How to Make Housing More Affordable For Filipinos

Wazzup Pilipinas!

Where do we go from acknowledging the importance of a home? As the number one marketplace for all things real estate, Lamudi Philippines talks about affordable housing and how best to make to it available to every Filipino.

“More than just a roof to keep our people safe from external threat, a shelter is where values are formed, hopes and dreams are built, and the true meaning of family is defined. For many of us, a home is indeed a symbol of identity and dignity,” said President Rodrigo Duterte at the 7th National Developers’ Convention of the Organization of Socialized Housing Developers of the Philippines (OSHDP). In the same event, the president called on all economic development stakeholders to unite and formulate development action plans aimed at providing decent homes to Filipinos.

The dream of having a home of their own is one common aspiration shared by all Filipinos but as the rise of property prices continue to shoot up this goal is becoming more and more elusive most especially to low-income earners. To be able to address the housing ownership challenge many Filipino families face, here are some innovative solutions that can be rolled out.

Affordable Finance Schemes

The first step to housing within reach is easier finance schemes and lower interest rates especially for the poor and the marginalized.

In recent financing program of Pag-IBIG Fund, the lowest interest rate they offer to its members is 5.5% for a one year fixed-pricing period, 6.5% for 3 years, 7.270% for 5 years, 8.035% for 10 years, 8.585% for 15 years, 8.8% for 20 years, 9.050% for 25 years, and 10% under a 30-year fixed-pricing period. To avail of the lowest rate of 5.5% per annum, borrowers must have a monthly amortization that should not exceed 30% of the borrower’s gross monthly income; and the ratio of the loan amount to the appraised value of the collateral shall not exceed 75%.

One major worry though is the full risk-based pricing framework that the Fund has recently adopted. This means that the interest rates will only be fixed on the assigned period and might go higher or lower depending upon the prevailing market rates. Fortunately the shelter agency reported that since they used the new scheme, the agency has lowered its rate for five consecutive times. This rule applies to all eligible members of the Fund.

Public–Private Partnerships

In a study of the Housing and Urban Development Coordinating Council (HUDCC), the affordability of housing has been adversely affected by out-of-control urbanization and unplanned urban sprawl where demand for residential land far outstrips the available supply of land, particularly in densely populated areas.

The best course of action for this dilemma can start with more proactive engagement of private investors in the national agenda. With the government and the private sector sharing ideas and working together, planning for future developments of a city that will include more low-cost housing will be made much easier.

The only listed example of public and private cooperation under property development in the portal of the Public–Private Partnership Center of the Philippines is the Pabahay sa Riles Project which can be recalled as not exactly a success.

As upcoming projects such as the Cavite–Laguna Expressway and the NLEX–SLEX Connector Road has been proven to be helpful, we can only hope that joint venture real estate developments will soon be planned and conceptualized for Filipinos.

Lower Rental Costs

Taking a leaf from the plans of former HUDCC chief Leni Robredo, a public rental housing program can likewise help ease the financial burden of housing to salaried workers and employees. This initiative will help individuals and families who temporarily chose to reside near their workplace in the city but do not intend to acquire a home there. By providing value-for-money ready-for-lease units, the families can save up for that dream house that they can own in the future.

According to a study conducted by the Philippine Institute for Development Studies (PIDS) in 2004, 33% and 17% of the Philippines’ urban population are renters and sharers, respectively. Through helping this big chunk of the market, this might be the way to not only help future homeowners save but also address the issue of informal settlements in key urban areas.

End the Abusive and Corrupt "Oplan Tokhang"

Wazzup Pilipinas!

As the Duterte government proceeds to resume its implementation of the suspended Oplan Tokhang, Akbayan Senator Risa Hontiveros on Monday filed a resolution calling for an end to the anti-drug campaign, which she branded as abusive and corrupt.

Hontiveros, who in a senate hearing called on the Philippine National Police (PNP) to suspend Oplan Tokhang, said that the campaign is a widely discredited operation which has cost the deaths of thousands, among them a Korean businessman, and stained the integrity of the Philippine National Police (PNP).

On October 18, 2016 Korean businessman Jee Ick Joo was taken from his home in Angeles City. He was brought to Camp Crame and strangled to death allegedly by police officers assigned to the Anti-Illegal Drugs Group (AIDG). Following the ensuing public outcry, PNP Police Chief Ronald “Bato” De la Rosa suspended all anti-drug operations last January 30, 2017.

“The resumption of Oplan Tokhang and project double barrel will only result in more suffering and needless death for our countrymen. Oplan Tokhang has been used by corrupt and abusive policemen as a cover for, among other things, acts of extortion and murder. The president himself has said that nearly 40% of the police force is engaged in illegal activities. Prudence demands that the cleansing of the PNP and regaining the trust of the public be our first priorities. ” Hontiveros said.

Before its suspension, the administration’s war on drugs has claimed over 7,000 lives, 2,555 came from police operations and another 3, 603 unsolved drug-related killings, many presumed to be extrajudicial in nature.

“Our message remains the same. The drug problem is a public health issue and should be treated accordingly, using a variety of approaches. If experience of other nations that have implemented a punitive strategy against drug addiction can teach us anything, it is that these strategies do not work,” Hontiveros said.

Under Armour Circuit Challenge

Wazzup Pilipinas!

The Under Armour Circuit Challenge was held last weekend at Greenbelt 3, and was part of a two-part event which served as a preliminary event to help prepare the participants of the regional fitness challenge UA ‘Test of Will’.

Under Armour athlete Elle Adda hosted the event, along with Bellator fighter AJ Matthews and Celebrity trainer Mama Kat. Elle is a French-Filipino fitness trainer, actress, model and an international performing artist. Hosts all wore the latest Threadborne line of Under Armour.

One of the highlights of the event was the on-the-spot challenge that the crowd requested between fighter AJ Matthews and Elle Ada. In said challenge, Matthews and Ada also competed over a round of ball slams, squat, ball rock and roll-ups, press and burpees. Matthews won with a 1-second margin over Ada. Fighter AJ Matthews also showed some self-defense techniques.

Winners of the UA Circuit Challenge event for this leg were Edwin Lobelia (1:47),Ted Waikin (1:56), Jayson Ang (1:57), Jona Constantino (1:53), Marianne Roulade (1:54) and Ericka Mesia (2:00).

The UA Circuit Challenge sets the stage for the much awaited UA ‘Test of Will’ set to take place on March 25 & 26 at the Glorietta Activity Center in Makati City. It is on its second year and will be held in 6 countries, Singapore, Malaysia, Thailand, Indonesia, Brunei and the Philippines.

Participants in ‘Test of Will’, will compete in a four-minute circuit consisting of Burpees, One Arm Thruster, TRX Rows and Sandbag Throw. Each competitor will be scored based on the maximum number of repetitions they can achieve within 60 seconds. The highest scoring man and woman of the national heats from each respective country will win an all-expense paid trip to compete in the regional finals, happening in Kuala Lumpur on 6 May 2017.

This year’s overall champion of the regional finals will walk away with S$2,500 cash prize, or around Php 88,000.00.

For more information on how to register for ‘Test of Will’, please visit: www.testofwill.com.