Wednesday, November 3, 2021

BSP survey: Home ownership a key asset among middle-income households

The primary residence as well as other real estate assets such as farm and land are the most valued assets of middle income Filipino households, according to a survey done by the Bangko Sentral ng Pilipinas.

Based on the latest Consumer Finance Survey (CFS) conducted pre-pandemic between October 2018 to June 2019 in terms of asset accumulation of households, 71.6 percent owned or co-owned a residential property while 45.4 percent owned both a house and lot.

About 26.2 percent owned only a housing unit while 8.8 percent of households owned other real properties besides their house and lot.

The most popular transportation owned by households are motorcycles. In the 2018 survey, 68.6 percent of households said they owned one.

In terms of appliance, the BSP said almost every household had a television set and a mobile phone. The ownership rate was 85 percent.

Some 22.6 percent said they had access to financial products and services such as insurance/pension and deposit accounts. Of the total, 16.3 percent of households owned an insurance or pension plan or were receiving insurance/pension benefits while 9.7 percent owned one or more interest-earning deposit accounts in the country’s big banks or non-stock savings and loan associations.

About 28.2 percent of households said they still kept their cash at home for emergency.

Since this survey was conducted before the pandemic, less than one percent of households had electronic money or e-money accounts and these were tied to their deposit accounts with banks.

The survey also showed that 6.6 percent of the households had account receivables in the form of non-property loans owed to them by other people or businesses.

About 40.4 percent or two in every five households had debts. Around 28.2 percent had outstanding loans, 17.1 percent had household bills and 1.6 percent had unpaid credit card loans.

Loans include Pag-IBIG Fund and National Housing Authority housing loans, in-house financing for vehicle loans, and financing companies/institutions for business and other consumer loans, said the BSP.

 SOURCE: Bilyonaryo

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