Top 3 Reasons Why Filipinos Can't Buy Any House & Lot
Have you been wondering why there are many Filipinos who does not have their own house yet? Well, this year I changed from selling condominium units to house and lot properties so I finally know why many of us cannot buy a home.
No, it's not just because of one reason, there are many. I will of course just give you the three things I encounter the most.
Are you ready? Haha. Can you guess what's the first one? Oh for sure you can. 😆
Yes, this is the top reason all over the world. Haha. It's not just here in our county of course.
If we only live from paycheck to paycheck or per salary cut off and don't even try to save part of what we earn then there's really no hope for us. Lol, kidding. Or am I? 😅
Face the facts, if we don't have any savings at all then we will always be poor. That's the harsh reality. What's the solution? Save save save first and find more ways to earn money legally and without stepping on other people's toes (rights).
I already discussed ways to earn/save in a Twitter thread or the blog I made out of it. In case you're curious just read here or here.
Ohohohooo. Can you guess who are the people most likely to fall in this category? 😆 Yes? Do you know anyone? 😏
I can think of several but don't get me wrong, this is just for people's realization. Those who would like to have their own homes will have to do everything legally and must do the right things. Otherwise you know why having a house is impossible for you. Hehe. 😉
The problem with Pag-IBIG is you cannot use it to buy preselling properties. And if you can't find any ready for occupancy (RFO) houses / townhouses then that's another problem to think of. 😅
Anyway here are some of the people who are most likely unable to buy a property under this category:
AGAIN, in case you just have enough money but don't have any proof of income or documentation, don't blame the sales agent, broker or the developer if you do not get approved for bank financing. REMEMBER: it is your responsibility as a Filipino citizen to file taxes for any income you earn.
In the Philippines, once you are married, you and your spouse are required to sign all buyer documents when purchasing properties. It will then become a conjugal property.
In case you are already separated, we agents and brokers will not suggest that you buy any property in your name. The property developers would rather avoid getting involved in any marital and legal troubles so they do not allow separated people to purchase properties. There is a law pertaining to such too.
It is better if you are annulled and divorced so you have legal documents to submit to finally buy a house and lot. Without it, your "ex-spouse" will always get a right to half of any property you buy while still married. You can't buy if your spouse won't sign too.
To make things easier if you cannot get any of the two papers, just buy and put any real estate under your child's name if they are already of legal age and working. Otherwise if your children are still young and you don't trust any other family member/relatives to become the owner in name, you are gonna have a problem. 😆
Another option is if you have a registered business/company then use it to purchase the house and lot instead. Or there are other ways but it is a case-to-case basis. It's best to consult your property agent or broker and lawyer directly. 😉
Now do you see why you should have a prenup? 😉 Better to prepare now than be sorry and regretful later.
So okay, you have the money and a happy marriage (sana all) but hey you're living/working outside the Philippines. Oh my, you need to have one more thing.
The AIF is your legal representative here in the Philippines. Meaning he/she is authorized and can sign documents in your behalf. It is better to have someone in the country in lieu of you. Having one saves you money as you will not need to have all buyer documents/contracts apostilled/consularized overseas when buying a house here.
Let's say you finally decided to buy a vacation home near Tagaytay but you don't have an AIF yet. Well, you should make time to go to the nearest Philippine embassy wherever you are. You won't be able to assign an AIF until you get an apostilled or consularized Special Power of Attorney (SPA). Now if you can't make time for it then forget about buying a Philippine property in your name. 😆 I'm serious.
Okay, of course you can still buy but as mentioned the property won't be under your name (and spouse's if married).
I will end it here now because if you are in all of the above categories then you really need to consider what I suggested. Your best option is to contact your real estate agent/broker and be honest with them so they can suggest other ways based on your life predicament.
Most likely those who are not mentioned here can easily buy a home and invest in properties anytime they like, anywhere in the country. Let's strive to be one of those people. 😁
As you know not everyone has the same situation so there are some ways to fix any of these problems legally and morally. I do not suggest you do under the table deals or anything illegal. You may escape the law now but you will have less peace of mind forever.
Legal problems are not cheap. Prevention is always better so please avoid doing anything illegal just to own a piece of land or any real estate.
Now after everything you've read... do you know anyone who are not in A to D? Or are you or anyone you know in one or more of the above categories? 😆 If you're not mentioned in this article then congratulations! Let's talk about how you can own a property! Haha. If you can relate to any of the 3 + 1 I wrote here then you know what to do. 😉
For preselling affordable house and lots (fully FINISHED with gate, garden & parking + amenities) in CALABA(RZ)ON & Central Luzon, let's talk!
No, it's not just because of one reason, there are many. I will of course just give you the three things I encounter the most.
Are you ready? Haha. Can you guess what's the first one? Oh for sure you can. 😆
# 1: Not Enough Money or Savings/Investments
Yes, this is the top reason all over the world. Haha. It's not just here in our county of course.
If we only live from paycheck to paycheck or per salary cut off and don't even try to save part of what we earn then there's really no hope for us. Lol, kidding. Or am I? 😅
Face the facts, if we don't have any savings at all then we will always be poor. That's the harsh reality. What's the solution? Save save save first and find more ways to earn money legally and without stepping on other people's toes (rights).
I already discussed ways to earn/save in a Twitter thread or the blog I made out of it. In case you're curious just read here or here.
# 2: Has Money But Does Not Have Financial Documents to Show as Proof of Income
Ohohohooo. Can you guess who are the people most likely to fall in this category? 😆 Yes? Do you know anyone? 😏
I can think of several but don't get me wrong, this is just for people's realization. Those who would like to have their own homes will have to do everything legally and must do the right things. Otherwise you know why having a house is impossible for you. Hehe. 😉
Screenshot of Wikipedia Pag-IBIG page
First of all, buying a home is not easy if you don't have enough money. If you can't be a Cash buyer or cannot pay thru Deferred payment terms then your only option is bank / inhouse financing or Pag-IBIG.
The problem with Pag-IBIG is you cannot use it to buy preselling properties. And if you can't find any ready for occupancy (RFO) houses / townhouses then that's another problem to think of. 😅
Anyway here are some of the people who are most likely unable to buy a property under this category:
- A. Freelancers/Consultants (online or offline) who are still not registered with BIR and/or DTI.
- B. Gamblers and gambling operators (sabong, jueteng, etc.)
- C. Illegal importers/exporters, etc.
- D. Crypto enthusiasts (hello fellow crypto earners! 😆)
AGAIN, in case you just have enough money but don't have any proof of income or documentation, don't blame the sales agent, broker or the developer if you do not get approved for bank financing. REMEMBER: it is your responsibility as a Filipino citizen to file taxes for any income you earn.
If you don't have proper income documentation and don't want to file taxes then be responsible and don't look for other people to blame if you can't buy a house and lot of your own. It is also not the agent's/broker's fault if you do not read the fine print of the documents you sign, especially when they told you about it. Never sign anything without reading it.
Anyway, for those who fall in A to C category, if you are planning to buy a home then please register your business (or whichever services you offer) first. As for people in the D category (ehermmm... 😅) ask me when you're ready to buy. Hahaha. Otherwise there are other ways to purchase a property but you must discuss your options and be transparent with your broker or real estate agent (like me).
Ah yes, love is a many splendored thing. It's also the source of a lot of heartaches plus legal and financial problems. 😆
I always say in my social media accounts, it's important to have a prenuptial agreement (signed and notarized) before getting married. You can say all you want that you love each other and will never ever separate, bla bla bla. If it does happen then that's well and good. However if you end up separating and hating each other after several years of marriage then a prenup will come in handy to avoid several legal problems.
# 3: Separated and Not Annulled or Divorced
Ah yes, love is a many splendored thing. It's also the source of a lot of heartaches plus legal and financial problems. 😆
I always say in my social media accounts, it's important to have a prenuptial agreement (signed and notarized) before getting married. You can say all you want that you love each other and will never ever separate, bla bla bla. If it does happen then that's well and good. However if you end up separating and hating each other after several years of marriage then a prenup will come in handy to avoid several legal problems.
In the Philippines, once you are married, you and your spouse are required to sign all buyer documents when purchasing properties. It will then become a conjugal property.
In case you are already separated, we agents and brokers will not suggest that you buy any property in your name. The property developers would rather avoid getting involved in any marital and legal troubles so they do not allow separated people to purchase properties. There is a law pertaining to such too.
It is better if you are annulled and divorced so you have legal documents to submit to finally buy a house and lot. Without it, your "ex-spouse" will always get a right to half of any property you buy while still married. You can't buy if your spouse won't sign too.
To make things easier if you cannot get any of the two papers, just buy and put any real estate under your child's name if they are already of legal age and working. Otherwise if your children are still young and you don't trust any other family member/relatives to become the owner in name, you are gonna have a problem. 😆
Another option is if you have a registered business/company then use it to purchase the house and lot instead. Or there are other ways but it is a case-to-case basis. It's best to consult your property agent or broker and lawyer directly. 😉
Now do you see why you should have a prenup? 😉 Better to prepare now than be sorry and regretful later.
Runner up: Overseas Filipino Workers/Immigrants without an Attorney-in-Fact (AIF)
So okay, you have the money and a happy marriage (sana all) but hey you're living/working outside the Philippines. Oh my, you need to have one more thing.
SAMPLE Apostille pages: Client sent me an apostilled SPA from a PH embassy in the US.
The AIF is your legal representative here in the Philippines. Meaning he/she is authorized and can sign documents in your behalf. It is better to have someone in the country in lieu of you. Having one saves you money as you will not need to have all buyer documents/contracts apostilled/consularized overseas when buying a house here.
Let's say you finally decided to buy a vacation home near Tagaytay but you don't have an AIF yet. Well, you should make time to go to the nearest Philippine embassy wherever you are. You won't be able to assign an AIF until you get an apostilled or consularized Special Power of Attorney (SPA). Now if you can't make time for it then forget about buying a Philippine property in your name. 😆 I'm serious.
Okay, of course you can still buy but as mentioned the property won't be under your name (and spouse's if married).
I will end it here now because if you are in all of the above categories then you really need to consider what I suggested. Your best option is to contact your real estate agent/broker and be honest with them so they can suggest other ways based on your life predicament.
Lucky are those who do not have any of these problems
Most likely those who are not mentioned here can easily buy a home and invest in properties anytime they like, anywhere in the country. Let's strive to be one of those people. 😁
As you know not everyone has the same situation so there are some ways to fix any of these problems legally and morally. I do not suggest you do under the table deals or anything illegal. You may escape the law now but you will have less peace of mind forever.
Legal problems are not cheap. Prevention is always better so please avoid doing anything illegal just to own a piece of land or any real estate.
Now after everything you've read... do you know anyone who are not in A to D? Or are you or anyone you know in one or more of the above categories? 😆 If you're not mentioned in this article then congratulations! Let's talk about how you can own a property! Haha. If you can relate to any of the 3 + 1 I wrote here then you know what to do. 😉
(Images from Unsplash except otherwise noted.)
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For preselling affordable house and lots (fully FINISHED with gate, garden & parking + amenities) in CALABA(RZ)ON & Central Luzon, let's talk!
Lucy Stephanie
International Territory Specialist
Smart/Viber/WhatsApp: +63932 1800 937
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