Monday, February 3, 2020

Inside Real Estate: How To Flex Your Real Estate Payment Capability?

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For many Filipinos it is a dream for a family to own their home and live in a plot of land they call theirs as it shows pride and satisfaction for any homeowner to acquire a property for use as their primary home. 

It has been a problem for most  home buyers in building one's equity. It is worrisome for most home buyers, to have incur expenses to used for a down payments  which is out of pocket requirement for prospective buyers. However, there are Rent-To-Own schemes available but will be discussed on another topic.

In Building One's Equity

For any home buyer should have at least a budget on a property they intend to acquire for someone to own a property requires at least 20% to 30% equity (down payment) or up to 40% for some financial lending institution like banks. Pag-IBIG (Home Mutual Development Fund) offers lower equity but for one who is borrowing money for a property acquisition. One should remember that it is a priority  be put one's finances in order.

Ways To Build Your Equity in Buying Your Future Home

1. Save Money - this is the basic and primary thing for anyone who wishes to acquire a property. Creating a saving for a properties requires a lot of discipline and patience in achieving one's dream of owning one's home. However, it will be a painstakingly, slow process if one relies only in salary. Some enterprising people would engage in small business and save money. Better yet to save money before delving on the other ways listed below.

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2. Invest in Real Estate Investment Trust (REIT)- since the introduction of REIT Law to the Philippines in 2009 (Republic Act 9856). REITs have been growing all throughout with most big real estate developers are offering such investment tools in acquiring office buildings / commercial spaces and the likes in CBD like in Makati or BGC Taguig area.  REIT has been building favorable to developers due to implementation of TRAIN Law which deemed VAT-exempted by Bureau of Internal Revenue.

3. Invest in the Stock Market - stock market also requires tedious work, discipline and patience in placing your in such investment vehicle. Establishing a foothold in stocks is risky but rate of returns is high as well. Investing in the stock market is not for everyone but for those who are bold enough to take the risks. It is better for one's to learn first the basics of investing using fundamental and technical analysis of buying, holding and selling a stock just to create your equity for one's home fund.
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4. Invest in HMDF - MP2 Program - since 2017, Home Mutual Development Fund (PAG-Ibig) release this excellent program for HMDF member who wish to have above-market dividend rates which is guaranteed by the national government. Existing HMDF contributors can enroll in this program and can build multiple accounts as well. Somehow the MP2 Program is a forced savings program that can help you save money. You can get to know more of this product by visiting their website.


In investing one's money in establishing an equity, one must have a realistic approach with determined deadline on when to use it. A person who wishes to have an equity must be aware with the recent upswing of land values due to degree of development happening a particular place.

Let C. F. Baluyut Realty be the company to guide you in the tedious process of finding a property for one's need.

About the Writer

CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at

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