Home ownership is one of the biggest household assets – BSP Survey – Manila Bulletin

The Bangko Sentral ng Pilipinas (BSP) said that the most valuable assets of the Filipino mid-range salaried households are their residential property or their house and land and other real estate such as farm and land.

(Mark Balmores / File Photo / MANILA BULLETIN)

Based on the last Consumer Finance Survey (CFS) that was conducted before the pandemic between October 2018 and June 2019, in terms of household asset accumulation, 71.6% owned or co-owned a residential property while 45.4% owned both a house and land.

Bangko Sentral in the Philippines

About 26.2 percent owned only one dwelling while 8.8 percent of households owned other real estate in addition to their house and land.

The most popular form of transportation owned by households is the motorcycle. In the 2018 survey, 68.6% of households reported owning one. In terms of household appliances, BSP said almost every household has a TV and a cell phone. The rate of ownership is 85 percent.

About 22.6 percent reported having access to financial products and services such as insurance / retirement and deposit accounts. Of these, 16.3 percent of households had an insurance or pension plan or received insurance / pension benefits while 9.7 percent had one or more paid deposit accounts at the country’s major banks. or non-equity savings and loan associations.

The survey indicated that 28.2% of households always keep their money at home in case of an emergency. Since this survey was conducted before the pandemic, less than one percent of households had e-money or e-money accounts and those that do are linked to their deposit accounts with banks.

The BSP said 6.6% of households had receivables in the form of non-real estate loans owed to them by other people or businesses.

The CFS showed that 40.4 percent or two in five households were in debt. About 28.2 percent had outstanding loans, 17.1 percent had household bills, and 1.6 percent had unpaid credit card loans.

Household loans include housing loans from the Pag-IBIG Fund and the National Housing Authority, internal financing for auto loans, and corporate finance / institutions for business and other consumer loans, the said. BSP.

“Households were able to manage their loans well because most of them were paid on time,” BSP said. About 64.6% of households paid off their car loans on time. Other loans paid on time: 43.3% of housing loans; 86.3% of business loans; 77 percent other loans; and 69.6 percent of credit card debt.

BSP said 23.4% or one in four households with an outstanding loan are using digital financial services as part of a credit-related process or transaction, while 27.3% access their account via digital means.

In terms of household income, the average monthly income was P15,000 for a household of five and 73.7 percent came from employment or paid employment. Specifically, 89.6 percent of a household’s total income came from employment income and for a family of five, the average income was 10,366%.

“Only a few Filipino households (or 5.1%) were engaged in entrepreneurial activities and 91.2% of them were sole proprietors,” according to the BSP.

The BSP also said that 47.6% of households derive their income from other sources, including remittances for those with Filipino family members abroad. About 12.5% ​​of households depend on the remittances sent to them.

Based on the CFS, the average monthly income for a household of five was 22,000 P. About 72.1 percent is spent on food, 23.9 percent on housing and utilities, and 10.5 percent percent for transport. At the time of the pre-COVID-19 crisis, 4.8% of income is allocated to health spending.

About 7.4 percent of household spending is on education and 5.8 percent on alcoholic beverages and tobacco.

The 2018 CFS described the typical Filipino family as a household of five, with a father in his late forties and young dependents under the age of 14. Some have members of working age or extended family members.

Less than half of household members aged 21 and over had a high school diploma. About 48.7 percent had health insurance and the majority were covered by PhilHealth.

The 2018 SCF data covered 14,860 households. The aim of the survey is to support the central bank’s goal of implementing workable policies for financial inclusion. This was only the second SCF conducted by PASB, the first survey relied on various data periods, starting with results from 2007-2008, 2009-2010 and 2014.



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