Last October 13, 2017, I got notified via SMS that the Housing Loan got approved but with some conditions. The property’s contract price is Php xxx, xxx.00 but the loanable amount that Pag-IBIG approved is Php xxx, xxx.00 leaving Php xx, xxx.00 as the loan difference (since I already paid for a total of Php xxx, xxx.00 as reservation fee and equity) that must be settled as soon as possible.
Within 60 days after the take-out date of the loan, I am required to apply for an occupancy permit to cover the punch-listing of corrective works. Otherwise, the unit will not be turned over and the punch-listing of corrective works will be considered as “waived”.
Occupancy requirements include the following:
- Housing loan must have a “take-out” status
- An occupancy bond of Php 1,000.00 must be paid
- A one-month advanced payment in HDMF amortization (Php x, xxx.00)
- A punch list (list of corrective works)
- Thirty-five (35) post-dated checks for HDMF amortization
- Accomplished occupancy permit
Keys will only be released or the unit will be formally turned over to the buyer after 30 days from complete compliance of requirements.
So it looks like I have to pay for the additional equity first before I can apply for an occupancy permit. Although the developer allotted a maximum of 90 days with a Php xx, xxx.00 equity per month, it is advantageous to settle the total amount before the 30-day period elapses as we are currently renting an apartment with a rate of Php x, xxx.00 per month plus a total of Php xx, xxx.00 as one month advanced payment and two-month deposit (that will ultimately serve as maintenance fee). If we can transfer to the unit within 30 days, our monthly amortization will be Php x, xxx.00 only and we will be through with the Php 16K "loss". This is ridiculously lower and more affordable than the monthly payment of Php 34,000.00 for condominium units that are often advertised and can be acquired without savings in a mutual fund and tax documents.
After paying the additional equity of Php xx, xxx.00, I figured the need to get a new copy of the reservation agreement in regards to the payment updates so I contacted the Marketing Documents Specialist regarding this matter. She asked me to see her last October 18, 2017, a Monday, at 8:00 o’clock in the morning.
Prior to our meeting, I tried to ask my “financial adviser” if I could pull my shares (Php xxx, xxx.00) off the Unit Investment Trust Fund (UITF) but he said I might lose much. He said that it is not going to be a healthy financial decision. Besides, I am about to have my first cashout benefit this November and I will be receiving Php xx, xxx.00 which can be used to pay for the premiums of the 1st quarter for the third year. The Marketing Officer said that she can endorse for the release of the money left in my time deposit account (which has already been reserved as payment to my sister who initially funded my checking account) but advised me to apply for an installment card – a sort of a credit card that will allow me to avail of cash that I need to pay for my additional equity.
I intended to apply for a loan of Php xx, xxx.00 only since I still have money left in my checking account. I tried to calculate how much I am going to pay if I will be granted such a credit limit for a duration of 36 months and it looks like I am going to shell out Php x, xxx.00 monthly. This is one of the options that we are trying to consider.
In order to apply for this installment card, I need to present a government ID card, my latest ITR stamped as “received” by BIR, financial statements for the past two years, and photocopies of my bank statements.
Last October, 18, 2017, we went to the APEC and had the Reservation Agreement amended as they accepted three post-dated checks that I drafted with each check amounting to Php xx, xxx.00 each. It looked like if we pay roughly Php xx, xxx.00 within three months starting on November 8, 2017, we will have a lower monthly amortization owed to the HDMF -- roughly the same amount that we are paying for the apartment right now.
I issued three postdated checks for the three month-equity amounting to Php xx, xxx.00 each. Then I went to BDO and applied for a BDO installment card. All of my documents were accepted and I was told that the processing of these documents will take around two to three weeks.
I simultaneosly applied for two loans that are associated with my "monthly investments" to cover the additional equity and my documents have been accepted. Loan proceeds these days are channeled through check and cash cards by government institutions.
While I was processing these loans I learned that voluntary contributions to SSS and Pag-IBIG are not considered unless one is either employed or self-employed. Self-employed individuals need to be tax payers! The system does not seem to add voluntary contributions to pre-existing contributions.
Furthermore, I realized that being an Upwork freelancer is more advantageous to being an Uber driver because Uber drivers who wish to apply as self-employed individuals are not entertained by BIR as only car owners are considered as self-employed. Drivers are employees who need to be added to the owner's self-employed BIR account and be granted a sort of a "Withholding Compensation". Drivers who have "below-the-minimum wage" are most likely to be tax-exempt.
I tried to sell some home items online today, October 19, 2017. I didn’t know that it can be both fun and emotionally charged at the same time. My son wanted to have the TV and the guitar and he was crying and slapped me several times.
But a buyer texted me and showed some interest on my personal keyboard. It seemed so easy to sell stuff online. I was hoping to get some good buyers. As for the other items, it looked like I had to double my time in cleaning the items that I needed to sell before I could take pictures and upload each of these pictures online. This whole thing really sounded like an online garage sale. What added more fun to the experience was that I got to be assisted by CS reps who communicated well in the English language.
I had two potential clients. One wanted to buy my personal keyboard. The other wanted the missing element in my DVD player. Both were kind of weird. The former wanted to buy my stuff without asking much about electronic details. The latter wished that the missing element be incorporated into the DVD player system and lectured much about coaxial plugs and HDMI by driving me to do research about those terms without trying to be bossy. It looked like the latter’s lecture was worth the item that I was trying to sell. That was the reason, I reckoned, why he was going to pay for the missing element.
Yesterday, October 20, 2017, I cleaned the stuff that I wanted to sell and I realized that I don’t have clutter in the house. All I have are barest necessities and equipment for future business endeavors. I thought about putting up a tutorial business which will enable me to maximize my other potentials and capabilities and will serve as an alternative option that I can fall back on in case Upwork’s gates will be closed against me forever. I can use my classical guitar and personal keyboard to teach basic guitar and keyboard lessons for instance. I think I am through with the online garage sale phase. I am moving to the next phase.
At the time of writing this journal entry, I am aware of how significant this feat is for us Filipino freelancers. I hereby confirm that the Philippine government is undeniably serious in recognizing dollar earners who utilize Upwork as their online platform through which they engage themselves in business.