NO EQUITY! NOW DOWN PAYMENT! JUST PAY 2,900 PER MONTH THRU PAG-IBIG. OWN A HOUSE NOW!!!
Within the view level of the low earnings households, why not? Particularly should you like the situation, why not put money into a home that you’ll personal finally than carry on renting for the remainder of your life the place you will not personal something. However on the point of view of traders who consider shopping for a number of items and have these items rented and finally personal all these items, wouldn’t it be a good suggestion? What conjures up me to write down this text was my shopper who signified intention to order 4 items in a row for the aim of availing her software for two million mortgage with Pag-ibig Fund. I introduced to her 7 factors of consideration earlier than making the choice to speculate:
1) PAG-IBIG LIMITS ONLY ONE UNIT OF HOUSE AND LOT FOR EVERY MEMBER. With this ruling, just one unit will be financed by means of Pag-ibig and the opposite three within the row might be by means of financial institution financing? Will probably be a loss on the investor as a result of different persons are getting the home for under about 6% rate of interest from Pag-ibig and as we all know financial institution financing is about 10% rate of interest, and apart from, this growth just isn’t bankable but as a result of for now it’s simply even uncooked land. It is just by means of Pag-ibig as a result of the developer has prior association with Pag-ibig utilizing the whole property as collateral with Pag-ibig.
2) PAG-IBIG NO LONGER ALLOWS ASSUMPTION OF MORTGAGE. Due to rampant re sale by means of assumption of mortgage, Pag-ibig doesn’t enable anymore any assumption of mortgage if ever you wish to promote the property. That is why we encounter the problem of promoting low value homes whose proprietor nonetheless has stability with Pag-ibig due to this ruling. We had a state of affairs whereby the vendor sells her property by means of a contract however when the brand new proprietor pays Pag-ibig, it should nonetheless be within the identify of the outdated proprietor which carries itself a specific amount of danger on the a part of the brand new proprietor. It is also disadvantageous on the a part of the vendor if the account can’t be paid as a result of she could have a nasty file with Pag-ibig and can’t be permitted for any mortgage sooner or later.
3) RA 7279 or the City Improvement and Housing Act of 1992 requires housing and land… to put aside 20 % of their portfolio to low-cost and socialized housing. This legislation requires all Actual Property Builders within the Philippines to construct low value and socialized housing at the very least 20% of their tasks for the plenty. This implies if one developer plans to develop a excessive finish undertaking in a really enticing location, such developer is required to construct 20% of the undertaking for low value and socialized housing elsewhere.
This legislation means one factor to traders: That there’ll all the time be ample provide of socialized housing (together with low value housing) for the plenty. This isn’t splendid for the investor due to the peace of mind that there might be extra provide of low value and socialized housing and that if ever your unit is rented now, they’ll simply abandon it and avail mortgage with Pag-ibig on their very own.
4) IT’S A FACT THAT THE MOST DELINQUENT RENTERS ARE THE LOW INCOME GROUP. With this truth, you’ll absolutely encounter issues of incapability to pay the lease. A overwhelming majority of those folks shouldn’t have checking account so you can not count on submit dated checks from them nor for any comfy type of amassing cost equivalent to wire switch or financial institution to financial institution. You actually must knock on their doorways and accumulate the lease when it is due.
5) LOCATION: Many of the location of socialized and low value housing are very far off town or significantly removed from faculties, industrial facilities, market, and Firms the place low value bread winners report for work. Some prospect patrons are discouraged to put money into one unit for his or her household as a result of should you compute the bills on transportation over time, it will come out to be dearer than proudly owning the low value unit.
6) IF EVER YOU HAVE FULLY PAID THE HOUSE, IT WILL STILL BE DIFFICULT TO SELL IT IN THE FUTURE IF YOU WANT TO SELL IT. Just because for this sort of market, virtually 100% shouldn’t have the money to pay. Even the OFW who’re normally the home helpers and laborers, nonetheless can not pay in money as a result of they like to avail the abroad Pag-ibig mortgage Program. Furthermore, for this sort of market, financial institution financing is seldom an choice, it is virtually all the time Pag-ibig due to the very low price for as we all know Pag-ibig or HMDF is professional poor.
7) HOUSES ARE ORDERLY AT THE START BUT TOPSY TURVY IN THE FUTURE
It is the very nature of socialized and low value housing that at first, it seems clear and orderly (complete subdivision) however by expertise, only a matter of few years, majority of the residents broaden indiscriminately, some one-storey items are expanded to second ground, whereas the connected neighbor in a row stays one-storey unit. Others construct storage and fence whereas others should not. Others repaint their homes yellow whereas others orange or white; and numerous them simply show their hanged garments proper in entrance of their homes. Such a situation which is quite common will certainly make the whole property depreciate in worth.
Be that as it might, I nonetheless consider it is good to personal a socialized or low value housing much better than renting for the remainder of one’s life. However let this funding be confined to precise customers and builders of the property. Any investor who just isn’t a person however decides to purchase within the hope that rental earnings could make him personal a number of houses, will certainly get in to bother with the 7 issues talked about above. But when the investor thinks he can handle these 7 issues, who am I to cease him? I merely and gladly share my concepts based mostly on precise expertise and information on actual property legal guidelines.