In the view point of the low income families, why not? Especially if you like the place, why not buy a home that you will have ultimately than continue renting out for the remainder of your life where you won’t possess anything. However on the point of view of capitalists that consider acquiring numerous units as well as have these units rented and eventually have all these systems, would it be a smart idea? What influences me to write this article was my client that represented purpose to reserve 4 devices in a row for the objective of getting her application for 2 million finance with Pag-ibig Fund. I offered to her 7 points of consideration prior to deciding to invest:
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1) PAG-IBIG RESTRICTIONS JUST ONE SYSTEM OF HOME AND ALSO WHOLE LOT FOR EACH MEMBER. With this ruling, just one unit can be financed with Pag-ibig and the other 3 in the row will be via financial institution funding? It will be a loss on the financier because other individuals are getting your house for just about 6% interest rate from Pag-ibig and also as we know financial institution financing is about 10% interest rate, as well as besides, this development is not bankable yet because for now it is just even raw land. It is just through Pag-ibig since the developer has prior plan with Pag-ibig utilizing the whole home as collateral with Pag-ibig.
2) PAG-IBIG NOT ENABLES ASSUMPTION OF HOME LOAN. Due to widespread re sale with assumption of home mortgage, Pag-ibig does not permit any longer any assumption of mortgage if ever you wish to offer the home. That’s why we come across the problem of offering low cost homes whose proprietor still has balance with Pag-ibig due to this ruling. We had a situation where the vendor sells her property with an agreement yet when the brand-new owner pays Pag-ibig, it will still be in the name of the old owner which lugs itself a certain amount of danger on the part of the brand-new proprietor. It’s additionally disadvantageous for the seller if the account could not be paid since she will certainly have a poor document with Pag-ibig as well as could not be approved for any financing in the future.
3) RA 7279 or the Urban Development and Housing Act of 1992 calls for real estate and land … to set aside 20 percent of their portfolio to inexpensive as well as socialized housing. This legislation calls for all Realty Developers in the Philippines to develop inexpensive as well as interacted socially real estate at the very least 20% of their tasks for the masses. This indicates if one designer strategies to develop a luxury project in a very appealing location, such programmer is called for to build 20% of the project for affordable and interacted socially real estate somewhere else.
This regulation implies something to investors: That there will always be enough supply of socialized real estate (consisting of low cost real estate) for the masses. This is not suitable for the investor because of the assurance that there will certainly be much more supply of inexpensive as well as interacted socially housing which if ever your device is rented out currently, they could easily desert it and also make use of finance with Pag-ibig on their own.