” This was exactly how I was able to save enough :)