Affordable Housing Options for First -Time Buyers 

  • 2023-03-07T16:34:53.06
  • Mharbi Edradan

Affordable housing is a significant concern for many first-time buyers in the Philippines, especially given the rising costs of real estate in major cities. However, there are a range of affordable housing options that can help aspiring homeowners get on the property ladder.

Here in the Philippines, affordability is often the most critical factor that affects Filipino Families in finding a home because of the budget constraints. Many buyers simply cannot afford to buy a more expensive property that is why they look for affordable options to fit within their budget. Low cost homes also help buyers save money on monthly mortgage payments and utility bills, allowing them to allocate their funds towards other expenses or savings.

Practicality is another factor that motivates buyers to look for affordable housing. For instance, buyers who are starting a family may need to prioritize their expenses and may opt for affordable housing options that allow them to meet their other financial obligations. Similarly, buyers who are in the early stages of their careers may choose affordable housing options as they work towards building their financial stability.

Affordable Housing Options that you might choose from: 

1. Pag-IBIG Housing: One option is to consider socialized housing programs like the Pag-IBIG Fund's Affordable Housing Program, which offers low-interest financing options and lower down payment requirements to eligible applicants. The program is designed to provide affordable housing to low- to middle-income Filipinos, and offers a range of home options, including townhouses, condominiums, and single-family homes. 

The agency was created to address the country's housing backlog, which has been a major challenge for many Filipino families. The Pag-IBIG Fund helps address this issue by offering low-interest housing loans to its members, which can be used to finance the purchase, construction, or renovation of a home.

In addition to providing housing financing options, the Pag-IBIG Fund also offers other programs and services to help its members achieve their homeownership goals. This includes financial education programs, savings programs, and other resources designed to help Filipinos build financial stability and improve their chances of owning a home. 

Overall, the Pag-IBIG Fund's focus on providing affordable housing options is part of a broader effort by the Philippine government to address the country's housing challenges and improve the standard of living for its citizens.


2. Properties Outside Major Urban Areas: Another option is to look for properties outside major urban areas, where land and construction costs are typically lower. These areas often have lower home prices, and with some effort, research, and connections, it is possible to find homes that offer a good balance between location, accessibility, and affordability. Locations like Pampanga, Cavite, Laguna, Batangas, Bulacan, and Rizal are areas with easy access to Metro Manila, but it still has lower house prices compared to other properties for sale. With these locations’ buyers can enjoy low-cost homes with the benefits of living in the countryside that provides fresh air and environment, as well as the fact that it’s not that far away from the Urban City, which means that they can still work in Metro Manila.
Avida Settings Alviera is laid out to reinforce low cost houses with the natural world’s presence in a modern day-to-day setting. A good investment as it is envisioned to be the growth center of Central Luzon. You don’t need to worry as it is easily accessible from SCTEX. With a transport hub and Clark International Airport just nearby, your options for going places are as plenty as you need them to be. Pampanga is one to two hours of drive away from Manila; actually, anywhere from the metro. There is no shortage of transportation modes too so you’d get to the place in no time. 


3. Pre-Selling Properties: Buyers can also consider purchasing a pre-selling property, which means buying a property before it is completed. Pre-selling properties are usually affordable and less expensive compared to ready for occupancy units, this is for the reason that it’s still in the process of construction but after the turn over the property value rises which in return can offer significant savings, as developers often offer discounts during the pre-selling phase, and the buyer can also choose the unit or lot with the best price and location.

During the pre-selling phase, developers offer the property for sale before construction is completed. This allows them to generate revenue before construction is finished, which can help cover some of the upfront costs associated with building the property. Lower prices for pre-selling properties is the fact that the price of real estate can increase over time. By purchasing a property during the pre-selling phase, buyers may be able to lock in a lower price and potentially benefit from the property's appreciation in value over time.

Properties like Atharra Suites developed by Atharra Primeland is an affordable pre-selling property just located in Panglao Bohol where you can enjoy the island vibe and activities without spending too much. Aside from that it’s perfect for investment as the City’s Tourism continues to boost.  To add more, the property provides relaxing amenities and valuable facilities that other less expensive hotels can't, yet is easy access to our guests' basic needs, safety, security, and leisure.


4. Rent-to-own: another option for affordable housing is to look into rent-to-own schemes, which allow the buyer to rent a property with the option to purchase it at the end of the rental period. This can be an ideal option for those who cannot afford a down payment, as it allows them to save up for the purchase while renting the property. Aside from that, it typically involves lower upfront costs and more flexible payment terms, which is an advantage to the buyer’s side. Moreover, taking this option will surely benefit the occupant for the time being away from paying the monthly house taxes as the property owner will still shoulder it. Additionally, residing in this type of scheme gives the renter a chance to try and test all the amenities and weigh the things that can bring them the pros and cons of living there.

Rent-to-own properties like Urban Deca Homes in Ortigas Pasig are also an option if you want cheap but quality properties in Metro Manila. It is the latest residential mid-rise condominium development with 1.3 hectares allocation for open spaces. It provides larger units, more open spaces and wider roads at this prime location. It is known for its strategic location as it's along the major road towards Ortigas CBD and EDSA.


5. For Assume Properties: The “pasalo properties” function similarly to taking on someone else's mortgage payment while also paying the actual selling price of the property. This is usually less expensive because the owners want to get rid of the property as soon as possible. This means you are paying the value that the owner is paying without taking into account the current market value. Sometimes there are property owners that mark down their property in order to quickly sell it as they can’t afford to continue the monthly amortization. This just signifies why “assume or pasalo” units are much cheaper than that of the units sold by the developers.

Example of this is our recently listed property the Vista GL Taft located in Taft Avenue which is a mixed office and residential high-rise condominium development of Vista Residences in Ermita, Manila. With its contemporary design, the tower speaks of what’s young and innovative, bringing about a taste of the good life found in its modern-day amenities


Henceforth, there are several social media pages and websites where different property owners list their pasalo properties, but it is still necessary to be a careful and diligent buyer because fraudsters are rampant nowadays.

6. Foreclosed properties:  These are often sold at lower prices than market value. You can check with banks and other financial institutions to see if they have any foreclosed properties for sale. They are often affordable because they have been repossessed by either the bank or other financing institution after the previous owner failed to make mortgage payments. When this happens, the bank wants to recoup their losses as quickly as possible, so they may sell the property at a much lower price than its market value. This is the reason why foreclosed properties are attractive to buyers who are looking for a good deal in a home. However, while foreclosed properties may be more affordable, they also come with risks. Most of these properties require repair and renovations.

There are several affordable housing options available for first-time buyers in the Philippines. It is essential to explore different financing options, look for properties in the right locations and consider different arrangements that would fit their financial capacity and lifestyle. With the right research, planning and advice, owning a home is an attainable goal for many first-time buyers in the Philippines. Always take in mind that it’s important to do your due diligence when looking for affordable properties. Make sure to check the property's location, condition, and ownership history before making any decisions. It's also recommended to work with a licensed real estate broker or agent to ensure a smooth and safe transaction.


If you want to check out more affordable properties, scroll real time property listing with true prices posted from different agents/brokers, property owners and property sellers, just check out new listings here at Signet Properties website

Here are some developers who have affordable and budget-friendly units that will suit your needs.

SMDC Twin Residences: Located at Zapote, Las Pinas City, this SMDC project provides a sleek and stylish interior design for individual and family occupants. It offers a lot of enticing benefits for its future and current tenants, from 24-hour security features to leisure activities facilities.

DMCI: It gives its customers economical yet luxurious residences by offering a variety of condominiums in the Philippines. DMCI has a lot of options when it comes to taking into account the financial capabilities of its market, ranging from residential to high-rise condos.