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PagIBIG Housing Bond

edited March 2019 in Banking and Finance
Is this safe? they have P5,000, P10,000, P50,000, P100,000, P500,000 and 1,000,000 and fixed interest of 8% per annum interest-free with holding period of 5 years....

advice please....
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Comments

  • cramnhojcramnhoj PEx Veteran ⭐⭐
    Most people are only familiar with government bonds. When looking at bonds, one evaluates if the company offering it is likely to go bankrupt or not. In the case of the government, they can print more money if they don't have the money to pay off debts, hence it's more or less risk free.

    I also saw this last year, but I didn't try it. Is it the same 8% rate no matter the principal? And is there a fee if you need the cash before maturity? I wonder if it has a secondary market?

    I suppose it's not bad when putting away small amounts, for php5,000 that's probably the best interest rate one can get.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Pag-IBIG Fund is a corporation. Check to see that the bonds are guaranteed by the government. If they are not, you will have to rely on the fund's financial resources (only) for repayment.
  • metropolitanmetropolitan PEx Influencer ⭐⭐⭐
    these bonds are guaranteed by the Home Guarantee Corp. a GOCC/GFI these are perhaps safer than investing in mutual funds and uitfs

    investment decision must be based on one's risk tollerance. are you willing to lose your capital/principal or potentially higher returns?
  • ahockahock PEx Veteran ⭐⭐
    8% is not bad.... Then if metropolitan is saying na guaranteed sya oks na ito....
  • ahockahock PEx Veteran ⭐⭐
    Guaranteed ata: See below

    WHAT ARE THE INVESTMENT SECURITY FEATURES OF THE BONDS?

    The Home Guaranty Corporation (HGC) provides a cash guaranty on the entire amount of principal and interest of up to 8% p.a. The guaranty of HGC carries with it the unconditional guaranty of the Republic of the Philippines. In addition, a debt repayment fund shall be maintained with the Development Bank of the Philippines.
  • hi! until when is the offering period of these bonds? and would who are the re-sellers? thanks.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    ...the unconditional guaranty of the Republic of the Philippines.

    Yan ang magic words. *okay*
  • ahockahock PEx Veteran ⭐⭐
    so best deal KuyaDanny?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    "Best" is relative. But for money which you don't need for five years, this bond is hard to beat.
  • ahockahock PEx Veteran ⭐⭐
    ok...... thanks for you opinion....
  • hi! i am really interested in investing with this, is it really a good choice?
  • freelancer_babefreelancer_babe PEx Influencer ⭐⭐⭐
    buhayin ko itong thread... because I am interested in this. kahit P10k lang muna.

    if i read it right, i just earn interest from the principal only? so the principal and interest are not reinvested together? and the interest is deposited to either the landbank or DBP bank account semi-annually?

    i think i like the idea of passively earning a little bit of something twice a year. :)

    so far I've asked DBP Baguio, they are not offering daw housing bonds at their branch. they asked me to go to PAGIBIG and inquire.

    I have yet to make a visit to our local PAGIBIG office and landbank and make inquiries.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Yes, interest is paid on the principal. Most bonds do not automatically reinvest their interest payments.
  • ^Hi
    Are these bonds still being offered by Pag-ibig today or hindi na?
    Kung oo if ever na pumunta ako sa isang Pag-ibig office kanino ako pwedeng mag-inquire who's knowledgeable about housing bonds?
    and do you have to be a Pag-ibig member for Pag-ibig housing bonds?
  • freelancer_babefreelancer_babe PEx Influencer ⭐⭐⭐
    @kuyadanny,

    Thanks for your reply! I'll raise that first P10,000 soon!

    If I'll be able to invest P10,000 each month, then that's P250 interest earnings each month, or P3000 a year - that's according to the coupon rate of 5% net example in their pagibig website.

    Plus it keeps my poor Landbank ATM account for PAGIBIG from getting into dormant status. :)

    @starpreneur009,

    There's always the customer service to inquire about PAGIBIG housing bonds. I think these will always be offered. They badly need it to grant housing loans to their members.

    Sa PAGIBIG branch namin, kadalasan mahaba ang pila sa customer service kung midday na ako nagpupunta. Kaya inaagahan ko ang punta - usually right after they had opened their office at 7:00 AM - to beat those lines.

    According to the website hindi raw kailangan na maging PAGIBIG member. Even foreigners and corporations are invited to invest.
  • freelancer_babefreelancer_babe PEx Influencer ⭐⭐⭐
    galing ako ng PAGIBIG at galing ako ng landbank kanina. pinagod nila ako.

    sabi ng PAGIBIG, sa landbank raw dito sa amin ako magtanong tungkol sa housing bonds.

    pagdating ko sa landbank naman, wala daw silang offer. at di pa familiar ang customer service nila sa PAGIBIG housing bonds kaya nagtanong pa sila.

    talaga bang pana-panahon ang pag offer ng PAGIBIG housing bonds? parang tulad ng RTB na may mga dates kung kailan offered?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Yes. Pag-Ibig sell bonds only when they need to raise money to fund their lending programs and member contributions are not enough. I think the last issue was sold in 2010.

    If you want those bonds today, you might have to look at secondary market sellers, if there are any. I think DBP and LBP can help you, but I haven't tried this myself.
  • freelancer_babefreelancer_babe PEx Influencer ⭐⭐⭐
    Thank you @kuyadanny! :)

    That was not clear on the PAGIBIG website, or maybe I've missed it.

    Now where do i begin looking for secondary market sellers?
  • Sir danny, is this the same as RTB or Retail Treasury Bills? anong pinagkaiba maliban sa issued sila ng gobyerno tsaka walang palyado yung returns?

    Nakakatakot lang kasi na baka matulad tayo ng US; subprime mortgage yung kinalabasan, non-performing and toxic loans ang kinalabasan.

    hmm... pag nangutang ako sa pag-ibig ng ilang milyon para sa bahay at nag-invest ako dito sa bond type na ito, parang may konting lugi sa akin pero at least may returns pa din.
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Retail Treasury Bonds are issued by the national treasury. Pag-Ibig Housing Bonds are issued by the Home Development Mutual Fund and guaranteed by another government agency.

    The other differences are in their issue dates, maturity dates, and interest (coupon) payments.

    Whenever you invest in securities issued by your government, you must make your own assumptions about how well/properly the government will use the money it raises from the securities it sells.
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