The core: Philippine property’s most overlooked strength
(Conclusion)
Affordable housing should never become an excuse for inferior housing. There is a difference between affordability and cheapness.
The best affordable and middle-market developments should provide value without compromising dignity, safety, accessibility and long-term potential.
A home should be sensible to own, which means considering the quality of construction, reliability of utilities, accessibility of transportation, proximity to jobs and schools, safety of the community, cost of maintenance and the property’s ability to preserve value over time.
In other words, the question should be: How much value can we create at a price a Filipino household can sustainably afford? This is a much more useful definition of affordable housing.
But before we build more homeowners, we need to build more financially prepared Filipinos.
Financial capacity
There is another part of the equation that deserves greater attention. Before a Filipino family can buy a home, it first needs to develop the financial capacity to own one.
That means saving, investing, understanding debt and cash flow, building an emergency fund, protecting income and eventually, accumulating assets that can grow over time.
This is where financial literacy becomes connected to housing affordability.
For many Filipinos, the first step toward owning a home may not actually be walking into a property showroom. It may be learning how to grow the first P1,000, learning the difference between saving and investing, building an investment portfolio for a future down payment, and learning how much housing a household can responsibly afford before committing to a mortgage.
The goal is not to convince every Filipino to buy property. The goal is to help more Filipinos become financially capable of making the right property decision when the time comes.
A wealth-building journey
This is also why property should not be treated as the beginning and end of wealth creation.
For most Filipino households, wealth building is a journey. Savings create the first layer of financial security. Investments can provide opportunities for capital growth. Insurance can protect accumulated wealth and income. And property can eventually become one of the largest assets in a family’s balance sheet.
These components can complement one another. The important thing is understanding that homeownership should strengthen a family’s financial position–not overwhelm it. Property can be part of that process, but it should be part of a plan.
Strengthening the ecosystem
There is, however, a need to strengthen the entire housing ecosystem.
Developers have a role in designing products around actual household economics. Local governments have a role in creating communities with adequate infrastructure and services. Employers have a role in helping workers improve financial capability.
Buyers also need to ask harder questions: Can I afford the total cost of owning it? How long will I need to pay for it? What happens if my income changes? How much will transportation cost me? Will my family actually be better off after buying it?
Responsible homeownership is about acquiring an asset without sacrificing the financial health of the household.
A strong market
Perhaps this is where the fitness analogy comes full circle.
Good posture is not something we consciously think about every second of the day. It is the result of having the right muscles doing the right work. When the core is strong, the body carries itself differently. It is more stable. More balanced. More capable of handling stress.
The same should be true of Philippine real estate.
A healthy property market should not simply be one with impressive towers and rising property values.
It should be one where ordinary Filipinos can still see a credible pathway to ownership; where developers can build viable projects; where financial institutions can responsibly extend credit; where government programs can reach the people who need them; where communities can grow around homes; where households can build equity; and where the market can remain resilient even when economic conditions become difficult.
That is what a strong core provides. It gives the rest of the structure something to stand on. When the core is strong, everything else can stand taller.
The real opportunity
Perhaps the greatest opportunity before Philippine real estate today is not simply to sell more units. It is to make more Filipinos capable of becoming responsible property owners. That requires us to think beyond the property itself.
The author (CIS, CSR, CTP, CUSP and CFMP) has 20 years of experience as an entrepreneur, real estate investor, stockbroker, financial literacy advocate, radio show and podcast host, and a multi-awarded and sought-after investment educator and public speaker. He is the vice president and the Division head of Digital Solutions and Investor Engagement of First Metro Securities Brokerage Corp., a member of Metrobank’s Financial Education Editorial Advisory Board. Email via abeltran@firstmetrosec.com.ph
