Taxes To Be Paid On Real Estate Transactions in the Philippines

Just like taxes charged on top of the price tags for products we pluck out of grocery shelves, transactions on real properties in the Philippines do not only involve the property value; there are also several taxes that need to be settled.

This should be kept in mind so that every time we negotiate price of say a condo unit or a vacant lot, you not only prepare for the value of the property, but also allocate for taxes payable thereafter.

Let us examine these fees and better understand why we need to pay them.

1. Capital Gains Tax
This is equivalent to 6% of the residence’s sales price, zonal value or fair market value, whichever is highest. Usually but not always, this is paid by the seller. To make computation simple, this rate can also be incorporated into the price tag which is understood that it is shouldered by the buyer. This and must be paid within 30 days after each transaction.

2. Transfer Tax
This is equivalent to 0.5% to 0.75% of the property sale price, zonal or fair market value, whichever is highest.

3. Documentary Stamp Tax
This is equivalent to 1.5% of the property sale price, zonal or fair market value, whichever is highest.

4. Title Registration Fee
This varies according to a published registration fee table; generally around 0.25% of the sales price. Registration fees are paid to the Register of Deeds or Land Registration Authority where the real property is located.

These taxes will vary, obviously, based on the property price. And price will also vary depending on location of property, size, condition and other factors. Settling these taxes are prerequisite with the formality of transaction and failure to do so would result in penalty and surcharges.


Pros and Cons of Living Near The Airport

You might have found a nice looking house and lot unit, with garden and car park and offered at rate that’s slightly lower than market rate. The catch is that it is located at the airport.

Protagonists might convince you to take the offer, as it could just be once in a blue moon and it offers accessibility not only to your flights, but also to facilities nearby. Skeptics, on the other hand, could easily disagree as they point to health and pollution issues that you’ll be exposed to.

If the property is offered to you, would you take it?

Price and certain accessibility pulls you to an affirmative, but health and hazard issues could sway you to the other side. Here are some of the advantages and disadvantages that might help you decide to give a property near the airport a go or give it a pass.

Advantages of living near the airport

1. Benefits airline-related workers
From cargo worker to baggage handler and from check in counter to commercial pilot, living near the airport makes a lot of sense, putting you closer to workplace and minimize effort commuting from home to the job site.

2. Great for travelers
Frequent flyers or business travelers might find it more practical to live near the airport instead of commuting further downtown, where they’ll spend more on transport, not to mention potential risk of getting left behind by their flights in case they get stuck in traffic.

3. Accessible mode of transportation
Airports are often given priority in terms of ease of travel by tourists and locals returning to the city. Such benefit also applies to those who live near the airport as expressways or main access roads are close to their residential units. Just recently, NAIA Expressway was inaugurated for public use.

4. Close to facilities and commercial establishments
As airports upgrade to suit the needs of travelers, they also provide amenities to complement the service. For example, there are restaurants (some restricted though) inside the airport, shopping malls such as Mall of Asia and you’ll likely find vacant taxicabs within the area.

5. Property value could appreciate in the short term
If there are expansions or refurbishments that are in the pipeline, properties within the airport vicinity could increase in value especially if your neighborhood is planned to become a future site of a commercial area.

Why living near the airport is a bad idea

1. Aircraft noise can impact your lifestyle
Aircraft noise is an especially noticeable hazard especially for newcomers in the neighborhood. Such disturbance can affect your sleep. While the public generally rejoices over announcement of additional flights or destinations, your sleeping patterns could only get worse with more flights taking off or landing at the airport.

2. Air pollution could have impact in your respiratory system
Living near the airport exposes you and your family with air pollution as emission from aircraft and ground vehicles can contribute to deterioration of air quality and cause breathing problems. The most important pollutants are usually nitrogen dioxide (NO2) and small particulates (PM10, PM2.5).

3. Expensive price range
Given its access to the airport, properties nearby could carry an expensive price tag.

Living near airports presents set of pros and cons, mostly leaning towards convenience and health issues. Although these issues can be a common factor, not all airports are built the same. Besides taking these pros and cons by heart, have a closer inspection at your desired airport property.


How Foreigners Can Buy A House in the Philippines

More than just a temporary stop over for foreign tourists who got fascinated by its fine beaches, more foreigners have decided to settle down in the Philippines.

There are plenty of perks for a foreigner to live in the Philippines. For citizens who wish to trade plowing snow with year-long sunshine, you got it here. Cost of living in the Philippines is ranked 92nd among 115 countries, and perhaps the most valuable asset are the friendly Filipino locals.

Expats can live comfortably at $1,000 a month, including housing costs, food, basic healthcare and leisure activities. That’s huge savings compared back home, and for retirees it’s a great deal even more.

When it comes to property ownership, foreigners are prohibited from owning land in the Philippines, though they can legally own a residence.

Here are some of the options foreigners who wish to buy residence in the Philippines.

Buy a condominium unit
One of the easiest option is to purchase a condominium, a hybrid type of residential unit that falls outside traditional structures that sit on a lot no foreigner is able to own under current Philippine constitution. With a condo, you only own the condo unit itself – not the land beneath it. The Philippine Condominium Act specifies that foreigners can own condominium units, as long as 60% of the units in the building are owned by Filipinos, a very likely scenario with how Filipinos have adopted this modern way of living.

Buy a house and lease it
By law, foreigners can legally own houses and other types of structures, but they are prohibited from owning the land on which it sits. To work around this, you can buy a freestanding house, but lease the property. Under the Investor’s Lease Act of the Philippines, a foreign national can enter into a lease agreement with a Filipino landowner for a long-term lease with an initial period of up to 50 years, with a one-time option to renew for 25 years.

Marry a Filipino citizen
Foreigners who marry Filipino citizens can buy property in their spouse’s name. Although the foreigner’s name won’t be on the title despite financing the purchase, his or her name can be included in the contract to buy the property. In case the couple legally separate (no divorce law exists in the Philippines), or the Filipino spouse passes away, the land can’t be transferred to the foreign wife or husband since he or she is still prohibited from owning land the Philippines, but will be granted a reasonable amount of time to sell the property and collect the proceeds; otherwise, the property will pass to on to the Filipino spouse’s heirs and/or relatives.

Establish a company and buy property under its name
Corporations with at least 60% Filipino ownership can own land in the Philippines. But before they are permitted to make property purchases, eligible corporations must be registered with government Board of Investment for permission to buy, sell or act as an intermediary in a real estate transaction.

There are also area restrictions that apply to foreigners who buy house in the Philippines. The largest piece of residential land one can own – either with a Filipino spouse or through a corporation – is 1,000 square meters of urban land (0.2471 acres), or one hectare of rural land (2.47 acres).

While there are certain restrictions on foreigners owning residential units in the Philippines, it’s not impossible for them to own one. And that is good news to aspiring foreigners who wish to settle down in the Philippines and enjoy what the country has to offer.


12 Questions You Should Ask Before Buying Foreclosed Properties

Foreclosed residential units appear to be attractive options for buyers looking to own new properties, but as enticing they can be, interested buyers should always proceed with caution and make necessary research before agreeing to a transaction and writing checks.

Properties are foreclosed for certain reasons including failure or refusal of occupants to settle their financial obligations. So unlike conventional procedure of acquiring a residential property, this is a special case that needs a special attention.

As part of due diligence on the part of the buyer, here are some questions that he or she should ask the agency responsible for disposing foreclosed properties:

(Have pen and paper handy to jot down notes.)

1. Is the property currently occupied?
This should be the first question to ask. A “no” would be more straightforward, but a “yes” puts you as a buyer in a precarious situation. While it is assumed that occupants will be leaving, that remains as an assumption unless it becomes a reality. So what is the assurance a buyer can get? If at this point there is uncertainty, take a pass on this property and look elsewhere, and you’ll be out of trouble.

2. Does the property have clean title?
Getting the assurance that you are about to purchase a property sitting on a legitimate title helps you obtain a certified true copy at the registry of deeds along with a previous version, if any, that was overridden by the current one by virtue of change ownership, and mother title.

3. What is the payment terms?
One drawback of foreclosed properties is that they’re not brand-new and the condition of the house could deteriorate a bit. So you might expect to get some compromise in terms of payment terms to offset expenses for minor renovations. Get to know how much is the minimum down payment, length of payment, interest rates, monthly amortization and other money-related matters.

4. Can you describe this property?
As a buyer you’d like to acquire a house that fits your needs. Does it have a parking space for your car? How many bedrooms does it have? Is it a townhouse or a multi-door apartment? Getting as much information as possible — like photos, vicinity maps and nearby facilities — if visiting it in the short term is not possible — can give a clearer idea if this property suits your requirements in size, location, accessibility and other factors. Otherwise, it may just be best to move with the next available property being offered.

5. Are there outstanding taxes payable?
There are several tax considerations when you acquire properties and it’s important to know who will shoulder them. This includes capital gains tax, which is imposed on sale of assets at 6% of gross selling price, documentary tax, real property tax and creditable withholding tax, which is withheld by the buyer or withholding agent from payment to the seller for the sale of the seller’s ordinary asset/services. Not only this gives you an idea who is paying what, but also by how much and is the buyer inheriting outstanding tax dues or not.

This is a helpful step to be aware of what else should you be paying, anticipating that one big reason for the property foreclosure is that the occupants failed to pay dues in a timely manner and arrears and penalties have accumulated since. Seller likely will disclose this information but make sure to remind if you haven’t been told about it.

6. Are there other fees to pay besides taxes and advertised property value?
As the property you’re about to acquire has foreclosed so there are financial issues involved that led to such situation, you should particularly pinpoint outstanding payments and arrears that were not paid by previous occupant. Payable arrears also depend on type of property you’re looking at. For example, condo unit owners might get charged with monthly dues computed by floor area, or association or maintenance dues owed from property owners living in villages or subdivisions.

7. Are there arrears in utilities?
Unpaid electricity bills could mean the unit is a candidate for disconnection, if not yet disconnected from the grid, and requires extra money and time to get them restored. If not, maybe the unity was not yet occupied and no utility connections like water, telephone or electricity has been installed yet, so check this as well. If electricity/water connections are not available, ask how much would it normally cost for a connection to become available for your property.

8. When will the buyer be given authority or take control of the property?
Will it be enough when he or she pays the down payment or once he or she gets hold of the updated certificate of ownership? The earlier the owner gets the key to the property, renovation can start earlier if one is necessary, and property can be leased to tenants or become ready for occupancy. This also helps you, as a buyer who may have taken a loan to finance the acquisition, make use of the property investment and move out of your current dwelling to save costs.

9. Around how much is the rental rate in the area for this type of property?
If you are planning to acquire the real estate property and convert it as an investment vehicle, it will be good to get an idea how much is the prevailing rental rates, so you can better decide to take this route, or even consider proceeding to buy this foreclosed property to begin with.

10. How old is the property?
Having an old property is a double-sided perspective. If it is old and visibly needs thorough renovation, its price should reflect such condition. On the other hand if it’s built for a number of decades but looks durable, it’s an indicator of good structural condition and requires minimal maintenance work, enabling you to save on repairs for the long term. That is why a physical visit should be done for properties that are not built recently.

11. Is the property accessible?
If you are not familiar with the neighborhood, or live far away from the property, get a vicinity map, or pay it a visit to experience how long does it take to the place from public transport hubs (bus or jeepney stop or highway), public infrastructure such as hospitals, church, market and steady source of water or no power shortage.

Initially you’ll have a bias against it since you can’t help but compare it with your current property, plus the foreclosed property is in decrepit condition after years of neglect and lack of upkeep. But have a neutral mindset, since most likely, you have not yet discovered its inherent advantages or you are already used to the disadvantages of your current residence (scheduled brownouts, dimly lit streets or one-hour commute to work).

12. Is there anything I should know but failed to ask?
Foreclosed properties may have other factors outside of the house. Was there an unsolved murder case or former resident who committed suicide in the neighborhood? Is the place far from police station that robberies or burglaries in the neighborhood are a common incidence? Is it near a dump site or a factory that discharge toxic fumes? Or is it far from the pleasant neighborhood as advertised as it suffers from various forms of pollution?

Such due diligence on the part of a buyer is very important because in many cases properties are sold on a “as is where is basis” which means what you see is what you get. Get help from your future neighbors or assign someone to pay the property/neighborhood a visit if you can’t visit physically.

Have this copy printed out as you go through the details with an agent or selling party. Conversation should be very brief — less than half an hour — to evaluate if this foreclosed property is for you or not.


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5 Top Reasons Why Single OFWs Should Consider Investing in Pre-Selling Homes

It’s a common myth that OFWs feel better when investing or making big purchases since they are generally paid better abroad than when they work in the Philippines. Filipinos working abroad have all realized that it’s not easy to find even when they are offered bigger paychecks.

Owning a new home or improving their current homes are among the top listed wishlists for OFWs. There are plenty out there in the market, with a variety of factors such as size, price, features and locations. But what matters and on top priority among OFWs? While many have families and children and housing them in a decent dwelling place is a source of pride, there are also Filipino migrant workers who are single and whose priorities are slightly different — save now and secure their future.

This brings the argument about finding the right investment vehicle or type of property single OFW would like to part their earnings with.

Single OFWs still send money to families for daily expenses such as food and utilities, education of siblings or extended family members, medical expenses and savings or investments. But when it comes to acquiring properties, many of them are unwilling or unable to shell out big amount of money to buy a house in the Philippines they won’t enjoy unless they are still employed abroad.

Then comes the idea of pre-selling properties frequently advertised as cheaper, better alternative avenue for single OFWs to carve their way into owning properties in the Philippines. Why so? Let’s find out the five reasons why pre-selling properties — be it condo unit or subdivision housing — and unmarried OFWs appear to be meant for each other.

1. Affordability
Because of their current state, pre-selling units are more affordable compared to advertised homes that are ready for occupancy. OFWs sure get bigger monthly salaries but they don’t expect to spend them all in a single property acquisition; they also have other living expenses to cover. With prices between 30% to 50% cheaper than finished housing units, pre-selling units are certainly more affordable to buy, with some cash to spare for an OFW’s living expenses abroad and remittance money for the parents in the Philippines.

2. Practicality
It seems out of line when OFWs purchase homes in the Philippines while they don’t get to live in them as they’re still working and living abroad. That’s an accurate assessment if the unmarried Filipino migrant worker is based indefinitely abroad, find a spouse and raise family there.

But many OFWs have finite years abroad, then decide to go home and settle down. It makes sense to get a house on the cheap, pay in smaller installments and return to the Philippines once the house is ready for occupancy. That sounds like a better idea than buying a more expensive ready-for-occupancy unit that nobody lives. If it’s meant for investment like rental home or AirBnB, yes, you’ll earn money to pay for installment balance, but its condition deteriorates by the time you arrive and supposed to enjoy this fruit of your labor.

3. Appreciating value of property
In many cases, pre-selling homes are built on places that’s less suitable for living: far from markets, lack of smooth pavements and less accessible by public transport. So it doesn’t make sense for owners to dive in and purchase finished homes outright only to find out it’s not convenient to settle there.

As pre-selling properties are continuously built, the surrounding community starts to develop. More street lights installed, drainage system in place, more transport options as the population in the neighborhood increases, and so on. While you as an OFW may not notice such development in the community, you’ll soon find it out when you return, hopefully settling everything and formally claiming ownership of a residential property whose value increases as its location becomes more conducive to community living.

4. Income generating potential
On another side of practicality in item #2, OFWs who shell out minimal amount of cash as downpayment for a pre-selling property will have extra resources to refurbish it and turn into an income generating property if they decide renting it out is an option (it has to be attractive enough — close to schools, factories and downtown — to make that happen). The payment can be used to pay the mortgage, saving the OFW from shelling out monthly payments and keeping his or her income savings intact. Such savings can then be used to renovate the house once he or she decides to go home for good, after the pre-selling property is already paid up.

5. Flexibility
Buyers of pre-selling units often have fair chances to choose their desired location, whether in a condo block or a townhouse development. This gives the element of excitement as the ones who get to make an early commitment have plenty of options available for them — top floor, better views, and so on.

6. Sense of security and inspiration
Filipinos working abroad feel a sense of security that one day, when their days as OFWs are finally over, they have something to look forward to. Whether that’s a growing poultry business, seeing your children go to school or moving to your newly-paid residential unit you started paying 10 years ago. There’s a sense of inspiration as you look at your desired goals.

Such feeling of anticipation making a countdown to that day is similar when you commit to that pre-selling property and gradually investing your way to a homeowner. That’s certainly more future-focused than aimlessly spending on any random item, only to find out you have nothing to show after years of working abroad.

While these are enticing prospects for single OFWs to get hold of pre-selling units, utmost diligence and research must be done before parting with hard-earned cash. This is especially applicable for Filipinos who are based abroad and have limited amount of time to inspect the location and limited amount of engagement with developers, agents and advertisers who might turn out as fraudsters and fly-by-night operators.

OFWs are now more intelligent and know where they should put their money in, thanks in part to technology and equally informed family who can help them make informed decisions.


Types of Foreclosed Pag-IBIG Properties Available for Bidding

Pag-IBIG housing projects come in different shapes and sizes, depending on financial power and preferences of buyer-owners. So it’s no wonder the type of home dwellings appear in list of foreclosed properties up for disposal at scheduled Pag-IBIG auctions.

With a variety of interested parties, from those who are looking to buy their first homes to established entrepreneurs looking to boost their real estate portfolio, listed properties available for bidding also suit a good range of purposes — as residential dwelling, rental property or short-term leases such as AirBnB.

Let’s take a look at the different types of properties available at Pag-IBIG auctions as foreclosed properties.

1. House and lot. Independent and stand-alone, these are more desirable residential units that evoke peace of mind and greater sense of freedom and security. These include single detached (house built on middle of the lot), single attached (house built on side of perimeter boundary)

2. Lot Only. Foreclosed lot properties offer plenty of opportunity for owners to design and build house based on owner’s preference.

3. Townhouse. Townhouses offer financial incentives to residents who enjoy the feeling of single-family living often at a lower cost and with much less responsibility for maintenance than a single-family home.

4. Condominium Unit. One of the biggest perks of condominium ownership is that the individual owners are not directly responsible for performing maintenance on the building, common areas or grounds.

5. Duplex. For folks with investment in mind, duplex units present enticing option of owning one unit and leasing the other, helping ease the financial burden of paying off mortgage.

6. Row house. One of the most affordable units come in this type of residential unit so if you’re starting out with a young family or working your way into saving for your next investment, this is a good choice.



Guide To Bidding Foreclosed Pag-IBIG Properties

In case you are hunting for a new property in the market, one viable option to explore is Pag-IBIG Fund’s list of foreclosed properties. These list of properties offer distinct advantages being in line with market rates and a well-established route to acquiring properties in the Philippines.

Through its website, Pag-IBIG Fund lists down a list of foreclosed properties for scheduled bid for interested parties.

Although the steps are relatively straightforward, it is understandable for first time bidders to feel confused on getting them right in their attempt. We’re hoping this article helps them proceed with their bid attempts with more ease.

1. Review the list of foreclosed properties for bidding 
But before you make your bids, you have to identify which property or properties you have an eye on acquiring. Visit the Pag-IBIG Fund’s Acquired Assets page and look for Schedule of Public Auctions section. Listings are grouped according to a city or provincial location.

One foreclosed property up for bidding is listed per row.

  • Item number – property counter used for easy reference when relating to the specific list of properties.
  • Property number – reference number to refer to the specific property.
  • Property location – the address of the property, usually specific down to phase, lot and block number in a barangay, city or municipality.
  • Type – the type of property.
  • TCT – Transfer Certificate of Title.
  • Lot area – the size of area of the lot of property in square meters. Certain properties such as condominium units don’t sit on a particular lot so this field has zero value.
  • Floor area – the size of area of the property in square meters.
  • Minimum bid – the lowest value of bid allowed for this part in Philippine pesos.
  • Appraisal date – the date which the property was inspected and assessed its value.

2. Perform due diligence from buyer
Since data provided in this document is limited — price, property type and floor area — it’s best to make due diligence once you have a property or properties you have in mind. This includes visiting the property itself and verifying the lot and floor area, evaluating its accessibility and environment in the neighborhood. For example, answer these questions: is it near the highway and easy to access through public transport or is the area easily flooded when it rains?

One caveat that commonly appears in Pag-IBIG Fund auctioned property listings is that they are “as is where is”. This means that properties are being sold with the buyer getting everything that comes with a property, at its present condition, good or bad. Leaking roof or rowdy neighborhood comes with the cost.

Another word of advice to prospect buyers: do not bid on properties that are occupied. Occupied properties can get complicated especially if occupants are unwilling to move out of the house.

Once you are certain that the property fits your desired conditions and financial consideration, it is then the right time to proceed with the bidding.

Note that there is a cutoff date on which you should come up with a decision and provide certain requirements.

In the example above, the date of bidding is September 20, 2017 for Cavite area listed properties. This means that you must have inspected the property and decided to proceed or not prior to that bidding day.

3. Prepare documentation
Interested bidders are then invited to formalize their desire to acquire certain properties by providing the following requirements:

  • Filled out OFFER TO BID (HQP-AAF-103) (DOWNLOAD HERE), stating details of the property (TCT, location, phase, block, lot number, etc), along with details about the bidder (name, address, SSS, Pag-IBIG and TIN numbers, employer and address, etc). You may use PDFfiller tool to fill out data before printing. Print two copies once done.
  • Bidder’s Bond. As a bidder, you need to prepare a bidder’s bond which is equivalent to 10% of your bid amount for the property you desire to acquire. For example, if the minimum bid in the property item number 143 is P176,983.26, you may want to place your bid at P250,000 hoping nobody bids higher than that amount. The computed amount for bidder’s bond is as follows:Bidder’s bond = P250,000 x 10% = P25,000

    The bidder’s bond can be in cash or manager’s cheque from any commercial bank, and made out to Pag-IBIG Fund. This amount shall be returned back to the non-winning bidder or serve as downpayment for the winning bidder for the property once the bidding process has concluded.

  • Envelope. This sealed envelope shall contain the filled out OFFER TO BID and Bidder’s Bond.

The Bidder’s Bond can be paid prior to the date of bidding, depending on the location. Typically this can be done at HDMF offices or member services branches. Just confirm with the Pag-IBIG Fund office supervising the foreclosed property bidding.

4. Attend the scheduled bidding day. Interested parties are encouraged to attend the day of bid at a pre-announced venue and time. Should you, the bidder, be unable to attend, you can appoint a representative. If so, get the following documentation:

  • Special power of attorney (DOWNLOAD HERE)This filled out document shall include details of bidder and representative, along with scheduled time, day and venue of bid, affixing signature of both notary public and bidder and bidder’s spouse, if applicable.
  • Acknowledgment. A notary public’s corresponding acknowledgment (with signature and notarial seal) of such appointment of representative.

5. Register at the day of bidding. On the day of bidding, have your presence acknowledged by registering in the entrance counter.

6. Announcement of winning bids. The bidder who offers the highest bid as determined by the Bidder’s Bond shall be declared the winner. But there are cases when highest bidding isn’t even the case when selecting winning bids.

  • In case there is only one bid brought forward, the bid is automatically declared winner.
  • In case two or more bidders have exact amount of bids, determining the winner can be done through the following process:
    (a) Mode of payment – bidder who offers cash payment gets higher priority over one who offers on installment basis.
    (b) Toss coin – if there are only two tied highest bids.
    (c) Time of registration of bids – The bidder whose bid was brought forward earlier is declared winner.

7. If you won the bid. Your Bidder’s Bond worth 10% of your proposed bid will automatically be considered your downpayment of the property. The remaining 90% of the balance can be paid (unless you won the bid through tie-breaker and won via mode of payment) through the following options:

  • Cash – on which the approved purchase price shall be paid not later than 30 days after the receipt of notice of award.
  • Short-term installment – on which the approved purchase price and interest shall be paid in equal monthly installments not to exceed 12 months.
  • Long-term installment – on which the approved purchase price and interest shall be paid in form of monthly amortization up to 30 years with following considerations:(a) Loan approval and terms shall be subject to eligibility requirements under Pag-IBIG End-User Home Financing Program guidelines.
    (b) The loan amount shall be the bidder’s offer, net of the 10% downpayment.
    (c) If loan application has been disapproved, the 10% Bidder’s Bond shall be forfeited in favor of Pag-IBIG Fund.
    (d) The buyer shall be required to file for Pag-IBIG Fund loan application and complete documentary requirements and pay incidental fees within 30 days of receipt of Notice of Approval of Sale: processing fee, equity (if applicable), one year advance in insurance premiums for fire and allied perils.
    (e) If the Bidder’s Bond is higher than the assessed value of property, the excess amount shall be treated as equity. It shall be paid by the buyer within 30 days upon receipt of Notice of Loan Approval.
    (f) Original borrowers who wish to join the public auction shall not be allowed to avail of housing loan and instead permitted only to bid through cash or installment basis.
  • If there was no mentioned preferred payment mode, default mode shall be long-term installment. Otherwise, the buyer enjoys certain discounts for cash or short-term payment option:(a) Cash – 20% discount
    (b) Short-term installment – 10% discount
    (c)  Long-term installment – No discount

8. If you lost the bid. If someone else offered a higher bid in the public auction, your Bidder’s Bond shall be returned to you, together with an acknowledgment receipt soon as a winning bidder has been declared.

9. If winning bidder fails to comply with conditions. In case the winning bidder fails or refuses to purchase the property, or fails to comply with payment conditions, he or she loses right as winning bidder and the 10% Bidder’s Bond shall be forfeited in favor of Pag-IBIG Fund.

Bidding for foreclosed properties in Pag-IBIG provides excellent opportunity to gauge market value of a certain location, even when you don’t proceed making a bid or losing out in an auction. However, a proper research trumps everything else and helps guarantee a property worth investing in. Failure to do so might lead to forfeiture of Bidder’s Bond especially when the winning bid realizes the disadvantages and hazards associated with the property in question and backs off from a deal.


3 Top Things A Home Buyer Should Do If Seller Declines Offer

Buying your dream home can be considered a major life milestone. After years living with parents, renting out when you started working — and accumulating savings, building credit reputation and planning on housing loans in the process — the next logical move is to get your own house as you plan to settle down and start a family.

Once in awhile, you find offers of new housing developments but choosing the right one involves several factors such as accessibility, layout, facilities and price. But the more attractive ones are those whose owners are willing to give up for certain reasons, mostly financial. Yet, while these offers might be easier to snag at a price lower than the market, it’s not a homerun when you start negotiating.

So let’s say you offered a decent, not extravagant, amount for a house you’d consider your dream home. However, the owner balked at the offer and seemed to walk away from the negotiating table. Should you bring a sweetener to the offer, threaten to walk away or do something else?

1. Provide a counter-offer
As an interested party, you are in a position to chase a coveted property. If your offer was indeed lower than the advertised price, it is normal for the owner to react with a “no deal” especially if you have shown significant interest to acquire the property. For the owner, realizing there’s a reason it is your dream house brings confidence he or she might find another buyer with better offer.

So before someone snags away your dream house via a better offer, you should at least consider making an offer. An owner may likely entertain you more than a newer bidder if you have established a cordial engagement, clearly stating your desire to own the house, and an offer that’s not too shabby.

If you received an unsolicited offer, the owner might likely agree to your new offer, giving himself confidence that as the new owner of the house, you’ll provide the necessary effort for its upkeep.

If you approached the owner making the offer, it requires more effort on your part to upgrade your bid; the owner might not even be willing to give it up except only on certain terms — likely an offer he or she cannot refuse.

Even when the house is sold, the owner might still have attachment to it, considering the good memories he or she has had within that dwelling place.

2. Understand owner’s perspective
As mentioned, there are factors that keep the owner from accepting an initial offer from an interested buyer. It could be that the owner isn’t really keen on selling the house, but was only approached for exploratory purposes. It may be the value of house is too big compared with the offer, not to mention the sentimental value and amount of effort and financial investment he or she had to exert to build the house. Or the owner has limited options at the moment once the house is sold — no idea where to move, property market is too expensive to acquire a new house, and so on.

Imagine if you were in the shoe of the owner, would you accept the offer you actually made? Would you leave the house where your children were raised and was a symbol of family stability? Will you be able to find a house of similar value (location, layout, equity value, etc) should you still be active in property investment?

Needless to say, it’s always beyond the money factors owners and buyers have to understand when dealing a second-hand residential unit.

3. Learn to know when to get off negotiating table
If you realize both parties have been in a deadlock for sometime and unable, or unwilling, to make a compromise to get the deal done, it might be time to move on. Sometimes, owners are not yet prepared to part with their property, or buyers don’t have pockets deep enough to make bigger bids.

When you feel you have done what’s necessary and exhausted all efforts, yet no offer has been accepted, it’s best to withdraw the offer and explore other options. You might realize later that if you have not backed out, you’ve gone beyond your means in your effort to acquire the property, while ignoring other properties available at less amount of investment.


As potential transactions involve huge amount of financial commitment/windfall, negotiating with property owners is a long process and it is never easy especially when they have already decided on a price and is firm with it or even tell you they changed their mind and the property is off the market.

As a buyer, you may be lucky if an initial offer is accepted. But if not, learn to know your limits — what to give up and what you’ll get in return. Research thoroughly all the factors, including taxation, cost of moving in or accessibility to work and school, which you may have overlooked as you gaze on the property itself for too long.

After all, buying your own home is a huge milestone and making a decision should not done in haste.


Interior Design and Decoration Tips For Your Home

Making your home a more conducive living space not only depends on available interior space but also factors in choice of colors and materials to make it a warm, convivial place.

1. Softer, lighter colors can help make a small room feel larger.
Just like mirrors that accentuate space and make a small room feel larger, the use of lighter color, whether from natural sunlight or interior paint can also make a small room feel large. In contrast, darker colors create an illusion of a smaller living space.

2. Use rugs to create accent on hardwood floors.
While you try to adopt a certain theme and aim to use consistent tone such as matching furniture and wooden floor space, use of throw rugs often add warmth and create texture and personality to your living space. Depending on season or occasion these rugs can be replaced to allow living space to portray a warm or cool personality.

3. Save space with cheap, elegant wicker baskets
Wicker baskets can be a good complement to interior theme of space conscious places at home such as the bathroom. Wicker baskets are economical way to add storage for towels, laundry, tissue paper or toiletries without disrupting the overall look and feel.

4. Add plants to your living space.
Typically placed in a corner, plants not only convey green living and add color and texture but also provide air purifying and humidity balancing characteristics. Bamboo palm, tiger plant, snake plant or asparagus fern are a few examples.

5. Use contrasting cushion colors to complement your sofa.

Having both sofa and cushion adopt the same color may look dull, but using contrasting colors helps create good accent.

6. Use lamps inside bedroom.

Instead of a typical indoor lamp, using lamp shades inside bedroom helps create a more cozy atmosphere and more inviting for a restful sleep.

7. You can save energy by choosing specific lighting system.
Your kitchen, for example, can utilize low-wattage lighting specific to certain parts of the kitchen, adding a flair of cozy dining experience while saving energy costs on lighting while working on certain parts of the kitchen (cooking, baking, dishwashing, etc.)

8. Create breathing space for furniture.
Avoid overcrowding a room by stuffing all available space with something that fits — CD rack, vertical speaker or lamp shade. Allow space for maneuverability and avoid accidents at home especially those with small square footage.