Learn the advantages and disadvantages of choosing home financing options and to know which one suits you best.

Home financing options in the Philippines

Spot Cash Payment

The easiest and fastest way to buy a real estate in any part of the Philippines is to pay it in spot cash. Spot cash payment means the buyer pays the price of the property in a short period of time in cash which is usually one month after the date of reservation.

Advantages

Enjoy discounts
Few requirements
No long term payment worries
Process & receive real estate documents in short period of time
Disadvantages

Most people can’t afford to pay in spot cash
TIP: Most home buyers would choose paying in longer when buying a property. If you can purchase a property in spot cash, analyze your budget and state of finances first before making any decisions.

Bank Financing

After paying the down payment, the buyer loans the balance of the property from a bank. This simply means that the bank pays the developer/owner of the real estate property and the buyer pays the bank. The property will be under the bank’s name as collateral just so the bank can go after the property in case of nonpayment.

Advantages

Longer payment terms compared to in-house financing
Disadvantages

Longer the term, the more you end up paying (interest rates).
Strict bank terms of approval and on late payments

Pag-IBIG Financing

Pag-IBIG financing is the most popular among Filipinos because of the longer terms and lower interest rates. In this financing option, the buyer pays the equity first. Then, the balance will be financed through Pag-IBIG. Payment can be up to 30 years.

Advantages

Longer payment terms (can be up to 30 years)
Homebuyers can opt for short term loans
Lower interest rates (as low as 6%)
Disadvantages

Difficult for some to pay for the equity
More requirements compared to the other financing options
Longer processing of documents time compared to the other financing options
TIP: Ask the agent if the subdivision development you’re eyeing at accepst Pag-IBIG financial. Not all developments accept Pag-IBIG financing is not allowed.

Deferred Cash Payment

Deferred cash payment means the total price of a real estate property will be divided equally in a given period of time (e.g. 3 years). If you see the following phrases: “No down payment required; No interest” then it uses the deferred cash method.

Advantages

No interest rates
No down payment
No need to worry about long term payments
Shorter period for the processing of real estate documents
Some developers give discounts
Disadvantages

Shorter terms, bigger monthly payments
TIP: Some developments also has a preferred home financing options. It is better to ask your real estate agent on what time of home financing option for the property you want to purchase.

Sources: Lisa Marie is a founding member of Filipino Homes

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Extreme Heat Safety

• Stay out of the direct sun. Seek shaded or air conditioned areas such as libraries or malls. MORE
• Whenever possible, schedule outdoor events (public gatherings, sporting events) early in the morning when it’s cooler and the air quality is better.
• Drink plenty of fluids. (Avoid alcohol and caffeine.)
• Wear light-colored, light-weight clothing. Use hats with brims and sunscreen for more protection.
• The elderly, small children, and people with chronic health conditions are more vulnerable to the heat. Call and check on friends, family, and neighbors.
• Anyone showing signs of heat stroke (altered mental state, not sweating, nausea) should seek medical attention immediately.

Summer Vacations

• Planning a trip outside the United States? Certain shots may berequired or recommended. Travel clinics can get properly immunized.MORE
• Take steps to stay healthy and safewhen you travel.

Swim Safely

Swimming is a great way to beat the summer heat and it is a fun way to get exercise. Whether you are swimming in your own backyard pool, in your family or neighbor’s pool, or in a natural body of water, follow these tips to keep this popular summer pastime safe:

• Never swim alone! Even experienced or strong swimmers might need help.
• Do not leave young children or non-swimmers unattended.
• Encourage children and other non-swimmers to use life jackets or other approved flotation devices.
• Sign up for swimming lessons—you are never too old or too young to learn how to swim!
• Do not jump or dive into the shallow end of a pool.
• Keep away from pool drains, pipes, or other openings to avoid entrapments.
• Always keep a phone nearby.
• Learn CPR. It’s a lifesaving skill, literally.
• Install a fence, with self–closing and self–latching gates, around backyard swimming pools. Check local ordinances or laws to make sure you are in compliance.
• Avoid drinking alcohol before or during swimming and while supervising children.

Beach Safety

• See the latest beach closures and advisories.
• If you own a pet, remember to scoop the poop and dispose of it properly. Pet waste can pollute beaches and make people and animals sick. Follow local rules for pets at the beach, including rules for leashesMORE

Sun Safety

Protect yourself from exposure to the sun’s rays and reduce your risk of sunburn, skin cancer, and heat stress:

• Apply sunscreen with SPF 30 or higher and both UVA and UVB protection before you go outside, even on cloudy days.
• Reapply sunscreen after swimming or sweating or after staying outside for more than two hours.
• Wear clothing, sunglasses, and a hat with a wide brim to protect exposed skin.
• Seek shade, especially during midday hours.
• Drink plenty of fluids. MORE

Food Safety

• Eating out more this summer? Viewfood safety inspection reports for your favorite restaurants.
• Foodborne illnesses increase in warmer weather. Keep food safeduring cookouts and camping trips by handling, preparing, and cooking it properly.

Sources: www.health.ri.gov

What are the considerations before buying a property in Philippines?  How easy is it to own one? What are the documents that I should be signing?

Sources from www.philippinepropertyexpo.com

Let www.athomeako.com will help you to choose your dream home or investment property. Inquire Now!

Foreigner’s Guide

By law, foreigners don’t have the right to acquire land in the Philippines. Only Filipino citizens can own land (there have been many proposals to amend this law but of this writing, the law remains unchanged.) The simplest way for a foreigner to acquire real estate properties is to have a Filipino spouse purchase a property in his/her name.

Exceptions:

Corporations or partnerships that is at least 60% Filipino owned are entitled to acquire land in the Philippines. An exception to this rule, is foreign acquisition of a Philippine real estate in the following cases:

* Acquisition before the 1935 constitution.

* Acquisition thru hereditary succession if the foreign acquire is a legal or natural heir. This means that when you are married to a Filipino citizen and your husband/wife dies, you as the natural heir will become the legal owner of his/her property. The same is true for the children. Every natural child (legitimate or illegitimate) can inherit the property of his/her Filipino father/mother even if he/she is not a Filipino citizen.

* Purchase of not more than 40% interest in a condominium project.

* Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law. (natural born Filipinos who acquired foreign citizenship is entitled to own up to 1,000 square meter of residential land, and 1 hectare of agricultural or farm land)

* Filipinos who are married to aliens who retain their Filipino citizenship, unless by their act or omission they have renounced their Filipino citizenship.

Owning of houses or buildings is legal as long as the foreigner does not own the land on which the house is build.

Setting up a corporation with 40% of the stocks in the foreigner’s name and 60% to Filipinos is a good alternative. There must be a minimum of 5 stockholders, and foreigner can have the Filipino stockholders sign blank transfer of the stocks for security.

Rent

The land can be leased by the foreigner or a foreign corporation on a long term contract for an initial 50 year period and renewable every 25 years. A foreigner can rent a lot and at the same time legally own the house on the rented land.

Condominiums

The Condominium Act of the Philippines, R.A. 4726, expressly allows foreigners to acquire condominium units and shares in condominium corporations up to 40 % of the total and outstanding capital stock of a Filipino owned or controlled condominium corporation.

Those who claim that foreigners can own a house & lot in the Philippines have a condominium title to their property. There are a very few single-detached homes or Townhouses in the Philippines with condominium titles. Most condominiums are mid to high rise buildings.

Please see our condominiums for sale in the Philippines.

If you wish to stay permanently in the Philippines or if you frequent the Philippines and stay for long periods. Avail of the government’s Special Resident Retirement Visa (SRRV).
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