Thursday, October 15, 2015
Houses And Paychecks: How Long Filipinos Should Work To Buy A Home
Ever wondered how far your income could go when planning to purchase a home?
Di you know that a salaried Filipino with more than 20 years of work experience may need 128 years’ worth of his salary in order to afford a house in Makati, the Philippines’ most expensive housing market? This information is according to global property website Lamudi Philippines (www.lamudi.com.ph).
On the other hand, this same salaried worker only needs 4.16 months’ worth of his salary in order to afford a home in San Jose Del Monte, Bulacan, one of the country’s most affordable markets based on average home price.
At the other end of the salary spectrum are minimum wage earners, who need to work a staggering 1,449 years in order to afford Makati’s uber-expensive houses, while 3 years’ worth of their income can buy a house in San Jose Del Monte.
These are some of the findings of Lamudi’s latest analysis using its second quarter 2015 listings data, which involve close to 15,000 houses for sale in 289 cities and municipalities across the Philippines. Lamudi’s analysis focused on the top 32 cities and municipalities with more than 100 for-sale inventories.
PayScale.com, which details the average salaries of Filipino workers based on length of professional experience, and the minimum wage for non-agricultural workers in Metro Manila, as prescribed by the Department of Labor and Employment.
Minimum-wage workers earn Php126,984 per year, while those with less than 1 year, 1–4 years, 5–9 years, 10–19 years, and more than 20 years of experience earn Php215,383, Php257,894, Php458,381, Php875,326, and Php1,430,117 annually, respectively, according to PayScale.com.
According to Lamudi, although the results of this study does not represent all employees across all industries, it gives future Filipino homebuyers a picture on how far their income could go based on average home prices in the cities and municipalities included. Average house price range from a very high of Php184 million for Makati, to a low of Php495,999 for San Jose del Monte, Bulacan.
Following Makati as the most unaffordable housing market is Muntinlupa, where average house price stands at Php42.4 million. A salaried worker with more than 20 years’ experience and earns Php1,430,117 annually needs 29 years’ worth of his salary in order to afford a house here. On the other hand, a person who earns minimum wage needs 334 years’ worth of his salary in order to afford a home in Muntinlupa.
Meanwhile, average house price in General Trias, Dasmariñas, San Mateo, and San Jose Del Monte stand at Php1.326 million, Php1.189 million, Php549,259, and Php495,999, and where minimum wage earners will need 10, 9, 4, and 3 years’ worth of income in order to afford a home.