Whoever said miracles never happen? This model house might as well be the answer to your prayers. With its befitting name meaning "a miracle to marvel at", the mere sight of the Maravilla model house will leave you in awe. If the sight of it can give you that feeling, imagine what it will be like to actually live in it.

Other Features:

Family hall * Entry Porch * Tiled Path walk * Living room * Dining area * Kitchen * Maid's room with toilet and bath * Lanai * Terrace * Service Area * Attic with toilet and bath (optional) * Driver's room (optional)

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First Class Executive Village in Quezon City

A 6-bedroom house with toilet and bathroom each; maid's and driver's quarter outside of the main house; with clean and dirty kitchen; swimming pool; big lanai; and a car garage with 6 parking spaces- P35 Million

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Real Estate Ownership in the Philippines: A Guide for Foreigners

Filipinos are known all over the world for their hospitality, but to foreigners who wish to own Real Estate in the Philippines, Filipinos get less friendly. Foreigners cannot simply buy house and lot packages in the Philippines and have the Land Titles in their names.

The ability to purchase is not so much an issue as citizenship in Real Estate ownership within Philippine jurisdiction. This is a bit surprising to Americans and Europeans alike because in their countries, anyone who can afford to buy real estate can do so regardless of citizenship.

However, foreigners can still own Real property in the Philippines under the following circumstances:

Foreigner Married To Filipino

Foreigners can obtain rights over a piece of property provided the Land Title is in the name of the Filipino/Filipina spouse which means the latter should be the one to purchase the real estate.

Ownership as Corporate Entity

A foreigner may form a Philippine corporation which must be at least 60% Filipino-owned and consists of at least five (5) incorporators – the foreigner being one of them. The corporation can own real property; the foreigner can own 40% of the corporation.

This principle applies in the purchase of a condominium unit by a foreigner. Condominium units can be owned provided it does not exceed 40% interest of a condominium corporation.

Lease Agreement

A lease agreement with Filipino landowners entered into by a foreigner or his corporation can give him the right to own the house or building erected on the leased land.

Under the following special circumstances a foreigner can own land in the Philippines.

1. Land acquisition before the 1935 Constitution took effect.

2. Acquisition by hereditary succession. He/She must be a legal or natural heir.

Economic Principles That Affect Real Estate Value

What are the factors that cause a mansion erected in a slam area to lose its value? Or a parcel of land in the midst of commercial establishments to rise up in value?

The answers to these questions can be best explained by first finding out what is the meaning of Price, Cost, and Value from the context of Real Estate.

What is Price? Price is an expression of an individual’s estimate of value in terms of money.

What is Cost? Cost is the combination of the factors of production to produce improvement or development.

What is Value? Value is the utility or attribute of a property to satisfy human want or command other properties in exchange.

Value has three elements:

• Scarcity. Property increases its value when the supply is limited.

• Utility. The power of a good to render a service or fill a need.

• Demand. The desire of a good or service; implemented by purchasing power.

The Economic Principles of Value

• Principle of increasing and diminishing returns. “When one of the factors of production is held fixed in supply, successive additions of the other factors will lead to an increase in returns up to a point, but beyond this point returns will diminish.” - Anne Robert Jacques Turgot.

• Principle of highest and best use. The value of property is directly related to the use of that property.

• Principle of regression. A property of higher quality in a neighborhood of properties of lower quality seeks the value level of the properties of lower quality.

• Principle of substitution. The maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property.

• Principle of progression. The value of a property of a lesser quality will tend to be increased by being in association with properties of higher quality in the same area.

• Principle of conformity. The house will more likely appreciate in value if its age, size, style and condition are similar to other houses in the neighborhood.

Home-A-Loan 2: How To Apply For An SSS Housing Loan

Consider yourself lucky these days if you are employed in a private company with a job you love and that pays enough. For one, you have found for yourself that dream career. For another, as a Social Security System (SSS) member it is only a matter of filling up the housing loan application form before you get your dream home.

The Social Security System (SSS) is tasked to look after the welfare of those who are working in the private sector. One of their goals is to provide decent housing for employees of private firms including Overseas Filipino Workers (OFW) via its affordable Housing Loan Programs.

The SSS Individual Housing Loan Program and the Direct Housing Loan Facility for Overseas Filipino Workers are two of the lending programs of the SSS that caters to the housing needs of the OFWs as well as employees of private firms.

What is the SSS Individual Housing Loan Program?

The Individual Housing Loan Program is a lending program of the Social Security System (SSS) established to provide funds thru SSS-accredited participating financial institutions (PFIs).

Purposes of the Loan

• Construct a new house or dwelling unit on a lot owned by the applicant free from liens/ encumbrances;

• Purchase a lot and construction thereon of a new house or dwelling unit;

• Purchase an existing residential unit which may be a house and lot, a condominium unit or a townhouse; and

• Purchase an existing residential unit foreclosed by SSS, GSIS, HDMF (Pag-Ibig), HGC and other GFIs.

• A row house or townhouse unit is allowed provided the units are separated by a minimum of 4” thick CHB common wall extended up to roof lines and 6” thick CHB and walls extended beyond the building and roof lines by at least one meter.

• A core house is allowed as long as it has four walls and a roof, enclosed toilet and bathroom, kitchen and door and window covers. Four-inch CHB exterior walls are allowed provided they are constructed with concrete columns and beams

Borrower's Eligibility

• He is an active SSS member and has paid at least twelve (12) months continuous contributions or at least twenty-four (24) months total contributions;

• He is not more than 65 years old;

• He has not been previously granted a housing loan by the SSS, either directly or through conduit institutions, refund of contributions, retirement or total permanent disability benefit;

• He is up-to-date in the payment of all SSS contributions and other loan amortizations; and

• If employed, his employer must be up-to-date in the payment of monthly contributions and loan remittances.

Loanable amount

The maximum loanable amount is P1,000,000.00

Required documents for the loan

• Loan application

• Certificate of employment and compensation or updated employment contract

• Certificate of Loan Eligibility (CLE) – (P100 Service Fee)

• Authenticated copies of latest income tax returns with W-2 or financial statements for the last three years if income is from business

• Authenticated copy of transfer certificate of title (TCT) including encumbrance of real estate mortgage

• Tax declaration and latest tax receipt

• Lot plan (with vicinity map) of the project site

• Building plans (floor plans and elevation only) and specifications

• Building permit

Term of the loan

The loan is payable in multiples of five (5) up to a maximum of thirty (30) years, but not to exceed the economic life of the house and the difference between the age of the applicant and 70.

Allowable collateral for the loan

The loan shall be secured by a first mortgage on the house and lot to be financed. However, the lot must be:

• Registered under the Torrens System in the name of the applicant and/or his spouse;

• Without any liens or encumbrances; and

• Accessible through an existing road, the development of which should be at least macadam with the drainage system, with at least two meters right-of-way, graded and passable.

Borrower can avail of the interim financing for his loan

The individual borrower may avail of interim financing from the bank. The bank must file the loan application with the SSS within the 120-day period from the time the interim financing was granted.

Interest of the loan

Up to P300,000.00 – 9% p.a. Fixed for the term of the loan

Over P300,000.00 up to P500,000 – 13% p.a. Subject to review every five (5) years.

Over P500,000.00 up to P1,000,000.00 – 14% p.a. Subject to review every (5) years.

Required insurance coverages for the loan

The loan should be duly covered by Mortgage Redemption Insurance and Property Insurance.

What is the Direct Housing Loan Facility for Overseas Filipino Workers?

The Direct Housing Loan Facility for Overseas Filipino Workers is a housing loan program of the Social Security System (SSS) that aims to provide socialized and low-cost housing to workers in the private sector who are members of duly registered overseas Filipino workers.
Who are OFWs?

• Those currently deployed with a ontract processed through the POEA or authenticated by the Embassy abroad.

• Those with employment contracts which are awaiting renewal/deployment; however, release of loan shall be made upon renewal/deployment.

• Those citizens or immigrants of foreign countries but are interested in buying housing units for their families who are still in the country.

• Those long-term resident overseas Filipinos who wish to avail of housing packages either for themselves when they retire or when they visit the Philippines and/or for their extended families.

Purposes of the Loan

To construct a new house on a lot owned by the applicant that is free from lien or encumbrance; To purchase a lot and construct a new house on the lot; To purchase an existing residential unit, which may be a house and lot, a condominium, or a townhouse; and To purchase an existing residential unit foreclosed by the SSS, Government Service Insurance System, Pag-IBIG Fund, Home Guaranty Corporation, and other government financial institutions. Borrower's Eligibility A certified overseas Filipino worker; An active SSS member and has paid at least 12 months continuous contributions or at least 24 months total contributions; Not more than 65 years old; Has not been previously granted a housing loan by the SSS, refund of contributions, retirement or total permanent disability benefit and Is up-to-date in the payment of all SSS contributions and loan amortizations. Loanable Amount For the socialized housing package, the loanable amount is P225,000. For the low-cost housing package, the loanable amount is any amount over P500,000 up to P1,000,000. The member may borrow either the amount applied for, or the amount justified by the paying capacity, whichever is lower. In no case shall the monthly amortization exceed 40 per cent of the net disposable income, which is defined as gross verifiable monthly family income less statutory deductions and payments for outstanding loans. A minimum of three qualified SSS members may be tacked-in for a single loan up to the combined maximum individual availment for the loanable amount secured by the same collateral, provided the borrowers are related within the first civil degree of consanguinity or affinity and are SSS members in good standing. Required Documents for the Loan Mortgagor's Application for Housing Loan with 1" x 1" ID pictures of principal applicant and spouse ; Certificate of Loan Eligibility; Latest income tax return together with Form W-2 and Confirmation Receipt; Certification of membership from the workers' organization (for trade union members) or from the Philippine Overseas Employment Administration (POEA) for OFWs; Certified true copy of two latest monthly payslips; Latest certification and contract of employment duly authenticated by the Philippine Consulate for OFWs; Owner's copy of the Original/Transfer Certificate of Title; Latest property tax declaration and realty tax receipt ; Lot plan with vicinity map duly signed and sealed by registered surveyor or geodetic engineer (blueprint); Building plans, specifications, or picture of the house (blueprint); Confirmation of completion and appraisal from Home Guaranty Corp.; Authority to deduct/Memorandum of Agreement for Mandatory Payroll Deduction, if employed member; Certificate of acceptance and occupancy duly signed by the borrower if house is 100 per cent complete at the time of loan filing; Other documents that may be required Term of the Loan The loan is payable in multiples of five years up to a maximum of 30 years, but not to exceed the economic life of the building, and, the difference between the age of the borrower and 70, whichever is shorter. Allowable collateral for the loan The loan should be secured by a first Real Estate Mortgage (REM) on the house and lot to be financed, and by an HGC guaranty. The REM shall be annotated on the member-buyer's transfer certificate of title (TCT), and registered with the appropriate Registry of Deeds. Interest of the loan For loans up to P225,000, the interest rate is nine per cent per annum, fixed for the term of the loan. For loans over P225,000 up to P500,000, the interest rate is 13 per cent per annum, subject to review every five years. For loans over P500,000 up to P1,000,000, the interest rate is 14 per cent per annum, subject to review every five years. Required Insurance coverages for the loan The loan shall be covered by Mortgage Redemption Insurance (MRI) and Property/Fire Insurance (P/FI). Note: Those who are self-employed can also avail of this SSS housing loans. For more information SSS Housing Loan Programs contact the SSS Real Estate Department in Quezon City with telephone number 920-64-01 local 5121 to 5128 or at www.sss.gov.ph/ sssemail@info.com.phThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or to the SSS office nearest you.

Home-A-Loan: Pagibig Housing Loan

How To Apply For A Pag-IBIG Housing Loan

The Home Development Mutual Fund (HDMF) or commonly known as the Pag-IBIG Fund just turned 30 years old last June 11, 2008 but still it remains true to its mission of providing a shelter to call home for every Filipino through the years.

The Pag-IBIG Housing Loan Program is the institution's tool in pursuing its mission, If you are a Pag-IBIG Fund member and still dreaming of a house you can call your own, never worry you are on your way to owning that dream house after reading this article. But before I tell you about the steps in applying for the loan, you might be interested on some pertinent information about the Pag-IBIG Housing Loan Program.

Loan Purpose

The Pag-IBIG housing loan may be used to finance any one or a combination of the following:

1. Purchase of a fully developed lot not exceeding 1,000 square meters, which should be within a residential area;

2. Purchase of a lot and construction of a residential unit thereon;

3. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be: old or brand new

4. A property mortgaged with HDMF; or

5. An acquired asset which is disposed of through sealed Public Bidding or Negotiated Sale, Rent-to-Own Program.

6. Construction or completion of a residential unit on a lot owned by the member;

7. Home improvement; i.e., any alteration in an existing residential unit intended by a homeowner to be a permanent integral part thereof, which will enhance its durability and material value;

8. Refinancing of an existing mortgage loan with an institution acceptable to HDMF, provided that the loan to be refinanced is current and updated at the time of loan application; and the account reflects a perfect repayment history for at least 2 years, as supported by the borrower’s official receipts.

9. Combination of loan purposes shall be limited to the following:

   a. purchase of a fully-developed lot not exceeding 1,000 square meters and construction of a residential unit thereon

   b. purchase of a residential unit, whether old or new, with home improvement; or

   c. refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

Borrower's Eligibility

To qualify for a Pag-IBIG housing loan, a member shall satisfy the following requirements:

1. Must be a member under the Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (POP) for at least twenty-four (24) months, as evidenced by the remittance of at least 24 monthly contributions at the time of loan application;

2. A member, whether new or with existing monthly contributions that are still short of the 24-month membership requirement, shall be allowed to make lump sum payment based on the basic monthly membership contribution rates to meet said requirement at point of loan application. Lump sum payment of membership contributions shall be considered a single contribution for the applicable month as of the payment date. Said member shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards;

3. A member who has contributed for at least two (2) years shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards;
   

4. For purposes of satisfying the residency requirement, the period corresponding to the Total Accumulated Value (TAV) applied earlier to a member's outstanding loan (offsetting) shall be considered when counting the total number of monthly contributions, provided that the remaining TAV after offsetting does not fall below the equivalent amount of 24 monthly contributions;

5. Not more than 65 years old at the date of loan application and must be insurable; provided further that he/she is not more than 70 years old at the date of loan maturity;

6. Has the legal capacity to acquire and encumber real property;

7. Has passed satisfactory background/credit and employment/ business checks of the developer and Pag-IBIG Fund;

8. Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;

9. Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back, or subjected to dacion en pago;

10. Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrearages over the counter to update his account.

Loan Amount

Maximum of P2,000,000.00 Million, which shall be based on the lowest of the following: the member’s actual need, his loan entitlement and the loan-to-collateral ratio.

Loan Payment

• Over-the-Counter (OTC)

• Salary Deduction

• Issuance of Postdated Checks (PDCs)

• Auto Debit Arrangements with Banks

Collateral

• First Real Estate Mortgage (REM)

• Contract-to-Sell (CTS)

Loan Charges

A processing fee of P3,000.00 which shall be paid as follows:

1. P1,000.00 upon filing of the loan application, which shall be non-refundable if the loan is disapproved;

2. P2,000.00 upon loan take-out.
   

Other expenses such as standard appraisal fees, registration expenses, notarial and documentation fees, as well as taxes pertinent to the sale and transfer of the property to the borrower.

Now, here are the easy steps:

1. Attend a loan counseling session at the Pag-IBIG office nearest you and accomplish a Preliminary Loan Counseling Questionaire, Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS);

2. Submit HLA with complete requirements. Pay the processing fee of P1,000.00 (non-refundable);

3. Receive Notice of Loan Approval/Letter of Guaranty and sign loan documents;

4. Proceed to the BIR and present Deed of Absolute Sale (DOAS) between the owner of the property and applicant for payment of documentary stamps and capital gains tax;

5. Proceed to Registry of Deeds for payment of transfer tax and registration fees for the transfer of the title;

6. Proceed to Notary Public for notarization of Loan Mortgage Agreement and annotation of mortgage with the Registry of Deeds and to Assessors Office to secure new tax declaration in the name of the applicant;

7. Secure Occupancy Permit from the Local Government Unit Engineering Office when the loan is for any of the following purposes: Purchase of Lot and Construction of a Residential Unit thereon, Purchase of a New Residential Unit, and House Construction;

8. The following documents should be submitted to Pag-IBIG:

• Original Transfer Certificate of Title (OTC) in the name of the applicant with annotated mortgage

• DPAS with original RD stamp

• New Tax Declaration in the name of applicant

• Updated Real Estate Receipt

• Occupancy permit

• Assignment of Loan Proceeds

1. Wait for the release of loan proceeds

2. Pay monthly amortization in the following month immediately following the loan release.

Real Estate Financing Terms

After finding the right property to purchase, the buyer should decide what financing scheme he will use to acquire the property. Basically, there are three modes of paying that a buyer could choose from to purchase his chosen real estate. These are the Spot Cash, Deferred Cash Payment, and Long Term Financing.

Ideally, a resale property from an individual seller is paid in Spot Cash whereas a real estate for sale from a developer can be purchased in longer terms.

Let us take a closer look at the three financing terms.

1. Spot Cash – As the term itself suggest, this is an outright payment for the entire contract price of the property you are buying. Spot Cash payment has several advantages, one is the large amount of discount that can be availed, the other is it does not require plenty of documents on the part of the buyer. The disadvantage is that only a few buyers can afford to do so.

   TIP: Do not pay Spot Cash from your savings. Loan from other sources that offer lower interest rates and then pay Spot Cash.

2. Deferred Cash – Buyers who do not want to be burdened with interest payments prefer to pay through Deferred cash payment. This is similar to installment without the discount and without interest.

3. Long Term Financing – Most buyers choose this payment scheme because it feels light and can be inserted as part of the monthly budget for the household. With Long term financing the contract price is divided into two: the down payment and the financed amount. A mortgage from a financial institution covers the amount to be financed. The disadvantage of this financing scheme is that the longer the term, the higher the total payments you will have to cover making the property more expensive as a result.

   TIP: If you can afford to pay a large down payment, do so.

Life Insurance

In the Philippines, life insurance does not play a significant part in the future plans of most Pinoys. Only those who belong to the middle and upper classes could afford to spend a portion of their income on life insurance plans. The low-income earners do not have enough time and money to secure their future; they are so preoccupied getting three square meals a day to worry about a future need.

The low-income earners who could barely afford the most basic of necessities are very much vulnerable to emergencies that life might throw at them. They need a life insurance plan as much as those who belong to the middle and upper classes. The government should start working with the major insurance providers in the country and come up with cheap insurance packages. For its part, Philam Life offers inexpensive packages suited to the paying capacities of low-income earners.

If you are planning to have a life insurance, do not rush thing, carefully study each insurance provider for plans that are to our advantage.

Likewise, be extra vigilant in paying your monthly insurance premiums. Some collectors do not submit our payments on time and worse will not remit it at all. It is far better to pay our monthly dues via credit card.

Land Ownership and Philippine Citizenship

Natural-born Filipinos who have lost their citizenship have not entirely lost their right to purchase and own real properties in the Philippines. Likewise, holders of dual citizenship are allowed full rights of possession of Real Estate.

Under Philippine laws, former Filipinos still enjoy the privilege of acquiring land subject to the following limitations:

1. Land must be used for residential and business purposes only.

2. If the land is for residential purpose, a maximum of 1,000 sq meters of urban land or one (1) hectare of rural land is allowed.

3. If the land is for business purpose, a maximum of 5,000 sq meters of urban land or three (3) hectares of rural land is allowed.

4. Either rural or urban lots, but not both can be acquired.

5. Land acquisition may be through sale, donation, tax sale, foreclosure, or execution sale.

6. A maximum of two (2) lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalities.

7. Either one or both spouses may avail of this privilege, but the limits mentioned above must be observed.

This principle is in keeping with the adage that says “Once a Filipino, Always a Filipino.”

Q and A on Land Title

What entitles a person to legally own a parcel of land is the Certificate of Title or simply known as Title. The Title is also is also known as the Torrens Title, a name taken from the Torrens System of Land Registration.

A Certificate of Title includes other documents such as Tax Declarations, Real Property Tax Receipts, Deed of Sale, and the Title itself. The Land Title is the best form of evidence of land ownership.

The following questions and their corresponding answers will help a property owner know more about his legal evidence of real estate ownership.

Question: How can a person acquire a Land Title?

Answer: A Title can be legally transferred from the seller of a property to the prospective buyer by executing a document called Deed of Sale. Afterwards, the Deed of Sale should be taken to the Registry of Deeds to be officially recorded. This is also called the Transfer Certificate of Title.

Likewise, when no title has yet been issued over a parcel of land, a Certificate of Title can be acquired through:

1. Judicial Proceedings – A petition for registration should be filed in Court.

2. Administrative Proceedings – An application for patent should be filed in an Administrative body such as the Department of Environment and Natural Resources (DENR). The registration of this patent becomes the basis for issuance of the Original Certificate of Title by the Register of Deeds.

Question: Can a foreigner have the Certificate of Title in his name?

Answer: No.

Question: Are there lands with no Certificate of Title yet?

Answer: Yes. These are public lands such as the Alienable or Disposable lands (Agricultural lands to which a Title can be issued) and the Non-Alienable lands (mineral lands, national parks, and timber or forest lands to which a Title cannot be issued.)