How about some concrete examples??

ETON residences- great location and not the best view

ICON-Great view but location is not comparable to ETON

I know location and view are subjective and relative:)

I really don't know where ETON is....pero teka...kung bibii ka sa fort...bakit naging magandang location ang malapit sa jeepney stop? I think most people who bought sa fort can afford to have their own car right? If they don't have a car...then they better stay in the Cityland condos near an MRT or LRT station wherein you can hear the train everyday passing by..that is just my honest opinion....just like I said earlier..if I will buy in a village in makati...I would choose to live near the park and not at the entrance where the jeeps and buses are...

Eton will rise at the PAL building along Legaspi Street (in front of Chilli's).

I really don't know where ETON is....pero teka...kung bibii ka sa fort...bakit naging magandang location ang malapit sa jeepney stop? I think most people who bought sa fort can afford to have their own car right? If they don't have a car...then they better stay in the Cityland condos near an MRT or LRT station wherein you can hear the train everyday passing by..that is just my honest opinion....just like I said earlier..if I will buy in a village in makati...I would choose to live near the park and not at the entrance where the jeeps and buses are...

I think maganda din view ng eton....

Ganda ng view ng ICOn....green na green ang North Forbes...

I really don't know where ETON is....pero teka...kung bibii ka sa fort...bakit naging magandang location ang malapit sa jeepney stop? I think most people who bought sa fort can afford to have their own car right? If they don't have a car...then they better stay in the Cityland condos near an MRT or LRT station wherein you can hear the train everyday passing by..that is just my honest opinion....just like I said earlier..if I will buy in a village in makati...I would choose to live near the park and not at the entrance where the jeeps and buses are...

Alin ang malapit sa jeepney stop? Hehehe, all of us will buy in a makati village if we can afford it. Its too uber expensive.

@Dvorak, thank you sa mga pictures, if we can only have pictures of the location.

@3CR, thanks for the long discourse:)

I really don't know where ETON is....pero teka...kung bibii ka sa fort...bakit naging magandang location ang malapit sa jeepney stop? I think most people who bought sa fort can afford to have their own car right? If they don't have a car...then they better stay in the Cityland condos near an MRT or LRT station wherein you can hear the train everyday passing by..that is just my honest opinion....just like I said earlier..if I will buy in a village in makati...I would choose to live near the park and not at the entrance where the jeeps and buses are...

Just my own sense @smokingunmanila. One who lives at the Fort does not necessarilly have to own a car. The Fort buses or taxis suit just fine. No offense/malice intentented... why is that co-filipinos there are so enamored of cars? Is it a status symbol? It reminds me of a relative who traded their tricycle for business for an automobile that soon broke down and did not have the money for repair. Sure, we'll have a car when we eventually settle there for good but it's not our priority. I guess this is one of those "kanya kanya" again. Regards!

Minsan you have to sacrifice the location and view to necessity and practicality of living a good life. My house in a Malabon subdivision was chosen by my wife because of being near to Divisoria where we have our business and close to her families. Maganda nuon ang location at view ng bahay namin, fish pond along the boundary and really a quiet subdivision.
Then, the ponds were given away to land reform during the Marcos era and the recipients were not able to maintain a good neighborhood and some squatters settled in. Then the army of more squatters moved in all around us and made our subdivision as their thoroughfare of day to day life.
If you are given an opportunity of choice to select a location with a view then grab it, else just sulk it in because you need that property to stay with to have a good living.

Kung marami kayong pera, then wala na kayong problema, you can do away with most of the best things in life.

Alin ang malapit sa jeepney stop? Hehehe, all of us will buy in a makati village if we can afford it. Its too uber expensive.

@Dvorak, thank you sa mga pictures, if we can only have pictures of the location.

@3CR, thanks for the long discourse:)

diba yun ang gusto nyo..nice location..means near a busy street or mall or near some public transpo? so what do you mean then by a good location...can you define it out straight? kasi parang yun ang lumalabas

before exchanges turn into an argument...
let me just remind you guys that there is no right or wrong response to the question. a great location for one is not for another; same goes with the view. it is very subjective. one man's noise may be music to another man's ears. since we have different backgrounds and frames of reference, we look at things from different perspectives. therefore, we compromise and try to strike the best balance for our money.

having said all that, my response to the question is:

YES!

^^true. for example, best location for me is away from the maddening crowd. this goes against the grain of others' main consideration which is accessibility.

^^true. for example, best location for me is away from the maddening crowd. this goes against the grain of others' main consideration which is accessibility.

Count me in on this @sugarboy. Regards to you and the family!

What are the taxes to consider when it comes to renting out an apartment?

How are they different for a filipino and foreigner?

What are the taxes to consider when it comes to renting out an apartment?

How are they different for a filipino and foreigner?

If you are referring to Withholding Tax on rental income.... a foreign national whom owns the rental unit and who is a not a registered Philippine resident..... is required to pay 25% of the rental income as W/Tax and considered as a final tax. Withholding Tax for Filipino Citizens and Resident Foreign Nationals whom have a local TIN and file income tax returns/declarations is 5%. Rentals, subject to BIR Implementing Rules & Regulations are also subject to 12% Valued Added Tax........

Nonresident Foreign Nationals engaged in trade or business in the Philippines are taxed in the same manner as citizens and resident aliens but only on Philippine-source income. They are entitled to personal exemptions (but not to additional exemptions) only by way of reciprocity. Dividends, share in the net profits of a taxable partnership, interests, royalties (in any form), and prizes exceeding P10,000 are taxed at 20% of the total amount. However, royalties from books and other literary works, and on musical compositions are subject to a 10% final tax. Similarly, interest from long-term deposits or investments is tax-exempt, unless the depositor or investor preterminates the same before the fifth year, in which case a final tax of 5% to 20% is imposed.

Nonresident aliens not engaged in trade or business in the Philippines are subject to flat tax rate of 25% on all types of Philippine-source income.

Nonresident aliens whether or not engaged in trade or business in the Philippines are subject to the 5% and 10% final tax on capital gains on sale of shares of stock in domestic corporation not listed or listed but not traded in the stock exchange and the 6% final tax on presumed gain from the sale of real property located in the Philippines and held as capital asset.

Income derived by nonresident aliens from any foreign currency transactions with depository banks under the expanded FCD system and from OBUs is exempt from tax.

^^ so to sum up
for filipinos and registered foreigners WT+VAT ----10% +12%=22%???
for non registered foreigners WT+VAT-----25% +12%=37% ???

if this % is right seems the tax to be paid is too high :ohno:

^^ so to sum up
for filipinos and registered foreigners WT+VAT ----5% +12%=17%???
for non registered foreigners WT+VAT-----25% +12%=37% ???

if this % is right seems the tax to be paid is too high :ohno:

The withholding tax is paid by the unit owner whilst the VAT is charged on top of the rental to the tennant.... or in otherwords the tennant pays the VAT. In the case of Filipinos and registered resident foreign Nationals, the W/Tax amount is a creditable amount against any income tax due and is reflected in the annual tax returns of the individual.....

Expanded Withholding Tax (EWT) System - Resident Recipient. A creditable tax must be withheld under the EWT system on specified income payments to residents of the Philippines. The tax withheld is creditable against the income tax liability of the recipient of the income. Some payments subject to EWT are show it in Table 16.

Nonresident Recipient/Foreign Corporations Withholding Tax. All remittances of interest, dividends, rents, royalties, premiums, compensation, remuneration for technical services, or other fixed or determinable annual, periodic, or casual gains and income, including capital gains from sources within the Philippines, are subject to withholding tax on the gross amount.

Table 16 Payments Subject to EWT Payments to individuals practicing profession (10%); payments to contractors (1%); professional fees and other remuneration to juridical persons other than general professional partnerships (5%); Rentals of real property (5%); and Gross selling price on sales of real property (subject to 2-1/2%, 5%, or 7- 1/2% EWT depending on the business of the seller)



:cheers:

^^true. for example, best location for me is away from the maddening crowd. this goes against the grain of others' main consideration which is accessibility.

Count me in on this @sugarboy. Regards to you and the family!


me three! :) i kind of prefer a location that is accessible but NOT quite so accessible... labo ba? :lol:

diba yun ang gusto nyo..nice location..means near a busy street or mall or near some public transpo? so what do you mean then by a good location...can you define it out straight? kasi parang yun ang lumalabas

Pinahirapan pa kitang mag-isip!:lol: ang gusto ko may view na may magandang location, ang kulit ko noh! I think generally a good location is not only accessability but more importantly an area where you can live life fully with fine dining, libraries, art galleries, museums, book stores, sports stadiums and parks. Di ba mas maganda yun? A lot of people choose to live on vertical developments because you can have this services right on your doorstep.:)

Pinahirapan pa kitang mag-isip!:lol: ang gusto ko may view na may magandang location, ang kulit ko noh! I think generally a good location is not only accessability but more importantly an area where you can live life fully with fine dining, libraries, art galleries, museums, book stores, sports stadiums and parks. Di ba mas maganda yun? A lot of people choose to live on vertical developments because you can have this services right on your doorstep.:)
^^ My suggestion... you might be better off sticking with Makati or Fort Boni when looking based on your requirements above. For pictures and references you can check out the Makati as well as Fort Boni threads and of course the individual project threads na rin while you're at it. Btw if you need the assistance of an independent broker, just pm Cynch (realtor_manila). I'm sure she can help out like she has done with many satisfied forum members who became her clients. Anyway just my 2 cents. Hope this helps. :) :) :)

O ayan baka meron nanaman kokontra diyan eh suggestion lang naman ito. :bash:

Its far too high!!! VAT on rental income! Madness. If this country wants to progress I would expect an easing in the near future.

What about a unit owned by an overseas company?

The withholding tax is paid by the unit owner whilst the VAT is charged on top of the rental to the tennant.... or in otherwords the tennant pays the VAT. In the case of Filipinos and registered resident foreign Nationals, the W/Tax amount is a creditable amount against any income tax due and is reflected in the annual tax returns of the individual.....

:cheers:

Hi,

You look like well verse on real estate taxation. I just would like to know if I rent out my condo unit can I deduct from the w/tax from rent income the tax that I paid for unit being charge by Municipal govt. on my unit and common tax that I paid for condo common areas?

:banana:

Its far too high!!! VAT on rental income! Madness. If this country wants to progress I would expect an easing in the near future.

What about a unit owned by an overseas company?

An overseas company is considered as a non resident foreign national and taxed on the same basis. And its not VAT on rental income it is VAT on the rental charged to the tennant the same as Hotels are obliged to charge etc.....

VAT is higher in some other countries, for example the UK VAT at 17.5%, and I understand Income Tax on rental income is 40% in the United States ?

For foreigners who are non-residents (i.e., whose stay in the country does not exceed 180 days) and are not engaged in trade or business in the Philippines, Philippine-sourced income is taxed at a flat rate of 25% without any deductions.

Value Added Tax (VAT) is levied at 12% of gross rent, where the monthly rental exceeds PHP10,000 (US$200). No VAT is levied on the lease of a residential property with a monthly rental not exceeding PHP10,000 (US$200).

Moreover, I think the basic rate of income tax in the Philippines is by far less than most European countries and the US....

Hi,

You look like well verse on real estate taxation. I just would like to know if I rent out my condo unit can I deduct from the w/tax from rent income the tax that I paid for unit being charge by Municipal govt. on my unit and common tax that I paid for condo common areas?

:banana:

Unfortunately no. If you rent out your condo unit you can't offset or deduct from the w/tax credits from rent income the tax [local real estate taxes] that you pay to the Municipal govt.

tapos for good time.. eh ako naman kontakin mo! hahahahha

^^ My suggestion... you might be better off sticking with Makati or Fort Boni when looking based on your requirements above. For pictures and references you can check out the Makati as well as Fort Boni threads and of course the individual project threads na rin while you're at it. Btw if you need the assistance of an independent broker, just pm Cynch (realtor_manila). I'm sure she can help out like she has done with many satisfied forum members who became her clients. Anyway just my 2 cents. Hope this helps. :) :) :)

O ayan baka meron nanaman kokontra diyan eh suggestion lang naman ito. :bash:

tapos for good time.. eh ako naman kontakin mo! hahahahha


Naku, pag goodtime ang gagawin, kelangan ba ng location o view? :lol:
Sabit ako sa goodtime paguwi ko!

^^ My suggestion... you might be better off sticking with Makati or Fort Boni when looking based on your requirements above. For pictures and references you can check out the Makati as well as Fort Boni threads and of course the individual project threads na rin while you're at it. Btw if you need the assistance of an independent broker, just pm Cynch (realtor_manila). I'm sure she can help out like she has done with many satisfied forum members who became her clients. Anyway just my 2 cents. Hope this helps. :) :) :)

O ayan baka meron nanaman kokontra diyan eh suggestion lang naman ito. :bash:

Greetings @3cr/Boe. Your last comment cracks me up. It goes without saying that an opposing view will be voiced and better be prepared..hahahah.. So our friend Bartman will be leaving for Pinas next week. You'd be next I guess. Anyhow, good luck in all your endeavor, especially in selling the house. Regards!:)

just to bring this back to the original topic of seaside developments, i just felt i wanted to post that with the rising sea levels due to global warming, my lack of interest in seaside developments is now being bolstered :lol:

me three! :) i kind of prefer a location that is accessible but NOT quite so accessible... labo ba? :lol:

hindi naman malabo. i guess it's just like saying, "So near and yet So far" :nuts:

having said that, what would you consider as a "So near and yet So far" location? methinks that Baguio doesn't fit the bill. that's too far.

post away!

hindi naman malabo. i guess it's just like saying, "So near and yet So far" :nuts:

having said that, what would you consider as a "So near and yet So far" location? methinks that Baguio doesn't fit the bill. that's too far.

post away!

^^^ see that's a very classic it depends perspective
i have a friend who's a cebu pacific pilot
after his last flight and he's at the domestic airport, to him, it's much easier to go home to his house in cebu than their house in manila

Well ako honestly....kahit pangit ang place basta overlooking ang manila bay or laguna de bay or the mountains of rizal....d best sakin yan.....like I mentioned...Parchouse building in guadalupe is one great building with a breathless view....

That breathless view always remind me of LA County and San bernardino early in the morning.



breathless na breathless ka talaga.:lol:
Kung may hika ka, wag na lang dun.

san ka dun tumira? layo naman ng San bernardino na...okay na sakin ang glendale mountains and silverlake ..i mean for affordable ...hmm..ngayon hindi na...1M na ata ang pinaka mura dun...of course there's Palos Verdes, Hollywood Hills, Los feliz, Malibu and the famous restaurant with a view in Sunset Blvd "yamashiro"/

Well ako honestly....kahit pangit ang place basta overlooking ang manila bay or laguna de bay or the mountains of rizal....d best sakin yan.....like I mentioned...Parchouse building in guadalupe is one great building with a breathless view....

I hope you're not giving up on Tagaytay ha @smokingun. Sabi ko nga ba, iba na ang mayaman.. hindi mapalagay sa isang lugar lang! Take care and regards!:) :) :) :)

san ka dun tumira? layo naman ng San bernardino na...okay na sakin ang glendale mountains and silverlake ..i mean for affordable ...hmm..ngayon hindi na...1M na ata ang pinaka mura dun...of course there's Palos Verdes, Hollywood Hills, Los feliz, Malibu and the famous restaurant with a view in Sunset Blvd "yamashiro"/

Canoga Park ako dati, bulok na bahay, kasi yun lang ang kaya namin. Malapit sa lahat, pati sa gulo malapit din. :lol:

I hope you're not giving up on Tagaytay ha @smokingun. Sabi ko nga ba, iba na ang mayaman.. hindi mapalagay sa isang lugar lang! Take care and regards!:) :) :) :)

Ay hindi! given a choice......in all places in the world....tagaytay is the best....

Canoga Park ako dati, bulok na bahay, kasi yun lang ang kaya namin. Malapit sa lahat, pati sa gulo malapit din. :lol:

teka...hindi ako mayaman...hindi ko sinabi na may bahay kami dun...dream lang yun....dream view ko lang..hahahaha

Well ako honestly....kahit pangit ang place basta overlooking ang manila bay or laguna de bay or the mountains of rizal....d best sakin yan.....like I mentioned...Parchouse building in guadalupe is one great building with a breathless view....

alam nyo ba na may namatay dun na guard...dahil parating malakas hangin dun....bumukas yung elevator tapos wala yung cart...hinigop yung guard at nahulog up to the basement...ngayon yung elevator na yun...parating tumitigil for some unknown reasons....

Well ako honestly....kahit pangit ang place basta overlooking ang manila bay or laguna de bay or the mountains of rizal....d best sakin yan.....like I mentioned...Parchouse building in guadalupe is one great building with a breathless view....

parcplace? is that the one by guadalupe market? we went inside there, years ago. a unit costs 1 million peso back then, but the view we saw was overlooking the squatters area in guadalupe.

An overseas company is considered as a non resident foreign national and taxed on the same basis. And its not VAT on rental income it is VAT on the rental charged to the tennant the same as Hotels are obliged to charge etc.....

VAT is higher in some other countries, for example the UK VAT at 17.5%, and I understand Income Tax on rental income is 40% in the United States ?

Moreover, I think the basic rate of income tax in the Philippines is by far less than most European countries and the US....

True. But VAT on the rental!!!!!! Come off it. VAT is tax on goods and services.

alam nyo ba na may namatay dun na guard...dahil parating malakas hangin dun....bumukas yung elevator tapos wala yung cart...hinigop yung guard at nahulog up to the basement...ngayon yung elevator na yun...parating tumitigil for some unknown reasons....

TALAGA!!!

True. But VAT on the rental!!!!!! Come off it. VAT is tax on goods and services.

Well thats the Law..... Nothing we can do about that. Rental Properties in the Philippines are considered under the Internal Revenue Code EVAT Implementing Rules & Guidelines as being the same as Hotels, Serviced Apartments, Condo Hotels, etc., whom are required to charge the current 12% VAT on all goods and services.

VAT is levied at 12% of gross rent, where the monthly rental exceeds PHP10,000 (US$200). No VAT is levied on the lease of a residential property with a monthly rental not exceeding PHP10,000 (US$200).

You know the only way to change the law !

TALAGA!!!


um... am i reading this right?!? :nuts: :lol: pretty soon we'll have you speaking/writing straight Tagalog ;)

hindi naman malabo. i guess it's just like saying, "So near and yet So far" :nuts:

having said that, what would you consider as a "So near and yet So far" location? methinks that Baguio doesn't fit the bill. that's too far.

post away!



i was thinking more in terms of accessibility via mass public transport... of course this is, again, also subject to individual preferences/priorities. IMO, locations which are very easily accessible via mass public transport tend to get crowded... personally, i prefer to live away from the "maddening" crowd which is why i'd pick a location which is not quite so easily accessible by mass public transport to set up a residence

^^tipong a kilometer away from Sonya's Garden kinda thing I guess. tama ba?

just to bring this back to the original topic of seaside developments, i just felt i wanted to post that with the rising sea levels due to global warming, my lack of interest in seaside developments is now being bolstered :lol:



yeah, much as i love seasides and beaches i have to agree with your sentiments about global warming and rising sea levels and their impact on these seaside communities. i've been dilly-dallying about wanting my "little place" in a seaside community but this global warming issue has pretty much made me decide against it

Unfortunately no. If you rent out your condo unit you can't offset or deduct from the w/tax credits from rent income the tax [local real estate taxes] that you pay to the Municipal govt.

Gee, this quite sad to learn that we are charge double taxation in this case. Then I better used my unit first then sell it out at appropriate time than to rent it out so I won't be double tax :lol:

Lucio Tan undercuts Ayalas
http://www.manilastandardtoday.com/?page=business6_april13_2007
TAIPAN Lucio Tan is moving into the heart of the Ayala territory, and he is pricing his first upscale residential condominium venture 15 percent below that of Ayala Land’s.

The price for a square meter for Tan’s The Eton Residences Greenbelt is quoted at a P95,000 average, as against the P112,000/sqm of the Ayalas’ The Residences in Greenbelt.

The Ayala Land Web site actually lists a starting price of P5.5 million for a 55-sqm unit in The Residences, or about P100,000 per sqm, for its smallest pied-a-terre.

“We’re priced to move, and we have a better view of, and better location in, Greenbelt,” said an exuberant Danilo Ignacio, president of Eton Properties Philippines.

According to Ignacio, about 20 percent of the 290-all loft units have already been reserved in less than a month after soft-selling in Guam, Vancouver, and Seattle. This weekend, Ignacio is himself joining his marketing team for a roadshow in San Francisco, Los Angeles, and Honolulu.

Despite only having an initial architectural plan prepared by W.V. Coscoluella, which will still be subjected to a foreign peer review, the project was formally launched Wednesday, with no less than Lucio Tan himself committing to turn over the building to the buyers by September 2011.

“Unlike other developers that require a minimum number of sold units to start construction, we want to start right away,” Tan said in a prepared statement.

The media-shy billionaire himself was not present during the press conference, but his younger brother, Harry, who is Eton chairman, was, along with former Monetary Board member and now Eton director, Antonio Alindogan.

Construction of Eton Greenbelt is slated to begin by the second quarter of 2008, after the demolition of the Philippine Airlines building, which the taipan also owns.

PAL, in the meantime, will open a temporary ticketing and reservation office in what is now the Allied Bank branch on Pasay Road, across Anson’s Arcade.

Once constructed, PAL will reopen the same front-line offices in the Eton condo, sharing ground floor space with Allied Bank.

Ignacio said the Eton Group would also keep the management and maintenance of the condominium even after the Greenbelt condo shall have been sold out and turned over to the buyers to maintain standards and, more important, prevent a debilitating power struggle that almost inevitably arise after the developer turns over the building to the homeowners’ association.



hala sige, magagalit ang mga taga TRAG dito.:) I thought TRAG has a much better view. Am I right??

hala sige, magagalit ang mga tage TRAG dito.:) I thought TRAG has a much better view. Am I right??


TRAG is one of my favorite skyscrapers in Makati... IMO it looks elegantly understated :okay:

IMO, that statement is true for those Eton units facing TRAG because they will enjoy the view of beautiful TRAG! i find some humor in that i hope the article doesn't mean Eton won't look as good so it won't do the same for the people in TRAG :lol: :lol: :nocrook:

mukhang panay ang market nang ETON sa abroad ahh..

Well thats the Law..... Nothing we can do about that. Rental Properties in the Philippines are considered under the Internal Revenue Code EVAT Implementing Rules & Guidelines as being the same as Hotels, Serviced Apartments, Condo Hotels, etc., whom are required to charge the current 12% VAT on all goods and services.

VAT is levied at 12% of gross rent, where the monthly rental exceeds PHP10,000 (US$200). No VAT is levied on the lease of a residential property with a monthly rental not exceeding PHP10,000 (US$200).

You know the only way to change the law !

Then the law is an ass. It makes me think twice about buying more property here. The Philippines economy's loss and another country's gain.

^^ Yeah that kinda sucks! But I think this is more why condotels are a better vehicle for rental income. Think about it. If you book a hotel room in a normal hotel, one wouldn't really think much about paying the VAT since its just like renting a car or buying dinner. Its there, it sucks, but its part of life. The pyschological impact would be more evident if you rent month to month in a normal house or condo. You already feel that you are paying a lot on rent, then pay another 12% for VAT. Of course, ppl rent anyway since they have too (otherwise they would buy outright) but if the tax is a bit of a concern, the worse that can happen is they will simply have a bad taste left in their mouth but still end up paying the VAT. Besides, there are only two certainties in life...death and taxes.

I have friends renting out their condo and they don't pay any tax at all..

how can the government track this??

We were renting an apartment before for 5 years and I'm pretty sure our landlord didn't pay a single cent in tax.

^^ But I think this is more why condotels are a better vehicle for rental income.

what's the tax you're paying for condotels, is the calculation of taxes different with condos and house and lot properties?

^^ Its not finished yet so I don't know how I will be paying for taxes. I came from Canada so high taxes is something I am used too. I would imagine the VAT will be charged by the condotel managing firm. PLCMarketing would probably be the best to answer that since she is the expert among the forumers in that regard.

^^ Its not finished yet so I don't know how I will be paying for taxes. I came from Canada so high taxes is something I am used too. I would imagine the VAT will be charged by the condotel managing firm. PLCMarketing would probably be the best to answer that since she is the expert among the forumers in that regard.

As far as Lancaster Condotels [Lancaster Suites Manila Tower I, Lancaster - The Atrium and Lancaster Cebu] are concerned, on room rentals, nightly, weekly, monthly or yearly leases, we will be charging the current rate of 12% VAT plus the local Government Tourism Taxes that amount to another 1% on all room rental rates which will be paid by the tennant.

All the rooms rental income derived from rentals at Lancaster will be pooled and 60% of the net rentals [net of VAT and Tourism taxes] will be paid to the Lancaster unit owners whom have enrolled in the condotel rental pool on a monthly 'dividend' basis based upon the per square meter floor area of their unit which is an equal amount payable to all unit owners whether they own a Studio or a Penthouse suite.

The dividends/rental income paid out to the unit will be subject to deduction of the appropriate withholding tax [5% for Filipino Citizens/Resident Foreign Nationals and Philippine juridical entities and 25% for non resident Foreign Nationals] that will be paid to the Government. At the end of the current tax year a statement/certificate of 'Creditable Withholding Tax' will be issued to each unit owner whom can then use same in the filing of his income tax returns as a tax paid credit fully deductable against any income tax due.

The benefit of a Condotel operation is that the rental incomes are expected to be much higher than a private landlord renting out a similar condo by himself because Condotels sell their rooms on nightly/weekly/monthly terms that most landlords do not do. It is the short term rentals, i.e. Hotel Rooms at Hotel Rates in a condotel that increases the monthly income that on average would be some 5x more than a private rental on a similar unit.

For some more info on Condotels go to....
http://www.skyscrapercity.com/showthread.php?t=360866

This is why condotels [and the mathematics of rental charges and resulting incomes] are the preferred real estate investment vehicle in many countries across the globe......

:cheers:

I have friends renting out their condo and they don't pay any tax at all..

how can the government track this??

We were renting an apartment before for 5 years and I'm pretty sure our landlord didn't pay a single cent in tax.

Even though your landlord doesn't pay rental income tax, they are subjected to annual realty estate tax. So in realty your former landlord still pay some taxes.

On question how gov't track down those leak taxes, it depend on what municipality you are living in. On areas inside CBD or near CBD, example like Pasig and Mandaluyong they do zoning assessment so better watch out if you are doing legally your business :uh: they could track you down.

^^tipong a kilometer away from Sonya's Garden kinda thing I guess. tama ba?


hehe! i'm the ultimate urbanite :lol: more like BGC syempre :colgate:

besides, fanget ang SLEX... that will be a case of "so near and yet so far" for me as i'd prefer going to the Subic area because NLEX is much nicer IMO

true that NLEX is nicer. i just can't seem to find my spot in the north except, for the lots in front of the Montemar Beach Resort entrance. i dunno about Anvaya yet. i still have to see that.

true that NLEX is nicer. i just can't seem to find my spot in the north except, for the lots in front of the Montemar Beach Resort entrance. i dunno about Anvaya yet. i still have to see that.

Maganda ang Anvaya...the next lot outside the subic base..so you can really own the lot...may shortcut from subic...mga 20 minutes lang...pero sa tingin ko ...sobrang mahal ang lot for 6K per square...

um... am i reading this right?!? :nuts: :lol: pretty soon we'll have you speaking/writing straight Tagalog ;)

Bakit?

true that NLEX is nicer. i just can't seem to find my spot in the north except, for the lots in front of the Montemar Beach Resort entrance. i dunno about Anvaya yet. i still have to see that.


i've been to Anvaya and i liked it! and yeah, i agree, the price per sqm is kinda expensive... which is why i was vacillating on whether or not to get my "little place" over there... but there will be casitas available for members & guests who would like to stay overnight... i dunno how much they will be charging though

Bakit?


i was just kidding :)

it's always nice to hear/read foreigners speak/write in our native tongue is all :)

i was just kidding :)

it's always nice to hear/read foreigners speak/write in our native tongue is all :)

galing.

i've been to Anvaya and i liked it! and yeah, i agree, the price per sqm is kinda expensive... which is why i was vacillating on whether or not to get my "little place" over there... but there will be casitas available for members & guests who would like to stay overnight... i dunno how much they will be charging though

Alam mo...pwede bumili dun sa mga kalye na may overlooking before reaching anvaya...

diba ang daming mga NPA sa bataan?

I know dati marami...mukang na neutralize na ata nila....sana!

^^ I think there are still some stragglers in Bataan.

I think before Ayala Corp invested in Anvaya...they already made a careful study on these matters...imagine mo..isang kidnapping lang sa road to anvaya....will mean losing billions to them....yung road pa naman dun..walang tao talaga at walang dumadaan....

^^ Anvaya area is far from the supposed lair of the NPA's so I think it's safe enough.

^^ Anvaya area is far from the supposed lair of the NPA's so I think it's safe enough.


so here i was already imagining that some of the club's staff might be straggling Nice People :lol: :lol: phew!!

I say both, some of the best piece of real estate are in the best location with a great view.:)


i agree:banana: ...as in a condo with an ayala ave view...

so here i was already imagining that some of the club's staff might be straggling Nice People :lol: :lol: phew!!

The Nice People Abound are really nice people to those who are compassionate. They mostly target the thugs and crooked (goons) government officials. Just don't say anything derogatory against them, you'd be safe. Sort of a "Do unto others..". Regards!

I think before Ayala Corp invested in Anvaya...they already made a careful study on these matters...imagine mo..isang kidnapping lang sa road to anvaya....will mean losing billions to them....yung road pa naman dun..walang tao talaga at walang dumadaan....

Si dinabaw kaya invite ko dumaan dun? hmm......

hassle free if you use a broker..

usually condo asks for 2 months advance and 2 months security deposit.. then 1 year post dated checks..

for a furnished 1 bedroom unit @ FBGC, you ar looking at 35K above per month.

Hi Dvorak - do you have any information what a 2 BR condo containing approx 80 SqM would rent @ FBGC? Also, I am interested to know if you have heard of any transaction involving lease with option to buy? What are the typical terms? Salamat nang marami in advance.

you can rent my unit in serendra when its ready. large one bed, 86sqm.

Hi Tafftrader, just curious, how much rent do you think you can get for your condo? Thanks and regards.

Hi Dvorak - do you have any information what a 2 BR condo containing approx 80 SqM would rent @ FBGC? Also, I am interested to know if you have heard of any transaction involving lease with option to buy? What are the typical terms? Salamat nang marami in advance.
Hi Lazybum. I reposted below Cynch's (Realtor_Manila's) reply just to give you an idea though please keep in mind she's quoting for more luxurious and top of the line condo projects in FBGC. I'm sure unit rental can be had for much lower in other projects in Fort Bonifacio. Hope this helps. :)


1) Renting out condo units

It really depends which target market you have in mind.

If you're targetting expats (foreign managers of multinational companies assigned in the Phils who have generous housing allowances, consultants of ADB and World Bank) ---I'm recommending the 2-BR and 3-BR units.

If you're targetting a foreign business executive who has to do some business here in Manila (for short term , say 6 mos or a year)--1-BR will be fine for short term rentals.

It also boils down to timing. Swerte, swerte din....

2) Developments with view of Manila Golf

If a condo is nicely furnished, plus you have a view of Manila Golf Course --- of course, you can command a nice rate for that.

TIP: Presentation of a condo unit plays a very important role here. If it's tastefully furnished, you can easily rent it out.

For unit owners, if your intention is to rent out your unit (semi-furnished or fully furnished), I highly recommend that you get an Interior Designer (ID) . Honestly, the look of your unit will be more modern and more polished. It's really worth it. You just have to get an ID whose fee is reasonable. :-)

Furnished 1-BR, 80 sqm unit, that will be about Php 60-70k/month. That's the going rate at One McKinley Place (1-BR, 76 sqm). This is also the same rental rate that is being quoted for a 1-BR furnished unit at The Shang Grand Tower in Makati.

It's very important on the part of the landlords also to be flexible, because again, you're competing with other units in the area. So, supply and demand plays an important role in setting rental rates.

Also, it does NOT mean that if you can command the above-mentioned rates for a 1-BR in Serendra or One McKinley, you can also command the same in Forbeswood Heights - that's a different category already.

Hi Tafftrader, just curious, how much rent do you think you can get for your condo? Thanks and regards.

I see similar units at rockwell on the market for 70-80k/month. Realistically, 60-70k. I might rent it out short term at around 80k.

yup tama si Cynch.. around 60 to 80K depending sa location and condition nang unit..

just note that Water in BGC is expensive.. around Php75.00 per cu.meter.

re:Lease with option to buy - sad to say, wala pang ganyan dito ngayon.. specially in BGC na bago pa lahat ang mga units.. I suggest you look for some projects that offer flexibility in payment.. Avant at the fort, a newly launched project by Brittany, is offering 40% down payable in 48 months, then the 60% you can pay in cash on the 49th month or put it thru bank financing, FYI, BDO offers 9% for up to 20 years I think. So this is the closest to lease to own that you can find. Other good projects are GW projects at BGC. Talk to our resident realtor, realtor_manila, I'm sure she could cook something up for you.

Hi Dvorak - do you have any information what a 2 BR condo containing approx 80 SqM would rent @ FBGC? Also, I am interested to know if you have heard of any transaction involving lease with option to buy? What are the typical terms? Salamat nang marami in advance.

The rate for a one bedroom there is quite expensive almost comparable to some luxury rentals in some metropolis here in the US (of course, NYC will cost a lot more).

The rate for a one bedroom there is quite expensive almost comparable to some luxury rentals in some metropolis here in the US (of course, NYC will cost a lot more).

Well, Manila is hib of philippines. There is lack of quality high end apartments. If you consider the facilities on offer and location....ITS CHEAP. I was paying 160,000 pesos in London 5 years ago for similar but nowehere near as nice.

The rate for a one bedroom there is quite expensive almost comparable to some luxury rentals in some metropolis here in the US (of course, NYC will cost a lot more).

Well, Manila is hub of philippines. There is lack of quality high end apartments. If you consider the facilities on offer and location....ITS CHEAP. I was paying 160,000 pesos in London 5 years ago for similar but nowehere near as nice. And still cheaper than a hotel.

Trends and Prospects 2007 and Beyond
http://www.filproperty.com/article.php/trendsandprospects


Residential:

The total supply of high-rise residential condominiums in both Makati and Ortigas CBDs and Bonifacio Global City, as of end-2006, amounted to approximately 23,200 units, an increase of approximately nine percent from the total number of 2005.

Several developments in the pipeline located in the periphery of the Makati and Ortigas CBDs are also due for completion within the next two years and to be located in other emerging urban districts such as the Eastwood City and the redeveloped Araneta Center in Quezon City.

Various factors have contributed to the increasing number of residential condominium developments under construction within Metro Manila. Developers are being motivated by the strong interest from non-traditional demand group, notably the overseas Filipino workers (OFWs) and the declining developmental loan rates. From the buyers’ side, the affordable financing schemes (i.e., lower amortization rates and longer payment period) are attracting the middle-income earners to purchase residential condominium units.

While it appears that most of the sold-out residential condominium units are largely for end-use of the buyers, L and A Research maintains that an oversupply scenario is imminent considering that the profile of the buyers are mostly OFWs and those coming from the middle-income sector. The sector, being a function of the economy, is also likely to experience “cyclical lows”, especially since the amortization period has been stretched to more than 10 years. As more units are being made available in the market, as some buyers would opt to “self-liquidate” their properties by posting the units for lease, the improvement of rents and capital values are likely to be affected.


Retail

In general, the outlook for the shopping mall sector appears to be positive, riding on the improving scenario on the national and regional economy. The optimism on the Philippine economy has already been reflected in the strong performance of the stock market and stable foreign exchange market as well as continued strong remittance from the OFWs. These improvements could well translate into improved retail and consumer spending from 2007 onwards.

Competition among retail malls has prompted developers to undergo major renovations and facelifts, ranging from improvement in tenant mix to expansion of retail space to satisfy increasing demand for mall space.

As a result of these emerging trends, Leechiu & Associates Research estimates that the vacancy for the major malls in Metro Manila will likely to improve to about five per cent to eight per cent in 2007, down from estimates to about eight per cent to 10 per cent in 2006. Mall space rents could increase by about three percent to five percent due to improved occupancy outlook.

Despite growing supply of mall space in Metro Manila, there are still pockets of geographical areas that need to be served. Among retail concentrations, occupancy of established malls have remained strong due to strengthening consumer power of its catchment markets.


Industrial:

As more businesses close their industrial plants and move on to other locations outside the country, the amount of available industrial facilities is also expected to further swell. Furthermore, the old facilities foreclosed by the banks and are now being flagged into the market are also adding up to the supply overhang.

L and A Research maintains that the segmentation and differentiation between “successful” and “unsuccessful” industrial developments will still be the major trend over 2007.

Successful industrial developments have taken advantage of these factors and have remained competitive in terms of land prices. In 2006, several successful industrial parks have bared expansion plans in order to accommodate demand coming from existing locators in these developments. On the other hand, unsuccessful industrial developments are contributing to the oversupply scenario of the industrial sub-sector. Land use conversion would still be a viable option for lot owners but would require intensive capitalization.

As of end-2006, average industrial land values in old economic zones remain stagnant at a range of Php1,500 to Php1,800 per square meter, while land prices in first class economic zones were expected at a level within the range of Php2,500 to Php4,000 per square meter. Over 2007, average industrial land values in old economic zones and vacant purpose-built industrial properties are expected to further decline by as much as 10 per cent from its present values.

Trends and Prospects 2007 and Beyond
http://www.filproperty.com/article.php/trendsandprospects


Residential:

The total supply of high-rise residential condominiums in both Makati and Ortigas CBDs and Bonifacio Global City, as of end-2006, amounted to approximately 23,200 units, an increase of approximately nine percent from the total number of 2005.

Several developments in the pipeline located in the periphery of the Makati and Ortigas CBDs are also due for completion within the next two years and to be located in other emerging urban districts such as the Eastwood City and the redeveloped Araneta Center in Quezon City.

Various factors have contributed to the increasing number of residential condominium developments under construction within Metro Manila. Developers are being motivated by the strong interest from non-traditional demand group, notably the overseas Filipino workers (OFWs) and the declining developmental loan rates. From the buyers’ side, the affordable financing schemes (i.e., lower amortization rates and longer payment period) are attracting the middle-income earners to purchase residential condominium units.

While it appears that most of the sold-out residential condominium units are largely for end-use of the buyers, L and A Research maintains that an oversupply scenario is imminent considering that the profile of the buyers are mostly OFWs and those coming from the middle-income sector. The sector, being a function of the economy, is also likely to experience “cyclical lows”, especially since the amortization period has been stretched to more than 10 years. As more units are being made available in the market, as some buyers would opt to “self-liquidate” their properties by posting the units for lease, the improvement of rents and capital values are likely to be affected.


Retail

In general, the outlook for the shopping mall sector appears to be positive, riding on the improving scenario on the national and regional economy. The optimism on the Philippine economy has already been reflected in the strong performance of the stock market and stable foreign exchange market as well as continued strong remittance from the OFWs. These improvements could well translate into improved retail and consumer spending from 2007 onwards.

Competition among retail malls has prompted developers to undergo major renovations and facelifts, ranging from improvement in tenant mix to expansion of retail space to satisfy increasing demand for mall space.

As a result of these emerging trends, Leechiu & Associates Research estimates that the vacancy for the major malls in Metro Manila will likely to improve to about five per cent to eight per cent in 2007, down from estimates to about eight per cent to 10 per cent in 2006. Mall space rents could increase by about three percent to five percent due to improved occupancy outlook.

Despite growing supply of mall space in Metro Manila, there are still pockets of geographical areas that need to be served. Among retail concentrations, occupancy of established malls have remained strong due to strengthening consumer power of its catchment markets.


Industrial:

As more businesses close their industrial plants and move on to other locations outside the country, the amount of available industrial facilities is also expected to further swell. Furthermore, the old facilities foreclosed by the banks and are now being flagged into the market are also adding up to the supply overhang.

L and A Research maintains that the segmentation and differentiation between “successful” and “unsuccessful” industrial developments will still be the major trend over 2007.

Successful industrial developments have taken advantage of these factors and have remained competitive in terms of land prices. In 2006, several successful industrial parks have bared expansion plans in order to accommodate demand coming from existing locators in these developments. On the other hand, unsuccessful industrial developments are contributing to the oversupply scenario of the industrial sub-sector. Land use conversion would still be a viable option for lot owners but would require intensive capitalization.

As of end-2006, average industrial land values in old economic zones remain stagnant at a range of Php1,500 to Php1,800 per square meter, while land prices in first class economic zones were expected at a level within the range of Php2,500 to Php4,000 per square meter. Over 2007, average industrial land values in old economic zones and vacant purpose-built industrial properties are expected to further decline by as much as 10 per cent from its present values.

Trends and Prospects 2007 and Beyond
http://www.filproperty.com/article.php/trendsandprospects


Residential:

The total supply of high-rise residential condominiums in both Makati and Ortigas CBDs and Bonifacio Global City, as of end-2006, amounted to approximately 23,200 units, an increase of approximately nine percent from the total number of 2005.

Several developments in the pipeline located in the periphery of the Makati and Ortigas CBDs are also due for completion within the next two years and to be located in other emerging urban districts such as the Eastwood City and the redeveloped Araneta Center in Quezon City.

Various factors have contributed to the increasing number of residential condominium developments under construction within Metro Manila. Developers are being motivated by the strong interest from non-traditional demand group, notably the overseas Filipino workers (OFWs) and the declining developmental loan rates. From the buyers’ side, the affordable financing schemes (i.e., lower amortization rates and longer payment period) are attracting the middle-income earners to purchase residential condominium units.

While it appears that most of the sold-out residential condominium units are largely for end-use of the buyers, L and A Research maintains that an oversupply scenario is imminent considering that the profile of the buyers are mostly OFWs and those coming from the middle-income sector. The sector, being a function of the economy, is also likely to experience “cyclical lows”, especially since the amortization period has been stretched to more than 10 years. As more units are being made available in the market, as some buyers would opt to “self-liquidate” their properties by posting the units for lease, the improvement of rents and capital values are likely to be affected.


Retail

In general, the outlook for the shopping mall sector appears to be positive, riding on the improving scenario on the national and regional economy. The optimism on the Philippine economy has already been reflected in the strong performance of the stock market and stable foreign exchange market as well as continued strong remittance from the OFWs. These improvements could well translate into improved retail and consumer spending from 2007 onwards.

Competition among retail malls has prompted developers to undergo major renovations and facelifts, ranging from improvement in tenant mix to expansion of retail space to satisfy increasing demand for mall space.

As a result of these emerging trends, Leechiu & Associates Research estimates that the vacancy for the major malls in Metro Manila will likely to improve to about five per cent to eight per cent in 2007, down from estimates to about eight per cent to 10 per cent in 2006. Mall space rents could increase by about three percent to five percent due to improved occupancy outlook.

Despite growing supply of mall space in Metro Manila, there are still pockets of geographical areas that need to be served. Among retail concentrations, occupancy of established malls have remained strong due to strengthening consumer power of its catchment markets.


Industrial:

As more businesses close their industrial plants and move on to other locations outside the country, the amount of available industrial facilities is also expected to further swell. Furthermore, the old facilities foreclosed by the banks and are now being flagged into the market are also adding up to the supply overhang.

L and A Research maintains that the segmentation and differentiation between “successful” and “unsuccessful” industrial developments will still be the major trend over 2007.

Successful industrial developments have taken advantage of these factors and have remained competitive in terms of land prices. In 2006, several successful industrial parks have bared expansion plans in order to accommodate demand coming from existing locators in these developments. On the other hand, unsuccessful industrial developments are contributing to the oversupply scenario of the industrial sub-sector. Land use conversion would still be a viable option for lot owners but would require intensive capitalization.

As of end-2006, average industrial land values in old economic zones remain stagnant at a range of Php1,500 to Php1,800 per square meter, while land prices in first class economic zones were expected at a level within the range of Php2,500 to Php4,000 per square meter. Over 2007, average industrial land values in old economic zones and vacant purpose-built industrial properties are expected to further decline by as much as 10 per cent from its present values.

makikisali na rin, for me... house and lot, as a property consultant, we all knew na ang condominium are good only for investments not for a long time consumption, for every condominium after 50 or more years e gigibain na po iyan ng developer at walang habol ang mga tenants sa kanilang ipinundar, and that's the reality.

after 50 years gigibain na?? hehhehehehhe hindi naman kaibigan..

yung 50 years eh lifespan nang corporation.. pero you can always make another corporation to take over the old one.. yung building.. eh depende yan sa maintenance.. kung ok pa yung building.. eh bakit mo naman gigibain na agad..

makikisali na rin, for me... house and lot, as a property consultant, we all knew na ang condominium are good only for investments not for a long time consumption, for every condominium after 50 or more years e gigibain na po iyan ng developer at walang habol ang mga tenants sa kanilang ipinundar, and that's the reality.

^^ baka yun ang systema ng condo kung san sya property consultant

lauren ha.. ikaw ha.. ang aga aga.. :lol:

^^ baka yun ang systema ng condo kung san sya property consultant

not necessarily nga nman na 50 years, sabi ko nman eh or more. exag nga naman un, pero sa katotohanan, may isang sikat na developer dito sa makati na kasama yan sa kontrata.. after 60 years lang... and we can prove that, and try to find it out din in your own, mas maganda p rin tlga ang lupa't bahay... (siguro nga isa sa mga developer nmin un)

^^ Joseph, ano ang projects ang hawak mo? Share mo naman, marami ditong mga tumitingin ng real estate property.:)

kung talagang papipiliin, i would go for the location. yung malapit sa mall and entertainment areas. bale yun na ang view paglibot-libot mo dahil malapit sa center of everything including trasportation. :)

tsaka yung view, hindi guaranteed dahil baka tayuan din ng mataas na building yung katabing lote. :ohno:

kung center talaga sa manila, mas mahal yata ang house and lot. hate ko lang siguro yung traffic at paghihintay ng sasakyan. andaming pasahero.

Central Bank allays fears of a repeat of ’97 crisis
Real demand, not speculation, fuels property boom
By Michelle Remo
Inquirer
04/28/2007
http://business.inquirer.net/money/topstories/view_article.php?article_id=62959

MANILA, Philippines -- The central bank, Bangko Sentral ng Pilipinas (BSP), is allaying fears that the current real estate boom could be a prelude to another financial crisis similar to that experienced in 1997 by Southeast Asian countries, including the Philippines.

BSP Governor Amando Tetangco Jr. told reporters: “If one looks at the real property market now, the increase in lending to the sector is driven by actual demand. It is different from what happened in 1997, when the increase in property prices was due to speculative activities.”

Tetangco said that in 1997 many people were driven into buying real estate to make profits, on speculation that prices would go up.

The late-1990s drop in real estate prices led to losses by banks with heavy exposure in the property sector. The resulting weak demand for real estate left banks with large non-performing assets.

In today’s case, Tetangco said, the increase in demand for real estate is largely due to demand among families of overseas Filipino workers (OFWs).

“Their first priority is education of their children, and then investment in properties,” he noted. “The OFW market is now a major market as far as developers are concerned.”

The BSP earlier reported that the thrift banking industry’s investment and loan exposure in the real estate sector grew 26 percent to P76.06 billion at end-December 2006 from a year earlier.

Bankers say low interest rates encourage individuals and corporations alike to buy real estate for personal use or business expansion.

Corporations that have waited on the sidelines for the right time to expand have started pursuing their plans to take advantage of the record-low interest rates, bankers say.

Central Bank allays fears of a repeat of ’97 crisis
Real demand, not speculation, fuels property boom
By Michelle Remo
Inquirer
04/28/2007
http://business.inquirer.net/money/topstories/view_article.php?article_id=62959

MANILA, Philippines -- The central bank, Bangko Sentral ng Pilipinas (BSP), is allaying fears that the current real estate boom could be a prelude to another financial crisis similar to that experienced in 1997 by Southeast Asian countries, including the Philippines.

BSP Governor Amando Tetangco Jr. told reporters: “If one looks at the real property market now, the increase in lending to the sector is driven by actual demand. It is different from what happened in 1997, when the increase in property prices was due to speculative activities.”

Tetangco said that in 1997 many people were driven into buying real estate to make profits, on speculation that prices would go up.

The late-1990s drop in real estate prices led to losses by banks with heavy exposure in the property sector. The resulting weak demand for real estate left banks with large non-performing assets.

In today’s case, Tetangco said, the increase in demand for real estate is largely due to demand among families of overseas Filipino workers (OFWs).

“Their first priority is education of their children, and then investment in properties,” he noted. “The OFW market is now a major market as far as developers are concerned.”

The BSP earlier reported that the thrift banking industry’s investment and loan exposure in the real estate sector grew 26 percent to P76.06 billion at end-December 2006 from a year earlier.

Bankers say low interest rates encourage individuals and corporations alike to buy real estate for personal use or business expansion.

Corporations that have waited on the sidelines for the right time to expand have started pursuing their plans to take advantage of the record-low interest rates, bankers say.

Central Bank allays fears of a repeat of ’97 crisis
Real demand, not speculation, fuels property boom
By Michelle Remo
Inquirer
04/28/2007
http://business.inquirer.net/money/topstories/view_article.php?article_id=62959

MANILA, Philippines -- The central bank, Bangko Sentral ng Pilipinas (BSP), is allaying fears that the current real estate boom could be a prelude to another financial crisis similar to that experienced in 1997 by Southeast Asian countries, including the Philippines.

BSP Governor Amando Tetangco Jr. told reporters: “If one looks at the real property market now, the increase in lending to the sector is driven by actual demand. It is different from what happened in 1997, when the increase in property prices was due to speculative activities.”

Tetangco said that in 1997 many people were driven into buying real estate to make profits, on speculation that prices would go up.

The late-1990s drop in real estate prices led to losses by banks with heavy exposure in the property sector. The resulting weak demand for real estate left banks with large non-performing assets.

In today’s case, Tetangco said, the increase in demand for real estate is largely due to demand among families of overseas Filipino workers (OFWs).

“Their first priority is education of their children, and then investment in properties,” he noted. “The OFW market is now a major market as far as developers are concerned.”

The BSP earlier reported that the thrift banking industry’s investment and loan exposure in the real estate sector grew 26 percent to P76.06 billion at end-December 2006 from a year earlier.

Bankers say low interest rates encourage individuals and corporations alike to buy real estate for personal use or business expansion.

Corporations that have waited on the sidelines for the right time to expand have started pursuing their plans to take advantage of the record-low interest rates, bankers say.

In my case I have my house and lot in Bulacan and I bought my condo for convenience only and investment at the same time. I rather stay in my condo than waste my money on Hotels.

Pardon my ignorance, but are there now effective flood control infrastructure that will prevent flooding I remember always follow everytime it rains (even a slight rain). Thanks.

i've been to Anvaya and i liked it! and yeah, i agree, the price per sqm is kinda expensive... which is why i was vacillating on whether or not to get my "little place" over there... but there will be casitas available for members & guests who would like to stay overnight... i dunno how much they will be charging though

Do you have a link to the developer you can share? Thanks.

OK did you get a response to your questions? Among the companies you mentioned below, I only remember Ayala - an old Spanish family that controlled a lot of land just like Ortigas.

I wonder if most of the condo/townhouse developers have a good record of delivering the units on time as promised.

I bought a condo during pre-selling and the contract states that there is a grace period of a year from the delivery date they promised.

Anybody knows of the performance of the leading developers like Empire East, Megaworld, Ayala Land and Robinson's?

Thanks.

yup.. ganyan din gusto kong setup.. a house and lot in the province (not so far away), like Laguna.. then a condo sa city malapit sa work and school.. so pag weekend.. you can go home to the province..

In my case I have my house and lot in Bulacan and I bought my condo for convenience only and investment at the same time. I rather stay in my condo than waste my money on Hotels.

Do you have a link to the developer you can share? Thanks.


http://www.anvayacove.com/main.htm

just a question pls. really don't know about timeshares. ala pa namang nag-attempt sa akin bumenta nito.is condotel then a form of timeshare?

when i told some people here that i wanted to buy a condotel, they said it would be like timeshare wherein when i go for my holiday, i might not necessarily use my own unit but another with the same specs. :)

^^ oh, when i said some people here, i meant some people here in london. :)

^^ oh, when i said some people here, i meant some people here in london. :)

Condotels are normally Full Property Ownership the same as any condo with a Condominium Certificate of Title [CCT]. One example of this would be the Lancaster Suites Manila where all unit owners are issued CCT's. However, you must verify from the developer if that is the case with a particular project as some are selling what is called 'fractional ownership' in condos which is a type of time sharing.... this is becoming popular in the US and Europe.... and maybe what your friends in London are thinking of....

Another example where your friends might have got that idea from is that as the owner of the condo you can enroll it in the Condotel Rental Pool to get rental income. Normally when the unit is enrolled in the rental pool there are limitations as to the owners use.... much the same as when you rent out your unit to a tennant.

However, most condotels allow the unit owner up to 30 days every year to use his/her own unit during which time they would not receive the corresponding rental income......

Of course, at Lancaster, if you dont join the condotel rental pool you can live in your condo all the time and enjoy the additional facilities of living in a Hotel environment...

:cheers:

Lower prices and retirees’ spending money are directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction, according to a web based marketing firm.

Beth Collingz, director of PLC International Marketing Networks, said her company had been very busy catering to buyers from the United Kingdom and Australia who were interested in investment properties as well as holiday homes here.

“A lot of this interest is being driven by the relatively cheap market prices here compared to Europe – especially UK housing prices – and the easy payment options available for condominium hotel developments” Collingz said.

She added that offshore property investors, foreign baby boomers as well as overseas Filipinos were looking for ways to maximize their return on investments as they approach retirement.

“And so they are purchasing second homes, particularly condotels, where they use the condo for vacations and rent it out when they are not using the unit” said Collingz, who runs the internet based PLC Global Pinoy marketing network.

“The buyers gain rental incomes that on today’s purchase prices give a projected ROI of some 8 percent to 16 percent depending on the mode of payment for the unit” she said.

Collingz’s firm is in partnership with Pacific Concord Properties, Inc., which has market ready projects in Metro Manila and Cebu under the brand Lancaster Suites, with more being built in other locations.

She said that condotels were gaining a following because, in Pacific Concord’s case, the owners can make the condos available for short-term rentals when they are away.

Collingz said at least 85 percent of PLC Global Pinoy’s condotel sales in the Philippines were to international clients.

“While such a level of foreign purchasing activity is not as high in the Philippine provinces, Cebu in particular, has seen a sharp increase in real estate purchases by international buyers in the past several years” she said.

Collingz said the foreign buyers were aware that it was a buyer’s market in the Philippines right now with many properties available and fewer local buyers.

Philippine Condotel Properties being snap up by agile UK investment funds as rents soar

UK Investment Fund Managers and Private Investor Clubs tap their deep pockets to purchase real estate investments in the Philippine Condotel market amid shortage of Hotel rooms driving expected ROI through rental returns upwards of 14% per annum

"Rents which we thought we would get in two years we're getting now," said Beth Collingz, a managing director in Metro Manila of the Condotel Marketing arm of PLC Global Pinoy, the International marketing partner of Pacific Concord Properties’ Lancaster Brand of Condo Hotels in the Philippines.

Collingz expects rental income to rise 15 percent in the coming 12 months after gains of as much as 30 percent since January 2006, when Pacific Concord Properties Inc are set to launch Condo Hotel operations of their flagship Lancaster Suites located in the Ortigas business district in Metro Manila.

UK Private equity units of banks and investment clubs, driven in part by the current strength of the Pound Sterling in international trading, are being attracted by returns in the Philippines as much as double those in the United States and Europe, are purchasing significant blocks of real estate for investment trusts for Asian commercial property.

"There are large amounts of capital now chasing increasingly limited investment-grade real-estate opportunities in Asia," said Collingz. "We are currently in the closing stages of packaging the investment of some $20M in private-equity real estate funds for Lancaster – The Atrium Condotel development in Metro Manila, with expected rental returns which continue to grow at a rapid pace."

With funds raised for commercial property deals in Asia having doubled in each of the past five years, Collingz see the market value of Condotel investments in the Philippines reaching new heights in 2007/8 as more developments come on line.

Rising demand for homes, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino ‘Baby Boomers’, is fueling rents.

Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz.

Collingz projects that Rents in the region are set to effectively jump 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe.

"People are in general looking to shift fund flows relatively towards Asia," Collingz said. "It already has had a profound impact in markets where there's a lot of this money chasing the same assets." In Singapore, the region's second- biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis.

As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees’ spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction.

“A lot of this interest is being driven by the relatively cheap market prices here compared to Europe – especially UK housing prices – and the easy payment options available for condominium hotel developments” Collingz said. “The buyers gain rental incomes that on today’s purchase prices give a projected ROI of some 8 percent to 14 percent depending on the mode of payment for the unit” she said

Condotels have been rather successful here in Honolulu, especially in response to the slump our tourism industry experienced immediately after 9/11. The only thing here is that many are converted (older) hotels, therefore leaving little to the imagination in terms of architectural aesthetics.

http://i28.photobucket.com/albums/c211/hawayano/P1010107.jpg
http://i28.photobucket.com/albums/c211/hawayano/b6a82b4e.jpg
http://i28.photobucket.com/albums/c211/hawayano/P1010110.jpg

If could have made Manila Bay look like that!

Last year I made an investment in the ortigas area.

I joined my condo unit in their condotel program which they just started.
In the beginning the revenue (P/sq.m) is not what they projected. But they were just starting operations and just like any business its always hard in the beginning.

It has been 9 months now. And so far I've been happy with the progress. No worries about finding tenants and always assured that the unit is in good condition.

So fa so good...

^^ That could only be Astoria (which is the Ortigas benchmark of success of condotels) or Malayan. In either case, congratulations TheRick! Your post give us condotel investors a bode of confidence when our buildings are up and running! :okay:

^^ That could only be Astoria (which is the Ortigas benchmark of success of condotels) or Malayan. In either case, congratulations TheRick! Your post give us condotel investors a bode of confidence when our buildings are up and running! :okay:

Yes, Astoria are doing very well.... I hear they have sustained very high occupancy rates...

Hi,

I posted an exploratory study of using our vast natural beauty in the countryside.

I thought of having KUBOtels in as many Towns or Barangay will give more credence in economic development where it is now badly needed. We have 25millions farmers in coconut region alone who needs help. I know how difficult it is going into farming specially in the coconut producing regions.

What I am trying to explore is to invest in a system that will directly help in developing the countryside.

I am not discounting the necessary development in urban areas but at least we should do it in parallel. You need to go out of your Condotels then spend your weekend in your KUBOtels.

We have a very rich natural resources that does not need to spend thousand of dollar just to maintain a single tree like what they doing here in Saudi. We have this advantage because our landscape is natural.

This could be one aspect of investment that will earn good and very cheap one. Even a lowly paid OFW can afford to have KUBOtels in their locality. This can help say their relative earn and not just spend their money in consumerism.

I believe this very practical in many aspect like in Condotel tenants is using it at their own descretion much so in KUBOtels that will not really function as residential, rather serving the growing need of trancient tourist who appreciate more our countryside. We are doing KUBOtels in many farms so it is just a matter of orginizing them in a proper way not to damage our rich natural habitat. In the other hand we are helping everybody earn, investor, farmers, towns barangays for that matter.

Please see how we are progressing in that aspect.

regards and more power. Your expertise is very much welcome.

http://www.skyscrapercity.com/showthread.php?t=470748&page=3

^^ That could only be Astoria (which is the Ortigas benchmark of success of condotels) or Malayan. In either case, congratulations TheRick! Your post give us condotel investors a bode of confidence when our buildings are up and running! :okay:


Thanks...
Its Malayan Plaza.
You are correct, I've heard the same too.
Astoria is doing well...

These should be such a site to see! :)
Spoke to the GM of Discovery Hotels and he said that they are developing a hotel almost at the same time that the Kuoks are finalizing their plans for the Bonifacio Shangri-La Hotel and the upcoming Grand Hyatt. 5th Avenue will be at the center of it all. Quite exciting! ^^ This is great BGC news Robbie! These high-end hotels will definitely compliment the future PSE along 5th Ave. High-rollers are really taking notice of Fort Boni. You can just imagine it now, BGC has got both convenience and view at your door step! Everything you need will be walking distance or a Fort Bus away. The area is so well planned and so much to see/do with MarketMarket, Shops at Serendra, Boni High Street, the scattered open parks and even a future museum and coliseum right there in the neighborhood! :) :) :)


HK's Shangri-La eyeing Ft. Boni project
http://www.abs-cbnnews.com/storypage.aspx?StoryID=77517

Hong Kong-based Shangri-La Hotels and Resorts, the largest Asian-based deluxe hotel group in the region, is interested to build a luxury hotel in Bonifacio Global City, the Bases Conversion and Development Authority (BCDA) said.

BCDA president Narciso Abaya said that in a preliminary presentation to the BCDA Board held recently, the Shangri-la group proposed to build a six-star luxury hotel at a 1.2-hectare property of the BCDA.

Shangri-La Hotels and Resorts Vice President Greg Dogan expressed to the BCDA Board its keen interest in the lot formerly known as the Government Center for Investment located right beside the City Center of the Bonifacio Global City.

The said lot is also the area being eyed by the US-based Trump Group headed by real estate and entertainment tycoon Donald Trump.

BCDA chairman Aloysius Santos said that the presentation was on a no-commitment basis. "No decision has been made. The BCDA Board is mapping out an action plan for a transparent competitive selection process among the interested proponents," he said.

Shangri-La also eyes Trump’s target lot in Global City
By Ronnel Domingo
Inquirer
Last updated 03:45am (Mla time) 05/18/2007
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=66592

MANILA, Philippines -- Hong Kong-based Shangri-La Hotels and Resorts has proposed to build a six-star hotel on a 1.2-hectare lot in Bonifacio Global City, the same property that American tycoon Donald Trump is eyeing, the Bases Conversion Development Authority (BSCA) said.

Officials of the Shangri-La group, the largest Asian-based deluxe hotel group, made a preliminary presentation to the BCDA board meeting last May 15, BCDA president and chief executive Narciso Abaya said in a statement.

Abaya said Shangri-La Hotels and Resorts vice president Greg Dogan expressed keen interest in the lot formerly known as the Government Center for Investment, right beside the City Center of Global City.

Earlier this month, Abaya told the Inquirer in an earlier interview that the BCDA was holding exploratory talks with the Trump group on a possible high-end project, like a Trump Plaza, in Global City.

He said a stumbling block was that the BCDA, being a government agency, must do a competitive bidding and could not go into direct partnership with a private investor.

Shangri-La’s entry may provide the answer, as the BCDA could auction the lot and both the Shangri-La and Trump groups could bid for it.

BCDA chairman Aloysius Santos said Shangri-La’s proposal was made on a no-commitment basis and the BCDA made no decision on the matter.

“The BCDA board is mapping out an action plan for a transparent competitive selection process among the interested proponents,” Santos said.

Abaya said in the Inquirer interview that the requirement for biddings was holding the BCDA back from signing a partnership deal with the Shanghai Shimao group on a $2-billion project.

Shanghai Shimao, one of China’s top real estate developers, signed a memorandum of understanding with the BCDA in March after its chairman, Hui Wing Mau, during a visit expressed interest in investing $2-$4 billion in high-end hotel and mixed-use buildings in Global City.

The BCDA said the memorandum of understanding provided conducting detailed studies on future joint development projects with BCDA, which the BCDA said would make Global City a key international business district.

That's just across Embassy and Hyundai! I heard that Grand Hyatt will be along 5th but at the corner of the street of Bonifacio High Street. Discovery will be in that area as well. We can just walk down the road when these hotels are completed! Hihihihihihihi!!!
^^ Yup so nice isn't it? We can just easily walk over for Happy Hour! Like I said before BGC is so well planned and so much to see/do with MarketMarket, Shops at Serendra, Boni High Street, the scattered open parks and even a future museum and coliseum right there in the neighborhood! Now add to that Happy Hour at high end hotels! Fort Bonifacio is World Class indeed. :) :) :)


Trump... Shangrila... Hyatt.... etc. In general, these are great BRANDS and they will really contribute to the value and image of BGC as a whole.

I'm looking all these on an investor's point of view. It's really a win-win thing.
^^ I defintiely agree with you Cynch. Having those major players building in BGC will not only make Fort Boni more desirable but will also serve as catalyst for more projects/developments in the area. If things fall into place perhaps even doubling lot prices in Fort Boni which for sure will make early BGC investors giddy with joy and excitement with such a prospect! Tiba-tiba na when we get the keys to our units and that's hands down the best real estate investment scenario one can really ask for! :) :) :)



Here's a Fort Boni project location map to get an idea of the current projects as well as where future projects will be.

http://readyforoccupancy.com/Trion_Location.jpg

Plus relaxing foot massages right in your own home...of course offered by my reflex/foot/spa for only P 350.....indeed BGC has everything!!

Plus relaxing foot massages right in your own home...of course offered by my reflex/foot/spa for only P 350.....indeed BGC has everything!!

you are in Spa business? do you know Grand Royal Spa here in Cebu?

hindi sideline ko lang...pati manicure/pedicure para sa patay na kuko..hahahahaha.....


Hindi..home service lang..may partner ako dyan...no..don't know about that spa in Cebu..been there only once...tapos asa mactan lang kami most of the time pa...why...wats' with grand royal..okay ba dun?

hindi sideline ko lang...pati manicure/pedicure para sa patay na kuko..hahahahaha.....


Hindi..home service lang..may partner ako dyan...no..don't know about that spa in Cebu..been there only once...tapos asa mactan lang kami most of the time pa...why...wats' with grand royal..okay ba dun?

chains of Spa di2 sa cebu... just like body and sole... my x-w owns the spa:)

wow...galing....bakit x nalang sayang...eh di libre ka parati?

wow...galing....bakit x nalang sayang...eh di libre ka parati?

wala ng fire ksi... libre parin... friends nlng kami. ganun nlng cguro.

I've read articles saying that the condo boom is primarily because of OFWs.

I wonder what the implications are if a condo is predominantly owned by OFWs.

I would have to guess that most owners are not around so either units are empty or being rented out. If units are mostly empty and condos have commercial units in the building (e.g. restaurants, convenience stores, etc.), these businesses will probably struggle because of lack of customers.

If they are being rented out, I wonder if there will be a condo owners association or there will be cooperation among owners.

Yes Tagaytay is nice. Then again, Tagaytay proper is crowded. So if you drive up further from Tagaytay into Alfonso, Cavite, you will hit a fork which leads to either Laurel, Batangas or Nasugbu, Batangas.

My wife and I have thoughts of residing in Laurel. We measured the distance from the place we spotted in Laurel to Tagaytay proper and it's about 18km. It's actually a comfortable drive to the "town proper".

I feel that somehow, Tagaytay City itself is getting to be overrated. Soon enough, the zonal valuation of property will be ridiculous. In this case, Laurel seems to be a great option because we will not be paying Tagaytay prices and yet still be within the general vicinity of Tagaytay.

Furthermore, my wife says she can still have a relatively easy workload at that time in our lives by being a judge in a trial court in a small town.

On my end, the place we spotted overlooks a golfcourse :pepper:

For the Batangas towns you mentioned, how should I go about buying a property?

Its very hard to generalize but I would think most OFWs aren't exactly throwing money away on empty units unlike the typical wealthy foreigner looking for a vacation home since they are mostly working people as well with bills to pay and families to support. Those units purchased by OFWs will most likely be occupied by their relatives, renters, or even themselves (for those that are retiring).

Currently the condo we are staying is approx. 60% owned by OFW families. Remaining percentage is split with local buyer and FilAm. The result our condo is only half-fill occupied. Some of the former commercial establishment that previously operate close down due to lack of enough patronizing customer.

In my assessment those OFW buyer is basically just doing investment (instead of putting it in bank) and sooner or later will dispose their unit at a proper given time. I just don't know if this buying trend is good or not but I hope it won't lead to future bubble burst since there is not enough volume of local buyer that could purchase those future condo unit. For now I just twist my finger and hope for the best.

:scouserd:

I agree. This will be very interesting on how the OFW affects the market in the future. Just from talking the realtors and observing the ads on sites like http://www.inquirer.net you can see that they are targeting Filipinos outside the country.

I would guess most of them like you said buy it as an investment. I'm just worried that by 2011 when all these new projects turnover that there would be alot of units for rent. Therefore, driving the cost of rent down.

Right now its very tempting to invest because of the different affordable schemes that the developers are offering. Just something to remember - Its harder to sell the units in the future if you need too because unlike here in the US you can get a 30 yr loan at 6% - over there most of the time people have to pay cash or get a loans with a high interest rate.

One thing is for sure - everytime I visit the traffic seems to getting alot worse. So if you want to live and the city and you don't have the budget to buy homes in Bel-Air, Dasma, Valle Verde... Condo units are definitly the way to go.

^^ A glut in rental units may drive rents down but not necessarily the price. Besides, the population is forever growing so there is no shortage of prospective renters. Of course, if landlords become ridiculously greedy and have the expectation of Manhattan rental prices even if the local market can't afford it or the expat market may find it too costly (hence nullifying the low cost advantage of doing business in the Philippines), then its really their own fault.

2011 or even 2009 is a bit of a critical year not just because of the turnover dates of a lot of projects being built today but also because of the looming change in Philippine government. All it takes is a bust due to a prospective ERAP like president to make people pessimistic about the future of our country, including OFWs. 2009 or even late 2008 is also another critical year because of the US change in government.

As I mentioned in another thread, a new US president with protectionist ideals can seriously hurt our BPO industry. Concurrently, such a president who would favour high taxes (including increased taxation of foreign assets) to pay for massive socialist programs may actually hurt OFW investments since it could hurt their disposable income.

look up yello.com.ph . ang daming mga tagaytay properties for sale doon. ;)

best though if you go to tagaytay/batangas area a few times before deciding which area you'd like to start looking.

I think a lot of us are aware of what happened in 1998....pinabayaan si Erap to win...and as early as now, we are fighitng off wrong info campaign or stupid analysis by some people..and worst the media bureaus...

we have to correct the wrong info being relayed by ABS and Inquirer...puros sensationalism lang ang alam...

So if we start working now, for sure we will succeed in installing an effective and intelligent president by 2010....GO GMA!!! hahahahaha...si GMA pa din pala...nako..baka magwala yung iba dito...

Parang nagkamali ata ako ng thread dito!

According to POEA the no. 1 destination of our OFW goes to Middle East. The rest is spread out in N.A. and Europe. If most of the condo project being built right now would cater to this market segment I say the medium-high rise condo project which has a price range between 1.2M to 4M pesos would be able to survive beyond 2011. However, looking on the current condo project development right now compare two years ago, most developer is focusing to much on the highend project which we know is very unstable type of market segment since the decision of potential buyer is highly affected by change in govt policies and financial factor. So if worst condition would happen between 2009-2011 it would be the OFW market segment would prevail :banana:

Condos provide a good source of revenue for the Philippines through property taxes. OFW's sending $$$ to pay for the taxes also help boost up Philippine currency. Building more condo's create more jobs and jobs translate to better household living and more contribution of income taxes to the government. The majority of the units being empty doesn't really create a negative impact to economy. Business people can always relocate if business is not doing well. After majority of these units are paid off in full in a few years, these units can easily become affordable rental units for the locals if the owner's buy a house or relocate somewhere.

most expats i know(aside from extremely lonely ones) don't buy philippine condos with the intent to live permanently in someday--- they buy property only as a 'just in case i visit' scenario--- that which am guilty of myself.

This is bad for food/retail businesses nearby because obviously there will be less customers. But good for BPO's management crew because rentals will be cheaper. Unfortunately, probably only the people in management level in these BPO's can afford to pay rent, so there will probably be a surplus of empty units .
Hopefully the ever-increasing filipino population somehow offsets this, except that only a handful in a million can afford to buy a unit, or conservatively, afford to pay rent, as the majority of these additional pinoy citizens are the very souls who will end up being booted out of trinoma for prejudged vagrancy..

and possible bad news is that BPO's might not even be here to stay, as i have been hearing chismis about looming meralco power crisis not being available to sustain it if more BPO's are built, aside from america finding cheaper labor in british guiana, indonesia, and vietnam.

oops, these are other off-line stories, but wishing it never happens!!

sad to say that in spite of everything, our country is bound to get crippled bad if not for these bpo's and expats.

I can say I purchased a unit for investment but I know other OFWs who purchased theirs so they can actually retire there. Whereas I say I will put my unit in the condotel pool, my friend would say: No no. Strangers would not stay in my unit. They might trash the place. So even OFWs buy condo units for different reasons.:banana:

Most expat usually don't buy condo as investment rather lease instead. We can say the current demand for condo unit is just a by product of BPO investment surrounding those nearby area. However, we should not be focusing on BPO demand to much since the impending power crisis 5 years from now is just looming around and might taper off any future rental income that you might expect. There are also trend among BPO to relocate outside Metro Manila due to availability of modern telecommunication infrastructure in our regional areas (more cheap cost of living). Another thing there is a now a new disruptive technology that provide a virtual home office connection simulating a centralize BPO operation. One local telco is now selling this service. The consequence of this technology means you don't need office space to locate your call center worker since they could do their work at home via dsl. So the future prospect to gain income from condo rent due to nearby BPO operation is not a guaranteed protection in your condo investment. So we could say if you invest on condo its either you use it or sell it, my bet is still goes to OFW as real investor for condo properties:nocrook:

^^ A glut in rental units may drive rents down but not necessarily the price. Besides, the population is forever growing so there is no shortage of prospective renters. Of course, if landlords become ridiculously greedy and have the expectation of Manhattan rental prices even if the local market can't afford it or the expat market may find it too costly (hence nullifying the low cost advantage of doing business in the Philippines), then its really their own fault.

2011 or even 2009 is a bit of a critical year not just because of the turnover dates of a lot of projects being built today but also because of the looming change in Philippine government. All it takes is a bust due to a prospective ERAP like president to make people pessimistic about the future of our country, including OFWs. 2009 or even late 2008 is also another critical year because of the US change in government.

As I mentioned in another thread, a new US president with protectionist ideals can seriously hurt our BPO industry. Concurrently, such a president who would favour high taxes (including increased taxation of foreign assets) to pay for massive socialist programs may actually hurt OFW investments since it could hurt their disposable income.

Just a brief comment: First, Income from rent drives value. Second, no US president in modern times has been elected based on protectionist platform - you may have a US Congress that may enact protectionist trade laws but the President of the US is still the chief enforcement officer of the US trade policies. The US has a lot more to lose if it goes back to the days of high tarrifs and import quotas.

^^ No, rents do not drive up value. In Vancouver, BC, the values were driven solely by demand by buyers, a lot being overseas buyers from Asia, Europe and the United States, but the huge glut of new condo units made rental values go down that it was actually cheaper to buy than rent for the locals. As long as there is demand by OFWs to buy, the values would continue to increase. And if a lot of them increase the supply for rentals, the rental rates would decrease. Its simple supply and demand and renting and buying are two different things.

Second, the US may have more to loose but ultimately, the American voters, many whom are loosing jobs due to outsourcing, that will decide. Given that there has been a growing backlash in outsourcing lately, it wouldn't be beyond the realm of possibility that a protectionist US government can be elected.

BPO stand for?

^^ Business Process Outsourcing: (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service.

^^ No, rents do not drive up value. In Vancouver, BC, the values were driven solely by demand by buyers, a lot being overseas buyers from Asia, Europe and the United States, but the huge glut of new condo units made rental values go down that it was actually cheaper to buy than rent for the locals. As long as there is demand by OFWs to buy, the values would continue to increase. And if a lot of them increase the supply for rentals, the rental rates would decrease. Its simple supply and demand and renting and buying are two different things.

Second, the US may have more to loose but ultimately, the American voters, many whom are loosing jobs due to outsourcing, that will decide. Given that there has been a growing backlash in outsourcing lately, it wouldn't be beyond the realm of possibility that a protectionist US government can be elected.

Don't want you to think that I am lecturing and I apologize in advance if I sound like I'm giving one.

Real estate value of an investment property is establised by determining the present value of a stream of cash flow (rent income) received over time using a certain rate of return (called a discount) that is then compared for example to a yield that a 20 or 30 year US bond will return to the investor. If there is a likelyhood that rent will continue to increase over time, then it follows that the value of the real estate investment will also increase and more investors will put their money into similar investments (in other words demand increases).

The opposite happens if overbuilding occurs and that causes the "glut" in real property you mentioned in your post above, and when there is more competition for renters, market forces will follow and rental rates will go down - and values of properties go down.

^^ Business Process Outsourcing: (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service.

Thanks. Finally i can relate!!! LOL
Makes more sense now.

Real estate value of an investment property is establised by determining the present value of a stream of cash flow (rent income) received over time using a certain rate of return (called a discount) that is then compared for example to a yield that a 20 or 30 year US bond will return to the investor. If there is a likelyhood that rent will continue to increase over time, then it follows that the value of the real estate investment will also increase and more investors will put their money into similar investments (in other words demand increases).


But I'm talking about the particular case here and in the spirit of the thread, which pertains to the effect of OFW condo owners. The effect is similar to that off Vancouver, BC, wherein the increase in valuation is due to the demand of outside forces. Like what is happening with our condo market, the condo market in Vancouver has been fueled not by the locals, but by overseas buyers, hence the increase in valuation.

Perhaps for office space, a real estate investment driven entirely by rent, that theory works since rental increases fuel the incentive of commercial developers to put up space. As a matter of fact, there is a strong lag between the increase in demand, then the adjustments of rental rates, and then the actual building of office space, as clearly seen even in our cities. Reason being is in North America and Europe, commercial developers were hit by the glut in the early 90s due to overbuilding, and here in the Philippines, commercial developers were hit by a glut in the early 2000s due to Erap.

But for residential, since a lot of people do buy and use the units, and a lot of factors do influence that which is not necessarily rational (i.e. pride of ownership, psychology of building equity but not factoring interest rate mortgage payments, etc), increase in rent is not that much of a factor, if at all a factor, in the valuation. This especially in a Philippine real estate market that is so dependent on outside forces, such as OFWs. People don't buy at Rockwell because it commands six digit rents. They buy at Rockwell because they like Rockwell, hence the increase in value in that area. The six digit rents come because of people who like Rockwell SO MUCH but cannot or do not want to buy, they'd be willing to pay that much rent for it.

I don't have a background on investment theory but somehow thru observation and analysis I could tell if a certain property would appreciate future value. One good example is my first condo investment made way back 3 years ago. It so happen I lived before in Southern part of Metro Manila just to go day to day to my work in Ortigas CBD. My main criteria during that time is good location and transport accessibility. So here I'm scouting for a good property and luckily was able to look for a condo that is conforming to what I'm wishing for. Succeeding year the BPO trend is slowly emerging while the project is ongoing construction and before my unit was ready for turnover a big shoppingmall nearby my place was constructed and simultaneously a nearby BPO bldg sprouted within the 3 years span. Based from my computation I almost got a 150% market value on top of the original investment that I made. This just proving that its really true that the value of condo property doesn't depend on rental income rather the development and infrastructure surrounding your investment :cheers:

^^ Exactly! Like the Rockwell example, the actual development and infrastructure matters. Rental income rates is just a byproduct like the price of the units themselves. You can increase the rents like crazy in that Smokey Mountain development but is most certainly won't increase its value. But you can build an LRT line in boonieville Fairview and see the depressed property values of that area soar...

Don't want you to think that I am lecturing and I apologize in advance if I sound like I'm giving one.

Real estate value of an investment property is establised by determining the present value of a stream of cash flow (rent income) received over time using a certain rate of return (called a discount) that is then compared for example to a yield that a 20 or 30 year US bond will return to the investor. If there is a likelyhood that rent will continue to increase over time, then it follows that the value of the real estate investment will also increase and more investors will put their money into similar investments (in other words demand increases).

The opposite happens if overbuilding occurs and that causes the "glut" in real property you mentioned in your post above, and when there is more competition for renters, market forces will follow and rental rates will go down - and values of properties go down.

I agree. "Supply and Demand"...

Let's just hope that
1) we don't saturated the market with plenty condo units
2) enough people can afford the rents
3) population continues to increase (more housing needed)
4) owners hold on to their units.
5) more expats. (economy still improving)


Right now its easier to invest because of the payment schemes being offered. If owners try to sell their unit in the future - buyers have to pay in cash or get a loan at high interest rate. Then you have to think how many people are caplable in paying P3M-P6M cash. If there are plenty of owners selling at the same time then prices will surely do down.

Just look at cooled real estate markets here in the US like Miami and
Northern Virginia. Plenty of condo units are being sold plus the developers are still finishing projetcts.


I do think this is the best time to buy property - because of all these payment schemes. Without it, I'm pretty sure it would be very tough for me to try to invest.

Just a brief comment: First, Income from rent drives value. Second, no US president in modern times has been elected based on protectionist platform - you may have a US Congress that may enact protectionist trade laws but the President of the US is still the chief enforcement officer of the US trade policies. The US has a lot more to lose if it goes back to the days of high tarrifs and import quotas.

i dunno, but from another viewpoint, doesn't the us already have unwritten protectionist practices? america wouldn't be spending millions of dollars in our country for bpo's IF america wouldn't save BILLIONS of dollars out of it.

it is quite sad and pathetic that the CBD's and future CBD's we are extolling as "world-class" are merely being fueled by BPO's simply because america finds cheap labor in millions of pinoys, and worse, is that many pinoys clamor for and actually even attend specialty schools training to get a call center job.

these bpo's make it appear like a win-win situation for both parties, and come to think of it, we have no choice but to think of it that way, because who could dare argue they are taking advantage of cheap labor?

nakupo, off-topic na naman ako, LOL!

but in this global age and time, political, national and geographic boundaries are becoming increasingly obsolete and will be (in extreme case) (and if you will) just be decorative/symbolic. we already have corporations as entities not bound by such arbitrarinesses (is there such a word? heck, if i can start my sentence with a preposition, i can certainly coin a neologism, he he.) as such, corporations can operate and will operate wherever in the planet they find most condusive for their operations, with or without official backing of their country of origin (obviously and hopefully within legal bounds of course). that is why, i think, as long as our compatriots become/continue to be extremely competitive in our native soil in delivering the services these individual entities/companies expect to receive for their outlay, there wouldn't be much to worry about. :)

to borrow/tweak UK's former prime minister the iron lady Margaret Tatcher's words: there is no society, only individuals. likewise, if you will, there are no countries really where cashflows are concerned, only entities (such as corporations) that manage these cashflows. I read somewhere that big corporations indeed are acting like virtual countries as we speak, with economies dwarfing that of smaller geographical/"real" state-nations.:)

in a way, this is how the world is really turning global. and the only thing is to position oneself to an advantage-- to give the competitive edge. :)

so it's really down to the individual. and isn't that liberating? :)

^^ and that sir, was elaborated with a most british of accents:righton:

There are also a good number of locals who are either seeking a better and newer place to live in, and they buy condominium units. Also, locals who scale down and want something smaller or of less maintenance.

i dunno, but from another viewpoint, doesn't the us already have unwritten protectionist practices? america wouldn't be spending millions of dollars in our country for bpo's IF america wouldn't save BILLIONS of dollars out of it.

it is quite sad and pathetic that the CBD's and future CBD's we are extolling as "world-class" are merely being fueled by BPO's simply because america finds cheap labor in millions of pinoys, and worse, is that many pinoys clamor for and actually even attend specialty schools training to get a call center job.

these bpo's make it appear like a win-win situation for both parties, and come to think of it, we have no choice but to think of it that way, because who could dare argue they are taking advantage of cheap labor?

nakupo, off-topic na naman ako, LOL!

Hi raf, you brought up 2 issues: (1) a protectionist US; and (2) US outsourcing.

First, with regards to your view that the US already has protectionist policies - that is so far from the truth - if you examine the details, the US has a trade deficit with its major trading partners particularly countries in Asia/Southeast Asia. It buys more than it sells. In addition these so called trading partners causes the US to lose billions of dollars due to patent infringements, piracy, currency manipulation, etc.

Second, if you have a negative view of US BPO operations in countries like the Philippines, then you have no appreciation how this is benefiting Filipino workers and the Philippine economy in general at the expense of young Americans who are more and more having difficulty finding entry level positions in the US.

Think of the consequences if one day, the American people loses patience and starts electing politicians that will pull back and shutdown its trade from Asia and Southeast Asia? I'm not saying that it is imminent but it could happen.

^^ i apologize if sounded like i was ignoring the benefits our countrymen have been reaping from this outsourcing business.

It is not so, as even i am an indirect beneficiary of this; the business-boom(although this is said in 'relative' terms) going on in our country has given properties of ours so much appreciation in value.
more importantly, i don't want bpo's out of our country because those are the ONLY jobs available to the masses which generate 'substantial' income. Our gov't can't create or help create jobs that would match or exceed a call center employee's income/benefits, unless of course, one gets elected as mayor, senator, congressman, or president(those are jobs created by govt, right?).
what am trying to say is that this BPO business should be a wake-up call for pinoys to be more like the japanese and koreans, western europeans, and of course, americans. Pinoys are bunch of people endowed with intelligence and natural resources(we're probably 20-fold richer in natural resources than japan), but we'd rather be buyers, than sellers. Japan and US buys our gold, manganese, and copper(if we still have any), then in turn they sell us high definition cameras and pentium cpu's.

i honestly think pinoys can do better than just being call center employees, senators, or congressmen--if these are the so-called high-earning jobs the philippines can offer.

as for the issue regarding america's protectionist policies, this is a debatable one but way beyond the scope of already being off-topic.

Just because there's a trade deficit doesn't mean america is not protectionist. The states of texas and oklahoma have more oil than what the us gov't is declaring. It is speculated that these us oil reserves are greater than all other countries' combined, but look, america continues importing from alberta and OPEC. Said in brief, uncle sam is an avid maniacal buyer and hoarder of finite, exhaustible but nonperishable resources and raw materials, and this partly explains for the 'deficit'.
Lastly, america tries to make it appear they have a trade deficit, but if you look at what america makes most money on are stuff that other countries don't really need to survive--- you know: nike, tommy hilfiger, cocacola, pepsi, gatorade,mcdonalds, burger king, wendy's, cable subscription to watch america's next idol, britney spears, m&m's, krispy kreme, et cetera ad infinitum...(But before i get misconstrued, america is ALSO a most respectable country and undisputed world champ in providing everybody with health advances and technological innovations)
going back, if we look at one american product: coca cola alone, for example, it is 95% water and probably 5% 'secret' flavoring and cane sugar(possibly from negros occidental), but a huge amount of profits out of this go to uncle sam, and is definitely a multi-billion dollar world-wide business!
america sells the world coca cola, and the world sells america cheap labor, copper, and barrels upon barrels of oil
so whatever deficits we might be talking about must be moot.

P.S. mods, just weed this out if you think it is off-topic and nonsense, as i must admit it is:lol:

^^ and that sir, was elaborated with a most british of accents:righton:

hi raf! i most certainly do not have an accent. ok,, maybe i should try to lose the accent. :)

p.s. i did say try. :lol:

btw we may indeed be in grave danger of being deleted!! ha ha ha!! :cheers: :jk:

and possible bad news is that BPO's might not even be here to stay, as i have been hearing chismis about looming meralco power crisis not being available to sustain it if more BPO's are built, aside from america finding cheaper labor in british guiana, indonesia, and vietnam.

In retrospect, how about the rise of BPO's forcing Meralco to be more productive and efficient before a new and upcoming electric company one day takes the lead and kicks Meralco's butt... ;)

Also, cheaper labor doesn't necessarily correlate to the necessary skills BPOs require. That's why Philippines remains competitve with other countries that offer cheaper labor compared to America.

^^ i apologize if sounded like i was ignoring the benefits our countrymen have been reaping from this outsourcing business.

Our gov't can't create or help create jobs that would match or exceed a call center employee's income/benefits, unless of course, one gets elected as mayor, senator, congressman, or president(those are jobs created by govt, right?).

Just because there's a trade deficit doesn't mean america is not protectionist. The states of texas and oklahoma have more oil than what the us gov't is declaring. It is speculated that these us oil reserves are greater than all other countries' combined, but look, america continues importing from alberta and OPEC.

First of all, apologies are not necessary - you are expressing a personal opinion and I respect you for that.

Instead of looking at the Philippine government to create jobs, the Filipino people should turn their attention to the private sector. IMO, this is the sector that has the greatest influence in the future of the Philippines. The government's role is not to create jobs but rather, it should set policies that provide the "long view" or continuity of sensible economic policies regardless who resides at the Malacanang Palace. Businesses should be more "risk averse" and must have that long view of the country and the world - I said this because there is this Filipino culture known as "tubong lugaw" which is so common among Filipino enterpreneurs. In simple terms, they want to profit big with little or very limited investments. Look at the current business leaders in the Chinese community in the Philippines, they have built business empires not by putting short term money in order to gain the most returns. Filipino enterpreneurs should emulate this business models because it works.

BTW, with oil trading at $65 per gallon, do you really believe that the US government can make oil companies in Texas and Oklahoma or anywhere in the US ignore the opportunity to make tons of money just because the US government wants to hide the true size of its oil reserves? That by far, is the biggest myth I have ever heard this year, my friend.

Next year, Japan, Germany and General Motors will be introducing fuel cell cars in the US market. This is a matured technology that has been developed and tested in the US for over 15 years. This will mark the beginning of the end of an oil-based American economy (hopefully, the world).

If anybody is interested, here's a link to a news story (now this is really off-topic):

http://www.usatoday.com/money/autos/2007-05-10-honda-fuel-cell_N.htm

^^ yes, even i think it is a myth(the speculation about usa's oil reserves), although i must admit i am beginning to think it as otherwise every single day that passes, analyzing america's every move in her history, subtle it may be as buying oil, or outright blatant as invading an oil-rich nation.

america can't possibly be this great a country by her widely known achievements alone, but by subtle, if not invisible, political/economic maneuvers played like a chess grandmaster.

^^ yes, even i think it is a myth(the speculation about usa's oil reserves), although i must admit i am beginning to think it as otherwise every single day that passes, analyzing america's every move in her history, subtle it may be as buying oil, or outright blatant as invading an oil-rich nation.

america can't possibly be this great a country by her widely known achievements alone, but by subtle, if not invisible, political/economic maneuvers played like a chess grandmaster.

I want you to understand that collectively, the American people are by far the most generous and caring people. However, America is also a nation that advocates a free-enterprise system and she will pursuit and protect her national interests world-wide without any hesitation whatsoever.

Ay nako..kung yung condo namin walang uupa..gagawin ko nalang sex den yan...or orgy room...ang dali naman ng solution nyan...next please.....hahahahahah....joke lang poh...masyado na kasi kayong serious...

First of all, apologies are not necessary - you are expressing a personal opinion and I respect you for that.

Instead of looking at the Philippine government to create jobs, the Filipino people should turn their attention to the private sector. IMO, this is the sector that has the greatest influence in the future of the Philippines.

Good point!

But we must also push for the Philippine government to create and change the infrastructure/regulations conducive for the private sector to grow. This is what GMA is still trying to do.

Right now, poor regulations, lack of oversight/enforcement, and partisan politics from our Philippine government is slowing us down and holding back our economic progress.

Keeping back on topic, here is an article from the Office of the President:

Palace lauds emergence of OFWs investors


They have emerged as a strong economic sub-sector, infusing a record $10.7 billion into the economy last year alone and fueling the steady rise of the value of the peso against foreign currencies.

This time, Overseas Filipinos Workers (OFWs) are showing their clout in the growth of the real estate industry, capital markets and small-and-medium scale enterprises.

In his weekly column "View from the Palace" which comes out tomorrow (Monday), Press Secretary and Presidential Spokesman Ignacio R. Bunye said that OFW remittances constitute 40 percent of the investments in the country’s real property sector.

During a meeting with members of the Filipino community in Japan during her May 22-24 visit to Tokyo where she keynoted the 13th Nikkei Conference on "The Future of Asia," President Gloria Macapagal-Arroyo urged the OFWs to turn Overseas Filipino Investors (OFIs) and invest their earnings in real estate.

Aside from real estate, the OFIs should also invest in the stock market, government bonds and treasury bills back home to help their families, she said.

In his column, Bunye said the President was "heartened by their (OFWs) warm welcome, and was even more heartened by the fact that our kababayans there are more than Overseas Filipino Workers (OFWs) but are now also Overseas Filipino Investors (OFIs).

"She congratulated them for having the discipline and foresight to not only support their families here, but also invest their earnings in the Philippines, primarily in real estate."

The Bangko Sentral ng Pilipinas (BSP) has projected that OFW remittances will increase by 10 percent this year to an all-time high $13-billion due to the increased deployment of Filipino workers abroad.

released 5/27/2007

I received a registered mail from one of the major property developers asking me to shell out more money on a property I bought from them last year. The exchanged rate at the time we closed was roughly around $1/P53 and when they encashed it after three months it was $1/P49. I made it clear to them at that time that Im willing to pay in either currency but they chose the US dollar. They computed the price on the prevailing exchange rate at the time of closing. They assured me that I dont have to worry about the fluctuating exchange rate. :bash:

As far as I am concerned I honestly payed the right amount when the deal closed. If you think about it why should I be responsible on something that I have no control of and besides if the rate goes in their favor... will they credit the difference to the buyer? Why do they have to wait for months to cash the check and why do buyers take all the risk? :mad2:

I have always made due dilligence on money matters but this one obviously fell through the crack. To all the people who are planning to invest in our beloved motherland, I hope this experience will not deter you from doing so, just be wiser than me. :wallbash: :D

^^ Were the checks used as some sort of promissory note to secure future payments, meaning they were post-dated checks? Based on your posting, I would think that they could have encashed those right away and there were sufficient funds to cover the amounts. In that case, you are right. Why should you bear the burden on fluctuating rates when they could have encashed the checks right away upon issuance.

Well, right now, with the strengthening of the peso vis a vis the dollar, we who remit dollars to pay for those condo purchases have no choice but to grin and bear it.

No, it was not a post dated check. The check was dated at the time of purchase and can be cashed anytime. I even offered debit card payment and they dont want that for obvious reasons.

^^ Yeah, you are right to be incensed. But the life of a check is usually 180 days right?

Im not aware of that rule but why will they hold it for a long time considering that the peso was appreciating so much at that time. I just dont understand it but life goes on. :)

I received a registered mail from one of the major property developers asking me to shell out more money on a property I bought from them last year. The exchanged rate at the time we closed was roughly around $1/P53 and when they encashed it after three months it was $1/P49. I made it clear to them at that time that Im willing to pay in either currency but they chose the US dollar. They computed the price on the prevailing exchange rate at the time of closing. They assured me that I dont have to worry about the fluctuating exchange rate. :bash:

As far as I am concerned I honestly payed the right amount when the deal closed. If you think about it why should I be responsible on something that I have no control of and besides if the rate goes in their favor... will they credit the difference to the buyer? Why do they have to wait for months to cash the check and why do buyers take all the risk? :mad2:

I have always made due dilligence on money matters but this one obviously fell through the crack. To all the people who are planning to invest in our beloved motherland, I hope this experience will not deter you from doing so, just be wiser than me. :wallbash: :D

^^ What does your contract say? Just that it doesn't seem right unless there is a stipulation in the contract specifying that they are allowed (have the right) to seek the difference because of fluctuations in currency valuation. Otherwise they should honor the contract afterall both of the parties involved (both buyer and seller) signed-off and agreed to the Dollar computation for the purchase price basis of the unit in question. As you said it's not your fault that by sheer luck of the draw they ended up on the short end. Check the verbage of the contract and/or just to play safe, you might want to consult with a lawyer if you have access to or have retained one.

^^ he he he... I was too trusting and I look at the contract it stipulates that checks are not considered payment until proceeds have been actually recieved by the developer from the bank. :wallbash: On hindsight, I dont see that as a problem. I was expecting them to draw the money upon receiving the check. It took them a long time to do this...why would they sit on the money instead of making the money work for them. :dunno:

Question: im planning to buy a unit in the near future. I have no idea kasi when it comes sa mga transactions sa condo. how much ba yung cost ng pinaka cheapest na unit? will they have appliances included in it? or totally walang laman yung unit pag nag avail ka?

in terms of payment pano ka mag babayad? pwede bang magdown muna? etc.

hope that someone can explain it to me. thanks in advance

^^ I think you should start communicating with the brokers who are active here like @RealtorManila (FBGC), @PCL Marketing (PCL sales), @Bevepi (Robinsons), @MitchRivera (Ayala), @Makaww (ETON) and many more.

@portludlow - I was just talking to a friend with the same sentiment as you.. she invested at One Rockwell.. and is still paying the property in US$... pero sa kanya nakalagay sa contract na hindi magbabago yung payment or walang adjustment hanggang hindi lumalagpas nang 25% ang change sa exchange rate.. so from 55 to 46.. so far eh 16% pa lang naman..

I received a registered mail from one of the major property developers asking me to shell out more money on a property I bought from them last year. The exchanged rate at the time we closed was roughly around $1/P53 and when they encashed it after three months it was $1/P49. I made it clear to them at that time that Im willing to pay in either currency but they chose the US dollar. They computed the price on the prevailing exchange rate at the time of closing. They assured me that I dont have to worry about the fluctuating exchange rate. :bash:

As far as I am concerned I honestly payed the right amount when the deal closed. If you think about it why should I be responsible on something that I have no control of and besides if the rate goes in their favor... will they credit the difference to the buyer? Why do they have to wait for months to cash the check and why do buyers take all the risk? :mad2:

I have always made due dilligence on money matters but this one obviously fell through the crack. To all the people who are planning to invest in our beloved motherland, I hope this experience will not deter you from doing so, just be wiser than me. :wallbash: :D

I'm sorry to hear your about your current predicament. This is primarily the reason why I thought that parting with your money during pre-construction is really a risky proposition. So where do you go from here? One of the brokers on this thread said matter-of-factly, that buyers in the Philippines (whether local or US-based Pinoys) hardly have any recourse when it comes to this kind of BS deals. That is why I decided to be a cash buyer. In addition, while I like the convenience of living around Makati and the lifestyle it brings, I am now more inclided into building my own house on a property not too far from Manila like a sea-side resort in Batangas. I am now interviewing 3 licensed brokers to help me with my decision. They all sound really good and trustworthy (at least on the phone). My next step is to meet with them personally in the next couple of weeks.

@portludlow - I was just talking to a friend with the same sentiment as you.. she invested at One Rockwell.. and is still paying the property in US$... pero sa kanya nakalagay sa contract na hindi magbabago yung payment or walang adjustment hanggang hindi lumalagpas nang 25% ang change sa exchange rate.. so from 55 to 46.. so far eh 16% pa lang naman..

Good for her. I dont think the peso will not appreciate more than P44/$1, so she will be just fine. :) Oh btw, I was watching urban living ba yon sa TFC last week and they were interviewing the sales manager for GA tower 2. He was saying that 60% of sales is OFW, 30% Investor and 10% lang resident. Totoo ba yon?

I'm sorry to hear your about your current predicament. This is primarily the reason why I thought that parting with your money during pre-construction is really a risky proposition. So where do you go from here? One of the brokers on this thread said matter-of-factly, that buyers in the Philippines (whether local or US-based Pinoys) hardly have any recourse when it comes to this kind of BS deals. That is why I decided to be a cash buyer. In addition, while I like the convenience of living around Makati and the lifestyle it brings, I am now more inclided into building my own house on a property not too far from Manila like a sea-side resort in Batangas. I am now interviewing 3 licensed brokers to help me with my decision. They all sound really good and trustworthy (at least on the phone). My next step is to meet with them personally in the next couple of weeks.

Oh thanks, but dont feel bad about me. You can never be ahead all the time on every business transactions. Ill just have to suck it up and move on. I still think that having a property there was a wise move to diversify my portfiolio. It is a hedge against the falling dollar.

Good luck on your property venture in Batangas. Nice people and beautiful place. However, Im not sure if somebody like you who have been in the States for a long time will survive without a place in the city. :lol:

Good for her. I dont think the peso will not appreciate more than P44/$1, so she will be just fine. :) Oh btw, I was watching urban living ba yon sa TFC last week and they were interviewing the sales manager for GA tower 2. He was saying that 60% of sales is OFW, 30% Investor and 10% lang resident. Totoo ba yon?



Good luck on your property venture in Batangas. Nice people and beautiful place. However, Im not sure if somebody like you who have been in the States for a long time will survive without a place in the city. :lol:

Port - you are talking to a fellow Pinoy, I can bring city life to Batangas...if you know what I mean...wink wink

yup this could be true.. as evident in the current building occupancy of GA TOwer1.. we are having a hard time forming the HOA as majority of the owners are abroad and have either just rented out their unit or have not touched or have not moved in at all.. Current building occupancy is less than 65% I think.

Good for her. I dont think the peso will not appreciate more than P44/$1, so she will be just fine. :) Oh btw, I was watching urban living ba yon sa TFC last week and they were interviewing the sales manager for GA tower 2. He was saying that 60% of sales is OFW, 30% Investor and 10% lang resident. Totoo ba yon?

OFI... bago yan a. Mas masarap pakinggan! :cheers:

OFI... bago yan a. Mas masarap pakinggan! :cheers:

So my question to GMA, what have you done for me lately?

hi lazybum! i really had quite a few misgivings be4 i made the reservation for my unit.
^^ but my agent explained to me that there are laws including the maceda law that protects buyers of pre-selling projects.
^^ i still consider buying a pre-selling condo unit a leap of faith for a number of, and others quite obvious, reasons.

^^ i really hope GMA gives a bite to these laws there in place to protect those who she calls the country's OFI. :)

OFW remittances to slow down in 2008
May 31, 2007

By DES FERRIOLS

The Philippine Star

Remittances from overseas Filipino workers are projected to grow by a slower five percent next year due to a drop in the number of overseas deployment this year.

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. told reporters that OFW remittances that pass through banks are expected to grow by only five percent in 2008.

For this year, total remittances are expected to hit $14 billion, a notable 9.3-percent growth from the $12.8-billion inflows recorded in 2006.

Tetangco, however, said the five-percent growth projection is still subject to periodic review and could still change depending on emerging trends of workers’ deployment later in the year.

The BSP said it is taking a conservative projection of total remittances in 2008 based on the expected slowdown in the US economy and the resulting slowdown in some of its major trading partners that are also the country’s top labor destinations.

In an earlier research paper, JP Morgan also indicated a similar slowdown in OFW remittances in 2008 due mainly to the base effect of this year’s record high remittance level.

In the first quarter of the year alone, remittances from Filipinos working abroad surged by a double-digit rate of 24 percent to hit $3.5 billion from $2.8 billion a year ago.

In March, Tetangco said OFW inflows surged by 26.4 percent, resulting mainly from competing remittance schemes offered by financial institutions, and enhanced links established with foreign counterparts.

"Over the years, financial institutions have continuously forged tie-ups with remittance centers overseas, thus, increasing access to financial services and facilitating transfers by overseas-based Filipinos to their beneficiaries," Tetangco said.

Remittances continued to post significant growth even with the decline in the number of deployed OFWs during the first quarter of 2007 compared with last year’s deployment level.

According to Tetangco, first quarter 2007 data from the Philippine Overseas Employment Administration (POEA) show that the total number of deployed workers contracted year-on-year by 10.6 percent to 251,009.

The aggregate numbers of land-based and sea-based workers at 191,937 and 59,072, respectively, were lower by 9.2 percent and 14.8 percent compared to the levels a year ago.

However, Tetangco said the profile of deployed workers has been changing, with the deployment of more professionals and higher-paid workers in the field of medical and healthcare, information technology, education, maritime, hotel and food industries, among others.

Businessmirror
http://www.businessmirror.com.ph/05312007/headlines01.html

Tax-OFWs plan rejected
NEDA SAYS FAMILIES OF MIGRANT WORKERS ALREADY HIT BY STRONG PESO

By Rommer M. Balaba
Reporter

THE government right now has no intention to tax the incomes derived by Filipinos working abroad, as suggested earlier by a group of economists and business experts, according to a senior official from the National Economic and Development Authority (Neda).

“It is not within the planning horizon to tax the earnings overseas Filipino workers. Our so-called heroes of the economy do not deserve another burden,” Dennis M. Arroyo, Neda director for national planning policy, said in an interview.

Taxing OFW incomes may further diminish the money received by their families, Arroyo explained, with the continued strengthening of the local currency versus the dollar.

“Besides they are already being hit by a strong peso,” he added.

A study from De La Salle University raised the idea of taxing OFW remittances and the proceeds used for propping up the productivity vacuum created by the departure of Filipinos for overseas work.

Written by Tereso Tullao, Michael Angelo Cortez and Edward See, the paper said taxing OFW incomes would compensate the country for productivity losses, which is especially true for migrants who attended government-funded state universities and colleges.

Up to 1 million Filipino workers leave each year to join the up to 8.5 million other Filipinos currently in over 180 host countries on either a permanent, temporary or irregular basis. Aggregate remittances sent through formal channels reached $12.6 billion last year and are expected to top a record $13 billion this year. As of March, total remittances are up 24 percent to $3.5 billion.

“OFW money is behind the strong consumption, retail trade and telecommunications, among other productive activities,” Arroyo said.

And in lieu of any policy change on OFW remittances, Arroyo explained the government would rather pursue tax-related administrative reforms and push for the approval of tax bills such as the Simplified Net Income Tax Scheme as well the rationalization of tax incentives.

^^

Reading the above raised my blood pressure enough to prompt a response.

What are these people talking about when they say "productivity losses"? Is that the same concept as opportunity cost? :lol: I can buy that logic if the OFWs stayed at home because there are OPPORTUNITIES for them to be PRODUCTIVE.

The OFWs are already being taxed by the host countries where they work and some brilliant minds :bash: are considering double taxing them at home. :ohno: These folks who came up with this idea of taxation should be sent to work as maids in the Middle East somewhere for a year to see if they have the same conclusion after they are double taxed for all the hard work they put in.

@portludlow - I was just talking to a friend with the same sentiment as you.. she invested at One Rockwell.. and is still paying the property in US$... pero sa kanya nakalagay sa contract na hindi magbabago yung payment or walang adjustment hanggang hindi lumalagpas nang 25% ang change sa exchange rate.. so from 55 to 46.. so far eh 16% pa lang naman..

I'm with same situation as your friend when I bought my investment at Joya. I am paying in US$ =53pHp when I singed my contract and it wont change hanggang hindi lumalagpas nang 25% it was clearly indicated on the contract.

^^ taxation of ofw's incomes will be bad for pinoy real estate businesses. Like i said before and given hyperlinks as proof, it is cheaper and/or easier to get a loan, to buy real estate in america or elsewhere than in our own country. So the gov't speculating about taxing ofw's would be sheer harakiri.

this, plus the recent appreciation of peso vs dollar, as it is, doesn't already sound as enticing to many fil-am's or ofw's planning to invest in pinas as it used to be, considering that, as of this writing, there is a ~17% loss of $'s buying power(compared to 56P vs 1$ two yrs ago).

ofw's who have always relied on the dollar's strength are now feeling the noose tightening, especially if paying monthly installments, or if subject to balloon payments of some sort. But before i get misconstrued, i am NOT hoping the dollar goes up or down and just a neutral observer.

should the peso appreciate any further, a glut of condo units is likely to occur, plus a glut of projects remaining unfinished or delayed, considering that at least 60% of prospective condo buyers are ofw's.
People say the demand will always be there because of increases in population, but regardless, the prices can't possibly be afforded by BOTH locally-based AND foreign-based pinoys wanting to have an affordable/decent domicile in home country.

the pinoy developers' tightwad approach, plus the appreciation of the peso, now seems to be joining forces to cause the slowdown of delivery of condo units even further..

lately i have noticed an increase in advertisements in pinoy tabloids here in america-- huge centerfold advertisements of philtown and rockwell.. too late the hero, eh, brutus?

like i have always said, and many people misunderstand me writing about it, but there REALLY is a problem and hopefully this crap i persist to bring up somehow reaches pinoy developers/lenders/senators/congressmen and hopefully address the painful fact:

that the ordinary mang pandoy or juan dela cruz stands a better chance of affording a decent home in america than in his home country. :ohno:

^^ hopefully european and asian based OFW will pick up the slack when fil- ams investors cuts down in buying properties. There are 10 thousand condo units planned in the next 5 years and that is a lot of inventory no matter how you look at it. Im hoping they dont overbuild. One thing that still going for the developers is the units are still "relatively" cheap and they just really barely scratch the surface of the huge diaspora market who can afford to have a home there. We hope it stays and ends well. :)

^^ at the rate these pinoy developers are delaying turnovers, i guess the fears of overbuilding has seemingly occurred altogether
naku, mashadong pessimistic na ako talaga..
but on an optimistic point of view, overbuilding will be good for the general population because these mega-wealthy developers will be forced to be more reasonable with their prices and perhaps come up with more lenient payment terms..
you can't expect these developers to overbuild so much, as they are just too sly and cunning, and would rather play safe by advertising big-time and then holding on to the investors' downpayments until they have pooled enough buyers' downpayments to keep as virtual ransom..

^^ he he he.... I think you have reasons to be pessimistic because of a lot of things that turned out to be a disappointment in our country. But hey, we will never stop being optimistic until we get it right. :) If there is another property meltdown, it will take another decade to recover. :ohno:

are condominiums owned or are they just leased?

According to Colliers latest real-estate forecast update, we are currently half-way already on the boom cycle.

http://www.colliers.com/Markets/Philippines/News/Real%20Growth%20On%20Real%20Investments

Given that majority of current condo investor are OFW, any abrupt changes in foreign currency might affect their dollar remittance back to Phils. They might consider to priority first the daily subsistence for their family than paying their condo monthly amortization. We all know here in Phils. that most local businessman follow whatever business trend is click (remember litson-manok business craze before), thus possibility of overstock condo unit might coming very soon.

^^ hopefully european and asian based OFW will pick up the slack when fil- ams investors cuts down in buying properties. There are 10 thousand condo units planned in the next 5 years and that is a lot of inventory no matter how you look at it. Im hoping they dont overbuild. One thing that still going for the developers is the units are still "relatively" cheap and they just really barely scratch the surface of the huge diaspora market who can afford to have a home there. We hope it stays and ends well. :)
^^ Just my two cents...Ewan ko lang ha but I think Expats, FilAms, OFWs, and others based outside Pinas that are in the market in general will either have the money or atleast the expected cashflow to make the necessary payments when they embark on buying a unit/property in Pinas (or anywhere for that matter) especially if it's considered as a second/vacation home. Though future/prospective buyers/investors will have to factor in the exchange rate into their respective financial equations (because of the strengthening peso) when deciding to buy or not buy a unit, I think the key consideration here is affordability and the market does offer different types of projects to fill the different market niches that cater to the different levels of buyers/investors. Even if the exchange rate becomes less favorable due to a strengthening peso, I do think our kababayans will continue to buy as long as payment terms/schemes are affordable enough though I don't know what that threshold level will be.

On the other end, developers do make adjustments on their buildouts to reflect market conditions; of course there will be a lag but developers are especially more cautious and careful before proceeding with projects catering/targeting the FilAms and those based outside the country because there are indeed more factors (exchange rate being just one of many) that will determine the probability of success or failure of the said project. Hindi naman bara-bara yan - may mga feasibility studies yan because in the end of the day the developers want profits, not defaults. Reputable developers will not proceed with a questionable project just to leave their investors/buyers hanging afterall they have their reputations to uphold since they are here for the long run/term. That's why it's important to choose your developer wisely/carefully when buying during pre-selling. Kung sigurista ka naman and have the money, then just look into buying in the secondary market or completed projects so you actually see what you get, mas mahal nga lang.

Market fluctuations are a given since that's really part of investing naman so as long as you don't over-extend your budget, you should be able to ride the ups and downs of the market no matter where you end up buying/investing. Time will correct everything naman kanya ang importante eh you actually get your hands on the unit at hindi itakbo ng developer yung pera na binayad ng investors during pre-selling. Market is dynamic and fluctuations will help temper the red hot realestate market as needed which will be a good thing actually since in the above scenario not all of those projected condo projects that will comprise those est. 10,000 units may actually get built; thus slowing down and effectively shrinking the higher than expected number of unit inventory available as well as unit vacancy in the market as pessimistically forecasted/predicted in this worse case scenario.

I just don't think there will actually be an extreme/severe over-building situation/scenario that will happen and the way I see things unfolding here is the high-end condo market which targets most overseas earning buyers/investors will get hit first and that's where you will first see the first signs of a building slow down as unit availability in that market segment increases as investors stop buying and then slowly trickling down to the local and pang-masa type condo market as more and more affordable condo units become available in the secondary and foreclosure market.

I don't share the pessimistic view others have on the future of the Philippines and honestly believe there is actually an underlying economic basis for the realestate boom in RP which is why I'm optimistic that it's highly unlikely that such extreme market collapse scenario will be happening anytime in the near term. If anything, I'm actually more inclined to keep my eyes glued on the Philippine political front - what will happen during GMA's last 3 year's of power - and how our economy (and realestate market) turns out after these elections more so than currency exchange rates between the peso/dollar because of reasons already mentioned. Furthermore the way I see it if the US is really slowing down, wouldn't money be moving out of the US and into the Euro and Asian market where the returns will be higher? I think so. In conjunction, there will also be more foreign direct investments that will be redirected and redistributed among the booming foreign markets which inturn can help the Philippine economic/realestate boom to continue, provided the Philippines play their cards right. I still think unit prices in Pinas is still affordable enough even with the strengthening peso and since I'm optimistic sa future ng Pinas, ang masasabi ko lang don't worry, be happy (with your investment in Pinas)! My opinion only of course... :) :) :)

^^ @3CR, ang haba ng sinulat mo :) Sana naman tuloy -tuloy na ang pag-angat ng property market sa Pinas. Kung hindi patay ang nai-pundar mo. :lol: But seriously, I think the market still has more room to grow, there is just too much liquidity out there. Developers are still busy trying to get more people to buy.




Major property firms in US roadshow
By Michael Caber
http://www.manilastandardtoday.com/?page=business4_june7_2007
The Philippines has launched a property roadshow in United States, kicking off in Washington D.C., to provide a strategic venue for the Filipino-American community and enhance ties with the Philippines through investment in real estate projects.

Philippine Ambassador to the United States Willy Gaa reported to the Department of Foreign Affairs that the 2nd ‘Bayan Ko, Bahay Ko’ (BKBK) Property Development RoadShow in the United States began in Washington on June 2 and 3 to open the month-long celebration of the 109th anniversary of the Philippine independence.

“Bayan Ko Bahay Ko’ provides a strategic venue for the Filipino-American community to enhance or re-establish their ties with the Philippines through investment in real estate. Promoting the property development sector will have a multiplier effect on the Philippine economy, primarily on the remittance campaign,” Gaa said.

The successful launching of a similar roadshow in May last year encouraged the Philippine Embassy and the consular posts in the US to pursue the initiative as an annual priority project.

Top Philippine property developers will visit four more cities, namely New York (June 5 to 6), Los Angeles (June 9 to 10), Chicago (June13 to 14), and San Francisco (June 16 to 17).

Property developers have been invited to join the roadshow based on track record, quality of products and services, established system of providing the buyers proof of payments or remittances, size of the company/ or net worth, presence of accredited local agents and level of commitment.

The construction boom in the Philippines is partly credited to the expected 20 to 30 percent annual growth of the country’s business process outsourcing sector, which includes call centers, outsourced accounting and transcription firms.

Promoting the Philippines as a viable retirement haven is also driving the demand for concept domiciles, from luxury residences and managed farms to condotels and resort homes.

Gaa said property developers participating in roadshow are Filinvest Land, Globe Asiatique, G&W Architects, LandCo Pacific, Megaworld Corp., Shang Grand Tower and SM Investments Corp.

The San Francisco leg of the roadshow, in partnership with the Fiesta Filipina 2007 organizers, has additional participating property developers: Ayala Land, Brittany Corp., Century Properties, Jardine Properties, Philtown Properties and The Lakeshore Corp.

American banks such as SunTrust, Wachovia and Citibank have confirmed participation in the DC leg, offering the Filipino-American community a wide-range of their innovative banking products and services.

^^ @3CR, ang haba ng sinulat mo :) Sana naman tuloy -tuloy na ang pag-angat ng property market sa Pinas. Kung hindi patay ang nai-pundar mo. :lol: But seriously, I think the market still has more room to grow, there is just too much liquidity out there. Developers are still busy trying to get more people to buy. ^^ I think so too. No doubt nandiyan yung pera, it's just a matter of choosing where to put that money.
Basta huwag lang magka Asian Crisis part deux...though tingin ko hindi naman mukhang mangyayari pa for now.

^^ Just my two cents...Ewan ko lang ha but I think Expats, FilAms, OFWs, and others based outside Pinas that are in the market in general will either have the money or atleast the expected cashflow to make the necessary payments when they embark on buying a unit/property in Pinas (or anywhere for that matter) especially if it's considered as a second/vacation home. Though future/prospective buyers/investors will have to factor in the exchange rate into their respective financial equations (because of the strengthening peso) when deciding to buy or not buy a unit, I think the key consideration here is affordability and the market does offer different types of projects to fill the different market niches that cater to the different levels of buyers/investors. Even if the exchange rate becomes less favorable due to a strengthening peso, I do think our kababayans will continue to buy as long as payment terms/schemes are affordable enough though I don't know what that threshold level will be.

On the other end, developers do make adjustments on their buildouts to reflect market conditions; of course there will be a lag but developers are especially more cautious and careful before proceeding with projects catering/targeting the FilAms and those based outside the country because there are indeed more factors (exchange rate being just one of many) that will determine the probability of success or failure of the said project. Hindi naman bara-bara yan - may mga feasibility studies yan because in the end of the day the developers want profits, not defaults. Reputable developers will not proceed with a questionable project just to leave their investors/buyers hanging afterall they have their reputations to uphold since they are here for the long run/term. That's why it's important to choose your developer wisely/carefully when buying during pre-selling. Kung sigurista ka naman and have the money, then just look into buying in the secondary market or completed projects so you actually see what you get, mas mahal nga lang.

Market fluctuations are a given since that's really part of investing naman so as long as you don't over-extend your budget, you should be able to ride the ups and downs of the market no matter where you end up buying/investing. Time will correct everything naman kanya ang importante eh you actually get your hands on the unit at hindi itakbo ng developer yung pera na binayad ng investors during pre-selling. Market is dynamic and fluctuations will help temper the red hot realestate market as needed which will be a good thing actually since in the above scenario not all of those projected condo projects that will comprise those est. 10,000 units may actually get built; thus slowing down and effectively shrinking the higher than expected number of unit inventory available as well as unit vacancy in the market as pessimistically forecasted/predicted in this worse case scenario.

I just don't think there will actually be an extreme/severe over-building situation/scenario that will happen and the way I see things unfolding here is the high-end condo market which targets most overseas earning buyers/investors will get hit first and that's where you will first see the first signs of a building slow down as unit availability in that market segment increases as investors stop buying and then slowly trickling down to the local and pang-masa type condo market as more and more affordable condo units become available in the secondary and foreclosure market.

I don't share the pessimistic view others have on the future of the Philippines and honestly believe there is actually an underlying economic basis for the realestate boom in RP which is why I'm optimistic that it's highly unlikely that such extreme market collapse scenario will be happening anytime in the near term. If anything, I'm actually more inclined to keep my eyes glued on the Philippine political front - what will happen during GMA's last 3 year's of power - and how our economy (and realestate market) turns out after these elections more so than currency exchange rates between the peso/dollar because of reasons already mentioned. Furthermore the way I see it if the US is really slowing down, wouldn't money be moving out of the US and into the Euro and Asian market where the returns will be higher? I think so. In conjunction, there will also be more foreign direct investments that will be redirected and redistributed among the booming foreign markets which inturn can help the Philippine economic/realestate boom to continue, provided the Philippines play their cards right. I still think unit prices in Pinas is still affordable enough even with the strengthening peso and since I'm optimistic sa future ng Pinas, ang masasabi ko lang don't worry, be happy (with your investment in Pinas)! My opinion only of course... :) :) :)

the issue about expats (i guess that would be you and me) benefiting from or losing from currency fluctuations might be a topic worth discussing, but this is hardly the main issue.

the main issue is that millions upon millions of pinoys-- you know--the ordinary teachers, nurses, lawyers, and call center employees trying to make a living in the philippines can't possibly afford decent homes in our home country.

mortgage interest there can go as high as 20% or more, tapos magkano lang naman ang suweldo ng teacher/nurse? I can guarantee that even if peso appreciates to 20P to 1$, these real estate developers won't care about lowering their prices. So even with a strong peso vs dollar, a 4 million P piece of real estate will probably remain 4 million worth(plus the freakin' VAT)and thus still beyond the reach of a call center employee(all this, plus the glaring fact that a condo in denver or houston can cost only half that amount and not subject to VAT) .

that expats like you and me should lose money investing in the philippines is almost irrelevant, because we can wrest those losses back relatively easily just by working harder and saving, whereas most of our pinas-based brothers/sisters can't even afford to rent the condo units we've invested on..

this may sound pessimistic, but i'd say this is more about thinking about other people. Millions of them.

these developers, lenders, and our gov't should do something about this disparity. Now its even worse, because the OFW's who have been relying on a strong dollar, are now slowly finding themselves almost in the same situation as their pinas-based fellowmen.. Also, think about the zillions of pinay nannies working in dubai/beirut, etc, most of them get paid in dollars..

i guess they are better off buying a condo in denver..

^^ Point well made Raf. That's indeed another problem in itself. It will really be a hardship for most locals to buy into the more expensive CBD areas/locations so even if lucky, they are still relegated to fewer choices and locations much farther and away from their place of work/employment. Buti na lang kahit papano public transport (MRT/LRT, etc.) is improving though much is still left to be desired. No easy solutions here but hopefully that's where the banks and other financial institutions can help - by making it more affordable (affordability is key) through lower interest rates, innovative payment plans/schemes, etc. if developers will be resistant to lower prices like you said.



UCBP ties up with property developer for shelter scheme
By Ruben Hortelano
Daily Tribune
http://www.tribune.net.ph/business/20070608bus8.html

The United Coconut Planters Bank (UCPB) had entered into an agreement with DM Consunji Inc. (DMCI) to provide special financing for homebuyers in the property developer’s mid-range projects to make them more affordable, particularly to young urban professionals, middle-income newly wed couples and the families of overseas Filipino workers.

DMCI is one the bigger property developers in the country with real estate sales of P4.2 billon in 2006 and P3.2 billion as of May 2007.

UCPB vice president for real estate loans, Lee de Claro, said the bank is earmarking P500 million for this special home financing scheme.

The financing agreement will cover the 19 DMCI residential projects, which consist of mid-rise and high-rise residential condominiums in Metro Manila and houses and lots in Cavite, Taguig and Rizal, with price tags ranging from P1.4 million to P4 million.

Under the agreement with DMCI, UCPB will provide the buyers in these developments higher financing amount equivalent to 80 percent of the property’s appraised value with repayment period of up to 15 years.

UCPB will also release the loan proceeds immediately upon the buyers putting up a mere 10-percent downpayment, so the buyers can immediately move in to their property.

The 10-percent balance will be payable to DMCI over a period of 40 months.

The standard financing is only 70 percent of appraised value, which means the buyers have to put up a 30-percent equity before they can avail themselves of the financing.

Actually you must qualify the condo. There are many condo's which are not OFW market oriented. The demand here on the mid to lower level is actually much larger than the OFW market, so you must qualify by level of development.

when i see skyscrapers pics (ok, i might actually mean the high-rises) in japan & hongkong & i marvel at the thought that a number of the people are actually living in these, i can't help thinking that maybe this is the housing trend in our age-- going vertical due to lack of available land in the central areas where people have to work, live, study etc. if so, the companies are actually building what the people/market needs.

>>so i agree with 3cr that there is a need for these units to be affordable to the people. i think the developers are slowly being aware of this, thus the no DP, extended DP schemes. (not very sure though about yearly balloon payments that might, well, jolt the common pinoy, well, yearly as well.) hope the developers really come up with affordable schemes with which everybody will be happy, i.e. the buyer can afford them, at the same time the developers recoup their investment in the long run.

>>a first in this direction, if i haven't overlooked other schemes, is sm's grass residences: for their studio unit (according to a seller in bahay.ph), the extended DP is just P14 000/mo for i think 30 mos, the remaining balance can be paid in the long term for P10 000/mo (15 yrs i think).

>>the question is: is this affordable enough for the common masa or do subsequent developers need to innovate more in their payment schemes? :)

14000P/month unfortunately, is still beyond the reach of blue or white collar juan delacruz. How much does a congressman earn, 20,000P? A general in philippine army is only supposed to earn 25K a month right?

theoretiically, even a congressman could barely afford it, if he were to rely on his legit income alone.

how can, say, a cashier in sm/ayala, jeepney driver or taxi driver, afford to have his own home, even a 'barebones' one? It will cost him/her at least a million pesos am sure..

Condo/Realestate outlook still looking strong and promising...

Macquarie Research lifts target prices for RP property firms (http://www.abs-cbnnews.com/storypage.aspx?StoryId=79566)

Macquarie Research Equities has lifted its target prices for four Philippine property firms on positive outlook on the local real estate sector which is recovering strongly amid rosy economic prospects, low interest rates, and rising consumer demand.

In its client note, Macquarie said it raised its target prices for Ayala Land Inc., Filinvest Land Inc., Megaworld Corp., and SM Prime Holdings Inc.

Macquarie raised its target price for Ayala Land to P19.30 from P15; SM Prime to P15.80 from P14.25; Megaworld to P4.35 from P3.60; and Filinvest Land to P1.90 from P1.20.

The stock brokerage firm has an "outperform" rating on Ayala Land, SM Prime, and Megaworld. It rated Filinvest Land a "neutral."

"Among the major property segments, we believe the residential sector has the best long-term growth prospects. This is a story of under-penetration, with the Philippines having one of the lowest mortgage-to-GDP ratios," Macquarie said.

"Furthermore, although supply has steadily increased since 2000, it is actually still far from the peak levels of supply we saw in 1997."

Macquarie said the Philippines is also gaining a niche in global outsourcing as a preferred destination for voice-related services.

Condo/Realestate outlook still looking strong and promising...

Macquarie Research lifts target prices for RP property firms (http://www.abs-cbnnews.com/storypage.aspx?StoryId=79566)

Macquarie Research Equities has lifted its target prices for four Philippine property firms on positive outlook on the local real estate sector which is recovering strongly amid rosy economic prospects, low interest rates, and rising consumer demand.

In its client note, Macquarie said it raised its target prices for Ayala Land Inc., Filinvest Land Inc., Megaworld Corp., and SM Prime Holdings Inc.

Macquarie raised its target price for Ayala Land to P19.30 from P15; SM Prime to P15.80 from P14.25; Megaworld to P4.35 from P3.60; and Filinvest Land to P1.90 from P1.20.

The stock brokerage firm has an "outperform" rating on Ayala Land, SM Prime, and Megaworld. It rated Filinvest Land a "neutral."

"Among the major property segments, we believe the residential sector has the best long-term growth prospects. This is a story of under-penetration, with the Philippines having one of the lowest mortgage-to-GDP ratios," Macquarie said.

"Furthermore, although supply has steadily increased since 2000, it is actually still far from the peak levels of supply we saw in 1997."

Macquarie said the Philippines is also gaining a niche in global outsourcing as a preferred destination for voice-related services.



_____________________________________



Property sector boom seen to continue
By EDU LOPEZ
Manila Bulletin
http://www.mb.com.ph/BSNS2007060995588.html


The continued growth of the real estate industry is expected to sustain its momentum this year following a brisk performance of the sector in the first quarter of 2007.

The National Statistical Coordination Board (NSCB) made this forecast based on the leading indicators such as the expansion of existing malls and shopping centers, increased office space demands from the call center industry and business process outsourcing (BPO) sector, and stepped up priming activities of major real estate establishments.

NSCB said the real estate industry continued its outstanding performance with a significant rise of 17.1 percent in gross value-added (GVA) in 2006, the highest annual growth achieved in 39 years.

Last year’s growth, an acceleration from its 15.4 percent performance in 2005, surpassed the high 16.1 percent growth recorded in 2004, said NSCB.

"Level-wise, real estate GVA at constant prices reached P14.3 billion in 2006, higher than P10.6 billion and P12.2 billion recorded in the years 2004 and 2005.

NSCB attributed the robust annual performance in real estate industry to the increased renting and leasing operations as a result of the opening of upscale giant super malls and commercial and shopping centers.

"The growth was further buoyed by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fuelled by the significant contributions of the remittances of Overseas Filipino Workers (OFWs) and Filipino immigrants," said NSCB.

The growth of Business Process Outsourcing (BPO) sector continued to boost sales and occupancy of office spaces, especially in the leading commercial business districts in the country.

NSCB noted that in the 1980s, the performance of the real estate industry was affected by the economic and political developments in the country.

While the industry grew by 13.6 percent and 13.9 percent in 1980 and 1982, respectively, the sector plummeted by 25.3 percent in 1984, its worst performance in almost 40 years.

"It was during this time that the economy declined by 7.3 percent due to a number of reasons, to include, decline in world demand for Philippine exports and shattered investment confidence in the country brought about by political events, among others."

From 1991, the industry gradually increased, attaining a 10.7 percent growth in 1996 before slowing down in the next five years to a low of negative 10.7 percent in 2001, the second lowest annual growth rate since 1967.

The slowdown was largely attributed to the 1997 Asian financial crisis, which was felt not only by real estate players and consumers but also by the entire economy.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=80093

RP real estate sector growth at all-time high


Massive remittances by Filipino overseas workers and the business process outsourcing industry has pushed real estate growth in the Philippines to a 40-year high, the government said Friday.

Last year's growth "was driven by increased renting and leasing operations as a result of the opening of upscale super malls and commercial and shopping centers," it said.

"The growth was further buoyed by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fueled by the significant contributions of the remittances of Overseas Filipino Workers and Filipino immigrants.

The real estate sector's gross value added rose 17.1 percent to 14.3 billion pesos (309 million dollars) last year, surpassing the 16.1 percent growth in 2004, the National Statistical and Coordination Board said in a statement.

Gross value added refers to services produced through buying, selling, leasing or renting property.

Central bank data show remittances rose 24 percent to 3.5 billion dollars in the three months to March, after rising 19.4 percent to a record 12.8 billion dollars in all of 2006.

The statistics office said the growth of the business process outsourcing sector "continued to boost sales and occupancy of office spaces, especially in the leading commercial business districts."

The real estate industry plummeted amid political turmoil in the 1980s, when a popular upheaval ended the dictatorship of Ferdinand Marcos.

It began recovering in 1991 and reached 10.7 percent growth in 1996 before the Asian financial crisis caused the sector to contract by 10.7 percent in 2001.

14000P/month unfortunately, is still beyond the reach of blue or white collar juan delacruz. How much does a congressman earn, 20,000P? A general in philippine army is only supposed to earn 25K a month right?

theoretiically, even a congressman could barely afford it, if he were to rely on his legit income alone.

how can, say, a cashier in sm/ayala, jeepney driver or taxi driver, afford to have his own home, even a 'barebones' one? It will cost him/her at least a million pesos am sure..
I agree that a cashier or jeepney/taxi driver cannot afford a home or a condo.......but there has to be a large segment of wage earners between the blue collar worker and the OFW/expats that may be able to afford a barebones unit if they so desire. Perhaps a vice president of a local company or a married couple who are doctors....etc. Another possibility is the Filipino way of helping and pooling resources together as I've seen and done in the US where the parents and maybe a couple of adult offsprings pool their resources together to buy a house and then help each other buy their own separate houses later on using the equity from the first house.
I do agree with you that there should be more creative financing schemes offered tailored to the local needs whether from the banks or with government involvement. This home buying phenomenon might still be in it's infancy and the banks are slow to adapt to new financing schemes.....banks have always been conservative in their business practices so we can only wait for them to feel comfortable and secure in making more flexible loans.

When I was working for Fannie Mae's commercial real estate division many years ago, one approach used to provide housing to people in the low-income category is for the city to place as a condition of approval, a set-aside of low-income housing for a particular development.

In other words, if Mr. Developer wants his project approved in the city of Marikina, the city will require him to develop 20% of his project as affordable housing for low-income families. This way, everybody benefits. the city gets to serve its low-income citizens, the citizen is able to buy a property at an affordable price and the developer gets his project approved.

^ Don't they have that scheme yet in the Philippines? They should.

When I was working for Fannie Mae's commercial real estate division many years ago, one approach used to provide housing to people in the low-income category is for the city to place as a condition of approval, a set-aside of low-income housing for a particular development.

In other words, if Mr. Developer wants his project approved in the city of Marikina, the city will require him to develop 20% of his project as affordable housing for low-income families. This way, everybody benefits. the city gets to serve its low-income citizens, the citizen is able to buy a property at an affordable price and the developer gets his project approved.

^^ Frisco and other BayArea cities have that type/kind of scheme as well but they are finding out that even the so-called low-income units reserved for low-income wage earners are still coming up way too expensive for true low-income wage earners to really afford. With a price median of over $600,000 for a single family home, eh pang low income na daw ang $250,000 and up for a 1 bedroom condo unit eh papaano pa kaya if it's for a family with kids and will need something bigger (more rooms)? Grabe talaga ang presyo and monthly amortization which is why people end up renting, choosing to relocate to the suburbs, or even opting to move out of state/country. In a way I think the same kind of problem (affordability problem) can be said for most premier CBD projects in Metro Manila - I suspect masyadong mahal pa rin lalabas for regular folks to afford one so the lending institutions really have to come in and help make it more affordable and feasible to more people via lower interest rates, less stringent lending rules, innovative payment plans/schemes, and other programs they can come up with. Otherwise regular folks will be relegated to fewer choices and will continue to have to live farther away from the CBDs to be able to afford a home of their own. Kanya nga rin sa Pinas developers build projects catering to A,B,C classes etc. to serve the different market sectors and that in itself is not necessarily bad but definitely there is still much improvements that need to be made especially in our lending system. Just my opinion of course...

^^ It's the same thing that is happening here in New York. And here that scheme is for rental units not even ownership of property. It still comes out way too high for average income earners.

Property sector boom seen to continue
By EDU LOPEZ
Manila Bulletin
http://www.mb.com.ph/BSNS2007060995588.html


The continued growth of the real estate industry is expected to sustain its momentum this year following a brisk performance of the sector in the first quarter of 2007.

The National Statistical Coordination Board (NSCB) made this forecast based on the leading indicators such as the expansion of existing malls and shopping centers, increased office space demands from the call center industry and business process outsourcing (BPO) sector, and stepped up priming activities of major real estate establishments.

NSCB said the real estate industry continued its outstanding performance with a significant rise of 17.1 percent in gross value-added (GVA) in 2006, the highest annual growth achieved in 39 years.

Last year’s growth, an acceleration from its 15.4 percent performance in 2005, surpassed the high 16.1 percent growth recorded in 2004, said NSCB.

"Level-wise, real estate GVA at constant prices reached P14.3 billion in 2006, higher than P10.6 billion and P12.2 billion recorded in the years 2004 and 2005.

NSCB attributed the robust annual performance in real estate industry to the increased renting and leasing operations as a result of the opening of upscale giant super malls and commercial and shopping centers.

"The growth was further buoyed by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fuelled by the significant contributions of the remittances of Overseas Filipino Workers (OFWs) and Filipino immigrants," said NSCB.

The growth of Business Process Outsourcing (BPO) sector continued to boost sales and occupancy of office spaces, especially in the leading commercial business districts in the country.

NSCB noted that in the 1980s, the performance of the real estate industry was affected by the economic and political developments in the country.

While the industry grew by 13.6 percent and 13.9 percent in 1980 and 1982, respectively, the sector plummeted by 25.3 percent in 1984, its worst performance in almost 40 years.

"It was during this time that the economy declined by 7.3 percent due to a number of reasons, to include, decline in world demand for Philippine exports and shattered investment confidence in the country brought about by political events, among others."

From 1991, the industry gradually increased, attaining a 10.7 percent growth in 1996 before slowing down in the next five years to a low of negative 10.7 percent in 2001, the second lowest annual growth rate since 1967.

The slowdown was largely attributed to the 1997 Asian financial crisis, which was felt not only by real estate players and consumers but also by the entire economy.

If they could just extend the 0% payment here, then it would encourage ordinary people to own properties.

Say, if a 3M condo, with a downpayment of 900T could be extended for 48 to 60 months zero interest.. that will be just 15T, then the balance of 70% could go on a bank loan at 8% to 9% p.a.

If they could just extend the 0% payment here, then it would encourage ordinary people to own properties.

Say, if a 3M condo, with a downpayment of 900T could be extended for 48 to 60 months zero interest.. that will be just 15T, then the balance of 70% could go on a bank loan at 8% to 9% p.a.

0% payment? that would definitely encourage everybody he he...:jk: :cheers:

When I was working for Fannie Mae's commercial real estate division many years ago, one approach used to provide housing to people in the low-income category is for the city to place as a condition of approval, a set-aside of low-income housing for a particular development.

In other words, if Mr. Developer wants his project approved in the city of Marikina, the city will require him to develop 20% of his project as affordable housing for low-income families. This way, everybody benefits. the city gets to serve its low-income citizens, the citizen is able to buy a property at an affordable price and the developer gets his project approved.

This is already in place here in the PHilippines.

Any average minimum wage earner in the Philippines can purchase "socialized" house. The 300K> housing debt for Pagibig is only amortized at 1800++ per month on a 30 year mortgage. That's less than the the typical 1/3rd of take home pay for most housing standards buyers behaviour worldwide.

What kills the proposition for most of these is that these communities will typically be over 2 hours away and nearly a 100 pesos in transport a day. This is the problem.

What's needed is to free up land within the city so it's easier to build up and use existing mass transport infrastructure.

"What kills the proposition for most of these is that these communities will typically be over 2 hours away and nearly a 100 pesos in transport a day. This is the problem.

What's needed is to free up land within the city so it's easier to build up and use existing mass transport infrastructure." --bustero

eureka!! bull's eye, my friend!! if the government can't provide mass housing in the city center, then build LRT to, say Binangonan, where most 'Pag-ibig' homes are!! As it is, laborers and wage-earners hav to endure much to come to work everyday. Or is there already a plan to extend the LRT/MRT to these places (Binangonan/Angono/Antipolo)?

This is already in place here in the PHilippines.

Any average minimum wage earner in the Philippines can purchase "socialized" house. The 300K> housing debt for Pagibig is only amortized at 1800++ per month on a 30 year mortgage. That's less than the the typical 1/3rd of take home pay for most housing standards buyers behaviour worldwide.

What kills the proposition for most of these is that these communities will typically be over 2 hours away and nearly a 100 pesos in transport a day. This is the problem.

What's needed is to free up land within the city so it's easier to build up and use existing mass transport infrastructure.

The concept might be true in spirit, but it is not the same. If the low-income housing is two hours away, then it's not within city limits. For example, we've approved housing in places like Marina Del Rey, an affluent city in the Los Angeles area and the required low-income housing is in the same project being developed in Marina Del Rey.

The government needs to step in and require these developers who are making a lot of money from the current real estate boom, to give back some of that good fortune to the community.

For example, a city like Manila can go into partnership with Manila's Wall Street and developer to create low-income housing. The city can issue tax-free municipal bonds (debt). Manila's guaranty of the bonds will create higher confidence with investors. Investment bankers sells the Bonds in the market and the money is used to finance the construction of low-income housing by the developer. Revenue generated from the sale of the units is used to pay-off the bonds.

The bond scheme can also be used to finance apartment buildings. One thing to keep in mind, although everybody needs a place to live, not everyone can afford to buy a home.

^^ Where I live, 10- 20% of condo units developed in a particular area are devoted to low-income buyers. Those units are mostly studios and located on the lower floors. There is also a 20% cap on investors to prevent speculators from buying most of the units and the condos available for the flippers are usually sold the day they are offered.

It will take a lot of political will to implement that in the Philippines. I doubt if Ayala, Robinsons, Megaworld and other developers will reserve particular units to low income people.

www.Investph.com
http://palawan-paradise.50webs.com
____________________________________________________
Invest in realstate, invest now in the philippines! Angat Pinoy!

Very inspiring write up on Delfin Lee. Hats off to you sir. :okay:

From sweeping floors to building towers
Smell opportunity to make money
By Tina Arceo-Dumlao
Inquirer
http://business.inquirer.net/money/topstories/view_article.php?article_id=70516


MANILA, Philippines—Real estate developer Delfin Lee says one thing he learned from sweeping floors and carrying goods at the family lumberyard as a child was to smell an opportunity to make money.

Lee tells SundayBiz in an interview that because he was always at the shop floor—during weekends and school breaks—he would end up discussing business ideas with the other workers and owners of neighboring shops on España in Manila.

He developed his business sense as he grew older, and soon, he was deep into a trading business that covered all sorts of products, such as steel and, of course, lumber.

“I would import everything that was in demand,” Lee says. “Whenever anybody needed something, I would look for the supply.”

He expanded later to manufacturing, producing fabricated steel and it was from his people at the trading and manufacturing businesses that he got the idea in 1992 to go into real estate.

“At the start, I just wanted to build nice homes for the employees. Everything grew from there,” the 51-year-old Lee says. And that's how the Santa Barbara Villas I project in San Mateo, Rizal was set up in 1994.

The buyers then were able to get a two-room unit for just P150,000, partly through a loan from Pag-Ibig. The first 300 units were bought by employees and some friends, but the project later expanded to cover 2,500 duplex, single-detached and row-house units.

He initially thought that going into socialized housing through his new firm Globe Asiatique Realty Holding Corp. would be as easy as setting up a trading and manufacturing business. He could not be more wrong.

The financial, marketing and operational problems sometimes became too much that there were times when Lee just wanted to wash his hands off the project and give up.

Lee says that deciding to stick it out in the real estate industry despite the problems was one of the hardest decisions that he had to make.

“It was such a losing proposition because I was hit by the Asian crisis and it took me over three years to get paid for the homes by Pag-Ibig. In the meantime I was losing money. If it were not for my people, I would not have stuck to it,” Lee says.

It was fortunate that he did because the market turned and it became easier to get payments from government housing agencies.

Lee was thus encouraged to give housing another try in 2000 and the result was the Santa Barbara Villas II primarily marketed to the police force, soldiers and teachers.

Globe Asiatique’s big break, however, came in 2003 when he came up with the idea of putting up a condominium project right in Metro Manila that will be covered by the maximum P2-million loan allowed by the Pag-Ibig Fund.

The result was the GA Tower on Edsa right beside the Boni Avenue. MRT station, the first to be developed jointly by the private sector and Pag-Ibig.

“People thought I was crazy for going into it. But I told them, maybe I see a market you don’t,” Lee says.

He did, indeed, because all 648 units of the first tower were sold out in just three months. The clamor for more units led to the GA Tower II, and the units were immediately sold out too.

Homeowners have moved into the first tower in 2005 and the next tower will be ready by June next year.

Lee attributes the fast take-up to the investments of overseas Filipino workers—who account for about half of its sales—and more importantly, to the demand by the working class looking for affordable housing near the places where they work.

He says that being the first company to cater to the housing needs of this market has positioned Globe Asiatique well to take advantage of the undeniable rebound in the real estate market.

Globe Asiatique is now knee deep in many other projects, with more coming up, that Lee says he has permanently left his trading and manufacturing days behind.

These include The Enclave at Angeles City, Pampanga and the higher end GA Sky Suites at the corner of Quezon Boulevard and Edsa, near the Quezon Boulevard MRT station.

“I am now full time into real estate development because I also thought that this is the kind of business I can leave to my children, unlike trading which calls for personal relationships,” he says.

And what he wants his children to know is that it pays to keep their ear to the ground and to listen to what the market wants from their housing projects.

“I did not have any single study made on my projects before we put them up. I relied more on gut feel and always listening to the customer. It is not about what I want, but what they want,” he says.

It was from talking to potential customers, for instance, that he got the idea of putting up an affordable condominium.

It was also the customers who told him to go for a two-story unit because they want to rent out the other two bedrooms to save on the amortization cost.

“I believe that Filipinos do have money. If they see product, they will go for it and there will always be a demand for housing,” he says.

Globe Asiatique will continue to look for opportunities in the condominium market for the middle-income market but he says he still sees great potential for growth in the socialized or affordable housing market, the ones that cost about P750,000.

It is also in this arena where he believes he will derive the greatest fulfillment.

As his experience with the Santa Barbara showed him, a house is not just a house to the masses. Because they have their own home, and a greater sense of security, they feel better about themselves and their community.

“This is also the whole idea why I went into this business. I wanted to help elevate their lifestyle,” he says, “I want to see ordinary Filipinos live with their families in a nice house they can call their own.”

mail nyo po ako satixus@yahoo.com about palawan properties we sell TY!

i agree! definitely!! nakakabilib!!:)

>>sa'n na nga ba thread ng GA Sky suites? he he...

definitely deserves a second look... :)

Very inspiring write up on Delfin Lee. Hats off to you sir. :okay:

From sweeping floors to building towers
Smell opportunity to make money
By Tina Arceo-Dumlao
Inquirer
http://business.inquirer.net/money/topstories/view_article.php?article_id=70516


MANILA, Philippines—Real estate developer Delfin Lee says one thing he learned from sweeping floors and carrying goods at the family lumberyard as a child was to smell an opportunity to make money.

Lee tells SundayBiz in an interview that because he was always at the shop floor—during weekends and school breaks—he would end up discussing business ideas with the other workers and owners of neighboring shops on España in Manila.

He developed his business sense as he grew older, and soon, he was deep into a trading business that covered all sorts of products, such as steel and, of course, lumber.

“I would import everything that was in demand,” Lee says. “Whenever anybody needed something, I would look for the supply.”

He expanded later to manufacturing, producing fabricated steel and it was from his people at the trading and manufacturing businesses that he got the idea in 1992 to go into real estate.

“At the start, I just wanted to build nice homes for the employees. Everything grew from there,” the 51-year-old Lee says. And that's how the Santa Barbara Villas I project in San Mateo, Rizal was set up in 1994.

The buyers then were able to get a two-room unit for just P150,000, partly through a loan from Pag-Ibig. The first 300 units were bought by employees and some friends, but the project later expanded to cover 2,500 duplex, single-detached and row-house units.

He initially thought that going into socialized housing through his new firm Globe Asiatique Realty Holding Corp. would be as easy as setting up a trading and manufacturing business. He could not be more wrong.

The financial, marketing and operational problems sometimes became too much that there were times when Lee just wanted to wash his hands off the project and give up.

Lee says that deciding to stick it out in the real estate industry despite the problems was one of the hardest decisions that he had to make.

“It was such a losing proposition because I was hit by the Asian crisis and it took me over three years to get paid for the homes by Pag-Ibig. In the meantime I was losing money. If it were not for my people, I would not have stuck to it,” Lee says.

It was fortunate that he did because the market turned and it became easier to get payments from government housing agencies.

Lee was thus encouraged to give housing another try in 2000 and the result was the Santa Barbara Villas II primarily marketed to the police force, soldiers and teachers.

Globe Asiatique’s big break, however, came in 2003 when he came up with the idea of putting up a condominium project right in Metro Manila that will be covered by the maximum P2-million loan allowed by the Pag-Ibig Fund.

The result was the GA Tower on Edsa right beside the Boni Avenue. MRT station, the first to be developed jointly by the private sector and Pag-Ibig.

“People thought I was crazy for going into it. But I told them, maybe I see a market you don’t,” Lee says.

He did, indeed, because all 648 units of the first tower were sold out in just three months. The clamor for more units led to the GA Tower II, and the units were immediately sold out too.

Homeowners have moved into the first tower in 2005 and the next tower will be ready by June next year.

Lee attributes the fast take-up to the investments of overseas Filipino workers—who account for about half of its sales—and more importantly, to the demand by the working class looking for affordable housing near the places where they work.

He says that being the first company to cater to the housing needs of this market has positioned Globe Asiatique well to take advantage of the undeniable rebound in the real estate market.

Globe Asiatique is now knee deep in many other projects, with more coming up, that Lee says he has permanently left his trading and manufacturing days behind.

These include The Enclave at Angeles City, Pampanga and the higher end GA Sky Suites at the corner of Quezon Boulevard and Edsa, near the Quezon Boulevard MRT station.

“I am now full time into real estate development because I also thought that this is the kind of business I can leave to my children, unlike trading which calls for personal relationships,” he says.

And what he wants his children to know is that it pays to keep their ear to the ground and to listen to what the market wants from their housing projects.

“I did not have any single study made on my projects before we put them up. I relied more on gut feel and always listening to the customer. It is not about what I want, but what they want,” he says.

It was from talking to potential customers, for instance, that he got the idea of putting up an affordable condominium.

It was also the customers who told him to go for a two-story unit because they want to rent out the other two bedrooms to save on the amortization cost.

“I believe that Filipinos do have money. If they see product, they will go for it and there will always be a demand for housing,” he says.

Globe Asiatique will continue to look for opportunities in the condominium market for the middle-income market but he says he still sees great potential for growth in the socialized or affordable housing market, the ones that cost about P750,000.

It is also in this arena where he believes he will derive the greatest fulfillment.

As his experience with the Santa Barbara showed him, a house is not just a house to the masses. Because they have their own home, and a greater sense of security, they feel better about themselves and their community.

“This is also the whole idea why I went into this business. I wanted to help elevate their lifestyle,” he says, “I want to see ordinary Filipinos live with their families in a nice house they can call their own.”

very inspiring indeed! I hope others would follow suit. i hope more of your kind will multiply Sir!

http://www.abs-cbnnews.com/storypage.aspx?StoryId=80382

World Bank urges RP not to impose new tax measures

By DES FERRIOLS
The Philippine Star

The World Bank told the Arroyo administration that new tax measures would not be necessary if there was a more credible threat of enforcement against tax evaders.

Although the government itself is hesitant to propose any new tax measures when the 14th Congress reopens in July, the WB said all energies should be focused on tightening tax administration to avoid having to impose new tax measures.

WB country manager Joachim von Amsberg said the country’s tax administration process still had a large potential to generate the revenues needed to increase spending and balance the budget.

"If there was no further progress in tax administration then it seems necessary to go for additional tax measures in order to attain the fiscal progress," Von Amsberg admitted.

"But my suggestion would be to focus all the energies on raising the tax administration and improving the tax administration so that it is not necessary in the short term," he added.

The Arroyo administration generated a P12-billion surplus in April but this still lead to a P40-billion deficit for the first four months of the year as revenues fell short of target amid modest increase in spending.

The fiscal performance in January to April indicated that the government needs to generate surpluses in the next two months to be able to meet the end-June deficit target of P31 billion.

In April, revenues amounted to P101.2 billion, 6.2 percent higher than last year’s collection but only about one-third of the P302.2-billion revenue target for the whole quarter.

On the whole, government revenues are projected to be at least 12 percent lower than its 2007 target and the Arroyo administration would have to take measures to offset the impact of the shortfall on its P63-billion deficit target this year.

The shortfall in revenue collections would lead to further compression in government spending, a trend that the country’s creditors and investors fear would constrain economic growth if not reversed.

According to von Amsberg, the government’s focus should be on tax administration in order to generate as much of the potential revenues that could be generated from the recent tax measures that have been implemented.

"I would suggest keeping the focus very much on the tax administration because the potential for raising revenues is just so large if there was a more credible threat of enforcement against tax evaders," he said.

"Tax compliance will rise, that is the experience from all over the world if some of the reforms are directed at that," Von Amsberg added. "This real expectation of enforcement will result to better revenue collections."

Estimates emerging out of the Development Budget Coordination Committee (DBCC) showed that total revenues are projected to reach only P973.328, 12.9 percent lower than the P1.119-trillion target under the 2007 budget.

DBCC documents showed that the gap was attributed to the appreciation of the peso against the dollar which would have an impact on the tax collection on imported goods.

Aside from the appreciation of the peso, revenue agencies are also expecting lower tax uptake because of low interest rates which would shave off significant amounts from interest income taxes.

According to the projections made by the DBCC, total tax revenues are expected to reach only P890.209 billion, 11.24 percent less than the P1.003-trillion target for the whole year.

"

eureka!! bull's eye, my friend!! if the government can't provide mass housing in the city center, then build LRT to, say Binangonan, where most 'Pag-ibig' homes are!! As it is, laborers and wage-earners hav to endure much to come to work everyday. Or is there already a plan to extend the LRT/MRT to these places (Binangonan/Angono/Antipolo)?

Yes there is Line 8 i think starts from Sta Mesa through Shaw to Pasig then Angono to East Manila all the way to Tanay and hooking up with Southrail eventually. IN different phases.

@portludlow- All the developers you mentioned have socialized housing. In the right place it's profitable. Most people just don't hear about it.

The concept might be true in spirit, but it is not the same. If the low-income housing is two hours away, then it's not within city limits. For example, we've approved housing in places like Marina Del Rey, an affluent city in the Los Angeles area and the required low-income housing is in the same project being developed in Marina Del Rey.

The government needs to step in and require these developers who are making a lot of money from the current real estate boom, to give back some of that good fortune to the community.

For example, a city like Manila can go into partnership with Manila's Wall Street and developer to create low-income housing. The city can issue tax-free municipal bonds (debt). Manila's guaranty of the bonds will create higher confidence with investors. Investment bankers sells the Bonds in the market and the money is used to finance the construction of low-income housing by the developer. Revenue generated from the sale of the units is used to pay-off the bonds.

The bond scheme can also be used to finance apartment buildings. One thing to keep in mind, although everybody needs a place to live, not everyone can afford to buy a home.

Actually 2 hours away is a metropolitan commute, it would be much better if the commute was by mass transit then it would be quicker. The current law is actually fine. What makes it difficult is the regulatory environment where it's difficult to get things done and impossible for even the LGU to rezone areas (e.g. Makati want's to rezone Barangay Bel Air, Urdaneta, and San Lorenzo but the village associations resist contrary to public policy) this happens all over.

Actually the bond scheme you mentioned is also in place with certain municipalities. The problem is the scale, economics and land. With poor property protection laws it makes it economically difficult to kick squatters out so e.g. Manila which must follow the building code so must build within a certain standard. To follow that standard means that it must go higher because of scarcity and value of land which can not be sustained by the market. When the effective per capita of the masses can go beyondthe actual accomodated cost of such structure then they'll have more livable housing.

Sana ituloy nila ang plano for MRT/LRT to reach the suburbs where city workers actually live. Nung last ako umuwi, hanggang Santolan pa lang yung working LRT station. And commuters had to ride another fx or jeepney to their destination. :)

Just got back from a short vacation in the Philippines...

Went visit great real estate develoments...
Visited (South Forbes, Peninsula / Terrazzas de Punta Fueto, Greenfield Estates, Playa Calatagan, Canyon Ranch, Westgrove, Splendido)

IMHO
Best Vacation Project: Terrazzas de Punta Fuego
The exclusiveness of Terrazzas de Punta Fuego is a big factor.
Awesome view! The great thing is that you can play with the view too.
A private beach cove for lot owners making it a very private residential resort.
Not a far drive (specially if you live in the south side).

Best Investment : Playa Calatagan
Potential! Potential! Potential!
At around P6,650/sq.m compared to P9,000-P10,000 Terrazzas, Splendido and P9,000-P11,000 Greenfield, South Forbes, makes Playa Calatagan a great investment!
They still clearingup the roads. When I went there it has resort feel. Has great view and you can play with the view too. They are tryin to market it as the "Boracay of the South".
If you want to go to a resort without flying to palawan or Boracay. A 2.5-3.5 hrs drive from Manila - Playa Calatagan is your answer.
You should try to take a look.

Most Relaxing : Tagaytay Splendido
Tagaytay weather!
Overlooking Taal view and Golf club!

If you to know more about these projects that I visited pls. feel free to e-mail me @ ricinternet@yahoo.com

Playa Calatagan Pics
http://www.readyforoccupancy.com/Playa-1.jpg

http://www.readyforoccupancy.com/Playa-2.jpg


Terrazas de Punta Fuego Pics
http://www.readyforoccupancy.com/Fuego-1.jpg

http://www.readyforoccupancy.com/Fuego-2.jpg

http://www.readyforoccupancy.com/Fuego-3.jpg

http://www.readyforoccupancy.com/Fuego-4.jpg

http://www.readyforoccupancy.com/Fuego-5.jpg

http://www.readyforoccupancy.com/Fuego-6.jpg

http://www.readyforoccupancy.com/Fuego-7.jpg

http://www.readyforoccupancy.com/Fuego-8.jpg

http://www.readyforoccupancy.com/Fuego-9.jpg

http://www.readyforoccupancy.com/Fuego-10.jpg

http://www.readyforoccupancy.com/Fuego-11.jpg

http://www.readyforoccupancy.com/Fuego-12.jpg

http://www.readyforoccupancy.com/Fuego-13.jpg

delete

s6e3iDjjVYg



http://www.BeachSideCommunity.com :banana:

Now what are the things that people should know when they're buying a lot or a condo?

A. Know your lifestyle: City or Suburbs?
-- Not all locations are created equal. Even if you're in a suburban location, not all suburban subdivisions in the same vicinity rise in value at the same rate.

-- How about buying a condo?
--- You should check out what happens after the property is turned over. Who does the property maintenance, etc.

----"Ang real estate investment ay hindi parang damit na pwedeng isauli kapag may damage. Some pay for it for the rest of their productive life. So checking the developer's track record is a must" (don't rely on brochures alone)

B. After knowing what you want, the next thing to consider is the budget. Buy a property that you'll enjoy owning, not something that will hurt your pocket.

-- "Typically what is adviced is maximum of 50 percent of your income you devote to amortization. Depending on your lifestyle, you might want to reduce that to 40%"

http://www.readyforoccupancy.com/Playa-3.jpg

http://www.readyforoccupancy.com/Playa-4.jpg

^^ @TheRick, thank you for sharing. Are there people actually living on these property developments? .....or are mainly for second homes/vacation houses? :)

^^ @TheRick, thank you for sharing. Are there people actually living on these property developments? .....or are mainly for second homes/vacation houses? :)

I'm pretty sure in Playa Calatagan - nobody living there yet because the roads are still being built. Really early stages in the development.

Punta Fuego - Terazzas project I think there are about 8 - 10 homes already built. In peninsula I think about 200 homes built.
From what I understand - most of the residence go there on the weekends (summer vacation). I think there are only few few people that actually live there year round.

IMO I think these are vacation rest homes.


---------------------
I enjoyed going to these projects looking for possible vacation spots which are less than 3 hr drive.
I really like some of the Boracay condotel projects but Boracay is a plane and boat ride trip.
I might not enjoy it as much if I can't go there often. Plus, worried that Boracay if not careful would be "Over Commercialized" and deteriorate in 5 to 10 yrs from now.

Cool pics @therick. Playa Calatagan looks nice.

ANVAYA COVE - BATAAN

by jaydigital | Flickr (http://flickr.com/photos/jaydigital/)

http://farm1.static.flickr.com/218/460872849_bfe9c22753_o.jpg

http://farm1.static.flickr.com/202/460872845_902c04492e_o.jpg

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Another inspiring article on trying to make a difference... :okay:

Making a premier city out of Taguig

Ronald James P. Panis, Jun 06, 2007
Philippine News
http://www.philippinenews.com/news/view_article.html?article_id=6fe57735c4bdb7af986161751990952d


A FEW decades ago, Taguig was just another lakeshore town far away from Manila that became famous for its balut industry, among others. Today, it’s a three-year old city built not only on eggs – the origin of the balut industry – but on high-tech industries and ambitious projects that can make it become another financial district.

This thriving fishing community along Laguna de Bay is now in fact classified as a highly urbanized city, a status Taguig should have already gained as early as 1998 but because of a Commission on Elections (Comelec) miscount during that plebiscite, the correction was made only in 2004.

The new goal of Taguig City is to become a premier global city comparable to the likes of Singapore or Seoul by 2020. Mayor Sigifrido R. Tiñga, in a recent interview with Philippine News, shared his dreams for Taguig. The mayor says the city possess an international caliber that in due time rival with the other global cities at least in Southeast Asia.

“Because at the end of the day, it’s these (premier cities) we will be up against with,” he said. Fueled by “big dreams” and “hopeful visions” from the start, Tiñga is very much bullish about Taguig’s transformation into a 21st century residential haven and business hub. He is certain that Taguig is big and diverse enough to accommodate the elements such as financial and business, industrial, tourism, and residential districts needed for it to be distinguished as a premier city.


Potential business district

Admittedly, Tiñga knows that Taguig is a late bloomer in terms of its desired growth into becoming a central business district (CBD). However, this doesn’t deter him a bit; in fact, he sees this as an advantage for the city. Taguig is learning from the mistakes of other cities where there was rapid population growth that could not sustain itself in terms of social services and employment opportunities.

Tiñga says Taguig is increasingly becoming a source of business and employment opportunities and worthy rival of next-door neighbor Makati City. Because of the increasing number of commercial and industrial opportunities offered by Taguig, Tiñga says it can now claim itself as a potential business district alternative.

He cites the relocation (by 2010) of the Philippine Stock Exchange (PSE) to a 5,000 square-meter property at Fort Bonifacio within the territorial jurisdiction of Taguig. The Fort Bonifacio Development Corp. (FBDC), Ayala Land Inc. and Evergreen Holdings Inc. of the Campos Group are developing the Bonifacio Global City (BGC) where the ultra-modern PSE will be built.

The new PSE headquarters will merge with the Ayala Avenue and Ortigas Center offices under one roof. “The nice thing about (PSE’s relocation) is its statement that Taguig will be the financial capital of the country,” the mayor says.

He notes too that Taguig will eagerly welcome other business enterprises in the city such as the call centers and business process outsourcing (BPO) companies. Animation firms, among other ventures, are also coming. This, according to him, will provide the country with a lot of jobs.

The Taguig government has also introduced the Citycard – the city’s unified identification card system. Aside from providing privileges like discounts and health care benefits, it also benefits cardholders priority employment in Taguig-based businesses.

On the other hand, an incentive Taguig offers to financial institutions is its low tax rates (unique per industry). Tiñga admits that lower tax rates can generate a lot of pressure on the city’s chief executive (himself and his team), especially in seeking funding for its projects and programs for city development.

“But if you look at (the move to lower taxes) long term, and (decide) that what you want is a better Taguig, (then) you have to accept the fact that you won’t be the one reaping what you have sown,” he shared.

Tiñga also noted that other countries have committed to setup embassies within Taguig premises, specifically within Fort Bonifacio. He also cited international educational institutions such as the International School, British School and Japanese School setting up on said city.

“I think we are starting to get the reputation that we are business friendly, an easy environment to work in,” prided Tiñga, adding how countries have Taguig as their top pick when looking at the Philippines. He however shared that the success of Taguig also depends on the country’s image. “If the country’s image is good, chances are investments will come into Taguig,” he said.


Beyond borders

Bolstering the concept of providing equal opportunities for all its residents can be especially seen on Tiñga’s implementation of a residential zone without borders – substantiated in an endeavor dubbed “anti-snob zone”.

A trend in residential development worldwide, inclusion zoning which is the basis of the “anti-snob zone” concept looks at giving the city’s affluent, middle class and the less fortunate with equal housing opportunities. This would require developers to simultaneously build “market-rate” homes affordable across all levels.

Tiñga also notes that the “anti-snob zone” is expected to promote higher density, multi-family, mixed-use, mixed-income and cross-generation communities.

In a study by Palafox Associates, it said that housing development in Metro Manila is hampered by the imbalance created by social segregation – or gated communities. With the wealthy owning houses near CBDs, the lower income households are relegated to older, poorer neighborhoods. Architect Felino Palafox Jr. of Palafox Associates noted this has somehow led to a fragmented city.

Tiñga agrees. “We have two Taguigs here we are trying to address,” he points out, “the rich high-end Taguig of Fort Bonifacio, and a totally different and poorer Taguig when you cross C-5. That kind of divide will have to go away.”

Though Tiñga considers that denizens of his city might not entirely be ready to this concept of a borderless world, he is adamant to make it happen nevertheless. “If you look at communities in other parts of the world, the ones that work are the inclusive communities,” he says, vowing as well that the poor will not be pushed on the sides as Taguig becomes the city its people want it to become.


People first

Tiñga has already shown his proclivity to aid Taguig’s impoverished in many ways, the most recent of which is the city government’s mass-housing initiative started last year. Known as the Taguig Family Townhouses, this partnership with the Habitat for Humanity aims to build 30,000 low-cost housing units in 10 years. Already, this endeavor has seen the construction of 108 units of medium- rise buildings (MRBs) found in its Western Bicutan and Bagumbayan barangays. Ninety six more units will rise at the FTI Compound.

Along with Gawad Kalinga, the Taguig city administration have erected more than 100 units (52 units with Rotary Makati-West, 29 units with Poveda, and 30 units with Fuji-Xerox) all in Pinagsama, Western Bicutan. Together with the Coalition for the Homeless Foundation Inc., Tiñga’s government expects to build 84 units in Brgy. Bagumbayan. This will be called the New Town Villas.

With these partnerships in the housing development aspect of their Lakeshore project, Tiñga says that the city is at the “forefront of the local housing program.”

He adds: “With organizations like Gawad Kalinga and Habitat for Humanity coming in, I think they believe in our vision and direction. (After all), we are doing this for our residents. Rich or poor, we are trying to address their needs.”

Already in his third term as Taguig mayor, Tiñga believes that he has had enough time to get the ball rolling. But he will make sure that his successor has the passion and the knowledge to see through this long term vision for their city -- one who will put the city and its people first. “Too much politicking, which is the country’s problem, will hurt your city. Development (should be) the priority here,” he says.

mayor tinga should create a think-tank as well that will device the most cost-effective but efficient mass transportation that will alleviate transport problems for both the rich and the poor in (t)his city. :banana:

Very nice pics of Anvaya Cove!
Too bad our place in the PI is in the south side.
Would have loved to have seen this project in person.

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How do you verify if a project you're interested in is earthquake proof?
Is that a standard now in Metro manila building code?

to all interested in investing in condominiums, another reminder to keep our eyes open:

Originally Posted by thomasian
Parang something about the developer 24k, the details are vague, parang isinangla yata ng developer yung property... ngayon meron na daw order from HLURB to the developer to stop selling units of Torre Venezia.

here's what I found from the www.gov.ph forum...

Torre Venezia Project Exposé • (5493 bytes)
Posted: 5/13/2007 • 09:54 GMT+8

By: annabelleg
registered: 5/13/2007
member
quezon, Philippines
May 13, 2007

I am Annabelle Guevarra-Gonong and I am a dermatologist currently practicing here in Quezon City. I took the liberty of writing to you to seek your help in informing the public regarding a transaction that my husband and I made with a realty development company 24 K Construction and Development Corporation (with Mr. Rodolfo Guinhawa as CEO) regarding their project Torre Venezia. It is a commercial/residential building located at N0. 62 Timog Ave. cor. Scout Santiago St., Quezon City.

Last November 2005, my husband and I availed 2 commercial units and a parking space from the aforementioned project under a 30% down payment five years payment scheme. We were assured that the commercial area will be operational by June 2006 and upon payment of the 30% down we can immediately start our set up. These two adjacent units were intended to be my clinic since I am just renting the space where my clinic is right now. We paid the 30% down payment amounting to P 2,840,136.00 and immediately proceeded with our set up for the clinic and spent more or less two million pesos. We finished just in time for our intended date of transfer which is June 2006. This was also the time for us to start paying our monthly amortization. However, this date came and we realized that we can not transfer yet since the commercial area was not yet finished.

My husband wrote to the developer Mr. Rodolfo Guinhawa and told him that it was unlikely that we would be able to utilize the units as a clinic since construction works were still being undertaken on the residential units and it would be hazardous for our patients to come to the units. There were still no water and electricity, the parking spaces were not still available, and there were a lot of construction materials and debris at the ground floor. My husband then asked for a moratorium on the monthly amortization since the developer and his representative agent were not able to make good on their promise that we could utilize the units by June 2006. Because we were not able to transfer my husband and I became very disappointed and decided to give them time to finish the project. We patiently waited for several months but we noticed that the phase of the construction was slowing down. By that time we were wondering if there was a problem with the project and this is what prompted my husband to go to the Housing and Land Use Regulatory Board (HLURB) last February 20, 2007.

Inquiring from the HLURB, my husband found out the following violations of the developer regarding the Torre Venezia project:

1. It has no Certificate of Registration and License to Sell.

2. It has a Cease and Desist Order as early as October 17, 2005 from selling units and collecting monthly amortization from the buyers.

3. The property over which Torre Venezia is being built was mortgaged to Young Builders Corporation since 1997 up to the present time.

In addition to the above violations, my husband also found out that the building permit issued by the Office of the Mayor, Quezon City only approved for 23 floors but the developer added four more floors for which he hasn’t secured an approval yet. This puts in question the structural integrity of the building.

When I was informed by my husband about what he found out, I was shocked and distressed. It appeared that we were duped by the developer and had thrown away our hard earned money. On February 21, 2007, my husband met with the developer Mr. Rodolfo Guinhawa. My husband told him that he misrepresented important facts about the project when they dealt with us. He told him that he should return the money that we paid including the amount we spent in renovating the two units. On his part, Mr. Guinhawa himself admitted existence of the above problems and that he was doing his best effort to fix it and would exert their best efforts to sell the units that we bought. This was not acceptable to me and my husband.

Last March 12 and 15, 2007, since there was no formal commitment on his (Mr. Guinhawa) part, we filed a case of “Violation of the Building Code – PD 957” and “Estafa”. During the preliminary hearing last May 9, 2007 for the crime of estafa, Mr. Guinhawa did not show up. Instead, he sent a representative asking for 10 days extension to file a counter affidavit. We all know that our legal fight can be protracted considering the number of cases our courts (judicial system) handle and the delaying tactics and legal maneuvering the developer may employ. Meanwhile 24K Construction and Development Corporation continues to advertise, sell, and collect payments from unknowing buyers risking their hard earned money. To date, most of the buyers if not all are not aware of their predicament. My husband and I feel that the problems of Torre Venezia should also be disclosed to them. With your help, we believe that we could notify the public and avoid unfortunate events to happen again to unsuspecting buyers.

Thank you very much for your kind attention.

Very Nice write-up on Fort Boni - a place that offers both "convenience" and "view" according to the article which also includes interviews and quotations from our very own SSCF members Greg (fbgcxxxx) and Cynch (realtor_manila). Enjoy! :) :) :)

Greg and Cynch, just thought you might get a kick reading this article I've posted below...:) :) :)

Fort Bonifacio: A new suburb with global ambition
By Roel Landingin
Published: June 16 2007 03:00 | Last updated: June 16 2007 03:00
http://www.ft.com/cms/s/4c7f164c-1ba6-11dc-bc55-000b5df10621.html


There are few visible signs that one of Manila's hottest property markets used to be part of a military camp where Ferdinand Marcos detained hundreds of his critics, including Ninoy Aquino, whose 1983 assassination eventually led to the late Philippine dictator's ousting.

But Narciso Abaya, the former armed forces chief of staff, can document the transition. "The military intelligence training school used to be over there," he says, pointing from his first-floor office to a block of low-lying buildings occupied by a McDonald's, a UCC Coffee and other fast-food outlets and shops. A few metres further down is a shopping mall built over a cave that used to house the army museum, he adds.

Abaya is now in charge of converting about half a dozen military bases into prime property for the Philippine government to sell or lease and this is one of the most important - a 240-hectare planned community called Bonifacio Global City.

Until 12 years ago it was Fort Bonifacio, the army headquarters, but the detention centre, barracks, military offices and training fields are long gone. In their place, scores of residential towers, office buildings, retail establishments and half a dozen schools are rising in rapid succession, turning the site into an extension of the financial district in Makati city about 3km away.

In the past six years private developers have built seven high-rise apartment blocks that include some of the most expensive condominium units in Manila. Strong demand, mainly from Filipinos who have built fortunes working overseas, has spurred construction of at least 20 more to be completed by 2010.

The residences look over the American Battle Memorial to soldiers who died in the second world war or the Manila Golf Club, two of the few big patches of greenery that remain in the dense capital of 12m people. Indeed, an unobstructed view of the golf course built in 1901 is often used as a sales pitch by developers and one condominium building is named Fairways Tower.

"I checked out the view from my future unit by climbing into an elevator that went all the way to the top when this building was still under construction," says Josie Lichauco, a retired lawyer and one-time transportation secretary who lives in a penthouse unit at the Essensa East Forbes development.

From her living room window one can look out to the horizon towards the eastern reaches of Manila and see the blue-green waters of a lake and the Sierra Madre mountain range, which shields the city from typhoons coming from the Pacific Ocean.

It's not just the views that attract residents to Fort Bonifacio, however. Many expatriates have bought or leased units so their children can be near three international schools.

For others, the neighbourhood's size, layout and resulting environment are the big lures. It has wide roads and pavements, open spaces and parks and slightly better air quality than the rest of Manila. "You have people who jog in the mornings or at night," says Carl Ottiger, a Swiss who works as an investment adviser in Manila. Dog owners like it because their pets get a chance to run around. "Of course, people who have dogs normally don't walk them because they have cooks, maids and nannies to do that," he adds.

The impetus for the government's decision to privatise the property in 1995 was a desire to create a well- designed urban centre that would avoid many of the planning mistakes that turned Manila's business districts into traffic-choked, congested and polluted city blocks. Planners regulate how much floor space can be built from each square metre of land. Electrical wires and fibre optic cables for television and broadband are all underground so no unsightly poles with hanging wires spoil the view. Apartment units are connected to gas pipes that allow residents to cook or power their air conditioning units using liquefied petroleum gas, which is cheaper than electricity. Each building is equipped with enough back-up power to ensure the cooling system works even during city-wide electricity outages. There is also a big holding pond for rainwater to guard against flooding even in the worst of the 20 or so tropical storms that hit the Philippines every year.

Fort Bonifacio is also well connected, accessible through six gateways that lead to Manila's two main thoroughfares and to the airport. A new fly-over connects it to Makati, a faster alternative to the old road link, a narrow but beautiful acacia-lined street through Manila's upmarket subdivisions of Forbes Park and Dasmarinas Village.

Most residents of the neighbourhood still work outside the complex, mainly on Makati's Ayala Avenue, the Philippines' Wall Street, or in the Ortigas business district, about 7km away. But with as many as seven new office towers going up by 2010, adding to a group of three buildings completed in the past six years, more people are expected to live and work in the former army camp in the near future.

Buying in Fort Bonifacio used to be possible for only the very wealthy. The first two residential towers built, the 55-storey Pacific Plaza and Essensa East Forbes, were quite luxurious, with views of Manila's sunrise and sunset, indoor swimming pools heated by solar panels and helipads on their roofs. They also offered units - two- or three-bedroom apartments averaging 300 sq metres with only two or four units per floor - that now sell for close to 30m pesos (£327,471) each. (Larger penthouse units go for more than twice that price.)

But newer buildings offer more affordable options. Serendra, a 12-hectare apartment block being built by Ayala Land, the Philippines' biggest property developer, has 36 sq metre studio units that sell for less than 4m pesos, while three-bedroom units with about 200 sq metres go for no more than 20m pesos. Many of the new buyers are semi-retired affluent Filipino-Americans looking for a second home when visiting at least once a year.

Increasingly, the new towers include ground-level retail space, a departure from the more private and exclusive atmosphere in the older buildings. Shops, restaurants and fast-food chains will occupy 6 per cent (9,500 sq metres) of Serendra's total gross floor area, making it equivalent to a small strip mall. And these areas are open long before the residential units are ready for occupancy, drawing in crowds of potential buyers.

Fort Bonifacio's original residents sometimes fret about what they feel is indiscriminate development in the area. "You could see the wide variety of architectural designs and there's very little consistency," complains one. "You have a high-density shopping mall just beside a supposedly high-end condominium."

But newcomers seem to enjoy how close their units are to the shops and restaurants. "I enjoy going out a lot and living in Fort Bonifacio makes that very easy to do because the restaurants and bars are just a few minutes away," says Greg Torres, a Filipino who shuttles frequently between Manila and Los Angeles, California, where he works as a systems analyst.

Real estate broker Cynthia Palad-Yap observes that recent buyers, especially Filipinos who have worked and lived in other countries for decades, appear to be breaking conventional notions about class-based segmentation of the market. "Many of my Filipino-American clients can afford to buy expensive condominium units but prefer to visit the shopping mall for bargain finds rather than the uppity stores selling US labels," she says. "Perhaps living abroad makes one less conscious of class status."



______________________________



More great Fort Boni news...

Major RP developers invest heavily in BGC
PhilStar
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37


Within the next five years, over 9,000 residential condominium units spread in at least 28 high-rise buildings will become available in Bonifacio Global City indicating the status of the 240 hectare business district as a fast-rising urban center. In addition, 14 office towers as well as major institutions like the 600-bed ultra modern St. Luke’s hospital are also under construction.

Funded individually by the major players in the Philippine real estate industry, the fast rising projects in Bonifacio Global City represent a collective investment in the area with an estimated value of at least P70 billion, strong assurance of the district’s emergence as a premier residential and business hub. Among those betting heavily on the keen prospects of Bonifacio Global City are listed companies Ayala Land, Megaworld, Robinsons Land and CandP Homes’ subsidiary Brittany Corp. Other companies that are seeing the great potentials of the rising business district are Federal Land, Philtown Properties, Century Properties, Meridien, G&W Architects, Winville Development Corp, PhilRealty Global Marketing Inc., Daichi Propoerties, Golden Forum Land, WLand and First Global BYO.

Jun Bisnar, head for commercial operations of Fort Bonifacio Development Corp. (FBDC), the firm taking charge of overall development of the area, projects that about 7,000 to 9,000 new households will soon establish residence in this dynamic section of Taguig City. As families flock to the area, a fresh wave of office and commercial buildings are set to follow suit.

Unlike other business districts in the metropolis, Bonifacio Global City is prepared to provide an environment where residences, offices, schools and commercial centers are within walking distance of one another. The new masterplan of the City Center resulted to more efficient traffic flows for vehicles as well as for the people on the ground. Bisnar noted: “This advantage will allow residents and other locators to spend quality time with their family, on their various interests and hobbies in life, and on what really matters to them. Our innovative masterplan includes a modern road network that works, attractive amenities that encourage walking, lush parks and open spaces and other elements that contribute to better quality of life and good health because of the invigorating and clean environment of Bonifacio Global City. All these will ensure that Bonifacio Global City will deserve its descriptor as the ‘home of passionate minds.”

The promise of suburban living in a central in-city location is the reason behind the brisk sales of Serendra, a 12-hectare residential complex with 65 percent of the area devoted to lush landscaping. It has the highest open space ratio among in-city residential condominium. The complex offers various lifestyles. One Serendra, by Ayala Land Premier, is the lowest density residential condominium project in Metro Manila with units that offer exclusivity and privacy. Community Innovations’ Two Serendra is composed of condominium clusters that offer vibrant social interaction. But whatever lifestyle one chooses at Serendra, all homeowners benefit from its being minutes away from the Makati Business District.

Robinsons Land has three residential condo projects in Bonifacio Global City, the 44-story McKinley Park Residences; the 40-story Fifth Avenue, and the 28-story Fort Residences. The three condos will yield around 1,200 units, which have been successfully offered in the market.

Century Properties is the builder of the 39-storey South of Market twin towers and the 32-story Essensa East Forbes, while Philtown Properties finished the 43-story One McKinley Place and is constructing the 28-story Fairways Tower.

Most developers agree that the innovative masterplan of the area built around the Bonifacio High Street and the City Center, is a chief attraction of Bonifacio Global City. Jing Serrano, president of Brittany Corp., has pointed out that aside from being the fastest growing area in the Philippines, “BGC was well masterplanned with wider roads, ample open spaces and many amenities.” Brittany is constructing the Avant at the Fort, a 38-story residential tower with 300 units. Avant is the first of Brittany’s series of residential projects in Bonifacio Global City.

MOVING UP? GUIDE FOR THE SOON-TO-BE CONDO DWELLER
By Carlomar Arcangel Daoana, Staff Writer
Daily Tribune
http://www.tribune.net.ph/life/20070624lif2.html


If the trend continues in the coming years, it seems that more and more people will live in condominiums, those towering buildings located in industrial areas that serve as a refuge to thousands of professionals, retirees, and OFWs. A cursory look at the metro will reveal a frenetic construction activity as developers race to come up with as many residential buildings as they can now that the real estate business, which experienced a meltdown in the mid ‘90s, is booming.

With all these developments emerging, there is no better time to invest in a condo unit than now. Competition is bringing the best in each developer while new technologies are pushing the construction and design envelope, bringing down cost. But before you sign that fat check or make your initial downpayment, keep in mind the following guideline with which you will assess the condominium that is best suited for you. The last thing you want to do is to make a wrong decision and waste your hard-earned money.


Price

Though it seems that location should be the first in the list, what you first need to know is whether you can afford it. If you are working around between P500,000 to P1M, then there are walk-up (meaning no elevator) condominiums which you can easily purchase. The downside is that most of these are located along the fringes of the metropolis and have less amenities compared to others. Still, they offer the conveniences of condo living such as 24-hour security and on-call maintenance.

If you are working between P1M to P3M, you can already own a unit which is right smack in the center of things—near the malls, schools, and modes of transportation. Most of these, however, are high-density buildings, meaning they are packed with people and you may have to squeeze through some of them in the elevator. Most of the units too come with a modest floor area so if space is your priority, you may want to consider something else.

A P3M to P5M budget can already give you lots of floor area (with the space configured as bi-level or loft) and a sense of exclusivity. Most of the condominiums in this price range are located in the Central Business District so basically, you are a stone’s throw away from work and entertainment options.

Now, if you have P5M to P10M, your options are almost sky’s the limit. Units priced this much are located in the best addresses in town. Much premium has been given on design and architecture which will give you an instant emotional connection with your residence. Amenities are aplenty and if you’re lucky, you’ll be neighbors with a celebrity.

If you have P10M and above to burn, you deserve nothing less. Condominiums priced this much are usually multi-room affairs and located in areas where security is as tight as the Pentagon’s. Seaside developments usually cost this much. Amenities are equivalent to luxurious living.

Note: you don’t need to have the full amount before tinkering with the idea of buying a condo. In-house financing is almost always available and you can also apply for a Pag-IBIG loan to make your condo dream come true. Banks are also offering low interest housing loans even to those who want to purchase a condo unit. Just be sure that you have enough savings and can keep up with the mortgage.


Location and space

Now that you have a working budget, choose the best location of a condominium unit you can afford. Though certainly you have to consider its proximity to schools, hospitals, entertainment center and office sites, you shouldn’t also lose sight of the volume of traffic in the area. You don’t want to be stuck in your car braving the traffic all the while thinking that your home is just five minutes away. Imagine how the place will look like five years from now. Is it too crowded for comfort? Can you live with the noise and frenetic activity? If not, choose the one which may not be that close to commercial hubs but still provide a sanctuary for you and for your family.

Space in condominium is usually wanting, unless you purchase multiple units in the same floor. Aside from considering floor area, you may also want to consider the cubic area, the length from floor to ceiling. There are condo units that may not be that large floor-area-wise but have a high ceiling which makes the space look expansive. With the help of a clever interior designer, the ceiling space can be maximized, offering the much needed space for storage and such.


Amenities and facilities

What are condominiums without the amenities which all the residents can share and enjoy? Usually, you can see the “value” of the condominium with the kind and number of amenities it has. Does it have a swimming pool, a gym, provisions for commercial outlets such as a convenience store, a laundromat and others? Are the common areas such as the lobby and the elevators kept clean and sparkling? For the upkeep of these facilities, residents must pay corresponding association dues which may be enough to pay for the rent in another condo. On top of your monthly mortgage, can you afford these dues? If so, you may have found a perfect match.


Emotional connection

It’s important that you should feel a sense of belongingness in the condo you are about to buy. This transcends the considerations mentioned so far as it cannot be measured. What do you feel the moment you step inside its lobby? Do you feel at home or you want to rush immediately to the unit? How about your next-door neighbors? Can you imagine being friends with them? Will you feel proud to invite your friends over to your place? You should also assess the quality of life in case you decide to live in the condo. It shouldn’t just be a place to eat and sleep in. It should engage you and energize you at the start of the day.

MOVING UP? GUIDE FOR THE SOON-TO-BE CONDO DWELLER
By Carlomar Arcangel Daoana, Staff Writer
Daily Tribune
http://www.tribune.net.ph/life/20070624lif2.html


If the trend continues in the coming years, it seems that more and more people will live in condominiums, those towering buildings located in industrial areas that serve as a refuge to thousands of professionals, retirees, and OFWs. A cursory look at the metro will reveal a frenetic construction activity as developers race to come up with as many residential buildings as they can now that the real estate business, which experienced a meltdown in the mid ‘90s, is booming.

With all these developments emerging, there is no better time to invest in a condo unit than now. Competition is bringing the best in each developer while new technologies are pushing the construction and design envelope, bringing down cost. But before you sign that fat check or make your initial downpayment, keep in mind the following guideline with which you will assess the condominium that is best suited for you. The last thing you want to do is to make a wrong decision and waste your hard-earned money.


Price

Though it seems that location should be the first in the list, what you first need to know is whether you can afford it. If you are working around between P500,000 to P1M, then there are walk-up (meaning no elevator) condominiums which you can easily purchase. The downside is that most of these are located along the fringes of the metropolis and have less amenities compared to others. Still, they offer the conveniences of condo living such as 24-hour security and on-call maintenance.

If you are working between P1M to P3M, you can already own a unit which is right smack in the center of things—near the malls, schools, and modes of transportation. Most of these, however, are high-density buildings, meaning they are packed with people and you may have to squeeze through some of them in the elevator. Most of the units too come with a modest floor area so if space is your priority, you may want to consider something else.

A P3M to P5M budget can already give you lots of floor area (with the space configured as bi-level or loft) and a sense of exclusivity. Most of the condominiums in this price range are located in the Central Business District so basically, you are a stone’s throw away from work and entertainment options.

Now, if you have P5M to P10M, your options are almost sky’s the limit. Units priced this much are located in the best addresses in town. Much premium has been given on design and architecture which will give you an instant emotional connection with your residence. Amenities are aplenty and if you’re lucky, you’ll be neighbors with a celebrity.

If you have P10M and above to burn, you deserve nothing less. Condominiums priced this much are usually multi-room affairs and located in areas where security is as tight as the Pentagon’s. Seaside developments usually cost this much. Amenities are equivalent to luxurious living.

Note: you don’t need to have the full amount before tinkering with the idea of buying a condo. In-house financing is almost always available and you can also apply for a Pag-IBIG loan to make your condo dream come true. Banks are also offering low interest housing loans even to those who want to purchase a condo unit. Just be sure that you have enough savings and can keep up with the mortgage.


Location and space

Now that you have a working budget, choose the best location of a condominium unit you can afford. Though certainly you have to consider its proximity to schools, hospitals, entertainment center and office sites, you shouldn’t also lose sight of the volume of traffic in the area. You don’t want to be stuck in your car braving the traffic all the while thinking that your home is just five minutes away. Imagine how the place will look like five years from now. Is it too crowded for comfort? Can you live with the noise and frenetic activity? If not, choose the one which may not be that close to commercial hubs but still provide a sanctuary for you and for your family.

Space in condominium is usually wanting, unless you purchase multiple units in the same floor. Aside from considering floor area, you may also want to consider the cubic area, the length from floor to ceiling. There are condo units that may not be that large floor-area-wise but have a high ceiling which makes the space look expansive. With the help of a clever interior designer, the ceiling space can be maximized, offering the much needed space for storage and such.


Amenities and facilities

What are condominiums without the amenities which all the residents can share and enjoy? Usually, you can see the “value” of the condominium with the kind and number of amenities it has. Does it have a swimming pool, a gym, provisions for commercial outlets such as a convenience store, a laundromat and others? Are the common areas such as the lobby and the elevators kept clean and sparkling? For the upkeep of these facilities, residents must pay corresponding association dues which may be enough to pay for the rent in another condo. On top of your monthly mortgage, can you afford these dues? If so, you may have found a perfect match.


Emotional connection

It’s important that you should feel a sense of belongingness in the condo you are about to buy. This transcends the considerations mentioned so far as it cannot be measured. What do you feel the moment you step inside its lobby? Do you feel at home or you want to rush immediately to the unit? How about your next-door neighbors? Can you imagine being friends with them? Will you feel proud to invite your friends over to your place? You should also assess the quality of life in case you decide to live in the condo. It shouldn’t just be a place to eat and sleep in. It should engage you and energize you at the start of the day.

MOVING UP? GUIDE FOR THE SOON-TO-BE CONDO DWELLER
By Carlomar Arcangel Daoana, Staff Writer
Daily Tribune
http://www.tribune.net.ph/life/20070624lif2.html


If the trend continues in the coming years, it seems that more and more people will live in condominiums, those towering buildings located in industrial areas that serve as a refuge to thousands of professionals, retirees, and OFWs. A cursory look at the metro will reveal a frenetic construction activity as developers race to come up with as many residential buildings as they can now that the real estate business, which experienced a meltdown in the mid ‘90s, is booming.

With all these developments emerging, there is no better time to invest in a condo unit than now. Competition is bringing the best in each developer while new technologies are pushing the construction and design envelope, bringing down cost. But before you sign that fat check or make your initial downpayment, keep in mind the following guideline with which you will assess the condominium that is best suited for you. The last thing you want to do is to make a wrong decision and waste your hard-earned money.


Price

Though it seems that location should be the first in the list, what you first need to know is whether you can afford it. If you are working around between P500,000 to P1M, then there are walk-up (meaning no elevator) condominiums which you can easily purchase. The downside is that most of these are located along the fringes of the metropolis and have less amenities compared to others. Still, they offer the conveniences of condo living such as 24-hour security and on-call maintenance.

If you are working between P1M to P3M, you can already own a unit which is right smack in the center of things—near the malls, schools, and modes of transportation. Most of these, however, are high-density buildings, meaning they are packed with people and you may have to squeeze through some of them in the elevator. Most of the units too come with a modest floor area so if space is your priority, you may want to consider something else.

A P3M to P5M budget can already give you lots of floor area (with the space configured as bi-level or loft) and a sense of exclusivity. Most of the condominiums in this price range are located in the Central Business District so basically, you are a stone’s throw away from work and entertainment options.

Now, if you have P5M to P10M, your options are almost sky’s the limit. Units priced this much are located in the best addresses in town. Much premium has been given on design and architecture which will give you an instant emotional connection with your residence. Amenities are aplenty and if you’re lucky, you’ll be neighbors with a celebrity.

If you have P10M and above to burn, you deserve nothing less. Condominiums priced this much are usually multi-room affairs and located in areas where security is as tight as the Pentagon’s. Seaside developments usually cost this much. Amenities are equivalent to luxurious living.

Note: you don’t need to have the full amount before tinkering with the idea of buying a condo. In-house financing is almost always available and you can also apply for a Pag-IBIG loan to make your condo dream come true. Banks are also offering low interest housing loans even to those who want to purchase a condo unit. Just be sure that you have enough savings and can keep up with the mortgage.


Location and space

Now that you have a working budget, choose the best location of a condominium unit you can afford. Though certainly you have to consider its proximity to schools, hospitals, entertainment center and office sites, you shouldn’t also lose sight of the volume of traffic in the area. You don’t want to be stuck in your car braving the traffic all the while thinking that your home is just five minutes away. Imagine how the place will look like five years from now. Is it too crowded for comfort? Can you live with the noise and frenetic activity? If not, choose the one which may not be that close to commercial hubs but still provide a sanctuary for you and for your family.

Space in condominium is usually wanting, unless you purchase multiple units in the same floor. Aside from considering floor area, you may also want to consider the cubic area, the length from floor to ceiling. There are condo units that may not be that large floor-area-wise but have a high ceiling which makes the space look expansive. With the help of a clever interior designer, the ceiling space can be maximized, offering the much needed space for storage and such.


Amenities and facilities

What are condominiums without the amenities which all the residents can share and enjoy? Usually, you can see the “value” of the condominium with the kind and number of amenities it has. Does it have a swimming pool, a gym, provisions for commercial outlets such as a convenience store, a laundromat and others? Are the common areas such as the lobby and the elevators kept clean and sparkling? For the upkeep of these facilities, residents must pay corresponding association dues which may be enough to pay for the rent in another condo. On top of your monthly mortgage, can you afford these dues? If so, you may have found a perfect match.


Emotional connection

It’s important that you should feel a sense of belongingness in the condo you are about to buy. This transcends the considerations mentioned so far as it cannot be measured. What do you feel the moment you step inside its lobby? Do you feel at home or you want to rush immediately to the unit? How about your next-door neighbors? Can you imagine being friends with them? Will you feel proud to invite your friends over to your place? You should also assess the quality of life in case you decide to live in the condo. It shouldn’t just be a place to eat and sleep in. It should engage you and energize you at the start of the day.

MOVING UP? GUIDE FOR THE SOON-TO-BE CONDO DWELLER
By Carlomar Arcangel Daoana, Staff Writer
Daily Tribune
http://www.tribune.net.ph/life/20070624lif2.html


If the trend continues in the coming years, it seems that more and more people will live in condominiums, those towering buildings located in industrial areas that serve as a refuge to thousands of professionals, retirees, and OFWs. A cursory look at the metro will reveal a frenetic construction activity as developers race to come up with as many residential buildings as they can now that the real estate business, which experienced a meltdown in the mid ‘90s, is booming.

With all these developments emerging, there is no better time to invest in a condo unit than now. Competition is bringing the best in each developer while new technologies are pushing the construction and design envelope, bringing down cost. But before you sign that fat check or make your initial downpayment, keep in mind the following guideline with which you will assess the condominium that is best suited for you. The last thing you want to do is to make a wrong decision and waste your hard-earned money.


Price

Though it seems that location should be the first in the list, what you first need to know is whether you can afford it. If you are working around between P500,000 to P1M, then there are walk-up (meaning no elevator) condominiums which you can easily purchase. The downside is that most of these are located along the fringes of the metropolis and have less amenities compared to others. Still, they offer the conveniences of condo living such as 24-hour security and on-call maintenance.

If you are working between P1M to P3M, you can already own a unit which is right smack in the center of things—near the malls, schools, and modes of transportation. Most of these, however, are high-density buildings, meaning they are packed with people and you may have to squeeze through some of them in the elevator. Most of the units too come with a modest floor area so if space is your priority, you may want to consider something else.

A P3M to P5M budget can already give you lots of floor area (with the space configured as bi-level or loft) and a sense of exclusivity. Most of the condominiums in this price range are located in the Central Business District so basically, you are a stone’s throw away from work and entertainment options.

Now, if you have P5M to P10M, your options are almost sky’s the limit. Units priced this much are located in the best addresses in town. Much premium has been given on design and architecture which will give you an instant emotional connection with your residence. Amenities are aplenty and if you’re lucky, you’ll be neighbors with a celebrity.

If you have P10M and above to burn, you deserve nothing less. Condominiums priced this much are usually multi-room affairs and located in areas where security is as tight as the Pentagon’s. Seaside developments usually cost this much. Amenities are equivalent to luxurious living.

Note: you don’t need to have the full amount before tinkering with the idea of buying a condo. In-house financing is almost always available and you can also apply for a Pag-IBIG loan to make your condo dream come true. Banks are also offering low interest housing loans even to those who want to purchase a condo unit. Just be sure that you have enough savings and can keep up with the mortgage.


Location and space

Now that you have a working budget, choose the best location of a condominium unit you can afford. Though certainly you have to consider its proximity to schools, hospitals, entertainment center and office sites, you shouldn’t also lose sight of the volume of traffic in the area. You don’t want to be stuck in your car braving the traffic all the while thinking that your home is just five minutes away. Imagine how the place will look like five years from now. Is it too crowded for comfort? Can you live with the noise and frenetic activity? If not, choose the one which may not be that close to commercial hubs but still provide a sanctuary for you and for your family.

Space in condominium is usually wanting, unless you purchase multiple units in the same floor. Aside from considering floor area, you may also want to consider the cubic area, the length from floor to ceiling. There are condo units that may not be that large floor-area-wise but have a high ceiling which makes the space look expansive. With the help of a clever interior designer, the ceiling space can be maximized, offering the much needed space for storage and such.


Amenities and facilities

What are condominiums without the amenities which all the residents can share and enjoy? Usually, you can see the “value” of the condominium with the kind and number of amenities it has. Does it have a swimming pool, a gym, provisions for commercial outlets such as a convenience store, a laundromat and others? Are the common areas such as the lobby and the elevators kept clean and sparkling? For the upkeep of these facilities, residents must pay corresponding association dues which may be enough to pay for the rent in another condo. On top of your monthly mortgage, can you afford these dues? If so, you may have found a perfect match.


Emotional connection

It’s important that you should feel a sense of belongingness in the condo you are about to buy. This transcends the considerations mentioned so far as it cannot be measured. What do you feel the moment you step inside its lobby? Do you feel at home or you want to rush immediately to the unit? How about your next-door neighbors? Can you imagine being friends with them? Will you feel proud to invite your friends over to your place? You should also assess the quality of life in case you decide to live in the condo. It shouldn’t just be a place to eat and sleep in. It should engage you and energize you at the start of the day.

MOVING UP? GUIDE FOR THE SOON-TO-BE CONDO DWELLER
By Carlomar Arcangel Daoana, Staff Writer
Daily Tribune
http://www.tribune.net.ph/life/20070624lif2.html


If the trend continues in the coming years, it seems that more and more people will live in condominiums, those towering buildings located in industrial areas that serve as a refuge to thousands of professionals, retirees, and OFWs. A cursory look at the metro will reveal a frenetic construction activity as developers race to come up with as many residential buildings as they can now that the real estate business, which experienced a meltdown in the mid ‘90s, is booming.

With all these developments emerging, there is no better time to invest in a condo unit than now. Competition is bringing the best in each developer while new technologies are pushing the construction and design envelope, bringing down cost. But before you sign that fat check or make your initial downpayment, keep in mind the following guideline with which you will assess the condominium that is best suited for you. The last thing you want to do is to make a wrong decision and waste your hard-earned money.


Price

Though it seems that location should be the first in the list, what you first need to know is whether you can afford it. If you are working around between P500,000 to P1M, then there are walk-up (meaning no elevator) condominiums which you can easily purchase. The downside is that most of these are located along the fringes of the metropolis and have less amenities compared to others. Still, they offer the conveniences of condo living such as 24-hour security and on-call maintenance.

If you are working between P1M to P3M, you can already own a unit which is right smack in the center of things—near the malls, schools, and modes of transportation. Most of these, however, are high-density buildings, meaning they are packed with people and you may have to squeeze through some of them in the elevator. Most of the units too come with a modest floor area so if space is your priority, you may want to consider something else.

A P3M to P5M budget can already give you lots of floor area (with the space configured as bi-level or loft) and a sense of exclusivity. Most of the condominiums in this price range are located in the Central Business District so basically, you are a stone’s throw away from work and entertainment options.

Now, if you have P5M to P10M, your options are almost sky’s the limit. Units priced this much are located in the best addresses in town. Much premium has been given on design and architecture which will give you an instant emotional connection with your residence. Amenities are aplenty and if you’re lucky, you’ll be neighbors with a celebrity.

If you have P10M and above to burn, you deserve nothing less. Condominiums priced this much are usually multi-room affairs and located in areas where security is as tight as the Pentagon’s. Seaside developments usually cost this much. Amenities are equivalent to luxurious living.

Note: you don’t need to have the full amount before tinkering with the idea of buying a condo. In-house financing is almost always available and you can also apply for a Pag-IBIG loan to make your condo dream come true. Banks are also offering low interest housing loans even to those who want to purchase a condo unit. Just be sure that you have enough savings and can keep up with the mortgage.


Location and space

Now that you have a working budget, choose the best location of a condominium unit you can afford. Though certainly you have to consider its proximity to schools, hospitals, entertainment center and office sites, you shouldn’t also lose sight of the volume of traffic in the area. You don’t want to be stuck in your car braving the traffic all the while thinking that your home is just five minutes away. Imagine how the place will look like five years from now. Is it too crowded for comfort? Can you live with the noise and frenetic activity? If not, choose the one which may not be that close to commercial hubs but still provide a sanctuary for you and for your family.

Space in condominium is usually wanting, unless you purchase multiple units in the same floor. Aside from considering floor area, you may also want to consider the cubic area, the length from floor to ceiling. There are condo units that may not be that large floor-area-wise but have a high ceiling which makes the space look expansive. With the help of a clever interior designer, the ceiling space can be maximized, offering the much needed space for storage and such.


Amenities and facilities

What are condominiums without the amenities which all the residents can share and enjoy? Usually, you can see the “value” of the condominium with the kind and number of amenities it has. Does it have a swimming pool, a gym, provisions for commercial outlets such as a convenience store, a laundromat and others? Are the common areas such as the lobby and the elevators kept clean and sparkling? For the upkeep of these facilities, residents must pay corresponding association dues which may be enough to pay for the rent in another condo. On top of your monthly mortgage, can you afford these dues? If so, you may have found a perfect match.


Emotional connection

It’s important that you should feel a sense of belongingness in the condo you are about to buy. This transcends the considerations mentioned so far as it cannot be measured. What do you feel the moment you step inside its lobby? Do you feel at home or you want to rush immediately to the unit? How about your next-door neighbors? Can you imagine being friends with them? Will you feel proud to invite your friends over to your place? You should also assess the quality of life in case you decide to live in the condo. It shouldn’t just be a place to eat and sleep in. It should engage you and energize you at the start of the day.

wow! THX for that feel-good article, 3cr. :) Really makes one's day... one sort of forgets the looming baloon payment to make for one's condo unit he he... :lol:

Hi everyone,

I'd just like to solicit some of your thoughts on these supposed 'condo investments' in the Philippines. How sound are they as investments since I read that most are bought by OFWs on amortized payments. My opinion is that they are not as liquid as they can be since they were not paid for fully in 'cash terms' in the first place and therefore cannot be sold on cash basis in the future since this is neither the preferrence nor capability of prevailing market/buyers.

paying a mortgage for a condo unit is an investment because ur hard-earned money goes to something of more or less considerable value that u can hav at a later date.

it becomes really & truly an investment in two ways:

a) u finished paying 4 it in full-- that is, u hav the documents in ur name and can actually sell it for profit; or

b) the unit is finished & even though ur still paying monthly 4 it, u or ur family can already use the unit, or u can rent it out. :)

here in the uk, when u buy a house or flat, u pay the deposit say 10% of the selling price and begin the monthly amortization. at that point, u r considered the homeowner of the house ur paying the mortgage on. thus, say in 2 yrs tym, the house value appreciates, u can sell it to the next person and already had ur profit on ur 'investment'.

but the phil market is not that advanced or sophisticated yet, or perhaps it is just 'different'. in the phil, unless u already paid for the unit in full, it is not considered ur own yet and thus cannot really sell it.

so i think u really hav 2 think hard b4 u 'invest' in a condo unit in the phil. because ur idea of an investment in, say US or UK (i.e. liquidity of such investment) may not apply in our own country. first know the system & then devise a way 2 profit from it. :)

in my case, i'm now only investing money i can afford not 2 be liquid. i chose a pre-selling project with an extended down payment (very minimal monthly payment with equally minimal yearly balloon payments). then i'll pay around 40% upon turnover in 2010. i just hope that i will be able to save that amount come turnover date so that if & when the price of my unit has risen enough to my satisfaction by that date, i can always sell a brand new unit at a profit. if it hasn't appreciated, i might just rent it out and make the unit a collateral to purchase another unit (not necessarily in the same building).

but i hav heard of OFWs who were able 2 pay cash with huge discounts. & others who paid 4 their unit in say 3 yrs equal monthly payments with no interest. thus they hav the property under their names the sooner and that is investment liquidity 4 u, philippine style... :)

Hello Jr,

It's only 5:44pm here in Irvine, Ca and I'm glad I've gotten some replies already....thanks. I've been fortunate to have been hired here in the US as a design engineer and now I am torn whether to invest in the Philippines or here in SoCal. I’m in my early 30’s and single. I feel I need to act now in this game of life….I ask about liquidity because southern California is so great in terms of ….multi-ethnicity, technology and best of all great all year round weather which has been the envy of other US states that I may concentrate on investing here...but I still think about Pnas. It's my sole reason why I am in this thread....anyone here in the same predicament ???

Hi everyone,

I'd just like to solicit some of your thoughts on these supposed 'condo investments' in the Philippines. How sound are they as investments since I read that most are bought by OFWs on amortized payments. My opinion is that they are not as liquid as they can be since they were not paid for fully in 'cash terms' in the first place and therefore cannot be sold on cash basis in the future since this is neither the preferrence nor capability of prevailing market/buyers.

I believe they are sound investments but just like any other asset class they are prone to market up and downs. If you can afford to wait for things to settle down in a down market, it can be a lucrative investment. The property can also be rented. If the cash flow gives you a decent return on your capital then it is likely a good investment. It can also be a hedge for the falling value of the US dollar.

Yeah, you are right in terms of the poor liquidity but not because on how you paid the property, but because selling a real property takes time. Hello Jr,

It's only 5:44pm here in Irvine, Ca and I'm glad I've gotten some replies already....thanks. I've been fortunate to have been hired here in the US as a design engineer and now I am torn whether to invest in the Philippines or here in SoCal. I’m in my early 30’s and single. I feel I need to act now in this game of life….I ask about liquidity because southern California is so great in terms of ….multi-ethnicity, technology and best of all great all year round weather which has been the envy of other US states that I may concentrate on investing here...but I still think about Pnas. It's my sole reason why I am in this thread....anyone here in the same predicament ???

There are a lot of us here who always want a piece of our beloved motherland. :) I can see that you are still young and not even at the peak of your earning years. If you have discretionary income after paying your monthly mortgage over there, maximizing your 401k, and IRA's, then you can think of buying a condo in the Philippines.

Hello Jr,

It's only 5:44pm here in Irvine, Ca and I'm glad I've gotten some replies already....thanks. I've been fortunate to have been hired here in the US as a design engineer and now I am torn whether to invest in the Philippines or here in SoCal. I’m in my early 30’s and single. I feel I need to act now in this game of life….I ask about liquidity because southern California is so great in terms of ….multi-ethnicity, technology and best of all great all year round weather which has been the envy of other US states that I may concentrate on investing here...but I still think about Pnas. It's my sole reason why I am in this thread....anyone here in the same predicament ???

It is good to hear your sense of urgency at such a young age. The sooner you start investing, the sooner you'll accumulate wealth. That's due to the power of compounding. If you don't own a house now, you're in a very good position being in Southern California. The real estate market has tanked and will continue to go down in the near future. The old advice of "buy low, sell high" is very appropriate for this current condition in the US. Start by educating yourself about the local market. Read the ads to get an overall knowledge of market prices. Talk to realtors - they are hard up for buyers. No one can predict when this market will hit bottom, but when it does, you want to be in the position to act strategically and make the biggest investment most people will make in their lifetime - real estate.

Hi everyone,

I'd just like to solicit some of your thoughts on these supposed 'condo investments' in the Philippines. How sound are they as investments since I read that most are bought by OFWs on amortized payments. My opinion is that they are not as liquid as they can be since they were not paid for fully in 'cash terms' in the first place and therefore cannot be sold on cash basis in the future since this is neither the preferrence nor capability of prevailing market/buyers.


It's only 5:44pm here in Irvine, Ca and I'm glad I've gotten some replies already....thanks. I've been fortunate to have been hired here in the US as a design engineer and now I am torn whether to invest in the Philippines or here in SoCal. I’m in my early 30’s and single. I feel I need to act now in this game of life….I ask about liquidity because southern California is so great in terms of ….multi-ethnicity, technology and best of all great all year round weather which has been the envy of other US states that I may concentrate on investing here...but I still think about Pnas. It's my sole reason why I am in this thread....anyone here in the same predicament ???

3D-CAD,
I'm not discouraging you to invest in the Philippines but you're still young and unless pressured to buy now, have plenty of time to be able to buy a place to call home in the Philippines later down the line. Might be a better realestate investment for you to buy a US property first because of two factors, first the exchange rate (Weak Dollar to a Strong Peso) and the realestate market condition (US property prices are going down while Philippine property prices are getting more pricey). You might get a better return on investment to put your Dollar to work in the US realestate market than putting your money in a Philippine property. Of course only you can really decide what's best for you so kindly take my 2 cents with a grain of salt. Good luck and God bless. :)

Number of firms availing of tax perks rises
Mass housing sector a booming business
By Katrina Mennen A. Valdez, Reporter
Manila Times
http://www.manilatimes.net/national/2007/june/26/yehey/business/20070626bus1.html

THE number of housing projects given tax and other perks have risen significantly in a span of four years, data from the Board of Investments (BOI) show.

Investments in this segment of the property sector jumped by 83 percent to P1.548 billion before the first half of the year ended from P268.482 million in 2003.

Four years ago, only two real estate developers registered with the BOI, an incentive-giving agency attached to the Department of Trade and Industry. These were Sanent Realty & Development Corp., which invested P181.145 million for the construction of 932 housing units in Sampaloc, Manila, and Tanay, Rizal, and Firm Builder’s Realty Development Corp., which had infused P37.025 million for its 314 housing units and another P50 million for its 465 low-cost housing units.

Starting in 2005, the middle- to low-cost housing segment boomed. The number of real estate developers venturing into those segments rose to eight with a combined 14 projects. To date, the mass housing industry jumped by 81 percent to P1.407 billion business.

Last year, mass housing projects doubled to16 with total investments of P1.433 billion.

For the first half of this year, investments in this line of business had already amounted to P1.548 billion for 9 projects. These include the Ridgewood Estates Inc.’s P90 million project in Imus, Cavite; Stateland Inc.’s P104 million project in Cabuyao, Laguna; DM Consunji Inc.’s P255-million project in Para*ñaque City; and Filinvest Land Inc.’s P97 million project in Stanto Tomas, Batangas.

Firm Builders continued with its mass housing venture with a P41-million project this year. Other firms that registered with the BOI are Omico Corp. with P63 million in investments, Palmera Homes Inc. with P197 million, and Phinma Property Holdings Corp. with P 269 million for its Commonwealth project and another P195 million for its Novaliches, Quezon City, venture.

Investments made in the mass housing segment since 2003 had accumulated to almost P5 billion.

Last month, the BOI said it is reviewing the guidelines on the grant of incentives to mass housing projects to ensure that the country’s housing backlog of 1.4 million units is addressed.

Trade Undersecretary Elmer C. Hernandez, who is also BOI managing head, said that the review is focused on “striking a balance” between investments for high-rise or vertical projects and subdivision-type or horizontal developments.

Hernandez said a cap—in terms of housing units built over a period—was being considered to encourage the balance between the two types of projects.

3D-CAD,
I'm not discouraging you to invest in the Philippines but you're still young and unless pressured to buy now, have plenty of time to be able to buy a place to call home in the Philippines later down the line. Might be a better realestate investment for you to buy a US property first because of two factors, first the exchange rate (Weak Dollar to a Strong Peso) and the realestate market condition (US property prices are going down while Philippine property prices are getting more pricey). You might get a better return on investment to put your Dollar to work in the US realestate market than putting your money in a Philippine property. Of course only you can really decide what's best for you so kindly take my 2 cents with a grain of salt. Good luck and God bless. :)

^^ yes, this is valid advise, imho.
incidentally, 3D-CAD, i used to live in irvine. Although irvine is not much more than a sprawling suburb, the houses there are still priced like hollywood, even after a 10% depreciation! A mortgage might make one think one already owns property in irvine, but the same mortgage could also enslave you for 15- 30 years, unless your fico score provides you with very low interest and fixed rate for 30.
if you're a recent immigrant, i personally think it is better you just rent for now(this way you can build up on credit score for two years) and save enough money to pay cash for a small condo in philippines, or if you feel like it, pay cash for condo units in the big cities of midwest, where condos are bigger and better equipped than most in pinas. For 40k$ you could buy much nicer ones here in usa with provisions for washing machine, clothes dryer, and most especially, hot water. As you are probably well aware, these don't come 'standard' in pinas. Most in midwest usa also come with refrigerator, microwave, fire alarm, as well as private patios or balconies, which, for the same price, could only buy you a small, bare, and appliance-less shoebox in manila.
an exclusive parking space is free for most american condos, whereas in pinas, you still have to buy-- for an additional 15K-20k$...

lastly, there is no VAT for housing in usa, whereas it could go as high as 15%(?? am not sure) in pinas. As you know, VAT is money down the drain.

thus, in two years, not only would you have saved enough money to pay cash for a couple of condos in midwest usa(or pinas), you'd have also proven to equifax that you've already been employed 2 years, and that you have 2 years of whistle-clean credit with no late payments, and perhaps some extra cash for closing costs...

you may then start applying for zero down and fixed-rate mortgage for that dream home in irvine, or a high-rise condo in trump's tower in vegas.:)

good luck!

$40K condo in the US? that's 1.8M pesos only.. mura yun ahh

^^ yes, this is valid advise, imho.
incidentally, 3D-CAD, i used to live in irvine. Although irvine is not much more than a sprawling suburb, the houses there are still priced like hollywood, even after a 10% depreciation! A mortgage might make one think one already owns property in irvine, but the same mortgage could also enslave you for 15- 30 years, unless your fico score provides you with very low interest and fixed rate for 30.
if you're a recent immigrant, i personally think it is better you just rent for now(this way you can build up on credit score for two years) and save enough money to pay cash for a small condo in philippines, or if you feel like it, pay cash for condo units in the big cities of midwest, where condos are bigger and better equipped than most in pinas. For 40k$ you could buy much nicer ones here in usa with provisions for washing machine, clothes dryer, and most especially, hot water. As you are probably well aware, these don't come 'standard' in pinas. Most in midwest usa also come with refrigerator, microwave, fire alarm, as well as private patios or balconies, which, for the same price, could only buy you a small, bare, and appliance-less shoebox in manila.
an exclusive parking space is free for most american condos, whereas in pinas, you still have to buy-- for an additional 15K-20k$...

lastly, there is no VAT for housing in usa, whereas it could go as high as 15%(?? am not sure) in pinas. As you know, VAT is money down the drain.

thus, in two years, not only would you have saved enough money to pay cash for a couple of condos in midwest usa(or pinas), you'd have also proven to equifax that you've already been employed 2 years, and that you have 2 years of whistle-clean credit with no late payments, and perhaps some extra cash for closing costs...

you may then start applying for zero down and fixed-rate mortgage for that dream home in irvine, or a high-rise condo in trump's tower in vegas.:)

good luck!

^^ There are some in the Midwest, Michigan areas really took a beating in realty costs. Kaya ayos yung mga Pinoy na nakabili in the 80's of some small houses in California, the value almost went up 4 times and they sold it.

Marami na talagang balikbayan na interested in buying houses/condos in Pinas, they still get a better deal with their money and at the same time getting ready for their future retirement.