September 10, 2012
Pag-ibig condo unit for sale
Dear Mrs. Colayco,
I want to sell my condo unit but I'm still paying for its monthly amortization to Pag-Ibig. I don't have money to pay off the balance. I have been paying for my unit for five years now. My Pag-Ibig housing loan is payable in 20 years. How do I go about selling my unit? Thank you.
Mrs. Colayco replies:
If your Buyer is also entitled to a Pag-ibig housing loan, perhaps Pag-ibig can transfer your housing loan to him. If Buyer cannot take over the Pag-ibig loan, you need to pre-pay the loan to take back your CCT, which will required to finalize the sale. Perhaps, you can negotiate for your Buyer to give you a downpayment that you can use to pay Pag-ibig to get back your CCT and have a final sale to Buyer.
I can only give you general ideas and you need to actually go to Pag-ibig and clarify all of their requirements relative to your particular situation before you make a final decision on your selling price and even before you find a Buyer. I saw this website that could give you some ideas although the exchanges are dated 2010: http://www.pagibigfinancing.com/articles/2010/pag-ibig-housing-loan-101.
Your selling price should not only consider the property market situation but also your selling cost. For example, you will pay 6% capital tax and your Buyer will pay documentary stamps. You can try http://www.bir.gov.ph/taxinfo/tax_capgin.htm#6209 for more information on taxes to be paid.
You can get a real estate agent to assist you in both pricing your property and finding a Buyer. The agent will be expecting a commission that you should negotiate BEFORE you agree for any Buyer to visit your property.
Even if you have an agent, you are still better off checking with your Building Administrator on the latest selling prices in your building and reading up on the BIR requirements to understand your particular situation. Some real estate agents may try to convince you to lower your price for easy sale. If there are units still unsold by your Building Developer, you will be competing with them in the pricing of your unit so you need to understand that issue well.
There are also other questions related to your financial situation.
Are you living in the condo? If you are, you may need to consider the improvements you added. However, make sure you compute how much you will have to spend just to leave your condo and live somewhere else. If you have to pay rent, compare that rent expense to your monthly amortization. You might still be better off staying in your condo that you will own over the long term. If your reason for leaving is your neighbors or condo management, you may have problems selling it anyway. Consider this in your pricing.
If you are not living in the condo, is it completed? Perhaps, you can rent it out to pay for your monthly Pag-ibig instead of selling it?
I don't know what happened to your personal finances that led to your not having enough to continue your amortization. If it was because you did not analyze you decision properly, I hope that you will take extra care in making this decision.
Mary Anne B. Colayco is a happy wife, fulfilled mother of three beautiful ladies, helpful mother-in-law of two handsome gentlemen, doting grandmother of two adorable girls and the diligent President of Colayco Foundation for Education (CFE). For over 40 years, Mabsi, short for MAB-C, was in executive-level finance-related positions, as well as general management positions in Ayala Corporation subsidiaries (then, Pure Foods and Globe Telecom among others) and also served as a Commissioner of the Energy Regulatory Commission.
She joins her husband, author-entrepreneur Francisco J. Colayco in their common advocacy of teaching financial literacy to income-earning Filipinos. Herword.com draws from Mabsis wealth of life experiences in giving advice on personal money management.
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