How to Buy a Flood-Proof House

Did you know that the rainy season is the best time to look for properties in the city or the province? Unpredictable weather reveals a lot of things that you wouldn’t have found out in the dry season, such as damaging floods and landslides. Avoid being a casualty of another typhoon like Ondoy by following these tips on buying a flood-proof house.

Ask for the disclosure statement

A disclosure statement contains all the relevant details about the property – the description of the land, the type of soil, geological and development history (e.g. is it reclaimed land?), etc. Disclosure agreements are a mandatory practice in United States real estate but in the Philippines, you’ll only receive a disclosure statement if you ask for it. Before signing your lease or contract, make sure the seller reads the disclosure statement to you.

Continue reading →

Ondoy’s Aftermath: Implications for Philippine Real Estate Buyers

Leave a reply

Aside from making sure that your home insurance covers the Acts of God clause, Typhoon Ondoy has one more important implication for Philippine real estate: from today onwards, new homebuyers will only consider elevated properties. People will now be more conscious about the safety features of the properties they plan to invest in, not so much safety from robbers and pollution, but from natural calamities.

Floods from previous typhoons usually affect marginalized sectors of the city and other areas located near rivers and creeks. In the news, we’ve seen how riverside neighborhoods in Pasig, Marikina, and Cainta were most heavily damaged by the flood. However, not all of these neighborhoods were poor; in fact, many middle-class villages like Providence were among the most badly hit by the flood. Even upper class neighborhoods in Metro Manila like Corinthian Gardens, Loyola Grand Villas, and North and South Forbes Park took their own hit from the flood. In other words, the city’s inferior drainage system, lack of urban planning, and increasing amounts of non-biodegradable wastes now make formerly flood-proof areas susceptible to flood damage.

Those who are looking to buy properties should make sure their new home is located on hills and elevated roads, or neighborhoods far from rivers and creeks. Although living in a condominium will generally keep your home and personal belongings safe from the flood, a condominium located in a flood-prone area will eventually accumulate structural damage and weaken over time. Make sure you verify that a property is flood-free before you buy or rent them, so that you don’t have to worry about losing your belongings or the lives of your loved ones.

Photo credit

Acts of God Clause in Home Insurance: Is My Home Covered?

3 Replies

Typhoon Ondoy taught us that even residential areas in Metro Manila that we thought were flood-proof can get devastated by floodwaters given a large amount of rain. For this reason, you need to make sure that your home insurance policy covers “Acts of God” or “Acts of Nature”, which means that they are liable for natural phenomena like floods, lightning strikes, earthquakes, and other freak natural occurrences that can’t be prevented. In the event that your home gets damaged by a flood or similar nature, you can get your insurance provider to compensate for the repairs.

During disaster-free years, you might get the impression that paying for home insurance and the additional costs of the Acts of God clause are a waste of money. After all, the very nature of the Acts of God clause is that these natural disasters are unpredictable and unexpected. You may not think of your street as flood-prone, but you never know. It’s best to stay protected and stay covered because you may regret being under-insured in the future.

So the next time you speak with your insurance provider, make sure it is clear what situations are considered to be an “Act of God.” Ask them to be very clear about what specific natural disasters are covered by your insurer so that you can have the peace of mind knowing that all will not be lost during freak occurrences.

Photo credit

How to Clean Up After a Flood

Avoid Getting Rejected for a Pag-Ibig Housing Loan

1 Reply

There are thousands and thousands of borrowers that apply for a Pag-ibig housing loan, but not everyone gets their application approved. Here are some of the common pitfalls of applying for a Pag-Ibig housing loan, and how to avoid getting your application denied:

1) The amount on the Deed of Absolute Sale is less than the approved loan. The amount on the deed should never be less than the approved loan.

2) Applying for a loan to buy a property that has an encumbrance like mortgages, recorded abstracts of judgment, deeds of trust, unpaid real property taxes, easements, mechanic’s liens, and water or timber rights. All encumbrances are on record with the Recorder of Deeds or County Recorder. Before you execute the contract, verify with the Home Development Mutual Fund (HDMF) if the property is acceptable to Pag-Ibig.

3) Improvements outside the house are not part of financing. Consult Pag-Ibig before you pursue the construction.

4) Loans get rejected if part of the bills of materials were reduced (e.g. the flooring and ceiling were deleted) just so it will fit the loan granted for construction. Simply follow the bill of materials evaluated by the HDMF.

5) When borrowers who are separated from their spouse apply for the loan without the signature of the husband or wife, the loan will get rejected. The spouse or wife should present legal separation papers before Pag-Ibig can accept the loan application.

Other than Pag-Ibig Fund, there are other institutions that offer home financing like the Social Security System, the Government Service Insurance System, and the Land Bank of the Philippines. For further inquiries on Pag-Ibig housing loans, call the Pag-Ibig hotline at 724-4244.

Source

Real Estate Experts Help OFWs in Saudi Own Homes

Real Estate Philippines

Anything & Everything Philippine Real Estate at BahaySaPinas.com