There are a lot of properties advertised in newspapers these days. It just goes to show that the real estate industry in the Philippines is booming. It is affordable to buy properties the earliest you can while the property is still at its pre-selling phase. But, how do you buy properties for sale in the Philippines?
I enlisted the help of a broker friend from Rent.PH, Xyza, for me understand the process of buying properties in the Philippines and the terms in real estate buying.
Usually when I see property ads, there is always a “Reservation Fee” a buyer has to pay. The term itself very understandable. You are basically paying to put the property on hold and have the exclusive right to buy that property. Reservation fee is non-refundable and non-transferrable.
After the “Reservation Fee”, there is also a downpayment requirement a buyer has to make. Xyza informed me that downpayment can be paid in 24 to 36 months and is usually interest free. Also, downpayment is usually 20% of the price of the property.
For example, see table below:
|Total Loanable Amount 80%||1,550,000.00|
This loanable amount can be made through the bank and PAG-IBIG and it is before interest rate fee.
A PAG-IBIG member who religiously pay for two years straight can apply for a housing loan. Banks and PAG-IBIG will consider your capability to pay. Xyza shared with me that The bank and PAG-IBIG will multiply 35% of your salary. This amount will be your monthly equity and deducted automatically from your salary. You also have to consider how many years, in 5,10,15, 20 years, you want to pay the loan plus the interest rate.
Xyza also shared that not all loans through the bank and PAG-IBIG will be approved. If you think your salary is not that much, you can consider looking for a more affordable property to buy. If you decide you don’t want to continue buying the property, you cannot get back your reservation fee and downpayment you have already paid. If the bank and PAG-IBIG cannot approve the property you want, there is also an in-house financing option. Payment loan agreement is made between the buyer and the property developer. Before buying, always ask for various payment scheme an agency or brokerage is offering.
Rent.PH is a trusted real estate website where they list properties for sale and for rent in the Philippines.