Pag-ibig housing loan and net income
Posted by engkanta on October 21st, 2007
Among the four factors used by the Pag-ibig Fund to compute the amount of housing loan that its members may avail of is their monthly net disposable income.
Net disposable income is what’s left of your salary after deducting taxes, mandatory contributions to Pag-ibig and Social Security System (SSS) for the private sector or Government Service Insurance System (GSIS) for the public sector, and loan or other payments (if applicable).
Since Pag-ibig decides on the lowest amount of loan that a member may take out based on either contribution, actual need, loan-to-collateral ratio, or capacity to pay (based on the net disposable income), it is the latter factor that is usually used as basis for most housing loan computations.
The table below is a listing of net incomes and their equivalent housing loan amounts pegged on the loan terms or the number of repayment years.
(For loans over 750,000 pesos, see the rest of the Pag-ibig income table.)
Buy only titled lands: realtor
Posted by engkanta on August 13th, 2007
They say the best evidence of property ownership is a Torrens title because it is both indefeasible and imprescriptible.
As an indefeasible and imprescriptible document, a land title can neither be annulled or voided nor subjected to prescription.
Hence, a good rule to follow when acquiring property would be to buy only those covered by an original certificate of title (OCT) or transfer certificate of title (TCT).
Realtor Wilfredo G. Montuerto, who is the managing broker of the Montuerto Realty Development Corp., said during a lecture on real estate appraisal that he discourages clients from buying properties covered only by tax declarations.
Taxes on real estate transactions
Posted by engkanta on August 1st, 2007
Jose Reyes, who works in a call center in Cebu City, has been transferred to his company’s main branch in Manila. He wants to move for good and sold his house and lot in a subdivision in Lapu-Lapu City for 2.5 million pesos.
How much is he required to pay in taxes to government for the sale?
The computation of his tax due depends on whether his property is a capital asset or an ordinary asset.
Capital assets refer to properties that are not used in connection with trade, business, or as an income source by the owner.
An example of a capital asset would be a residential house and lot “actually” used as residence by the owner.
On the other hand, properties used in trade or business or as a source of income by the owners are considered ordinary assets.
The applicable tax in the sale of capital assets is the capital gains tax. The tax rate is 6 percent of either the “price per deed of sale” or “zonal value” in case of land.
Government, in deciding which of the price or the zonal value (fixed by the local government unit) to use as basis in the computation of taxes, always goes for the higher amount.
Buyer’s market vs. seller’s market
Posted by engkanta on July 23rd, 2007
A seller of real property would not want to sell in a buyer’s market and a buyer would rather not buy in a seller’s market.
Sounds confusing? Let me explain.
Buyer’s market and seller’s market are real estate jargons that mean the exact opposite of each other.
But I think you’ve guessed that by now.
Anyway, on to my explanation.
What’s a fee simple?
Posted by engkanta on June 11th, 2007
Hint. It’s neither a fee nor is it simple.
Rather, the term is used to refer to the “bundle of rights” that accompany ownership of real property.
The “fee simple” is the largest bundle available for private ownership of land.
Included in the bundle of rights under “fee simple” are: right to occupy and use, right to build, right to restrict use, right to mine, drill, or farm, right to mortgage, right to easements, right to exclude others, right to sell, right to give away or abandon, right to refuse to sell, right to rent or lease, right to license, right to the fruits, and right to devise by will.
Hence, real estate ownership is also really just ownership of the rights to the land.
When a real property is mortgaged, this may be viewed as removing one right from the bundle and giving it to third parties (such as a bank or other financing institutions ).