Since there are no title companies i guess people just have to rely on their own research whether the title is clean or not.
There are also not many professional home inspectors , private home appraissers. if you have all these then i guess there's no need for realtor agents as Filipinos don't like to deal with middle men to cut extra costs.

Fyi CREBA the Chamber of Real Estate Builders Association actually operates a title insurance system. Not many individuals are willing to pay for it though perhaps in the future.

Since there are no title companies i guess people just have to rely on their own research whether the title is clean or not.
There are also not many professional home inspectors , private home appraissers. if you have all these then i guess there's no need for realtor agents as Filipinos don't like to deal with middle men to cut extra costs.

I'm not sure if I would want to do the title search myself. I think that real property buyers are doing that now and despite of their best efforts, I heard that there is a good backlog of "estafa" cases filed in Philippine courts today resulting from fraudulent real property sales.

Sales agents play an important role in the transaction. But home appraisals or home inspections is not one of them - these are hightly specialized jobs. Appraisals and home inspections are important components in real estate transactions and must be kept on an "arms-length" basis.

I realize that it will take a collective effort of industry and political leaderships in order to create an environment where buyers/sellers and financial institutions can all transact their business in an environment where everyone can trust the sustem.

Fyi CREBA the Chamber of Real Estate Builders Association actually operates a title insurance system. Not many individuals are willing to pay for it though perhaps in the future.

^^ That is good to know. If I may ask, is the willingness of individuals to accept title insurance due to costs or lack of familiarity with the value it can bring to the table? Does CREBA provides insurance only on properties that are owned by the developer-members or are they able to provide insurance on other properties as well?

I'm not sure if I would want to do the title search myself. I think that real property buyers are doing that now and despite of their best efforts, I heard that there is a good backlog of "estafa" cases filed in Philippine courts today resulting from fraudulent real property sales.

Sales agents play an important role in the transaction. But home appraisals or home inspections is not one of them - these are hightly specialized jobs. Appraisals and home inspections are important components in real estate transactions and must be kept on an "arms-length" basis.

I realize that it will take a collective effort of industry and political leaderships in order to create an environment where buyers/sellers and financial institutions can all transact their business in an environment where everyone can trust the sustem.

Even with all the estefa cases lots of filipinos prefer to buy house and lots directly from the owner to cut costs. there is a small fee you pay for the refferal if you didn't talk to the owner yourself. that is how we purchased our small house and lot.

I know home inspections and home appraisals are not jobs of the sales agent.
but if the housing industry in the PHilippines gets more developed and organized there would probably be a lesser need for sales agent because you would have the title or escrow doing most of the paper works. if you can buy the standardized legal forms and you don't have a very complicated transaction more people in the PHils will probably opt For Sale by owner transactions as it will save them money. Plus the advent of internet advertising. Saving money is the bottom line for Pinoy buyers . sales agents will just be negotiators or if you're too lazy or busy to negotiate with the owners yourself . That is all i'm saying.

with condos this is different as they have many agents representing the projects to provide info. to many potential buyers.

the judiciary should expedite the resolution of these estafa cases to serve as a deterrent to future likely offenders.

Asian financial crisis … 10 years after
PHILEQUITY CORNER By Ignacio B. Gimenez
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007070873


Last week marked the 10-year anniversary of the Asian Financial Crisis. We remember it vividly because it was the first time that a financial crisis contagion happened in Asia. As a fund manager, the crisis brought forward an important realization. It taught us that in an economically integrated world, prosperity in faraway countries can create opportunities elsewhere, but instability in a distant economy can also create uncertainty and instability at home. This is why we in Philequity find it essential to monitor the global economic cycle, the movement of other currencies and the performance of other stock markets, especially that of the US.

Anatomy of a crisis

Since the early 1990s, investment and credit flows to the so-called “Asian tigers” had been increasing rapidly in response to strong growth and steps toward economic modernization. These developing countries had privatized state-owned industries and liberalized their financial markets. Over time, the capital flows to these countries became speculative excesses. Meanwhile, complacency and inappropriate fiscal and monetary policies (overvalued currencies, current account deficits financed by short-term borrowings and poorly regulated financial systems) have led to serious vulnerabilities to these countries.

After the Thai baht’s collapse in July 3, 1997, the financial crisis swept the region like wildfire. In a few weeks, the currencies of Malaysia, Singapore, Philippines and Indonesia came under attack as investors pulled out their money. Despite the IMF announcement of a $17.2 billion support package for Thailand in August, the currencies and stock markets of these countries continued to plunge. In August 28, 1997, the Philippine Composite Index went down 9.3 percent, while the Jakarta Composite Index declined 4.5 percent. By October of that year, the turmoil turned toward Hong Kong, where the Hang Seng Index lost 23 percent of its value over four days starting October 20. South Korea was also coming under pressure as the Korean won dropped as investors dumped Korean stocks. The aftershocks were felt across emerging markets such as Russia, Brazil, Mexico and Argentina, and even in the industrialized world. In November 1997, the IMF announced a $40 billion stabilization package for Indonesia with the US pledging a $3 billion standby credit. By December, Korea and the IMF agreed on a $57 billion support package. By early 1998, the crisis ebbed and most currencies and stock markets recovered.

A look at the table below shows that the countries who received IMF support packages seemed to have recovered first. The Korean won, for example, bottomed out in December 1997 after dropping 126 percent. This was followed by the Thai baht which reached its low of 56.45 against the US dollar in January 1998.

In the case of stocks, the Korean stock market also bottomed out first when the KOSPI index reached 277.37 in June 1998. Other markets hit their lows in September 1998, except for the Philippines which made a double bottom in October 2001 (due to a political crisis in 2000-2001) and in March 2003 (due to a deteriorating fiscal balance).

In retrospect, the swiftness of the restoration of public confidence in South Korea, Indonesia, Thailand, and also in the case of Malaysia, was due to their government initiated financial restructuring. Their governments provided for the liquidity support to banks, guarantees of bank liabilities, the provision of public funds for the recapitalization of financial institution, and the creation of publicly owned centralized asset management companies.

In contrast, the Philippines took the longer rout. While our banking system were relatively healthier (post-crisis) compared the countries mentioned above, the fiscal constraints of the government left the private sector to spearhead the cleanup of the banking system. But now that the fiscal reforms are in place and the economy back on its track, public confidence has been completely restored.

More room to go for peso and Philippine stocks

Fast forward ten years, Asia is once more at the forefront of investors’ radar screens. Investment and portfolio inflows are back. Gone, however, are the shortcomings of the past. This time around, most of the fallen “Asian tigers” have significant current account surpluses, limited external debt and huge foreign exchange reserves. Moreover, their currencies have been strengthening against a generally weak US dollar. This is the reason why we continue to be bullish on Asia, especially the Philippines. Note that despite the peso’s recent strength and the PSEi Index (PSEi) reaching new highs, the Philippines have yet to recover lost ground when compared to other countries hit during the Asian crisis.

The chart below reveals that the peso is still 74.7 percent off its pre-crisis level of 26.38. Meanwhile, the Korean won and the Thai baht are just 4.1 percent and 22.5 percent off their pre-crisis levels, respectively. This means that the peso potentially has more room to appreciate.

Similarly, the Philippine stock market still has plenty of room to catch up given that the stock markets of Thailand and Indonesia are up more than 200 percent from their pre-crisis levels, while Korea is up 150 percent. At the current value of 3,758, the PSE Index is only up 32.6 percent from its pre-crisis level of 2,835. Thus, given the country’s accelerating economic growth and an appreciating peso which should attract more investment capital, the Philippine stock market has the potential to gain more ground.



_____________________________




Asian banks shine post-crisis, but new risks emerge
http://www.abs-cbnnews.com/storypage.aspx?StoryId=84446


SINGAPORE/HONG KONG - Ten years after Asia's financial crisis crippled many of the region's banks, lenders face new potential risks that analysts say they are in better position to handle this time around.

Most Asian banks are booking big profits on strong loan growth amid the region's economic surge, and while a crisis may not be looming, lenders need to gird themselves against possible jumps in inflation and a Chinese or Indian economic slowdown, among other risks.

"Everyone has become very dependent on China and if we saw any economic difficulties in China, the Asian countries will be very hard hit because they are very reliant on exports to China," said Peter Tebbutt, senior director at Fitch Ratings.

"Banks would be hurt by any significant economic difficulties here in Asia, but they wouldn't be hurt anywhere to the extent they were hurt back in 1997," he said, citing sound capitalisation, diverse loan books and less foreign currency lending as the reasons for their newfound strength.

Asian economies, particularly South Korea, Indonesia and Thailand, were caught out 10 years ago when foreign investors pulled their cash out of the region, a currency exodus that led to the collapse of currency pegs and asset prices.

Banks who had lent to a number of enterprises during the preceding economic boom were left holding the bag in the form of bad loans and a big buildup of foreign currency debt they couldn't finance.

"They were really -- particularly in Indonesia and Korea -- houses of cards back then," Tebbutt said.

TIMES ARE CHANGING

Lenders like South Korea's Kookmin Bank and Shinhan Financial, Thailand's Bangkok Bank and Kasikornbank and Indonesia's Bank Mandiri and Bank Danamon are all in good shape, and analysts and bankers said times have changed from 10 years ago.

But bank analyst Deborah Schuler of Moody's Investors Service said notable risks to disrupt the current rosy picture are high oil prices -- and the resulting inflation -- and a pile of foreign currency reserves in Asia hunting too few investment ideas which could lead to asset price bubbles.

"Things are good in Asia and India and China will continue to provide GDP growth to the region ... but some sort of downturn is probably unavoidable," Schuler said.

Lenders are in good shape to weather this downturn, analysts said, and bankers point to an increased focus on managing risk.

"In credit risk, we have invested significantly in data, model and system changes to support our businesses," said Chng Sok Hui, head of group risk at Singapore's DBS Holdings, Southeast Asia's biggest bank.

"In market risk, we have implemented a scaleable full revaluation risk architecture which can be easily extended as new products are added to the trading platform and volumes expand," she said, while adding that "market shocks and major events such as 9/11 are intrinsically unpredictable".

FURTHER REFORMS

That's not to say there isn't a lot of work to be done. Schuler notes that non-performing loans (NPLs) are still high in markets like Thailand, the Philippines and Vietnam, and that some banks still don't have proper protection for bad debt.

"High NPLs relative to the level of loan loss reserves in China and Vietnam are an example of how not all banks have recapitalised," she said.

Analysts said that regulators need to take a harder line raising minimum operating standards and making sure the banks adhere to them, particularly in Thailand, Indonesia and the Philippines.

"The Philippines is a good example -- slow to become tougher -- many banks in the country are operating at levels below 'true capital requirements' and they've been allowed to do that," said Tebbutt, adding that regulators could bare their teeth by forcing management change for banks who do not comply.

To be sure, there is no doubting that banks and regulators have learned lessons from the Asian financial crisis.




_____________________________




Real estate industry fears ‘consumer finance crisis’ (http://philstar.com/index.php?Business&p=52&type=2&sec=71&aid=20070715189)
By Ehda Dago-oc
Monday, July 16, 2007

While dollar earning Filipinos have caused the dynamic economy in the Philippines, the continued strengthening of the peso to the US dollar may cause a “consumer finance crisis” especially for real estate and retail.

In an economic briefing organized by China Trust (Philippines) Commercial Bank Corporation, Rolando Avante, the bank’s executive vice president and treasurer, warned that a growing concern on the declining of consumer demand, as OFWs are now keeping their money, instead of spending, due to the lesser value of their dollars.

Avante warned that in the middle-range real estate industry, wherein growth is fueled by the OFW market, a decline of demand in this particular segment is seen as dollar dominated income of Filipinos working abroad is now getting smaller, while they (OFWs) don’t get increases in the salaries.

Significantly, he said amortization of the real estate products does not change, and value of their income has declined, “it is worrisome, because OFW don’t get increases,” he warned.

Economic observers have seen a “red light” in the consumer demand for the Philippines, while the Philippine peso is seen to take stronger hold against the greenback.

He hopes that small and medium real estate developers have already taken their preparatory measures, in case consumer shock will happen.

For bigger developers on the other hand, he said these companies have already put in place preparatory shields if ever OFW market will take a slower movement.

The Philippine peso had already appreciated by 20 percent from P56 last year up to P45 levels these days. He said there is possibility that peso will continue to climb breaking P44 if the entry of dollar will not be well defended.

Aside from the growing entry of dollar remittances to the Philippines, there are also foreign bond investors, like the Japanese who are taking advantage of the strong peso, selling their yen to dollar dominated bonds, and invest it in the Philippines. This has pushed further the dollar reserves in the country.

Avante reported that in his own bank, they have three to four real estate developer clients, which have developments in middle-range housing projects, from P500,000 to P1 million, expressed observation of slower consumer demand from the OFW market.

The Philippine real estate industry, which has been affected heavily in the 1997 regional economic crisis, has experienced a rebound in the recent years, primarily because of the dollar-earning Filipino market.

He reiterated that the strong peso, although an indication of a good economic landscape in the Philippines in the macro level, could also triggered a slight fall down in the consumer demand—in the dollar-earning consumer based.

Generally, he said the Philippines is slowly building a good impression in the outside investors, because it has successfully taken out the “political risk” factor, meaning the environment much better, although it’s not yet the “ideal”.



_____________________________




Number of foreigners retiring in RP doubles (http://www.philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20070708155)
By Mayen Jaymalin
Monday, July 9, 2007

For many foreigners, the Philippines is no longer just a popular tourist attraction but a well-loved retirement destination.

The Philippine Retirement Authority (PRA) has reported a dramatic growth in the number of elderly foreign nationals coming to the country to retire and enjoy life.

Ex-Col. Fernando Francisco, acting PRA general manager, said the recorded number of “foreign retirees” doubled in the past years and is still growing.

Francisco said from a total of 1,263 in 2005, the number of foreign retirees who registered with the PRA went up to 2,398 in 2006.

“In the first four months of the year, PRA already recorded a total of 1,060 foreign retirees and we expect the number to exceed last year’s figure,” Francisco told The STAR.

As a result of the increase, Francisco said the PRA also posted a staggering $600 million income generated from the registration fees and investment deposit of the applicants.

Those who registered for membership with the PRA are foreign nationals who are 35 years old and above. The PRA lowered the minimum age to accommodate American servicemen who choose to retire here, Francisco said.

“Some of the retirees come here by themselves but there are also some who come with their spouses and children,” Francisco disclosed.

Many of those who opted to retire in the Philippines permanently with their family were Korean nationals, according to Francisco.

Based on PRA data, since 2005, Koreans accounted for 56 percent of the total retirees, followed by the Chinese, 16 percent and Japanese, 5.75 percent.

“The number one motivation of Korean nationals to retire here is for their children to study the English language,” Francisco further said.

Francisco added that foreign retirees who have registered with PRA are allowed to travel in and out of the country without the need to seek clearance from the Bureau of Immigration.

They are also allowed to engage in business upon posting investment deposit to PRA.

Even with the steady growth in the number of foreign retirees coming to the Philippines, Francisco said the PRA still joins marketing missions to encourage more elderly foreign nationals to live here.

Asian financial crisis … 10 years after
PHILEQUITY CORNER By Ignacio B. Gimenez
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007070873


Last week marked the 10-year anniversary of the Asian Financial Crisis. We remember it vividly because it was the first time that a financial crisis contagion happened in Asia. As a fund manager, the crisis brought forward an important realization. It taught us that in an economically integrated world, prosperity in faraway countries can create opportunities elsewhere, but instability in a distant economy can also create uncertainty and instability at home. This is why we in Philequity find it essential to monitor the global economic cycle, the movement of other currencies and the performance of other stock markets, especially that of the US.

Anatomy of a crisis

Since the early 1990s, investment and credit flows to the so-called “Asian tigers” had been increasing rapidly in response to strong growth and steps toward economic modernization. These developing countries had privatized state-owned industries and liberalized their financial markets. Over time, the capital flows to these countries became speculative excesses. Meanwhile, complacency and inappropriate fiscal and monetary policies (overvalued currencies, current account deficits financed by short-term borrowings and poorly regulated financial systems) have led to serious vulnerabilities to these countries.

After the Thai baht’s collapse in July 3, 1997, the financial crisis swept the region like wildfire. In a few weeks, the currencies of Malaysia, Singapore, Philippines and Indonesia came under attack as investors pulled out their money. Despite the IMF announcement of a $17.2 billion support package for Thailand in August, the currencies and stock markets of these countries continued to plunge. In August 28, 1997, the Philippine Composite Index went down 9.3 percent, while the Jakarta Composite Index declined 4.5 percent. By October of that year, the turmoil turned toward Hong Kong, where the Hang Seng Index lost 23 percent of its value over four days starting October 20. South Korea was also coming under pressure as the Korean won dropped as investors dumped Korean stocks. The aftershocks were felt across emerging markets such as Russia, Brazil, Mexico and Argentina, and even in the industrialized world. In November 1997, the IMF announced a $40 billion stabilization package for Indonesia with the US pledging a $3 billion standby credit. By December, Korea and the IMF agreed on a $57 billion support package. By early 1998, the crisis ebbed and most currencies and stock markets recovered.

A look at the table below shows that the countries who received IMF support packages seemed to have recovered first. The Korean won, for example, bottomed out in December 1997 after dropping 126 percent. This was followed by the Thai baht which reached its low of 56.45 against the US dollar in January 1998.

In the case of stocks, the Korean stock market also bottomed out first when the KOSPI index reached 277.37 in June 1998. Other markets hit their lows in September 1998, except for the Philippines which made a double bottom in October 2001 (due to a political crisis in 2000-2001) and in March 2003 (due to a deteriorating fiscal balance).

In retrospect, the swiftness of the restoration of public confidence in South Korea, Indonesia, Thailand, and also in the case of Malaysia, was due to their government initiated financial restructuring. Their governments provided for the liquidity support to banks, guarantees of bank liabilities, the provision of public funds for the recapitalization of financial institution, and the creation of publicly owned centralized asset management companies.

In contrast, the Philippines took the longer rout. While our banking system were relatively healthier (post-crisis) compared the countries mentioned above, the fiscal constraints of the government left the private sector to spearhead the cleanup of the banking system. But now that the fiscal reforms are in place and the economy back on its track, public confidence has been completely restored.

More room to go for peso and Philippine stocks

Fast forward ten years, Asia is once more at the forefront of investors’ radar screens. Investment and portfolio inflows are back. Gone, however, are the shortcomings of the past. This time around, most of the fallen “Asian tigers” have significant current account surpluses, limited external debt and huge foreign exchange reserves. Moreover, their currencies have been strengthening against a generally weak US dollar. This is the reason why we continue to be bullish on Asia, especially the Philippines. Note that despite the peso’s recent strength and the PSEi Index (PSEi) reaching new highs, the Philippines have yet to recover lost ground when compared to other countries hit during the Asian crisis.

The chart below reveals that the peso is still 74.7 percent off its pre-crisis level of 26.38. Meanwhile, the Korean won and the Thai baht are just 4.1 percent and 22.5 percent off their pre-crisis levels, respectively. This means that the peso potentially has more room to appreciate.

Similarly, the Philippine stock market still has plenty of room to catch up given that the stock markets of Thailand and Indonesia are up more than 200 percent from their pre-crisis levels, while Korea is up 150 percent. At the current value of 3,758, the PSE Index is only up 32.6 percent from its pre-crisis level of 2,835. Thus, given the country’s accelerating economic growth and an appreciating peso which should attract more investment capital, the Philippine stock market has the potential to gain more ground.



__________________________________



Number of foreigners retiring in RP doubles (http://www.philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20070708155)
By Mayen Jaymalin
Monday, July 9, 2007

For many foreigners, the Philippines is no longer just a popular tourist attraction but a well-loved retirement destination.

The Philippine Retirement Authority (PRA) has reported a dramatic growth in the number of elderly foreign nationals coming to the country to retire and enjoy life.

Ex-Col. Fernando Francisco, acting PRA general manager, said the recorded number of “foreign retirees” doubled in the past years and is still growing.

Francisco said from a total of 1,263 in 2005, the number of foreign retirees who registered with the PRA went up to 2,398 in 2006.

“In the first four months of the year, PRA already recorded a total of 1,060 foreign retirees and we expect the number to exceed last year’s figure,” Francisco told The STAR.

As a result of the increase, Francisco said the PRA also posted a staggering $600 million income generated from the registration fees and investment deposit of the applicants.

Those who registered for membership with the PRA are foreign nationals who are 35 years old and above. The PRA lowered the minimum age to accommodate American servicemen who choose to retire here, Francisco said.

“Some of the retirees come here by themselves but there are also some who come with their spouses and children,” Francisco disclosed.

Many of those who opted to retire in the Philippines permanently with their family were Korean nationals, according to Francisco.

Based on PRA data, since 2005, Koreans accounted for 56 percent of the total retirees, followed by the Chinese, 16 percent and Japanese, 5.75 percent.

“The number one motivation of Korean nationals to retire here is for their children to study the English language,” Francisco further said.

Francisco added that foreign retirees who have registered with PRA are allowed to travel in and out of the country without the need to seek clearance from the Bureau of Immigration.

They are also allowed to engage in business upon posting investment deposit to PRA.

Even with the steady growth in the number of foreign retirees coming to the Philippines, Francisco said the PRA still joins marketing missions to encourage more elderly foreign nationals to live here.

http://www.businessmirror.com.ph/07102007/headlines08.html

Veep, DOJ lead task force
vs property scammers

By Joel R. San Juan
Reporter

AS fast as the real-estate industry was recovering, the scams victimizing eager home buyers multiplied quickly, prompting the Justice department and state housing agencies to warn real-estate developers that their licenses would be revoked if they renege on their contractual obligations to their buyers.

Vice President Noli de Castro, who heads the Housing and Urban Development Coordinating Council (HUDCC), Justice Secretary Raul Gonzalez, Securities and Exchange Commission Chairman Fe Barin and representatives from the Real-Estate Brokers Association of the Philippines conferred Monday to discuss how to prevent and totally eliminate the scams in the preselling of real estate, condominium units and townhouses.

The conferees said that as a first step they have agreed to urgently ask President Arroyo to authorize within this week a task force for the protection of subdivision and condominium buyers.

Their proposed statement of the problem as worded in their proposed executive order is this: “The prevalence of unsound, criminal and unlawful practices in the real-estate subdivision and condominium business is growing at an alarming rate, to the prejudice of the property rights and investments of the buying public.”

They proposed to have the Justice Secretary chair the task force with the Housing Regulatory commission chief as cochairman.

They said the task force would receive and evaluate complaints against erring subdivision and condominium owners, developers, operators and sellers. The ensuing investigation would also be done by the task force, which, if it finds the complaint valid, would then refer it for prosecution.

Gonzalez said the usual victims of these unscrupulous real-estate developers are overseas Filipino workers, who invest hard-earned money on real estate.

Properties and structures being offered by these erring developers, according to the justice secretary, are often left unfinished and the buyers are not refunded their down payment if they reject the units or are satisfied when they complain to the developers.

“This is a very big problem facing the country especially in light of the fact that one of the major thrusts of the government is housing,” said Gonzalez after the meeting.

“When you are enticed to purchase, there should be protection from government because there are many buyers who are victimized by developers who are unscrupulous, fly-by-night or whatever you call them,” he added.

De Castro said another of the task force’s initial moves is for the HLURB to identify all real-estate companies with pending civil cases.

It's about time! :) :) :)
http://www.businessmirror.com.ph/07102007/headlines08.html
Veep, DOJ lead task force vs property scammers
By Joel R. San Juan
Reporter

AS fast as the real-estate industry was recovering, the scams victimizing eager home buyers multiplied quickly, prompting the Justice department and state housing agencies to warn real-estate developers that their licenses would be revoked if they renege on their contractual obligations to their buyers.

Vice President Noli de Castro, who heads the Housing and Urban Development Coordinating Council (HUDCC), Justice Secretary Raul Gonzalez, Securities and Exchange Commission Chairman Fe Barin and representatives from the Real-Estate Brokers Association of the Philippines conferred Monday to discuss how to prevent and totally eliminate the scams in the preselling of real estate, condominium units and townhouses.

The conferees said that as a first step they have agreed to urgently ask President Arroyo to authorize within this week a task force for the protection of subdivision and condominium buyers.

Their proposed statement of the problem as worded in their proposed executive order is this: “The prevalence of unsound, criminal and unlawful practices in the real-estate subdivision and condominium business is growing at an alarming rate, to the prejudice of the property rights and investments of the buying public.”

They proposed to have the Justice Secretary chair the task force with the Housing Regulatory commission chief as cochairman.

They said the task force would receive and evaluate complaints against erring subdivision and condominium owners, developers, operators and sellers. The ensuing investigation would also be done by the task force, which, if it finds the complaint valid, would then refer it for prosecution.

Gonzalez said the usual victims of these unscrupulous real-estate developers are overseas Filipino workers, who invest hard-earned money on real estate.

Properties and structures being offered by these erring developers, according to the justice secretary, are often left unfinished and the buyers are not refunded their down payment if they reject the units or are satisfied when they complain to the developers.

“This is a very big problem facing the country especially in light of the fact that one of the major thrusts of the government is housing,” said Gonzalez after the meeting.

“When you are enticed to purchase, there should be protection from government because there are many buyers who are victimized by developers who are unscrupulous, fly-by-night or whatever you call them,” he added.

De Castro said another of the task force’s initial moves is for the HLURB to identify all real-estate companies with pending civil cases.

^^ Good News indeed. It's about time! :) :) :)

Good for you 3cr,

I just saw the pic....Fort Boni is my best bet that it will be a clean and green master planned community....congrats and here's to a better Philippines especially when we all decide to come back home...:banana:


http://i26.photobucket.com/albums/c127/coined101/UP_2_logo_smaller.jpg

^^ Uy Thanks! :)



Hope they do something about this so that it does not become a crisis.
Real estate industry fears ‘consumer finance crisis’ (http://philstar.com/index.php?Business&p=52&type=2&sec=71&aid=20070715189)
By Ehda Dago-oc
Monday, July 16, 2007

While dollar earning Filipinos have caused the dynamic economy in the Philippines, the continued strengthening of the peso to the US dollar may cause a “consumer finance crisis” especially for real estate and retail.

In an economic briefing organized by China Trust (Philippines) Commercial Bank Corporation, Rolando Avante, the bank’s executive vice president and treasurer, warned that a growing concern on the declining of consumer demand, as OFWs are now keeping their money, instead of spending, due to the lesser value of their dollars.

Avante warned that in the middle-range real estate industry, wherein growth is fueled by the OFW market, a decline of demand in this particular segment is seen as dollar dominated income of Filipinos working abroad is now getting smaller, while they (OFWs) don’t get increases in the salaries.

Significantly, he said amortization of the real estate products does not change, and value of their income has declined, “it is worrisome, because OFW don’t get increases,” he warned.

Economic observers have seen a “red light” in the consumer demand for the Philippines, while the Philippine peso is seen to take stronger hold against the greenback.

He hopes that small and medium real estate developers have already taken their preparatory measures, in case consumer shock will happen.

For bigger developers on the other hand, he said these companies have already put in place preparatory shields if ever OFW market will take a slower movement.

The Philippine peso had already appreciated by 20 percent from P56 last year up to P45 levels these days. He said there is possibility that peso will continue to climb breaking P44 if the entry of dollar will not be well defended.

Aside from the growing entry of dollar remittances to the Philippines, there are also foreign bond investors, like the Japanese who are taking advantage of the strong peso, selling their yen to dollar dominated bonds, and invest it in the Philippines. This has pushed further the dollar reserves in the country.

Avante reported that in his own bank, they have three to four real estate developer clients, which have developments in middle-range housing projects, from P500,000 to P1 million, expressed observation of slower consumer demand from the OFW market.

The Philippine real estate industry, which has been affected heavily in the 1997 regional economic crisis, has experienced a rebound in the recent years, primarily because of the dollar-earning Filipino market.

He reiterated that the strong peso, although an indication of a good economic landscape in the Philippines in the macro level, could also triggered a slight fall down in the consumer demand—in the dollar-earning consumer based.

Generally, he said the Philippines is slowly building a good impression in the outside investors, because it has successfully taken out the “political risk” factor, meaning the environment much better, although it’s not yet the “ideal”.

i hope whatever they come up with will really sting!! it's really high time the government realize it's the ordinary, honest people who are being victimized here. :ohno:

^^ That is good to know. If I may ask, is the willingness of individuals to accept title insurance due to costs or lack of familiarity with the value it can bring to the table? Does CREBA provides insurance only on properties that are owned by the developer-members or are they able to provide insurance on other properties as well?

I've not taken a close look at it but from what was reported to me by my marketing mgr who went to the creba meeting its open to the public.

It's still pretty new so it will take time for the market to get educated.

I don't use it since we do our own due dilligence (which is also offered by some other companies if you are so inclined to do 3 title search backs), a problematic title has repurcussions for developers that go way beyond having it ensured.

Btw this whole discussion is pretty OT perhaps this should be merged with HLURB LTS.

Good news for Pag-ibig members with existing Housing loan:

this includes even those who availed of the maximum 2M loan, so this cuts the 12% loan to 10%.

=========
Dear member,

Per the directive of President Gloria Macapagal Arroyo and as a way of rewarding Pag-IBIG housing loan borrowers who pay their amortizations promptly, the Pag-IBIG Fund is implementing the Good Payor Incentive Program effective June 1, 2007.

This program is open to the following members:

- those who availed of a housing loan before November 2006
- member/borrowers with accounts that are 1-6 months in arrears as of June 1, 2007 (these member/borrowers will be given until December 31, 2007 to fully update their respective accounts)
- borrowers who pay their amortization before their respective due dates.

Please note that under this program, borrowers who pay on or before the due date as indicated in their monthly billing statement shall be entitled to a maximum of 2% discount on the interest, provided that the resulting interest rate will not fall below the rates provided for in Pag-IBIG Fund Circular 219.

The discount granted to borrowers paying their amortization on or before their due dates shall be applied to principal or on the interest rates for a lower monthly amortization.

For further inquiries within Metro Manila, you may contact the NCR Billing and Collection Department at Rooms 314 & 315, Atrium Bldg., Makati Ave., Makati City, tel. nos. 8114120 / 8488294. For provincial accounts, please coordinate with the nearest Pag-IBIG Fund branch.

Maraming salamat po.
The Public Affairs & Information Office

Wow the changes in our local market react fast. We are not yet there in 2010 and some sector in real estate market is already starting to felt the impact of strong peso vs US dollar. If this news become a reality later on maybe those project that would forecast to complete beyond 2008 would be affected by slowdown in OFW spending in condo properties.

The best way to mitigate this problem is to have a stable interest rate and better amortization payment :banana:

mabuti na rin iyan so that some of the capital can go back to housing for the domestic market which is severely underserved.

depende na kung ano ang market rates for the next years. fixed one year ang tawag dun. you can opt for longer terms.

my first year's mortgage was 9.75% fixed for one year. 8.5% when it was renewed for this year. If as predicted be collier it falls to 5.5% I will change the terms of my loan and fix the rate for the remaining years.

parang states na yang interest rates na iyan :)

When banks re-set or adjust the rate of interest for succeeding years, what base index rate do they usually use? For example, 6 months Libor, 10- Yr US treasury rate, etc.

Interbank mart gets its signals from ROP tbills.

mga KABABAYAN

tulong po...

how much does it cost monthly to live in a condo in then philippines?

mga KABABAYAN

tulong po...

how much does it cost monthly to live in a condo in then philippines?

^^ basics lang talaga alam ko ha! it can range between P9-P15 thousand a month depending depending on the payment scheme(s) that you choose. this payment scheme could be like 1.5 mos. to 3 years in spread after which you can have ownership of the unit. depende rin sa number of beds (usually a choice among 2, 3, and 4 bedroom condo units) and how well the unit(s) is/are furnished.

location can also (i think) influence a condo unit's price. the ones especially near the makati CBD area would most likely command higher prices than condos located in let's say, sampaloc area. many condo developers also waive yung montly interest rate if you choose a payment scheme with a shorter time period like maybe (just maybe) a one year payment scheme.

obviously in this kind of payment (or rent-to-own) mode spread in 1 year, you pay bigger monthlies. but you do away with the interests that usually go to payments arranged for let's say 2-3 years time. but then again, these are just how i understand them!:) hopefully you'll encounter someone na may alam talaga!

mga KABABAYAN

tulong po...

how much does it cost monthly to live in a condo in then philippines?

Are you asking monthly rent or monthly payment to buy a condo unit?

Is it a studio, 1, 2 or 3 Bedroom unit?

Which location makati, the fort, ortigas, manila, qc...?

Bit like asking how long a piece of string is.

It depends on location, size, developer etc.
It could be 8,000 per month or 200,000 per month.

Bit like asking how long a piece of string is.

It depends on location, size, developer etc.
It could be 8,000 per month or 200,000 per month.


i agree... depends so much on one's lifestyle too

i think he is asking the expenses to pay in living in a condo.. well basically this includes the condo dues, electric and water bill, parking if separate, plus if you own the condo, paying insurance, real estate tax.

All of these depends on the size of your unit.. condo charges Php30.00 to Php80.00 per sqm on the dues, some includes the size of parking in the computation of the dues... so for a 50sqm at say 50.00 per sqm, that's 2,500.00 a month, then your electric / water bill will depend on your usage. If you're using 2 aircon running 8 hours per day, that will be about 5T to 6T per month on electric bill. Water bill is higher on condos compared to residential houses/apartments. Water bill is usually 30.00+ per cu. meter for condos within metro manila, while the one in BGC is about 70.00+ per cu. meter.

THE PROPERTY MARKET is currently on the upswing, thanks to a better economic environment. But given the sizable amount of investment needed when acquiring real estate, clients are advised to be cautious.

Richard Raymundo, property consultancy firm Colliers International Philippines, Inc.’s director for research, shared a few pointers on how to secure a sound real estate investment.

• CHOOSE A GOOD LOCATION.
Location plays a big part in the valuation of properties. The nearer one is to
a commercial district, a major thoroughfare, or a host of institutions, the higher its value. Those tucked in secluded areas, on the other hand, may not be valued at a premium. Mr. Raymundo said that if you’re aiming to resell your property, key locations will allow you to resell more easily, while others will not offer attractive buys at all. He also advised checking the supply and demand in the area, as this will determine whether you can sell your property at a higher price in the long run. “If you’re buying a property with the
intention of making a profit for the price appreciation, are you in a location where supply and demand is good? You’ll never know, maybe in two to three years there will be an oversupply [in that area] and you won’t be able to sell your property at a higher price,” he said.

• BUY FROM A REPUTABLE DEVELOPER.
In the case of condominium properties where units are sold off-plan or before
the completion of the project, one should rely only on developers that have
made good on their promises. “The mode of purchase for residential developments here is pre-sell. Developers haven’t even started the building,
but you’re buying it from a plan. You have to make sure that what the developer says [will materialize]. It doesn’t make sense for you to buy because of affordability,” Mr. Raymundo said, adding that properties made by developers who are known for their quality are easier to resell.

• CHECK OUT PROPERTY MANAGEMENT.
A poorly managed property, especially a condominium, will look like a haunted building in five years, making it harder for you to rent or sell the property.

• CONSIDER YOUR BUDGET.
You may avail of bank loans or inhouse financing, but get only the property that you think will fit in your budget in order to avoid falling into the debt trap.

• INVEST NOW.
As in the case of financial instruments such as mutual funds, trust, stocks or bonds, it’s always a good time to invest. The economy has been strong of
late, and this makes investing in or acquiring a new property a lot easier for
you. “The economy is really strong now. The interest rates are going down and Tbill rates are at their lowest in history. Inflation is benign at around 2.5%, which is the lowest that we’ve ever had; the exchange rate is now at P45 a dollar. We forecast office rents to go up by 20% this year, and we’re already up by 20% as of now. The next two years will be strong for the real estate industry,” Mr. Raymundo said. — Gerard S. dela Peña


complete article at http://www.bworld.com.ph/

If I have to choose between location and view I'd rather choose location, I think that's more practical. I can go on vacation if I want a good view.

But of course, it's better to have both. :)

The Fort is one good example of the concept of Live-Work-Play. The concept of "New Urbanism" could be seen here and is a reinforcement of the fact that people are now appreciating the importance of living in the countrysides, than dwelling in the hard concrete and steel urban jungles. New urbanism is people's acknowledgement that we cannot have those non-renewable energy sources forever, and we have to take steps to conserve energy, or to create newer sources found in our environment. ^^ Yup I agree with you that the concept of new urbanism where beauty, convenience and eco-friendiness converge is pretty much evident in the master planning of Global City and especially so in the City Center / Boni High Street area of Fort Boni. The best of all worlds talaga at para kang hindi na sa Pinas when you're there. Looking forward to Fort Boni's evolution into a world class CBD! :okay: :okay:

http://farm2.static.flickr.com/1163/798355417_274e378e74.jpg?v=0

Bonifacio High Street
http://farm1.static.flickr.com/194/522864582_658c60af78.jpg?v=0

Bonifacio High Street the New Fort address

“This is not your regular thoroughfare,” remarked Fort Bonifacio Development Corporation (FBDC) and Ayala Land, Inc. (ALI) president Jim Ayala, in describing Bonifacio High Street (BHS), a new development in Taguig.

High Street actually begins at the popular Serendra which opened last year. The ultimate plan is to develop the entire stretch into, would you believe, a one-kilometer lush, landscaped, pedestrian-friendly park, ending at Crescent West.

Ayala also said: “It will create an environment that is “a home of passionate minds, and a sanctuary that will uplift mind and spirit, that others around the world would say, ‘What I want is something like what is found in the Philippines.’”

The project is being developed by Fort Bonifacio Development Corporation, a partnership between Ayala Land, Inc., Evergreen Holdings, and Bases Conversion and Development Authority.

Distinguished by its own eye-catching contemporary architecture, its awesome spacious walkways and stunning sculptures by three acclaimed Filipino artists, BHS is now called the “new day city center,” dahlings.


This will be the site of the planned Science Museum at Bonifacio Global City (BGC). This is actually a portion of the Crescent West Park. I took this picture along Rizal Drive.

http://i71.photobucket.com/albums/i143/cynchyap/BGC-2007/IMG_2896.jpg

http://i71.photobucket.com/albums/i143/cynchyap/BGC-2007/IMG_2894.jpg

"High Street actually begins at the popular Serendra which opened last year. The ultimate plan is to develop the entire stretch into, would you believe, a one-kilometer lush, landscaped, pedestrian-friendly park, ending at Crescent West." ---- Therefore, at the end of the Bonifacio High Street "extension" will be this Science Museum at Crescent West Park. :banana: :banana: :banana:

Kabayan, tama sila , you need to be more specific kung anong type and saan. Malaki kaibahan ng gastos. Kung sosi na lugar tulad ng Fort Boni, lahat ng naibangit ni Master Dvorak ay mas mahal ng kaunti, pero kung paranaque o Mandaluyong Condo mo mas mura rin. Iba't ibang lugar iba't ibang charges rin kasi iyan minsan. In general iyung mga inibangit nila sa taas ang basic expenses , be prepared to pay for such things over and above your ammortization kung mayroon pa.

wowowee... i'm salivating... that thing they envision is paradise... :banana: :banana: :banana:

a perfect union of location and view!!! :cheers: inuman na!!

^ang overseas like us here, can we borrow money to fix our rickity old house

mind if i ask;
is there a rule in pnas that in order for the tenant to be removed out of their apartment, you must give them 3 month notice and they dont even have to pay. i find it absurd and unreal

yup may program ang Pag-ibig for pinoys outside pinas.. you just have to be a member.. then you can avail of the benefits, including loans.

^ang overseas like us here, can we borrow money to fix our rickity old house

mind if i ask;
is there a rule in pnas that in order for the tenant to be removed out of their apartment, you must give them 3 month notice and they dont even have to pay. i find it absurd and unreal

AFAIK there is no rule to that effect. lessor and tenant relationship is primarily governed by a contract that is supposed to contain all the terms and conditions agreed by the parties. if there is no written contract, the termination of the lessor-tenant relationship will depend on the term of payment, e.g. if the rent is monthly, the period of lease is monthly, so any of the parties can terminate the agreement at the end of each month by giving notice to that effect. it's just that if the tenant continues to use the property for 15 days after the end of each period without any objection from the lessor, the lease agreement is deemed automatically renewed.

of course, the tenant will have to pay rent as long as he is using the property. but then some lessors already require deposits/advances precisely to avoid not being paid :)

Hope this is helpful :)

Question: do the monthly association dues include the payment for the electric bill covering the common areas? kasi if few pa lang unit owners sa isang bagong condo development and then separate yung electric bill from the dues, ang laki ng babayaran coz konti pa lang kayong mag-si-share!!!

yup kasama na sa dues yung bill sa common areas..

ang ginagawa nang mga condo.. eh pare pareho ang start nang payment nang dues.. para pantay pantay.. so if they start Jan. 2006, everybody starts paying Jan. 2006.. kahit Jan. 2007 ka pa mag move.. Jan. 2006 start nang payment for the dues.

Question: do the monthly association dues include the payment for the electric bill covering the common areas? kasi if few pa lang unit owners sa isang bagong condo development and then separate yung electric bill from the dues, ang laki ng babayaran coz konti pa lang kayong mag-si-share!!!

^salamat :)
may pinapaalis kami kasi pero sobrang tagal na dun nakatira sa apartment namin
ipababarangay daw kami, kung paalisin sila
ayun din sabi ko sa sis-in-law ko na sabihing walang kontrata so it means that its month to month basis

glad to be of help :)

ah, OK. thanks for the info @Dvorak :)

I'm looking for a condo too. Something cheap, with a bedroom or two; regarding location, sa Ortigas or FB. Can anyone direct me or give me the prices of the condos within those areas? Ung hindi high-end, somewhere to stay after college lng.

^^ In the McKinley Hill area of Fort Bonifacio there is a project called Stamford which is affordably priced. Check the Stamford / McKinley Hill thread for details. Hope this helps. :)

Parang malayo siya sa FB hehe, pero I'll check it out. Thanks!

^^ Duon kasi sa McKinley Hill talagang mura pa kung tutuusin kasi mataas na ang Price/SQM sa Global City eh. Though if you want sa BGC mismo, I guess resale units in Forbeswood Heights (if you need it asap) or pre-selling BTO projects of GW (if you are willing to wait) will be the most affordable ones there I would think. Robinson and Megaworld both have several offerings in BGC as well. Check the threads na lang for more details. :) :) :)

san ba nakakakitang narerematang mga condo hahaha puro 2nd hand lang laging hinahabol mo noh haha

Foreclosed properties ng mga bangko sa Pinas should be a good source Tigs. :)

I'm looking for a condo too. Something cheap, with a bedroom or two; regarding location, sa Ortigas or FB. Can anyone direct me or give me the prices of the condos within those areas? Ung hindi high-end, somewhere to stay after college lng.

When do you need it and what size? If you need it in a few months then it has to be done now? And what exactly is cheap. 1million or 3 million or more. Something can be cheap relatively unless you mean cheap absolutely.

Anyway there are few choices for immediate move in to Fort Boni and if it's cheap even less.

You can check out the citylands in ortigas, go to buyand sell philipppines and look for cityland shaw or cityland mega plaza. In the 1m peso level di masyado madami rin as the areas you pointed out are pretty desirable and not that many units that are like that yet.

another option @animasola is to look at properties near FB. There are several DMCI developments in nearby Taguig, just 5 or a few more minutes away from FBGC :)

No to boom and bust
By Mary Ann Ll. Reyes
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007073179

I had an interesting talk with Federal Land president Alfred Ty, younger son of banking, real estate, and automobile tycoon George Ty, who shared with us valuable insights about the state of the real property sector in the country.

Alfred, who is just slightly older than the 35-year-old company which he now heads (Federal Homes started in July 1972 and became Federal Land in 2002), disagrees with the notion that the property sector has a 10-year cycle and since the current boom started eight years ago, then we should be at the tail end.

Don’t be fooled by Alfred’s youth though. As corporate secretary of Metrobank, vice-chairman of Toyota Motors Philippines, and president of the Metrobank Group’s property arm, Alfred definitely knows what he’s talking about. His wearing several hats gives him the distinct advantage of seeing the business from different perspectives.

We can’t help but commiserate with pessimists who believe that the good times are about to end. After all, these are people who lost their shirts in the ‘90s when the real estate bubble burst.

But Alfred thinks otherwise. After all, he wouldn’t be investing P8 billion (initial investment in at least 10 new projects) over the next 12 months, and much more in the next few years (one of his projects is estimated to cost at least P20 billion) if he doesn’t believe that the fundamentals are strong and sound.

Assuming that there indeed is a 10-year cycle, he believes that this can definitely be extended for a longer period by government putting into place the needed policy environment.

Of course, the pessimists (victims of the ‘90s real estate disaster) may have failed to take into account the fact that the banks are healthier, more liquid, and are focusing on consumer lending, that developers are becoming more resourceful in tapping new markets here and abroad, that the Philippines is becoming a call center and BPO haven, and of course the phenomenon that is OFW remittances. Many of these were not present in the ‘90s.

There are more sectors (banking for one) that are investing in the real estate sector. More than 10 percent of OFW remittances is spent for buying real property. Almost all the big names in business have joined the property bandwagon. These are people who are not going to risk their names, reputation, and capital. Without doubt, the local property sector will be here for the long run.

No to boom and bust
By Mary Ann Ll. Reyes
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007073179

I had an interesting talk with Federal Land president Alfred Ty, younger son of banking, real estate, and automobile tycoon George Ty, who shared with us valuable insights about the state of the real property sector in the country.

Alfred, who is just slightly older than the 35-year-old company which he now heads (Federal Homes started in July 1972 and became Federal Land in 2002), disagrees with the notion that the property sector has a 10-year cycle and since the current boom started eight years ago, then we should be at the tail end.

Don’t be fooled by Alfred’s youth though. As corporate secretary of Metrobank, vice-chairman of Toyota Motors Philippines, and president of the Metrobank Group’s property arm, Alfred definitely knows what he’s talking about. His wearing several hats gives him the distinct advantage of seeing the business from different perspectives.

We can’t help but commiserate with pessimists who believe that the good times are about to end. After all, these are people who lost their shirts in the ‘90s when the real estate bubble burst.

But Alfred thinks otherwise. After all, he wouldn’t be investing P8 billion (initial investment in at least 10 new projects) over the next 12 months, and much more in the next few years (one of his projects is estimated to cost at least P20 billion) if he doesn’t believe that the fundamentals are strong and sound.

Assuming that there indeed is a 10-year cycle, he believes that this can definitely be extended for a longer period by government putting into place the needed policy environment.

Of course, the pessimists (victims of the ‘90s real estate disaster) may have failed to take into account the fact that the banks are healthier, more liquid, and are focusing on consumer lending, that developers are becoming more resourceful in tapping new markets here and abroad, that the Philippines is becoming a call center and BPO haven, and of course the phenomenon that is OFW remittances. Many of these were not present in the ‘90s.

There are more sectors (banking for one) that are investing in the real estate sector. More than 10 percent of OFW remittances is spent for buying real property. Almost all the big names in business have joined the property bandwagon. These are people who are not going to risk their names, reputation, and capital. Without doubt, the local property sector will be here for the long run.

pero kailangang pinoy citizen ka , di puedeng americanong citizen na taga pinas!

so after making the reservation fee i was told the sales contract won't be released after i wire the 20% down payment. Does that sound right? any precautions the buyer needs to observe if doing the deal based outside the PHils?

^^ Mmm...Which developer is this Tes and are you working with a direct company Rep or a third party/independent realtor? Para lang kasi hindi yata tama yon procedure na yan ah. Sounds fishy di ba? Just that the way I see it, you've already given your reservation fee plus they're asking for the 20% down payment as well even before you can read the Sales Contract details? Too much exposure for my taste and I would not be comfortable with that arrangement if I am a prospective investor. My humble opinion only of course so please take it with a grain of salt. Let's see what others have to say about it...

it's antel.
it's reservation fee, then 10% downpayment, then 40 monthly amortization, then 50% upon turnover. But the agent ,he's an inhouse agent, said they'll only release the sales contract after they clear 20% of the payment.
I'm a little confused if that's a safe standard procedure . in the states you get a sales contract before making any dowmpayment so it can stipulate the price and the terms of contract right?
I guess most people here paid for their units in cash .
I'm really confused how to do this safely coz this will be my first time. It's not like there is an escrow company that makes sure the money is going to the right place.
Have i just lost my reservation money down the drain. :ohno:

^^ when i bought my unit, i gave i think 50k as reservation fee for which i was given a receipt. no sales contract pa at that stage.

^^ Marites, Based on Gen1's post above baka nga that's how it's done there now. Yung akin kasi noon with Philtown P25T lang yung Reservation Fee sa Fairways Tower then eh and was given a receipt for it. I didn't have to show any more money until after contract signing (there's a 30 day grace period) and when the sales transaction was finally completed, I got my sales contract paperwork that same day I gave them the cashier's check.

normal lang yan, ask for an official receipt then verify sa head office nang antel to make sure..

yup may program ang Pag-ibig for pinoys outside pinas.. you just have to be a member.. then you can avail of the benefits, including loans.

pano makiki-member dun

ano pala kaibahan satin sa process ng condo or townhouse

it's antel.
it's reservation fee, then 10% downpayment, then 40 monthly amortization, then 50% upon turnover. But the agent ,he's an inhouse agent, said they'll only release the sales contract after they clear 20% of the payment.
I'm a little confused if that's a safe standard procedure . in the states you get a sales contract before making any dowmpayment so it can stipulate the price and the terms of contract right?
I guess most people here paid for their units in cash .
I'm really confused how to do this safely coz this will be my first time. It's not like there is an escrow company that makes sure the money is going to the right place.
Have i just lost my reservation money down the drain. :ohno:

nangyari to sa mama ko nung nakipag-bid sya sa next namin lote
tapos, parang tinataasan kunyari may nakikipag-bidan.
so ginawa nagbackout si mader nasayang tuloy yung 40 thou reservation fee

^^ the reservation fee fixes the price of the property you're buying for a specified period of time.

you should have sued.

so after making the reservation fee i was told the sales contract won't be released after i wire the 20% down payment. Does that sound right? any precautions the buyer needs to observe if doing the deal based outside the PHils?


with Ayala Land Premier, you don't get to sign a Contract to Sell until after they get all the checks representing the full payment of the contract price - that's downpayment plus all post dated checks for the amortization

Thankyou kindly for all those who answered. I feel better now.
You know you hear alot of scams that happen in the PHils you just can't help but be overly cautious. i guess a reservation form is considered a binding contract until you get your sales contract.

single-detached housing units are better.....ur "noise" won't disturb your neighbors. hehehe

nangyari to sa mama ko nung nakipag-bid sya sa next namin lote
tapos, parang tinataasan kunyari may nakikipag-bidan.
so ginawa nagbackout si mader nasayang tuloy yung 40 thou reservation fee
there is nothing similar in purchasing a property and making a bid to buy a property.

at bakit ka naman magbabayad ng 40 thousand just to be able to make a bid? tapos pag di ka nanalo sa bidding, wala na yung 40 thousand mo? :nuts:

oo nga no. or maybe it is a sort of a reservation payment na. maybe tigs could explain what transpired... the conditions under which the 'transaction' took place...

It actually should be called a transaction tax. I'm just amazed that the BIR calculates the Cap Gains tax as 6% of the selling or zonal valuation of the property whichever is higher. That's not capital gains! :ohno:

^^ diba eto yung tax sa pag papalitan ang name ng titulo?

^^ diba eto yung tax sa pag papalitan ang name ng titulo?

Nope, that's the transfer tax of 1.5% of the selling price/zonal valuation whichever is higher.

Anvaya Cove, Bataan


July 2007

http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0208.jpg

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http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0235.jpg

Capital gains tax is the tax paid by the seller on the profit he made on selling his asset.

Anvaya Cove, Bataan


July 2007

http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0265.jpg

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http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0249.jpg

Anvaya Cove, Bataan


July 2007

http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0248.jpg

http://i68.photobucket.com/albums/i37/llaurenversion3/DSC_0264.jpg

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Marriage for convenience in real estate
By Gilbert C. Yu
Friday, August 10, 2007
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Land owner and developer Joint Venture (J.V.) projects are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ short of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, land owners welcome this offer to develop his property at a value much higher than what he can fetch from just selling the property.

In many ways joint venture is more similar to a marriage of convenience. It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together, that going on separate ways or thru divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Knowing the risk buyers of a joint venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the land owner gives his land to be developed, the other partner does the work of marketing and handling the project. .In the meantime it is only the developer collecting money from the buyers while the contract of sell doesn’t require land owner to have direct responsibility to the homebuyers or any legal obligation what so ever.

In some cases, the risks are higher when a government entity is the land owner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, buyer who paid and buy in good faith are left in a quandary.

Marriage for convenience in real estate
By Gilbert C. Yu
Friday, August 10, 2007
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Land owner and developer Joint Venture (J.V.) projects are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ short of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, land owners welcome this offer to develop his property at a value much higher than what he can fetch from just selling the property.

In many ways joint venture is more similar to a marriage of convenience. It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together, that going on separate ways or thru divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Knowing the risk buyers of a joint venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the land owner gives his land to be developed, the other partner does the work of marketing and handling the project. .In the meantime it is only the developer collecting money from the buyers while the contract of sell doesn’t require land owner to have direct responsibility to the homebuyers or any legal obligation what so ever.

In some cases, the risks are higher when a government entity is the land owner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, buyer who paid and buy in good faith are left in a quandary.

Marriage for convenience in real estate
By Gilbert C. Yu
Friday, August 10, 2007
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Land owner and developer Joint Venture (J.V.) projects are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ short of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, land owners welcome this offer to develop his property at a value much higher than what he can fetch from just selling the property.

In many ways joint venture is more similar to a marriage of convenience. It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together, that going on separate ways or thru divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Knowing the risk buyers of a joint venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the land owner gives his land to be developed, the other partner does the work of marketing and handling the project. .In the meantime it is only the developer collecting money from the buyers while the contract of sell doesn’t require land owner to have direct responsibility to the homebuyers or any legal obligation what so ever.

In some cases, the risks are higher when a government entity is the land owner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, buyer who paid and buy in good faith are left in a quandary.

Capital gains tax is the tax paid by the seller on the profit he made on selling his asset.

Not in the Philippines.

http://www.bir.gov.ph/taxinfo/tax_capgin.htm

Again, tax is based on the selling price or zonal valuation of the asset, not on the profit made by the seller. :bash:

Not in the Philippines.

http://www.bir.gov.ph/taxinfo/tax_capgin.htm

Again, tax is based on the selling price or zonal valuation of the asset, not on the profit made by the seller. :bash:

^^ Correction please per bir.gov.ph interpretation of capital gains which state it's a tax Imposed on the Gains presumed to have been realized by the seller from the sale,............etc.. It's the same as the U.S method. Regards!:) :) :)

^^ Correction please per bir.gov.ph interpretation of capital gains which state it's a tax Imposed on the Gains presumed to have been realized by the seller from the sale,............etc.. It's the same as the U.S method. Regards!:) :) :)

I know this is very hard to comprehend but let me re-iterate because it doesn't make sense.

In the US, capital gains tax is usually 15% for long term(over one year) holdings unless its your primary residence. 15% of the difference between the selling price and the price you acquired the property at. So you buy it a 100k, hold it for over a year, sell it for 125k and your tax is 15% of 25k(profit) or 3,750 usd.

In the Philippines, you buy a condo for 100k, sell it for 125k, the tax rate is 6% of 125K. If you bought your property at 125k and sold it for 100k and the zonal valuation is 115K, your tax rate is 6% of 115K.

Please somebody prove me wrong because I would hate to pay this tax. But everybody I've talked to even a director for the BIR tells me that the 6% is based on selling price or zonal valuation whichever is higher.

^^that is right. it's stupid but it's right. they do the same for stocks. they tax you over and over again on the same money and not just the profit.

In the Philippines, you buy a condo for 100k, sell it for 125k, the tax rate is 6% of 125K. If you bought your property at 125k and sold it for 100k and the zonal valuation is 115K, your tax rate is 6% of 115K.

Please somebody prove me wrong because I would hate to pay this tax. But everybody I've talked to even a director for the BIR tells me that the 6% is based on selling price or zonal valuation whichever is higher.


IMO, most of the zonal values of lots around metro manila are way below their current market value and it's actually a common practice to declare that properties are just sold at a price equivalent to the zonal value to "save" on capital gains taxes

IMO, most of the zonal values of lots around metro manila are way below their current market value and it's actually a common practice to declare that properties are just sold at a price equivalent to the zonal value to "save" on capital gains taxes

Isn't that tax evasion?

yup tama yan.. sa taguig lang.. a 10 to 12M condo unit's zonal value is only pegged at 3M.. pag tinanong mo kung bakit ang baba.. eh talaga daw ganon kasi pag tinaasan.. masyadong mataas na ang babayarang real property tax..

hello! eh di dapat baguhin nila yung tax computation nila pero they should reflect the true market value of the property..

IMO, most of the zonal values of lots around metro manila are way below their current market value and it's actually a common practice to declare that properties are just sold at a price equivalent to the zonal value to "save" on capital gains taxes

yup tama yan.. sa taguig lang.. a 10 to 12M condo unit's zonal value is only pegged at 3M..

I thought the zonal value sa Taguig (Fort) is 100k per sq m ?

i meant market value.. where they based the assessed value for the real property tax.

I thought the zonal value sa Taguig (Fort) is 100k per sq m ?

I thought the zonal value sa Taguig (Fort) is 100k per sq m ?

if i'm not mistaken, that is true for the lots/land

yup tama yan.. sa taguig lang.. a 10 to 12M condo unit's zonal value is only pegged at 3M.. pag tinanong mo kung bakit ang baba.. eh talaga daw ganon kasi pag tinaasan.. masyadong mataas na ang babayarang real property tax..

hello! eh di dapat baguhin nila yung tax computation nila pero they should reflect the true market value of the property..


IMO, matindi nga yung zonal values na yan coz when say a parent wants to transfer the title of a real property to his children he'll have to pay taxes based on the zonal value too kahit na walang gain yon coz di naman nabenta

^^yup even just transferring the title without money exchanges you still have to pay the taxes. we didn't know this so we put the house we bought under my sister's name, we found out we had to pay almost 2000 dollars of taxes to transfer it under our name. it's crazy. In the states you can do it through the country without any fee.

I know this is very hard to comprehend but let me re-iterate because it doesn't make sense.

In the US, capital gains tax is usually 15% for long term(over one year) holdings unless its your primary residence. 15% of the difference between the selling price and the price you acquired the property at. So you buy it a 100k, hold it for over a year, sell it for 125k and your tax is 15% of 25k(profit) or 3,750 usd.

In the Philippines, you buy a condo for 100k, sell it for 125k, the tax rate is 6% of 125K. If you bought your property at 125k and sold it for 100k and the zonal valuation is 115K, your tax rate is 6% of 115K.

Please somebody prove me wrong because I would hate to pay this tax. But everybody I've talked to even a director for the BIR tells me that the 6% is based on selling price or zonal valuation whichever is higher.

^^ pls. read the BIR's definition/description of Capital Gains Tax in its website you've posted. I could have misunderstood it. Regards!:)

^^ pls. read the BIR's definition/description of Capital Gains Tax in its website you've posted. I could have misunderstood it. Regards!:)

Here's what it says...

Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.


However, for the BIR's purposes...gain means the selling price or the zonal valuation of the property in question.

Here's what it says...

Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.


However, for the BIR's purposes...gain means the selling price or the zonal valuation of the property in question.

Oh well, thanks @arnolds. I should go back to school to enhance on my comprehension and the Phils. system of writing/journalism. Thanks again and regards!:) :)

you have apprehension? :)

you have apprehension? :)

Sorry. It's comprehension. Thanks!:)

you have apprehension? :)

sorry. it's comprehension. thanks!:)

gains from sale?? pano pag you sold it in a loss?? may capital gains tax pa rin ba?

Here's what it says...

Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.


However, for the BIR's purposes...gain means the selling price or the zonal valuation of the property in question.

gains from sale?? pano pag you sold it in a loss?? may capital gains tax pa rin ba?


kaya nga ang sabi ay "presumed" gains yung ni tax nila... so wala kang kawala... basta zonal value or selling price which ever is higher... in other words you have to at least sell at the zonal value otherwise sorry ka na lang

^^ yeah, coz I guess the Philippine BIR knows how much people undervalue real property prices for tax assessment purpose such that they pegged the capital gains tax from a presumed gain pegged at 6% of the zonal valuation or selling price or fair market value, whichever is higher. Talaga ngang walang kawala.

^^ So, what's the verdict?

Going back to the previous example, let's say I bought a property for Php5M and sold at Php8M, will I be taxed 6% on the Php3M gain, or 6% on the Php8M value? If it's the latter, sobrang hold-up naman yan! Php480,000 ang babayaran na tax kung ganyan?!

Sana may mag pamana sa akin ng condo para ibenta ko, kahit anong tax ipatong siguro meron pang matitirang pera. :lol:

Wala palang kawala sa Pinas when it comes to property taxes. Unless.... may sirang calculator yung BIR na yumayaman for fixing or adjusting taxes... kanila na yung butal na libo-libo.

^^ So, what's the verdict?

Going back to the previous example, let's say I bought a property for Php5M and sold at Php8M, will I be taxed 6% on the Php3M gain, or 6% on the Php8M value? If it's the latter, sobrang hold-up naman yan! Php480,000 ang babayaran na tax kung ganyan?!


6% on the 8M value.

I wonder if anybody has challenged this in court?

^^ whoa! so using that example and converting it into US$ (let's say $1 = Php48), then I will pay $10,000 tax on a $62,500 gain! Sobrang hold-up talaga!!!!

^^ at kung ang fair market value niyan ay 9M kahit 8M mo lang ipinag bili, mas malaki pa ang tax dahil magiging 6% ng 9M.

tama ba?

^^ at kung ang fair market value niyan ay 9M kahit 8M mo lang ipinag bili, mas malaki pa ang tax dahil magiging 6% ng 9M.

tama ba?

Yep..however, it is zonal value which I guess could be the same as fair market value. One other question I have is how does the BIR determine the zonal value of an area?

zonal for serendra is 100k per m2 + 250k per parking slot

got that from the worksheet emailed to me by the serendra sales rep during my number crunching days.

condos nearby should have similar valuations.

aren't zonals determined by LGUs, in this case the city admin of Taguig ?

Yep..however, it is zonal value which I guess could be the same as fair market value. One other question I have is how does the BIR determine the zonal value of an area?

I think the zonal value might be the assessed value as figured by the City Assessors office which are usually very low compared to the actual fair market value (sometimes 1/3 to 1/2 of the fair market value)

As what Lili mentioned that's why most Pinoys undervalue properties during sale transactions like preparing two Absolute Deed of Final Sale so the other one will show a lot lower sale price which will be used to submit in BIR for assessment purpose. The higher one will just be kept on the side for record keeping. This is hard to do specially when buying brand new condo units. This typical pinoy practice is usually done when buying lots or used residential units. The seller gain by not paying excessive capital gains tax and the buyer somestimes avoid paying the EVAT taxes.

Very interesting discussion...so at the end of the day, after factoring: (i) the other taxes paid at the beginning of the transaction; (ii) the cost of upgrades to the unit; (iii) the HOA dues; (iv) cost of travel to Pinas...wonder what kind of profit this great investment is going to return to this poor US balikbayan?

Very interesting discussion...so at the end of the day, after factoring: (i) the other taxes paid at the beginning of the transaction; (ii) the cost of upgrades to the unit; (iii) the HOA dues; (iv) cost of travel to Pinas...wonder what kind of profit this great investment is going to return to this poor US balikbayan?

Yep, its very disheartening indeed. I think the only way around it is to get the buyer to pay for the tax. :bash:

zonal for serendra is 100k per m2 + 250k per parking slot

got that from the worksheet emailed to me by the serendra sales rep during my number crunching days.

condos nearby should have similar valuations.


100k is the zonal value of the LOTs in BGC... not condos. i believe dvorak said that zonal value of a 113 sqm boni ridge condo is something like 3M

hindi yata kasi zonal value ang tawag sa munisipyo pag yung mismong condo unit.. market value yata.. so mababa talaga.. kasi dyan ni ba-based yung real property tax

100k is the zonal value of the LOTs in BGC... not condos. i believe dvorak said that zonal value of a 113 sqm boni ridge condo is something like 3M

Sana totoo ito....time to do more research. :cheers:

Ok..according to this website(excel zipped file for Taguig), Zonal Valuation for Fort Bonifacio City Center is 100k per sq m. Now, does this apply to condos as well? Every broker I've talked to have said yes.

http://www.bir.gov.ph/zonalvalues/zonalvalues.htm

as laquacherra previously posted, zonal values applies to land.

I've looked at the actual tax declaration for the 113sqm Boni Ridge unit and at the back under Accessor's finding:

Condominium = Residential
Market Value = 2,569,980
Assessment level = 40%
Assessed value = 1,027,990.00

The Official Receipt for the Real Property Tax has:

Basic = 10,279.90 + 2,878.37
SEF = 10,279.90 + 2,878.37
Total = 26,316.54

as laquacherra previously posted, zonal values applies to land.

I've looked at the actual tax declaration for the 113sqm Boni Ridge unit and at the back under Accessor's finding:

Condominium = Residential
Market Value = 2,569,980
Assessment level = 40%
Assessed value = 1,027,990.00

The Official Receipt for the Real Property Tax has:

Basic = 10,279.90 + 2,878.37
SEF = 10,279.90 + 2,878.37
Total = 26,316.54

Are we confusing two different items here though? Real Property tax is paid yearly correct (Amilyar)? Does the same computation apply to a sale transaction of a property?

I only quoted that to show the market value of the unit as assessed by the city treasurer of Taguig. So for a 10M+ condo unit in Taguig, the market value is only 2.6M, but again, the basis for Capital Gains Tax as previously quoted is on the actual selling price so the assessed market value is useless.

Now, how they came up with that market value is a big question mark to me.

Are we confusing two different items here though? Real Property tax is paid yearly correct (Amilyar)? Does the same computation apply to a sale transaction of a property?

So going back to the topic, zonal value is not equal to market value, as market value as pegged by the city treasurer is very low. So it could be true that zonal value for condo is equal to the zonal value of the land x sqm of the condo.

ZONAL VALUES OF A CONDOMINIUM UNIT/TOWNHOUSE.

IF THE TITLE OF A PARTICULAR CONDOMINIUM UNIT/TOWNHOUSE IS -
(A) A CONDOMINIUM CERTIFICATE OF TITLE (CCT), THE ZONAL VALUE OF THE LAND AND THE IMPROVEMENTS SHALL BE TREATED AS ONE; OR
(B) A TRANSFER CERTIFICATE OF TITLE (TCT), THE LAND AND IMPROVEMENT SHALL BE GIVEN SEPARATE VALUES, i.e.ZONAL VALUE/GROSS SELLING PRICE/FAIR MARKET VALUE PER LATEST TAX DECLARATION WHICHEVER IS HIGHER AND, IN THE ABSENCE OF ZONAL VALUATION, PROPERTY SHALL BE VALUED PURSUANT TO RAMO 2-91.
THE GROUND FLOOR OF THE RESIDENTIAL CONDOMINIUM SHALL BE CLASSIFIED AS COMMERCIAL AND TWENTY PERCENT (20%) OF THE ESTABLISHED VALUE SHALL BE ADDED THERETO.

For future reference, here's the BIR form.

ftp://ftp.bir.gov.ph/webadmin/forms/1706.pdf

Very interesting discussion...so at the end of the day, after factoring: (i) the other taxes paid at the beginning of the transaction; (ii) the cost of upgrades to the unit; (iii) the HOA dues; (iv) cost of travel to Pinas...wonder what kind of profit this great investment is going to return to this poor US balikbayan?

How does one decide to put their hard-earned money into this type of investment when clearly, the tax rules are not even understood? The system appears rigged for corruption (by both taxpayers and tax collectors alike).

To me, an exit strategy is paramount in any investing I do...understanding tax consequenses of an investment is a major part of that strategy.

How does one decide to put their hard-earned money into this type of investment when clearly, the tax rules are not even understood? The system appears rigged for corruption (by both taxpayers and tax collectors alike).

To me, an exit strategy is paramount in any investing I do...understanding tax consequenses of an investment is a major part of that strategy.


I believe many here are not buying in the Philippines for investment but to go back and retire there in the near future.

I have a question... for computation of capital gains tax in the Philippines, are condominiums considered real property or shares of stock in a condominium corporation?

that's good when developers have the exchange rate clause in the contract.
what happens when developers don't. it can get confusing if you're wiring funds or issuing checks especially now the exchange rate is so volatile.

^ okay, I researched it. It seems that different rates are applied for capital gains tax on sale of condominium units:

Typical Transaction Costs

A. Purchases from Individuals

a. Capital gains tax - 6% of actual sale price. This is paid by the seller but in some cases it might be expected that the buyer pays. This percentage could differ if the property assessed is being used by a business or is a title- owned by a corporation, in this case the percentage is 7.5%

b. Document stamp tax - 1.5% of the actual sale price. This is paid by the seller
but in some cases it might be expected that the buyer pays.

c. Transfer tax - 0.5% of the actual sale price.

d. Registration fee - 0.25% of the actual sale price.


B. Purchases from Developers

a. Capital gains tax - 10% of actual sale price. This value might be expressed as part of the sale price.

b. Document stamp tax - 1.5% of the actual sale price.

c. Transfer tax - 0.5% of the actual sale price.

d. Registration fee - 0.25% of the actual sale price.

Anyway, as buyers, typically we do not have to contend with this. But should we decide to sell or transfer the condominium units, then that is when we deal with it.

^^ from the bir website:

http://www.bir.gov.ph/lumangweb/tax_capgin.html


What are the applicable tax rates of Capital Gains Tax under the National Internal Revenue Code of 1997?


a) Real Properties - 6 %

b) For Shares of Stocks not Traded in the Stock Exchange, on the net Capital Gains

- Not over P100,000 - 5%

- Any amount in excess of P100,000 - 10%



Who are required to file the Final Capital Gains Tax return?


Every person, whether natural or juridical, resident or non-resident, including estates and trusts, who sells, transfers, exchanges or disposes real properties located in the Philippines classified as capital assets, including pacto de retro sales and other forms of conditional sales or shares of stocks in domestic corporations not traded through the local stock exchange classified as capital assets.

delete

100k is the zonal value of the LOTs in BGC... not condos. i believe dvorak said that zonal value of a 113 sqm boni ridge condo is something like 3M

I've rechecked my purchase documents from ALI for my serendra unit. The following is how it was computed (specifically for my unit)

a. Transfer Taxes is computed at 0.5% x zonal
b. Doc Stamps is computed at 1.5% x zonal
c. Registration Fees & Expenses is computed at __ x actual sale price. (mahaba ang formula kaya hindi ko na inilagay)

Zonal is 100K x Floor Area + 250K x # parking slots.

Real Property Taxes was computed/estimated at PhP 240 x Floor Area. Payment for my unit's RPT is yet to commence.

Uh developers actually do not pay capital gains, sales are treated as ordinary income hence credited to EWT , expanded witholding tax. The rates of these differ if you are a CREBA member or not. This does not apply to anyone here.

CCT's (condo's) and TCT (condo's) are both subject to capital gains. The basis which many seem to find confusing is the higher of either the zonal value determined by the BIR (not the municipality) based on their surveys or actual sale price.

Property taxes are not to be considered transaction fees or costs to the deal. They are separately computed by the LGU and is the main basis for their revenue. These are paid on an annual basis (can be monthly and quarterly).

When one sells the asset the term capital gains is a misnomer in that no actual gain is computed, it is a gross tax on the transaction, subject to each particular sale the particular property goes through. So whether you make money or not, you will pay (or someone will pay) the tax.

^ Thanks for the clarification everyone.

Uh developers actually do not pay capital gains, sales are treated as ordinary income hence credited to EWT , expanded witholding tax. The rates of these differ if you are a CREBA member or not. This does not apply to anyone here.

CCT's (condo's) and TCT (condo's) are both subject to capital gains. The basis which many seem to find confusing is the higher of either the zonal value determined by the BIR (not the municipality) based on their surveys or actual sale price.

Property taxes are not to be considered transaction fees or costs to the deal. They are separately computed by the LGU and is the main basis for their revenue. These are paid on an annual basis (can be monthly and quarterly).

When one sells the asset the term capital gains is a misnomer in that no actual gain is computed, it is a gross tax on the transaction, subject to each particular sale the particular property goes through. So whether you make money or not, you will pay (or someone will pay) the tax.


i guess one can always pass on the tax to the buyer... like if i want a net of say 3M i'd just add the applicable tax to my selling price. besides, the buyer really has no choice but to see to it that the capital gains tax has been paid otherwise he can't have the title of the property transferred in his name

^^ Yup like Lauren said, that's what others do actually. Normally they include them (estimated taxes to be owed/due) in their asking price already or sell the said property at a lower price but the buyer will also need to pay for the associated taxes to get the title of the property transferred in their name.

Philippines seen leading property boom in Asia
By Ronnel Domingo
Inquirer
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=82908


A global boom in housing prices has put the Philippines in the lead of an Asian rally as of the first quarter, according to a study made by online research firm Global Property Guide.

The study considered property prices as end-March, covering 27 countries and territories, including nine in the Asia-Pacific region.

Research findings show that first-quarter nominal prices in the Philippines rose 14.29 percent compared to year-ago level, higher than 13.75 percent in Singapore.

South Korea, where prices jumped 11.64 percent, completes a troika of markets in the Asia-Pacific region that showed year-on-year improvement as well as two-digit growths.

Still, Singapore led the region in terms of real price improvements, registering an increase of 13.19 percent year-on-year.

Philippine prices went up 10.04 percent while those in South Korea jumped by 9.36 percent.

“The house price boom is now moving toward Asia-Pacific,” the GPP study said. “Property prices in countries affected by the Asian crisis are showing strong signs of recovery, prompting fears that a property bubble is developing anew in the region.”

Global Property Guide senior economist Prince Christian Cruz said the current economic and monetary conditions suggest continued strong demand for housing in countries affected by the crisis.

“All economies affected by the Asian crisis grew by five percent in 2006,” Cruz said.

“GDP growth from 2002 to 2006 has been stronger than during the crisis period (1997 to 2001), although still slower compared to [the few years before the crisis set in],” he added.

Cruz said income per person in Indonesia, Hong Kong, South Korea and the Philippines were at an all time high. Here, the rate of increase was placed at 24 percent.

Global Property Guide said the Philippine real estate sector started its recovery in 2004, boosted by the business process outsourcing industry.

It added that with growing demand from overseas-based Filipinos, condominium projects were rising all over Manila and condominium prices and rents were going up.

Also, demand for office space for call centers and other business process outsourcing operations sparked the revival of the sector.

Philippines seen leading property boom in Asia
By Ronnel Domingo
Inquirer
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=82908


A global boom in housing prices has put the Philippines in the lead of an Asian rally as of the first quarter, according to a study made by online research firm Global Property Guide.

The study considered property prices as end-March, covering 27 countries and territories, including nine in the Asia-Pacific region.

Research findings show that first-quarter nominal prices in the Philippines rose 14.29 percent compared to year-ago level, higher than 13.75 percent in Singapore.

South Korea, where prices jumped 11.64 percent, completes a troika of markets in the Asia-Pacific region that showed year-on-year improvement as well as two-digit growths.

Still, Singapore led the region in terms of real price improvements, registering an increase of 13.19 percent year-on-year.

Philippine prices went up 10.04 percent while those in South Korea jumped by 9.36 percent.

“The house price boom is now moving toward Asia-Pacific,” the GPP study said. “Property prices in countries affected by the Asian crisis are showing strong signs of recovery, prompting fears that a property bubble is developing anew in the region.”

Global Property Guide senior economist Prince Christian Cruz said the current economic and monetary conditions suggest continued strong demand for housing in countries affected by the crisis.

“All economies affected by the Asian crisis grew by five percent in 2006,” Cruz said.

“GDP growth from 2002 to 2006 has been stronger than during the crisis period (1997 to 2001), although still slower compared to [the few years before the crisis set in],” he added.

Cruz said income per person in Indonesia, Hong Kong, South Korea and the Philippines were at an all time high. Here, the rate of increase was placed at 24 percent.

Global Property Guide said the Philippine real estate sector started its recovery in 2004, boosted by the business process outsourcing industry.

It added that with growing demand from overseas-based Filipinos, condominium projects were rising all over Manila and condominium prices and rents were going up.

Also, demand for office space for call centers and other business process outsourcing operations sparked the revival of the sector.

Merged all discussions about real estate-related documents into this thread...

Here is a sample of a CTS: http://legal-forms.philsite.net/contract-to-sell.htm

i guess one can always pass on the tax to the buyer... like if i want a net of say 3M i'd just add the applicable tax to my selling price. besides, the buyer really has no choice but to see to it that the capital gains tax has been paid otherwise he can't have the title of the property transferred in his name

Youre right, buyers have no choice...they're itching to buy...great strategy...you're on your way to making millions of pesos. You know, you can write a book with that selling strategy!

i don't know any buyer that would be willing to pay the capital gains tax of the seller.

:rofl:

On homeowners’ right to buy a transparent contract
By Architect Gilbert C. Yu
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Joint-Venture (JV) projects between landowners and developers are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ shortage of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, landowners welcome this offer to develop their property at a value much higher than what they can fetch from just selling the property.

Like a marriage of convenience

In many ways joint venture is more similar to a marriage for convenience.

It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together; that going on separate ways or through divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Know JV contract details

Aware of the risk, buyers of a joint-venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the landowner gives his land to be developed, the other partner does the work of marketing and handling the project. In the meantime it is only the developer collecting money from the buyers while the sales contract doesn’t require landowner to have direct responsibility to the homebuyers or any legal obligation whatsoever.

In some cases, the risks are higher when a government entity is the landowner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, the buyer who paid and buy in good faith are left in a quandary.

Take the case of a high-end development for a golf and country club in Northern Luzon under the auspices of a government authority. The developer experienced some form of success with its offer of high-end housing but allegedly defaulted on payment obligations to the government.

Only after the government entity issued a warning that it would retake the property did the developer pay up partially.

The danger of litigation always exists between the developer and the landowner at the expense of the buyers which have no knowledge of the details of the partnership.

In some cases, incomplete fulfillment of the developer’s obligation cause the landowners refusal to surrender the land title to be processed for the issuance of a condo title. And when this happens the buyer cannot do anything, leaving them hanging and their investment in thin air again.

Land title should be put in trust

For buyers who already took the risk of buying in to a JV project, insist that the JV contract be transparent for review by a lawyer to see if they’re properly protected even when there’s a quarrel between the JV partners.

Absolutely there should be no compromise. Since 3rd party landowner is involved, insist that the land title be put in trust. This will work to the buyers’ advantage because it means that the landowner recognizes your contract with the developer.

But if the said condition is not possible and the buyers still feel that they are treading with a shadow of a doubt… Once a contract is drawn, the buyer should assert their rights by requiring the landowner-partner to be a binding 3rd party signatory, for the simple reason that land is also included in the sales.

On homeowners’ right to buy a transparent contract
By Architect Gilbert C. Yu
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Joint-Venture (JV) projects between landowners and developers are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ shortage of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, landowners welcome this offer to develop their property at a value much higher than what they can fetch from just selling the property.

Like a marriage of convenience

In many ways joint venture is more similar to a marriage for convenience.

It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together; that going on separate ways or through divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Know JV contract details

Aware of the risk, buyers of a joint-venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the landowner gives his land to be developed, the other partner does the work of marketing and handling the project. In the meantime it is only the developer collecting money from the buyers while the sales contract doesn’t require landowner to have direct responsibility to the homebuyers or any legal obligation whatsoever.

In some cases, the risks are higher when a government entity is the landowner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, the buyer who paid and buy in good faith are left in a quandary.

Take the case of a high-end development for a golf and country club in Northern Luzon under the auspices of a government authority. The developer experienced some form of success with its offer of high-end housing but allegedly defaulted on payment obligations to the government.

Only after the government entity issued a warning that it would retake the property did the developer pay up partially.

The danger of litigation always exists between the developer and the landowner at the expense of the buyers which have no knowledge of the details of the partnership.

In some cases, incomplete fulfillment of the developer’s obligation cause the landowners refusal to surrender the land title to be processed for the issuance of a condo title. And when this happens the buyer cannot do anything, leaving them hanging and their investment in thin air again.

Land title should be put in trust

For buyers who already took the risk of buying in to a JV project, insist that the JV contract be transparent for review by a lawyer to see if they’re properly protected even when there’s a quarrel between the JV partners.

Absolutely there should be no compromise. Since 3rd party landowner is involved, insist that the land title be put in trust. This will work to the buyers’ advantage because it means that the landowner recognizes your contract with the developer.

But if the said condition is not possible and the buyers still feel that they are treading with a shadow of a doubt… Once a contract is drawn, the buyer should assert their rights by requiring the landowner-partner to be a binding 3rd party signatory, for the simple reason that land is also included in the sales.

On homeowners’ right to buy a transparent contract
By Architect Gilbert C. Yu
http://www.philstar.com/index.php?Real%20Estate&p=49&type=2&sec=37

Joint-Venture (JV) projects between landowners and developers are a boon lately, especially after the bank closed their lending window to plain land mortgages without a financial plan incorporated into it. Left and right we see the merging of forces — big businesses fuse their efforts and assets for this type of housing development, condominium tower and the like.

Most layman investor or homebuyer sees this as a good indication — of two big groups who have joined together to do a project that redounds to reliability and soundness.

But, what they don’t know is that it is not as simple as it may seem.

Primarily speaking joint ventures arise from the developers’ shortage of capital or refusal to infuse capital to purchase land — avoiding risk by pushing it to someone else. On the other hand, landowners welcome this offer to develop their property at a value much higher than what they can fetch from just selling the property.

Like a marriage of convenience

In many ways joint venture is more similar to a marriage for convenience.

It is a mutually beneficial partnership that doesn’t have the foundation of loyalty to last long, and is not really tied down to keep the vows like “for poorer or for richer till death do us part.” Yes there is nuptial bliss but the union isn’t strong enough to weather tough times together; that going on separate ways or through divorce litigation is a quicker and better solution than working things out during bad times.

When a marriage goes bad and marital disputes arise, the children are the victims of these unfortunate circumstances, similarly if a J.V. partnership ends up in litigation… the victim is the buyer — patronizer of the unhealthy union.

Know JV contract details

Aware of the risk, buyers of a joint-venture project should insist to know the details of the joint venture contract from the seller developer.

Be aware of the responsibility of each partner. As the landowner gives his land to be developed, the other partner does the work of marketing and handling the project. In the meantime it is only the developer collecting money from the buyers while the sales contract doesn’t require landowner to have direct responsibility to the homebuyers or any legal obligation whatsoever.

In some cases, the risks are higher when a government entity is the landowner partner. Changes in the administration often result to alteration or renegotiation sometimes with impossible demands that the developer cannot cope with. Then problems arise, the buyer who paid and buy in good faith are left in a quandary.

Take the case of a high-end development for a golf and country club in Northern Luzon under the auspices of a government authority. The developer experienced some form of success with its offer of high-end housing but allegedly defaulted on payment obligations to the government.

Only after the government entity issued a warning that it would retake the property did the developer pay up partially.

The danger of litigation always exists between the developer and the landowner at the expense of the buyers which have no knowledge of the details of the partnership.

In some cases, incomplete fulfillment of the developer’s obligation cause the landowners refusal to surrender the land title to be processed for the issuance of a condo title. And when this happens the buyer cannot do anything, leaving them hanging and their investment in thin air again.

Land title should be put in trust

For buyers who already took the risk of buying in to a JV project, insist that the JV contract be transparent for review by a lawyer to see if they’re properly protected even when there’s a quarrel between the JV partners.

Absolutely there should be no compromise. Since 3rd party landowner is involved, insist that the land title be put in trust. This will work to the buyers’ advantage because it means that the landowner recognizes your contract with the developer.

But if the said condition is not possible and the buyers still feel that they are treading with a shadow of a doubt… Once a contract is drawn, the buyer should assert their rights by requiring the landowner-partner to be a binding 3rd party signatory, for the simple reason that land is also included in the sales.

i don't know any buyer that would be willing to pay the capital gains tax of the seller.

yup! in much the same way buyers would NOT be willing to pay the 12%VAT but, depending which the developer/seller they buy from, they still end up paying for the VAT anyways

^^ Yup I agree. Nasa negotiation na kasi yon ng seller and buyer. :)

Youre right, buyers have no choice...they're itching to buy...great strategy...you're on your way to making millions of pesos. You know, you can write a book with that selling strategy!

i don't know any buyer that would be willing to pay the capital gains tax of the seller.

@lazybum, I don't understand where your sarcasm is coming from, as this practice happens all the time in a sellers' market. In fact, in Singapore right now where the property market is red hot, buyers are being forced to take this burden, for lack of a better word. Sellers are even upfront with buyers about it. In Montreal about three years ago, this was also not unheard of, when the property market suddenly bounced back up. I stated this two examples as I can only speak from experience.

@crappypants, I'm sure buyers are not willing to pay the capital gains, and I actually don't agree that this should be the case, but like I said above, this happens often in a sellers' market. Not fair, yes, but it happens.

^^ Yup such transaction definitely happens in Pinas just like what Lauren and Jen mentioned. It really boils down to how badly the buying party wants the property. For example the house and lots in Sta.Mesa Heights our family once owned were bought by some Chinese-Filipinos with all inclusive buy offers (capital gains and others taxes and incidental costs included) so the deal for whatever amount it was is actually free and clear already. They paid for the taxes first afterwhich they gave us the rest/balance after when all the paperwork was in order. All of them like that when we got rid of our ancestral home and some rental units in the area. Lapit lang kasi sa Banaue/St.Theresas so they may be eyeing it for possible commercial prospect/use. Sabi din nila the area is in the belly of the dragon or something to that effect kanya very desirable daw for the chinese.

i guess one can always pass on the tax to the buyer... like if i want a net of say 3M i'd just add the applicable tax to my selling price. besides, the buyer really has no choice but to see to it that the capital gains tax has been paid otherwise he can't have the title of the property transferred in his name

yup! in much the same way buyers would NOT be willing to pay the 12%VAT but, depending which the developer/seller they buy from, they still end up paying for the VAT anyways

What can you say about this guys?

"Project completion is expected on or before mm/dd/yyyy, exclusive of twenty four (24) months grace period."

24 months!?? Isn't that too long? I couldn't believe it when I read it.

From a purely financial point of view, best not to get tied down with labels and current practice and whatever baggage it may bring. The semantics of who actually pays makes it difficult to Recognize that all these are transaction costs and that ultimately both sides actualy pay for these. In the end there is a net amount that the seller is happy to part his asset with and there is a gross amount that any buyer will pay to acquire said asset. Any piece of transaction cost, whether it is brokers fee, capital gains, doc stamps, registration, title insurance, boring tests, title verification etc etc etc is just sums of money to be bargained with, who actually pays is secondary to the bottom line of the minimum amount a seller will receive and the maximum amount a buyer will pay.

In the last lot purchase I had, I had the seller pay for the cost of resurvey, the attorney that assisted me (prepared the conditions of sale agreement and deed of final sale), capital gains, documentary, transfer tax and the latest property tax.

Almost all the big developers have jv's with landowners. e.g. who do you think actually owns the land underneath serendra :) clue it's a GOP entity. The country's largest horizontal land developer Sta Lucia almost never buys any land and they've have hundreds of projects.

Isn't the serendra land owned bu ALI and the Greenfields joint venture.

The land where SOMA sits is fully paid for by the developer.

But I hear a developer with a couple of buildings overlooking manila golf is having money trouble. He's paying his contractors with units in the condo they're building. That's a big no-no for reputable contractors, and only struggling contractors with short client lists will go for such an arrangement.

^^ yeah, 2 years is quite a long grace period. looks like the developer really got his back covered

^^ i think that's why there were those BCDA units

^^ yeah, 2 years is quite a long grace period. looks like the developer really got his back covered

I am having them amend the contract before I will sign it. 1 year would be more reasonable.

[QUOTE=..... In fact, in Singapore right now where the property market is red hot, buyers are being forced to take this burden, for lack of a better word. ...[/QUOTE]

FYI - there is no capital gain tax in Singapore.

Youre right, buyers have no choice...they're itching to buy...great strategy...you're on your way to making millions of pesos. You know, you can write a book with that selling strategy!



:rofl: :rofl: :rofl:

FYI - there is no capital gain tax in Singapore.

No, Singapore does not tax capital gains of either foreigner or resident shareholders, BUT when a series of transactions takes place, the powers-that-be view it as a “business transaction” within Singapore, and capital gains are sometimes taxed as ordinary income. While capital gains are not taxed, a tax charge of some 26% arises on distributions of a capital gain. This has happened to me and other investors and has led to taxpayer disputes in the past.

But the point of my post above was not merely about capital gains, but other 'burdens' passed on to buyers by sellers in a sellers market (and vice versa when it is a buyers' market.) This includes passing on the cost of hiring the rea estate agent, stamp fees, etc.

Don't remember if this has been posted before...

For the complete article go to: http://www.globalpropertyguide.com/country.php?id=154&cid=as&cat=3

Philippines: Rental Yields for:
Makati Central Business District, Ortigas Center, Eastwood City, Global City
Source: Global Property Guide
As of February 27, 2007

Most of the luxury condominiums are located in Makati CBD, Rockwell, Ortigas Center and Fort Bonifacio. Rental yields for these units are high.

The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).



_____________________________



Philippines: High Yields on Metro Manila Condominiums
by Prince Christian Cruz

The rental returns from letting residential condominiums in central areas of Metro Manila range from 8% to 15% yearly, according to a survey just released by the Global Property Guide.

The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).

The same pattern holds in other condominium segments. One to two bedroom units (measuring 50 – 90 sq. m.) earn around 12%-15%, but the highest returns can be earned on the smaller (60 sq. m.) condos, which earn rental returns of 15%. Larger 1 – 2 bedroom condos (80 sq. m.) earn rather lower returns (11.5%).

“The pattern is unusual,” says Matthew Pollock, publisher of the Global Property Guide. “Instead of a smooth progression from high yielding units to low, we have high to low with high-yielding 'ridges' or 'lumps' at particular apartment sizes - which correspond to the smallest case of a particular number of bedrooms.”

Investment plus

Interest rates in the Philippines are at historic lows, making such condominium unit returns highly attractive. At present 364-day T-bills yield less than 3.82%, while interest rates on one-year time deposits are around 1.5% - 2% annually. A five-year time deposit returns only 5% per annum, and a 5-year T-bond earns 5.68%.

Demand for residential condominiums in Metro Manila has been boosted by strong economic growth, particularly by the rapid growth of business process outsourcing firms, including call centers. Call center agents form a new breed of young urban professionals with tremendous purchasing power. Because most call center agents work at night, they need condominium units that are right next to their work place.

“The lesson is clear - to earn good money, buy a small unit in Metro Manila’s business districts, with very small rooms. The returns will be significantly better than in most cities in Asia,” Pollock says.
The growth of the condominium sector has also been helped by the fact that they are free from the title registration and property appraisal problems which commonly hound landed properties in the Philippines.

Foreigners are also allowed to purchase condo units, as long as the foreign component does not exceed 40% of the building. There is no rent control for units with monthly rents above P10,000 (US$208). Under that level, the Rent Control Act limits annual rent increases to 10%.

A significant expansion of the mortgage market has recently occurred in the Philippines. Banks are keen to lend up to 70% of the purchase price. Adjustable rate mortgages are available at interest rates of 9% to 9.99%, with fixed-rate loans of 5+ years costing 1% - 1.5% more.

Excessive taxation

Potential investors, however, should beware of the very high taxes and fees they may have to pay on their condominium units.

For instance, the rental income of foreigners is charged a withholding tax of 25%. A value added tax of 12% is, in addition, imposed on units with monthly rents exceeding P10,000 a month (US$208).

Round trip buy-sell costs for property transactions can reach up to 35% of the selling price because of numerous taxes and fees, such as VAT (12%), capital gains tax (6%), not to mention the very high real estate agents’ fee (5%), and other registration costs.

Don't remember if this has been posted before...

For the complete article go to: http://www.globalpropertyguide.com/country.php?id=154&cid=as&cat=3

Philippines: Rental Yields for:
Makati Central Business District, Ortigas Center, Eastwood City, Global City
Source: Global Property Guide
As of February 27, 2007

Most of the luxury condominiums are located in Makati CBD, Rockwell, Ortigas Center and Fort Bonifacio. Rental yields for these units are high.

The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).



_____________________________



Philippines: High Yields on Metro Manila Condominiums
by Prince Christian Cruz

The rental returns from letting residential condominiums in central areas of Metro Manila range from 8% to 15% yearly, according to a survey just released by the Global Property Guide.

The smallest apartments in each segment earn the highest yields. For instance, studio apartments in the prime areas of Metro Manila can earn around 13%-15%. But the highest returns are available on the smallest studios (30 sq. m.), which earn rental returns of an average of 15.1%. Larger studio condos (40 sq. m.) earn slightly lower returns (12.9%).

The same pattern holds in other condominium segments. One to two bedroom units (measuring 50 – 90 sq. m.) earn around 12%-15%, but the highest returns can be earned on the smaller (60 sq. m.) condos, which earn rental returns of 15%. Larger 1 – 2 bedroom condos (80 sq. m.) earn rather lower returns (11.5%).

“The pattern is unusual,” says Matthew Pollock, publisher of the Global Property Guide. “Instead of a smooth progression from high yielding units to low, we have high to low with high-yielding 'ridges' or 'lumps' at particular apartment sizes - which correspond to the smallest case of a particular number of bedrooms.”

Investment plus

Interest rates in the Philippines are at historic lows, making such condominium unit returns highly attractive. At present 364-day T-bills yield less than 3.82%, while interest rates on one-year time deposits are around 1.5% - 2% annually. A five-year time deposit returns only 5% per annum, and a 5-year T-bond earns 5.68%.

Demand for residential condominiums in Metro Manila has been boosted by strong economic growth, particularly by the rapid growth of business process outsourcing firms, including call centers. Call center agents form a new breed of young urban professionals with tremendous purchasing power. Because most call center agents work at night, they need condominium units that are right next to their work place.

“The lesson is clear - to earn good money, buy a small unit in Metro Manila’s business districts, with very small rooms. The returns will be significantly better than in most cities in Asia,” Pollock says.
The growth of the condominium sector has also been helped by the fact that they are free from the title registration and property appraisal problems which commonly hound landed properties in the Philippines.

Foreigners are also allowed to purchase condo units, as long as the foreign component does not exceed 40% of the building. There is no rent control for units with monthly rents above P10,000 (US$208). Under that level, the Rent Control Act limits annual rent increases to 10%.

A significant expansion of the mortgage market has recently occurred in the Philippines. Banks are keen to lend up to 70% of the purchase price. Adjustable rate mortgages are available at interest rates of 9% to 9.99%, with fixed-rate loans of 5+ years costing 1% - 1.5% more.

Excessive taxation

Potential investors, however, should beware of the very high taxes and fees they may have to pay on their condominium units.

For instance, the rental income of foreigners is charged a withholding tax of 25%. A value added tax of 12% is, in addition, imposed on units with monthly rents exceeding P10,000 a month (US$208).

Round trip buy-sell costs for property transactions can reach up to 35% of the selling price because of numerous taxes and fees, such as VAT (12%), capital gains tax (6%), not to mention the very high real estate agents’ fee (5%), and other registration costs.

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Playa Calatagan - Video 1 (http://www.youtube.com/watch?v=-ze-kYc616k)


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Playa Calatagan - Video 2 (http://www.youtube.com/watch?v=E39GU3aK3GM)


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Playa Calatagan - Video 3 (http://www.youtube.com/watch?v=zb8iezacVGo)

Global housing boom shifts focus
By: Global Property Guide
Last Updated: July 25, 2007
http://www.globalpropertyguide.com/articleread.php?article_id=94&cid=


The global house price boom continues in 2007, albeit at a much slower pace and with different set of countries.

A dramatic slowdown has taken place in several countries in Europe. House prices in Estonia, 2005 and 2006’s star performer, rose only 5.68% y-o-y to Q1 2007, dramatically lower than the 77.52% y-o-y increase to Q1 2006.

Higher interest rates and an overheating market were the main causes of the slowdown. The key interest rate of the European Central Bank (ECB) has been raised nine times to 4% in June 2007, from its historic low of 2% in Nov 2006.

Other European countries that experienced lower house price changes y-o-y to Q1 2007 than in 2006 included France, Sweden, Ireland, Spain, Greece, the Netherlands, Switzerland and Portugal.

Ireland’s annual house price growth slowed to 7.44% y-o-y to Q1 2007, a deceleration from 12.07% y-o-y to Q1 2006. Apart from the higher interest rate, the heating issue on Stamp Duty also contributed to the decline.

The US house price rise also slowed to 4.07% y-o-y to Q1 2007, down from 12.78% y-o-y to Q1 2006.

The US Federal Funds rate has risen sharply from its low of 1% in May 2004 to its current level of 5.25%. The Fed has kept the rate unchanged since June 2006. This rate increase has meant trouble for sub-prime borrowers, leading to delayed payments and foreclosures.


Strong rises in non-Eurozone Europe

Interestingly, European countries which have not adopted the Euro have experienced stronger house price rises y-o-y to Q1 2007, than countries within the zone. Such is the case of Latvia which plans to adopt the Euro in 2010. Latvia took the lead in house price increases y-o-y to Q1 2007.

Latvia's capital, Riga, experienced a remarkable appreciation of 61.91% y-o-y to Q1 2007, higher than the 35.64% y-o-y increase to Q1 2006. However, recent data from Latio, Latvia's leading research-oriented real estate agency, show that prices have started to fall in Q2 2007.

Lithuania’s house prices rose by 26.32% y-o-y to Q1 2007, up from 25% y-o-y to Q1 2006. Lithuania has recently increased its long-term interest rate to 4.6% in June 2007, from 4.2% in March 2007. The European Commission rejected Lithuania’s bid to adopt the euro in 2007 because its inflation breached the required limit.

House prices in Norway were up by 16.69% y-o-y to Q1 2007. Norway rejected EU membership in a referendum in 1972, and again in 1994. Positive factors such as continued economic expansion and the strength of the labour market overpowered the pull exerted by higher interest rates.

After taking a breather in 2005 and early 2006, house price growth in the UK accelerated to 9.25% y-o-y to Q1 2007, up from 5.3% y-o-y to Q1 2006. Particularly, Northern Ireland and London saw double-digit y-o-y house price increases in Q1 2007, at 57.6% and 14.3%, respectively.

Cyprus, which is set to adopt the Euro starting January 2008, is in a middle of a housing boom with house prices rising by almost 10% y-o-y to Q1 2007. Liberalization of the financial sector, a decrease in interest rates, and increased demand for higher quality housing and second homes were the main drivers for the price boom.


Now it’s Asia–Pacific’s turn

The house price boom is now moving towards the Asia-Pacific region. Property prices in countries affected by the Asian Crisis are showing strong signs of recovery, prompting fears that a property bubble is developing anew in the region.

Property prices in the Philippines, Singapore and South Korea rose by more than 10% y-o-y to Q1 2007, higher than in 2006. Although Japan registered a nationwide land price drop of 1.48%, land prices in its six major cities increased by a remarkable 7.75% y-o-y to Q1 2007, suggesting a real recovery from the 15-year house price downturn. There are no official house price statistics in Japan, so land prices are used as a proxy.

Australia has recovered from its 2004-2006 slowdown. Despite higher interest rates, house prices rose by almost 8% y-o-y to Q1 2007, from 4% y-o-y to Q1 2006.

New Zealand’s house prices rose by 11.36% y-o-y to Q1 2007, significantly up from 9.55% y-o-y to Q4 2006. This is despite the fact that the Reserve Bank of New Zealand (RBNZ) has increased interest rates since early 2004 to cool down the housing market.

Elsewhere, South Africa saw 16.74% house price increases y-o-y to Q1 2007. South Africa’s house prices have been escalating for seven continuous years, with price increases peaking at 30% in 2004.

Canada’s house prices moved forward in Q1 2007, thanks to strong economic growth, low mortgage rates and large net immigration. House prices rose 9.30% y-o-y to Q1 2007, up from 7.55% y-o-y to Q1 2006.


The laggards

Thailand and Israel, after suffering from political crises, have not yet recouped the confidence of investors. This resulted in a drop of 5.09% y-o-y to Q1 2007 in Thailand’s house prices, down from an 8.03% y-o-y increase to Q1 2006. Israel’s house prices fell by 10.52% y-o-y to Q1 2007, due to increased political and security concerns in the Middle East.

Portugal’s sluggish economic expansion exacerbated the effect of higher Euro interest rates. House prices have risen by a meager 1.14% y-o-y to Q1 2007, after an already low growth rate of 2.17% y-o-y to Q1 2006.

Global housing boom shifts focus
By: Global Property Guide
Last Updated: July 25, 2007
http://www.globalpropertyguide.com/articleread.php?article_id=94&cid=


The global house price boom continues in 2007, albeit at a much slower pace and with different set of countries.

A dramatic slowdown has taken place in several countries in Europe. House prices in Estonia, 2005 and 2006’s star performer, rose only 5.68% y-o-y to Q1 2007, dramatically lower than the 77.52% y-o-y increase to Q1 2006.

Higher interest rates and an overheating market were the main causes of the slowdown. The key interest rate of the European Central Bank (ECB) has been raised nine times to 4% in June 2007, from its historic low of 2% in Nov 2006.

Other European countries that experienced lower house price changes y-o-y to Q1 2007 than in 2006 included France, Sweden, Ireland, Spain, Greece, the Netherlands, Switzerland and Portugal.

Ireland’s annual house price growth slowed to 7.44% y-o-y to Q1 2007, a deceleration from 12.07% y-o-y to Q1 2006. Apart from the higher interest rate, the heating issue on Stamp Duty also contributed to the decline.

The US house price rise also slowed to 4.07% y-o-y to Q1 2007, down from 12.78% y-o-y to Q1 2006.

The US Federal Funds rate has risen sharply from its low of 1% in May 2004 to its current level of 5.25%. The Fed has kept the rate unchanged since June 2006. This rate increase has meant trouble for sub-prime borrowers, leading to delayed payments and foreclosures.


Strong rises in non-Eurozone Europe

Interestingly, European countries which have not adopted the Euro have experienced stronger house price rises y-o-y to Q1 2007, than countries within the zone. Such is the case of Latvia which plans to adopt the Euro in 2010. Latvia took the lead in house price increases y-o-y to Q1 2007.

Latvia's capital, Riga, experienced a remarkable appreciation of 61.91% y-o-y to Q1 2007, higher than the 35.64% y-o-y increase to Q1 2006. However, recent data from Latio, Latvia's leading research-oriented real estate agency, show that prices have started to fall in Q2 2007.

Lithuania’s house prices rose by 26.32% y-o-y to Q1 2007, up from 25% y-o-y to Q1 2006. Lithuania has recently increased its long-term interest rate to 4.6% in June 2007, from 4.2% in March 2007. The European Commission rejected Lithuania’s bid to adopt the euro in 2007 because its inflation breached the required limit.

House prices in Norway were up by 16.69% y-o-y to Q1 2007. Norway rejected EU membership in a referendum in 1972, and again in 1994. Positive factors such as continued economic expansion and the strength of the labour market overpowered the pull exerted by higher interest rates.

After taking a breather in 2005 and early 2006, house price growth in the UK accelerated to 9.25% y-o-y to Q1 2007, up from 5.3% y-o-y to Q1 2006. Particularly, Northern Ireland and London saw double-digit y-o-y house price increases in Q1 2007, at 57.6% and 14.3%, respectively.

Cyprus, which is set to adopt the Euro starting January 2008, is in a middle of a housing boom with house prices rising by almost 10% y-o-y to Q1 2007. Liberalization of the financial sector, a decrease in interest rates, and increased demand for higher quality housing and second homes were the main drivers for the price boom.


Now it’s Asia–Pacific’s turn

The house price boom is now moving towards the Asia-Pacific region. Property prices in countries affected by the Asian Crisis are showing strong signs of recovery, prompting fears that a property bubble is developing anew in the region.

Property prices in the Philippines, Singapore and South Korea rose by more than 10% y-o-y to Q1 2007, higher than in 2006. Although Japan registered a nationwide land price drop of 1.48%, land prices in its six major cities increased by a remarkable 7.75% y-o-y to Q1 2007, suggesting a real recovery from the 15-year house price downturn. There are no official house price statistics in Japan, so land prices are used as a proxy.

Australia has recovered from its 2004-2006 slowdown. Despite higher interest rates, house prices rose by almost 8% y-o-y to Q1 2007, from 4% y-o-y to Q1 2006.

New Zealand’s house prices rose by 11.36% y-o-y to Q1 2007, significantly up from 9.55% y-o-y to Q4 2006. This is despite the fact that the Reserve Bank of New Zealand (RBNZ) has increased interest rates since early 2004 to cool down the housing market.

Elsewhere, South Africa saw 16.74% house price increases y-o-y to Q1 2007. South Africa’s house prices have been escalating for seven continuous years, with price increases peaking at 30% in 2004.

Canada’s house prices moved forward in Q1 2007, thanks to strong economic growth, low mortgage rates and large net immigration. House prices rose 9.30% y-o-y to Q1 2007, up from 7.55% y-o-y to Q1 2006.


The laggards

Thailand and Israel, after suffering from political crises, have not yet recouped the confidence of investors. This resulted in a drop of 5.09% y-o-y to Q1 2007 in Thailand’s house prices, down from an 8.03% y-o-y increase to Q1 2006. Israel’s house prices fell by 10.52% y-o-y to Q1 2007, due to increased political and security concerns in the Middle East.

Portugal’s sluggish economic expansion exacerbated the effect of higher Euro interest rates. House prices have risen by a meager 1.14% y-o-y to Q1 2007, after an already low growth rate of 2.17% y-o-y to Q1 2006.

Special Feature: 2nd Quarter Real Estate Report

(Business World (Philippines) Via Thomson Dialog NewsEdge) Water levels may have gone up this rainy season, raising the alarm bells for some sectors. But for the resilient real estate industry, which is now awash with investments, the rainy spell does not bring on the blues as the sector awaits to be flooded with more projects.

Having posted significant growth in the past four years, the local property sector looks more bent than ever in beating the dry spell that ravaged the industry in the late 1990s.

In the past two weeks alone, Eton Properties, Inc. launched the 41- storey Eton Emerald Lofts, Rockwell Land Corp. started the construction for the much-anticipated Number One Rockwell, DMCI Homes partnered with Equitable PCI Bank in developing the Riverside Residences, and One Asia Development Corp. jump-started its P100-million business park in Binan, Laguna.

Despite the storm of new projects, David Leechiu, president and general manager of property consultancy firm Leechiu & Associates, insists that supply across all segments remains tight, a lack that at this rate is expected to be relieved no sooner than by June next year.

Coupled with a corresponding deficit in quality stock, these factors are mainly responsible for the escalation of rent values in prime locations, although a widespread increase in land values is yet to be seen.

"Prices have stayed generally flat across Metro Manila and we are nowhere near pre-crisis values yet except in Fort Bonifacio, which makes it the safest place to invest in at the moment," Mr. Leechiu said.

Land values at Fort Bonifacio in Taguig dropped by as much as 50% in the 1997 crisis but have seen a hundred percent increase since the Bonifacio West Development Corp. -a joint venture of Greenfield Development Corp. and Ayala Land Corp. - took over its development, making the area the country's top sales performer in recent months.

Of the central business districts, Makati still holds the prime spot, with average asking prices ranging from P250,000 to P300,000 per square meter. Ortigas, which reached a low of P90,000 per square meter from a peak of P180,000 per square meter in 1997, is now trading between P110,000 and P120,000 per square meter, Mr. Leechiu said.

Despite its 100% occupancy rate in office space, Fort Bonifacio, remains comparatively cheap at P175,000 to P215,000 per square meter, making it a favorite alternative to the Makati central business district.

"We now see a lot of migration to Fort Bonifacio in all segments. Being in close proximity to Makati, many locators choose Fort Bonifacio because it has a well-planned, well-constructed environment that is only one step away from the Makati facilities that they have gotten used to," he said.

According to the latest Colliers International Philippine Property Overview, there had been a 20% increase in office space rents in the second quarter due primarily to the dearth of quality office supply, a factor that has hindered companies from opening businesses in the country since 2005.

Monthly lease rates for premium office space in Makati are now at the P1,200-per-square meter level while Fort Bonifacio is up to P750 per square meter. Meanwhile, for other districts, monthly lease rates are still at the P400- to P600-per-square meter transaction range.

Mr. Leechiu has pegged Fort Bonifacio's annual rate increase at seven to eight percent for the next three to four years, while Makati accrual is calculated at five percent for the next two to three years before slowing down to two percent.

As available space in these two areas will continue to be limited, a significant amount of future office space supply can be found from emerging business districts such as Eastwood City, Binondo and Old Manila.

Next year will bring good news to the business process outsourcing (BPO) sector, which continues to be the main driver for office space demand, as the number of available supply coming on-stream will double towards the third and fourth quarter, offering more quality stock to choose from.

Tight supply in commercial space will be slightly relieved with the completion of the Ayala Center Building Glorietta 5 and the Dela Rosa e- Services Building in Makati, the Total Corporate Center in Fort Bonifacio, and the One E-Com Center at the SM Central Business Park in the Bay area before mid-2008.


Residential development

And as Metro Manila population continues to increase, condo living is fast becoming the habitat of choice for reasons of cost and practicability.

An estimated 23,000 units is due for completion before 2010, 60% of which will be situated in Fort Bonifacio and Makati, with the remaining 40% scattered across Quezon City, Mandaluyong, Las Pinas and other Metro Manila districts. A big chunk of supply will cater to mid to upper market, while small percentage of the total is targeted for the low-end market.

The steady inflow of overseas foreign worker (OFW) remittances, now reaching all-time highs, assures the continuance of strong demand in the residential market.

"Lately, we have seen a shift from semi-skilled workers to high-end professionals leaving the country to work abroad and despite their high- paying jobs, they are still not covered by expatriate packages where the company pays for the whole family's expenses. This in turn becomes a good motivator for OFWs to continue sending money to the Philippines," Mr. Leechiu pointed out.

Single-digit mortgage rates and easier payment schemes will result in more retail purchases from the middle class in the years to come. For professionals, Mr. Leechiu said there's a growing preference for centrally located condominium units over suburban houses in distant locations such as Las Pinas and Rizal.

Another significant source of investment demand are the local families who had parked money abroad during the Asian financial slump, but are now pre-terminating their placements and transferring them back to the Philippines.

Despite visible demand and propitious property forecasts, Mr. Leechiu warns developers against building too much stock. With debt restructuring being made available to developers both big and small, real estate corporations have been able to raise bonds at a much lower rate.

"These companies have done IPOs or secondary or even third offerings and raised a lot of cash through the stock market. They've been able to joint venture with other institutional big players. This means that there is a lot of money flowing into the system," he said.

Instead, Mr. Leechiu reminds developers to consciously watch the demand and supply situation.

[I]Copyright 2007 Business World Publishing Corporation, Source: The Financial Times Limited

Special Feature: 2nd Quarter Real Estate Report

(Business World (Philippines) Via Thomson Dialog NewsEdge) Water levels may have gone up this rainy season, raising the alarm bells for some sectors. But for the resilient real estate industry, which is now awash with investments, the rainy spell does not bring on the blues as the sector awaits to be flooded with more projects.

Having posted significant growth in the past four years, the local property sector looks more bent than ever in beating the dry spell that ravaged the industry in the late 1990s.

In the past two weeks alone, Eton Properties, Inc. launched the 41- storey Eton Emerald Lofts, Rockwell Land Corp. started the construction for the much-anticipated Number One Rockwell, DMCI Homes partnered with Equitable PCI Bank in developing the Riverside Residences, and One Asia Development Corp. jump-started its P100-million business park in Binan, Laguna.

Despite the storm of new projects, David Leechiu, president and general manager of property consultancy firm Leechiu & Associates, insists that supply across all segments remains tight, a lack that at this rate is expected to be relieved no sooner than by June next year.

Coupled with a corresponding deficit in quality stock, these factors are mainly responsible for the escalation of rent values in prime locations, although a widespread increase in land values is yet to be seen.

"Prices have stayed generally flat across Metro Manila and we are nowhere near pre-crisis values yet except in Fort Bonifacio, which makes it the safest place to invest in at the moment," Mr. Leechiu said.

Land values at Fort Bonifacio in Taguig dropped by as much as 50% in the 1997 crisis but have seen a hundred percent increase since the Bonifacio West Development Corp. -a joint venture of Greenfield Development Corp. and Ayala Land Corp. - took over its development, making the area the country's top sales performer in recent months.

Of the central business districts, Makati still holds the prime spot, with average asking prices ranging from P250,000 to P300,000 per square meter. Ortigas, which reached a low of P90,000 per square meter from a peak of P180,000 per square meter in 1997, is now trading between P110,000 and P120,000 per square meter, Mr. Leechiu said.

Despite its 100% occupancy rate in office space, Fort Bonifacio, remains comparatively cheap at P175,000 to P215,000 per square meter, making it a favorite alternative to the Makati central business district.

"We now see a lot of migration to Fort Bonifacio in all segments. Being in close proximity to Makati, many locators choose Fort Bonifacio because it has a well-planned, well-constructed environment that is only one step away from the Makati facilities that they have gotten used to," he said.

According to the latest Colliers International Philippine Property Overview, there had been a 20% increase in office space rents in the second quarter due primarily to the dearth of quality office supply, a factor that has hindered companies from opening businesses in the country since 2005.

Monthly lease rates for premium office space in Makati are now at the P1,200-per-square meter level while Fort Bonifacio is up to P750 per square meter. Meanwhile, for other districts, monthly lease rates are still at the P400- to P600-per-square meter transaction range.

Mr. Leechiu has pegged Fort Bonifacio's annual rate increase at seven to eight percent for the next three to four years, while Makati accrual is calculated at five percent for the next two to three years before slowing down to two percent.

As available space in these two areas will continue to be limited, a significant amount of future office space supply can be found from emerging business districts such as Eastwood City, Binondo and Old Manila.

Next year will bring good news to the business process outsourcing (BPO) sector, which continues to be the main driver for office space demand, as the number of available supply coming on-stream will double towards the third and fourth quarter, offering more quality stock to choose from.

Tight supply in commercial space will be slightly relieved with the completion of the Ayala Center Building Glorietta 5 and the Dela Rosa e- Services Building in Makati, the Total Corporate Center in Fort Bonifacio, and the One E-Com Center at the SM Central Business Park in the Bay area before mid-2008.


Residential development

And as Metro Manila population continues to increase, condo living is fast becoming the habitat of choice for reasons of cost and practicability.

An estimated 23,000 units is due for completion before 2010, 60% of which will be situated in Fort Bonifacio and Makati, with the remaining 40% scattered across Quezon City, Mandaluyong, Las Pinas and other Metro Manila districts. A big chunk of supply will cater to mid to upper market, while small percentage of the total is targeted for the low-end market.

The steady inflow of overseas foreign worker (OFW) remittances, now reaching all-time highs, assures the continuance of strong demand in the residential market.

"Lately, we have seen a shift from semi-skilled workers to high-end professionals leaving the country to work abroad and despite their high- paying jobs, they are still not covered by expatriate packages where the company pays for the whole family's expenses. This in turn becomes a good motivator for OFWs to continue sending money to the Philippines," Mr. Leechiu pointed out.

Single-digit mortgage rates and easier payment schemes will result in more retail purchases from the middle class in the years to come. For professionals, Mr. Leechiu said there's a growing preference for centrally located condominium units over suburban houses in distant locations such as Las Pinas and Rizal.

Another significant source of investment demand are the local families who had parked money abroad during the Asian financial slump, but are now pre-terminating their placements and transferring them back to the Philippines.

Despite visible demand and propitious property forecasts, Mr. Leechiu warns developers against building too much stock. With debt restructuring being made available to developers both big and small, real estate corporations have been able to raise bonds at a much lower rate.

"These companies have done IPOs or secondary or even third offerings and raised a lot of cash through the stock market. They've been able to joint venture with other institutional big players. This means that there is a lot of money flowing into the system," he said.

Instead, Mr. Leechiu reminds developers to consciously watch the demand and supply situation.

[I]Copyright 2007 Business World Publishing Corporation, Source: The Financial Times Limited

So I'm looking into this further. I've heard varying quotes on cost to build houses. From 18 to 27k per sqm. For a nice house, high spec in Ayala Alabang how much will it cost me to build?

just popping in to say, before i was apprehensive to look in at condominiums because you don't get that much open space as you'll do with a house-and-lot. but now that developers are putting in lots of green areas and a utility area inside the units, i'm all for getting one. ;) i particularly like the concepts of SOMA (convenient kasi may furnishings na with a competitive price) and Serendra (biggest utility area i've seen among the other designs).

peace out!

^^ I think you can build a decent two story house for 20K per sq/m. A spec house is a loaded word and will probably cost 25k and up depending on what bells and whistles you put in. :)

Taff, are you now tired of the rat race and want the comfort of the burbs? :)

don't forget you can also do build and sell in cheaper neighborhoods with cheaper prices, sells much faster, lower investment from lower building cost

don't forget you can also do build and sell in cheaper neighborhoods with cheaper prices, sells much faster, lower investment from lower building cost

I disagree. I think as an investor you should stick with the high end. Limited supply, increasing supply and that's where the money is.

I think Ayala Alabang Village is a great investment if you find the right house. Lots of development ongoing, new restaurants opening, great facilities. A very developed neighbourhood.

don't forget you can also do build and sell in cheaper neighborhoods with cheaper prices, sells much faster, lower investment from lower building cost

I agree.
I've seen high end homes stay longer in the market.

OFWs to continue remittances – report
By Iris C. Gonzales
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007082051

Overseas Filipino workers (OFWs) will continue to send remittances back home despite a slowdown in the United States economy, the Union Bank of Switzerland (UBS) said in its latest report on the Philippines.

The investment bank also said that OFW remittances would continue to prop up the Philippine economy and support its balance of payments (BOP) or the country’s transactions with the rest of the world.

UBS said one reason remittance inflows would continue is that some of the remittance flows represent income to support essential consumption such as education or essential investments said in the in the family home.

“A separate but important side issue is that some of the rise in remittances may be explained by banks’ increasingly successful intermediation of the flow of remittances by offering cheaper and more efficient remittance services,” UBS said.

UBS said the stream of remittances is not likely to be disrupted in the long run by a slowdown in the global economy. It said that although income from OFWs represents an important linkage with the rest of the world, it would continue to support the peso and the country’s payments position.

It noted, for instance, that Filipino workers in the US are increasingly employed in more permanent higher paying and less risky jobs and that OFWs have good reasons particularly their families to keep up payments.

“Additionally, financial innovations that may have lifted the flow of remittances are not likely to be reversed. This combined with the likelihood that remittances grow in line with the global economy rather than being tied to any one region’s fortunes implies support for the Philippines balance of payments along with Philippines domestic consumption and investment. These characteristics of relative stability and diversification mean that OFW remittance flows should be seen as a positive rather than a risk factor for the Philippines’ financial prospects in the current turbulent financial market environment. “

The government has been coming up with investment projects for OFWs to help them park their earnings in worthy long-term investments so that they would be able to save their money.

OFWs and their families have expressed alarm over the steady rise of the peso against the greenback, as this diminishes the value of their dollar earnings.

There are at least eight million Filipinos abroad working as domestic helpers, seamen, medical professionals, teachers, accountants and engineers, among other professions.

Special Feature: 2nd Quarter Real Estate Report

(Business World (Philippines) Via Thomson Dialog NewsEdge) Water levels may have gone up this rainy season, raising the alarm bells for some sectors. But for the resilient real estate industry, which is now awash with investments, the rainy spell does not bring on the blues as the sector awaits to be flooded with more projects.

Having posted significant growth in the past four years, the local property sector looks more bent than ever in beating the dry spell that ravaged the industry in the late 1990s.

In the past two weeks alone, Eton Properties, Inc. launched the 41- storey Eton Emerald Lofts, Rockwell Land Corp. started the construction for the much-anticipated Number One Rockwell, DMCI Homes partnered with Equitable PCI Bank in developing the Riverside Residences, and One Asia Development Corp. jump-started its P100-million business park in Binan, Laguna.

Despite the storm of new projects, David Leechiu, president and general manager of property consultancy firm Leechiu & Associates, insists that supply across all segments remains tight, a lack that at this rate is expected to be relieved no sooner than by June next year.

Coupled with a corresponding deficit in quality stock, these factors are mainly responsible for the escalation of rent values in prime locations, although a widespread increase in land values is yet to be seen.

"Prices have stayed generally flat across Metro Manila and we are nowhere near pre-crisis values yet except in Fort Bonifacio, which makes it the safest place to invest in at the moment," Mr. Leechiu said.

Land values at Fort Bonifacio in Taguig dropped by as much as 50% in the 1997 crisis but have seen a hundred percent increase since the Bonifacio West Development Corp. -a joint venture of Greenfield Development Corp. and Ayala Land Corp. - took over its development, making the area the country's top sales performer in recent months.

Of the central business districts, Makati still holds the prime spot, with average asking prices ranging from P250,000 to P300,000 per square meter. Ortigas, which reached a low of P90,000 per square meter from a peak of P180,000 per square meter in 1997, is now trading between P110,000 and P120,000 per square meter, Mr. Leechiu said.

Despite its 100% occupancy rate in office space, Fort Bonifacio, remains comparatively cheap at P175,000 to P215,000 per square meter, making it a favorite alternative to the Makati central business district.

"We now see a lot of migration to Fort Bonifacio in all segments. Being in close proximity to Makati, many locators choose Fort Bonifacio because it has a well-planned, well-constructed environment that is only one step away from the Makati facilities that they have gotten used to," he said.

According to the latest Colliers International Philippine Property Overview, there had been a 20% increase in office space rents in the second quarter due primarily to the dearth of quality office supply, a factor that has hindered companies from opening businesses in the country since 2005.

Monthly lease rates for premium office space in Makati are now at the P1,200-per-square meter level while Fort Bonifacio is up to P750 per square meter. Meanwhile, for other districts, monthly lease rates are still at the P400- to P600-per-square meter transaction range.

Mr. Leechiu has pegged Fort Bonifacio's annual rate increase at seven to eight percent for the next three to four years, while Makati accrual is calculated at five percent for the next two to three years before slowing down to two percent.

As available space in these two areas will continue to be limited, a significant amount of future office space supply can be found from emerging business districts such as Eastwood City, Binondo and Old Manila.

Next year will bring good news to the business process outsourcing (BPO) sector, which continues to be the main driver for office space demand, as the number of available supply coming on-stream will double towards the third and fourth quarter, offering more quality stock to choose from.

Tight supply in commercial space will be slightly relieved with the completion of the Ayala Center Building Glorietta 5 and the Dela Rosa e- Services Building in Makati, the Total Corporate Center in Fort Bonifacio, and the One E-Com Center at the SM Central Business Park in the Bay area before mid-2008.


Residential development

And as Metro Manila population continues to increase, condo living is fast becoming the habitat of choice for reasons of cost and practicability.

An estimated 23,000 units is due for completion before 2010, 60% of which will be situated in Fort Bonifacio and Makati, with the remaining 40% scattered across Quezon City, Mandaluyong, Las Pinas and other Metro Manila districts. A big chunk of supply will cater to mid to upper market, while small percentage of the total is targeted for the low-end market.

The steady inflow of overseas foreign worker (OFW) remittances, now reaching all-time highs, assures the continuance of strong demand in the residential market.

"Lately, we have seen a shift from semi-skilled workers to high-end professionals leaving the country to work abroad and despite their high- paying jobs, they are still not covered by expatriate packages where the company pays for the whole family's expenses. This in turn becomes a good motivator for OFWs to continue sending money to the Philippines," Mr. Leechiu pointed out.

Single-digit mortgage rates and easier payment schemes will result in more retail purchases from the middle class in the years to come. For professionals, Mr. Leechiu said there's a growing preference for centrally located condominium units over suburban houses in distant locations such as Las Pinas and Rizal.

Another significant source of investment demand are the local families who had parked money abroad during the Asian financial slump, but are now pre-terminating their placements and transferring them back to the Philippines.

Despite visible demand and propitious property forecasts, Mr. Leechiu warns developers against building too much stock. With debt restructuring being made available to developers both big and small, real estate corporations have been able to raise bonds at a much lower rate.

"These companies have done IPOs or secondary or even third offerings and raised a lot of cash through the stock market. They've been able to joint venture with other institutional big players. This means that there is a lot of money flowing into the system," he said.

Instead, Mr. Leechiu reminds developers to consciously watch the demand and supply situation.

[I]Copyright 2007 Business World Publishing Corporation, Source: The Financial Times Limited




__________________________________





Living the high life
BY IKKA C. DE GUZMAN

You work in it, you play in it, the next logical step would be to live in it. At
least on the weekdays.

Such is the modern executive’s mantra, and such is the appeal of the new-generation top-of-theline residentials sprouting up in Metro Manila’s business enclaves.

“One important facet of [high-rise dwelling] is proximity and interconnectedness, the strong linkage between place of residence, place of work and place of entertainment. The work-liveplay concept is essentially what drives the residential development vertically,” says Jose Danilo Silvestre, dean of the University of the Philippines College of Architecture and principal architect and planner for DA Silvestre Associates (DASA).

Although high-end condominiums have been around the metro since the 1980’s, especially along Ayala Avenue, Mr. Silvestre points out that rising land values in central districts, in part due precisely to their contiguity to the emerging work-live- play environment, are forcing top honchos to rethink their lifestyle preferences.

“A nice sprawling spot in Manila’s polished subdivisions still attracts well-heeled buyers, but eventually, the pressure of land values will essentially drive the market to develop these highend properties into vertical developments,” he details.

This might mean chucking the Makati manor in favor of a relatively
smaller condo unit and a weekend villa in a nearby province. Older executives, who were proud homeowners of posh houses in centrally located subdivisions have been handing out their abodes to the next generation, and moving into low maintenance but similarly luxurious condo units.

“These villages — Forbes, Dasmariñas — were developed way back in the 1950’s, when Metro Manila was not as congested and polluted, and living with your family in a single detached housing minutes away from your place of work was the sensible thing to do. In developed countries like Japan and Korea, it is very rare to find high-end subdivisions in the city proper anymore, despite of the extreme wealth of the citizens of these nations,” he adds.

The trend is now slowly reaching the Philippines, where more upper-end subdivisions have moved out to suburban areas, and more urban denizens preferring to stay out of the city in the weekends. Residential resort communities like Filinvest Land, Inc.’s Timberland Heights, generates appeal both for its 15-minute distance from Quezon City and its mileaway distance from the city’s stressful setting. The 40-hectare Mandala Residential Farm Estates would allow residents to engage in various hobby farming activities, while the Banyan Ridge offers lots with unobstructed views of the township’s greeneries and portions of the metropolis. The short work-to-home route still applies, albeit in a different framework.

New business districts like Fort Bonifacio and Eastwood City are conjuring new high-rise residential options as fast as they construct commercial spaces. And they’re beefing up on the menu as well.

Fort Bonifacio’s x-factor comes from its well- planned and manicured surrounds and the burgeoning play strip of Bonifacio High Street, while Rockwell’s allure is boosted by prime shopping destination Power Plant Mall and its outdoor dining choices. Because of their safety and pleasant environment, the why-walk-when-you-have-acar mentality, unabashedly inherited from the Americans, is now slowly being replaced with families strolling hand-in-hand to do their shopping outside or to go to the nearby church.

With most chief executive officers being family heads as well, executive dibs these days are in fact zipping past the emergent work-live-play triumvirate with the added functional features of education and health, all in the same compound. Fort Bonifacio has the International School and the new St. Luke’s Medical Center, Rockwell has the Ateneo Graduate School of Business, and Ortigas has Poveda College, University of Asia and the Pacific, and Medical City, among others. The condominiums themselves, borne out of fresh architectural trends, have largely shed the Eastern European signature cement look of past decades for more suitable, contemporary designs, both inside and out.

“The utilitarian orientation of a condo unit is still there, but the market is getting more selective, they’re getting, I would say, harder to please: You’ve got to add the amenities, you’ve got to add the safety, and that is a challenge to architecture,” Mr. Silvestre says.

With metropolitan Manila reaching its saturation point and the capital’s road and transportation network still in a weary state, Mr. Silvestre says the dual home setup — a condo in the city and a rest house in the suburbs — will become the norm of future Metro Manila.

“In most major cities nowadays, what you will find is that almost any place in the metropolis will not take longer than an hour to get to from any other point. This is not yet the case in Metro Manila.” The planned linkage of the North Luzon Expressway to the South Luzon Expressway, as well as additional MRT/LRT lines might help traffic become more manageable, and Mr. Silvestre says that improved transportation lines and better peace and order might eventually prompt highranking executives to commute, enabling them to dispose of the central condo unit and maintain only one home in a satellite district.

For the meantime, they can have the best of both worlds.

complete article at http://www.bworldonline.com/BW091707/today.php

PSE supports credit bureaus
By Zinnia B. Dela Peña
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007082046

Amid a global sell-off in stocks triggered by increasing uneasiness on the mortgage and corporate lending markets in the US, the Philippine Stock Exchange (PSE) is seeking the passage of the Credit Information System Act (CISA) to further strengthen the country’s financial system.

The CISA aims to put in place an extensive and reliable system for the collection and dissemination of fair and accurate credit information to promote and support credit-based economic activities. The proposed measure, authored by Sen. Edgardo Angara, is now pending in the Senate.

PSE president and chief executive officer Francis Lim said the proposed legislation will help the country steer away from the subprime lending problem that the US is facing.

Under the proposal, a credit information corporation will be established to consolidate credit-related data that banks, their affiliates and subsidiaries are legally mandated to submit.

Credit bureaus will be able to serve as reliable source of information to allow lenders to accurately evaluate risks and select between credit-worthy and poor-quality borrowers.

Financial markets worldwide tumbled last week as investors fret over the increasing loan defaults among subprime borrowers. With the exodus of foreign funds in the PSE, the market has wiped out all its gains for the year.

Lim, however, believes that the local stock market remains fundamentally sound.

“We in the PSE remain confident that, notwithstanding the PSE’s setback, our stock market still stands on solid macro-economic ground. Our listed companies remain profitable; interest rates, along with inflation rates, remain stable while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” he said.

Lim pointed out that the Philippine financial market does not face a risk similar to what is confronting the US stock market.

He said the Philippines needs the CISA just to make sure its financial system can count on an additional layer of support if global repercussions from the US sub-prime lending problem were to linger.

“Nevertheless, the proposed CISA will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly while at the same time, increasing the accuracy of credit information to a reliable level,” Lim said.

Subprime loans represent borrowings of persons with blemished or poor credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

“An unreliable credit information system also stifles economic growth because it reinforces the sense of distrust of banks to extend loans. But if the banks are sure that a client is credit-worthy, then they will not entertain doubts about approving a loan; and more money will flow to those who need it, creating more economic activity,” Lim said.



______________________________



Bourse wants Angara bill passed to cushion crisis
Daily Tribune
http://www.tribune.net.ph/business/20070821bus1.html

The local stock market sounded an appeal yesterday for legislative rescue amid the turbulence in global financial markets by approving a proposed law designed to lessen credit risks and loan defaults.

In a press statement, the Philippine Stock Exchange (PSE) said it is seeking urgent help from lawmakers to stabilize the local stock market.

PSE president Francis Lim said the enactment of the proposed Credit Information System Act (Cisa) will help the country steer away from the sub-prime lending problem now bothering the US.

The proposed Cisa, which is authored by Sen. Edgardo Angara, is now pending in the Senate.

Local financial markets were closed yesterday for a public holiday. Trading resumes today.

Analysts said trading today will take its cue from the US stock market amid the continuing global concerns over the credit problems in the United States.

They said the local bourse had failed to react to favorable local news as investors remain too caught up in fears over the tightening of the global credit market due to problems in the US housing market.

For the week to Aug. 17, the composite index fell 12.1 percent to 2,884.34 points, its lowest finish since Dec. 27 last year.

Average daily turnover fell to 3.26 billion shares worth P4.3 billion from 4.36-billion shares worth P5 billion in the previous week.

“The Dow Jones industrial average is close to an important support level at 12,800 level. A rebound in the US market will propel the local market back above 3,000,” forecast Jose Vistan of AB Capital Securities.

But he warned that “a break of the 12,800 support (level) can have disastrous consequences.”

Asian markets, alongside global markets elsewhere in the world, have been sold-off since late July when the sub-prime problems associated with risky home loans first became evident through losses to major New York hedge funds.

Falls on the stock markets have accelerated since then, when most benchmarks were trading at record or multi year-highs.

Dealers, however, remain uncertain how far the markets can go before bottoming out because many feel the full extent of the sub-prime problems is yet to be made public.

Major stock exchanges all over the world, including the local bourse, started suffering from massive sell-offs, triggered by nervous investors, after US lenders noted an increase in loan defaults among sub-prime borrowers. The selling frenzy has wiped out the record-breaking gains this year of the PSEi, the main barometer of local stock price movements.

“The PSE remain confident that, notwithstanding the PSEi’s setback, the stock market still stands on solid macro-economic ground,” Lim pointed out. “Our listed companies remain profitable; interest rates, along with inflation rates, remain stable; while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” Lim said.

“But we need Cisa just to make sure our financial system can count on an additional layer of support as buffer, if global repercussions from the US sub-prime lending problem were to linger,” Lim stressed.

Sub-prime loans represent borrowings of persons with blemished or limited credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

The US stock market started to suffer late last month from massive sell-offs due to concerns over the sub-prime mortgage market following the collapse of big US hedge funds with heavy investments in doubtful sub-prime mortgages. The collapse of the hedge funds prompted major credit rating agencies to downgrade sub-prime mortgage securities.

“Let me stress that our financial market does not face a risk similar to what is confronting our US counterpart,” Lim pointed out. “Nevertheless, the proposed Cisa will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly, while at the same time, increasing the accuracy of credit information to a reliable level.

“Gathering accurate information about a borrower lessens the likelihood of a dreaded business problem in the form of a loan default,” Lim explained. “So, if we liken the US sub-prime lending problem to an ailment, then the Cisa will be a welcome vaccine that the lawmakers will be administering on our credit information system,” Lim explained.

“More than ever, we need such a vaccine shot so we can lessen chances that a crisis similar to what hit US will afflict our financial system,” he explained. “Definitely, the image and fundamentals of our stock market will be affected, if our banks suffer a similar increase in loan defaults.”

Cisa will create the Credit Information Corporation (CIC), which will set the standards for credit reporting operations. The CIC’s goal is to improve the availability and cost of credit to borrowers while greatly reducing the lender’s credit risk, resulting in a more stable and consistent financial system.

PSE supports credit bureaus
By Zinnia B. Dela Peña
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007082046

Amid a global sell-off in stocks triggered by increasing uneasiness on the mortgage and corporate lending markets in the US, the Philippine Stock Exchange (PSE) is seeking the passage of the Credit Information System Act (CISA) to further strengthen the country’s financial system.

The CISA aims to put in place an extensive and reliable system for the collection and dissemination of fair and accurate credit information to promote and support credit-based economic activities. The proposed measure, authored by Sen. Edgardo Angara, is now pending in the Senate.

PSE president and chief executive officer Francis Lim said the proposed legislation will help the country steer away from the subprime lending problem that the US is facing.

Under the proposal, a credit information corporation will be established to consolidate credit-related data that banks, their affiliates and subsidiaries are legally mandated to submit.

Credit bureaus will be able to serve as reliable source of information to allow lenders to accurately evaluate risks and select between credit-worthy and poor-quality borrowers.

Financial markets worldwide tumbled last week as investors fret over the increasing loan defaults among subprime borrowers. With the exodus of foreign funds in the PSE, the market has wiped out all its gains for the year.

Lim, however, believes that the local stock market remains fundamentally sound.

“We in the PSE remain confident that, notwithstanding the PSE’s setback, our stock market still stands on solid macro-economic ground. Our listed companies remain profitable; interest rates, along with inflation rates, remain stable while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” he said.

Lim pointed out that the Philippine financial market does not face a risk similar to what is confronting the US stock market.

He said the Philippines needs the CISA just to make sure its financial system can count on an additional layer of support if global repercussions from the US sub-prime lending problem were to linger.

“Nevertheless, the proposed CISA will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly while at the same time, increasing the accuracy of credit information to a reliable level,” Lim said.

Subprime loans represent borrowings of persons with blemished or poor credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

“An unreliable credit information system also stifles economic growth because it reinforces the sense of distrust of banks to extend loans. But if the banks are sure that a client is credit-worthy, then they will not entertain doubts about approving a loan; and more money will flow to those who need it, creating more economic activity,” Lim said.



______________________________



Bourse wants Angara bill passed to cushion crisis
Daily Tribune
http://www.tribune.net.ph/business/20070821bus1.html

The local stock market sounded an appeal yesterday for legislative rescue amid the turbulence in global financial markets by approving a proposed law designed to lessen credit risks and loan defaults.

In a press statement, the Philippine Stock Exchange (PSE) said it is seeking urgent help from lawmakers to stabilize the local stock market.

PSE president Francis Lim said the enactment of the proposed Credit Information System Act (Cisa) will help the country steer away from the sub-prime lending problem now bothering the US.

The proposed Cisa, which is authored by Sen. Edgardo Angara, is now pending in the Senate.

Local financial markets were closed yesterday for a public holiday. Trading resumes today.

Analysts said trading today will take its cue from the US stock market amid the continuing global concerns over the credit problems in the United States.

They said the local bourse had failed to react to favorable local news as investors remain too caught up in fears over the tightening of the global credit market due to problems in the US housing market.

For the week to Aug. 17, the composite index fell 12.1 percent to 2,884.34 points, its lowest finish since Dec. 27 last year.

Average daily turnover fell to 3.26 billion shares worth P4.3 billion from 4.36-billion shares worth P5 billion in the previous week.

“The Dow Jones industrial average is close to an important support level at 12,800 level. A rebound in the US market will propel the local market back above 3,000,” forecast Jose Vistan of AB Capital Securities.

But he warned that “a break of the 12,800 support (level) can have disastrous consequences.”

Asian markets, alongside global markets elsewhere in the world, have been sold-off since late July when the sub-prime problems associated with risky home loans first became evident through losses to major New York hedge funds.

Falls on the stock markets have accelerated since then, when most benchmarks were trading at record or multi year-highs.

Dealers, however, remain uncertain how far the markets can go before bottoming out because many feel the full extent of the sub-prime problems is yet to be made public.

Major stock exchanges all over the world, including the local bourse, started suffering from massive sell-offs, triggered by nervous investors, after US lenders noted an increase in loan defaults among sub-prime borrowers. The selling frenzy has wiped out the record-breaking gains this year of the PSEi, the main barometer of local stock price movements.

“The PSE remain confident that, notwithstanding the PSEi’s setback, the stock market still stands on solid macro-economic ground,” Lim pointed out. “Our listed companies remain profitable; interest rates, along with inflation rates, remain stable; while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” Lim said.

“But we need Cisa just to make sure our financial system can count on an additional layer of support as buffer, if global repercussions from the US sub-prime lending problem were to linger,” Lim stressed.

Sub-prime loans represent borrowings of persons with blemished or limited credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

The US stock market started to suffer late last month from massive sell-offs due to concerns over the sub-prime mortgage market following the collapse of big US hedge funds with heavy investments in doubtful sub-prime mortgages. The collapse of the hedge funds prompted major credit rating agencies to downgrade sub-prime mortgage securities.

“Let me stress that our financial market does not face a risk similar to what is confronting our US counterpart,” Lim pointed out. “Nevertheless, the proposed Cisa will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly, while at the same time, increasing the accuracy of credit information to a reliable level.

“Gathering accurate information about a borrower lessens the likelihood of a dreaded business problem in the form of a loan default,” Lim explained. “So, if we liken the US sub-prime lending problem to an ailment, then the Cisa will be a welcome vaccine that the lawmakers will be administering on our credit information system,” Lim explained.

“More than ever, we need such a vaccine shot so we can lessen chances that a crisis similar to what hit US will afflict our financial system,” he explained. “Definitely, the image and fundamentals of our stock market will be affected, if our banks suffer a similar increase in loan defaults.”

Cisa will create the Credit Information Corporation (CIC), which will set the standards for credit reporting operations. The CIC’s goal is to improve the availability and cost of credit to borrowers while greatly reducing the lender’s credit risk, resulting in a more stable and consistent financial system.

PSE supports credit bureaus
By Zinnia B. Dela Peña
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007082046

Amid a global sell-off in stocks triggered by increasing uneasiness on the mortgage and corporate lending markets in the US, the Philippine Stock Exchange (PSE) is seeking the passage of the Credit Information System Act (CISA) to further strengthen the country’s financial system.

The CISA aims to put in place an extensive and reliable system for the collection and dissemination of fair and accurate credit information to promote and support credit-based economic activities. The proposed measure, authored by Sen. Edgardo Angara, is now pending in the Senate.

PSE president and chief executive officer Francis Lim said the proposed legislation will help the country steer away from the subprime lending problem that the US is facing.

Under the proposal, a credit information corporation will be established to consolidate credit-related data that banks, their affiliates and subsidiaries are legally mandated to submit.

Credit bureaus will be able to serve as reliable source of information to allow lenders to accurately evaluate risks and select between credit-worthy and poor-quality borrowers.

Financial markets worldwide tumbled last week as investors fret over the increasing loan defaults among subprime borrowers. With the exodus of foreign funds in the PSE, the market has wiped out all its gains for the year.

Lim, however, believes that the local stock market remains fundamentally sound.

“We in the PSE remain confident that, notwithstanding the PSE’s setback, our stock market still stands on solid macro-economic ground. Our listed companies remain profitable; interest rates, along with inflation rates, remain stable while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” he said.

Lim pointed out that the Philippine financial market does not face a risk similar to what is confronting the US stock market.

He said the Philippines needs the CISA just to make sure its financial system can count on an additional layer of support if global repercussions from the US sub-prime lending problem were to linger.

“Nevertheless, the proposed CISA will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly while at the same time, increasing the accuracy of credit information to a reliable level,” Lim said.

Subprime loans represent borrowings of persons with blemished or poor credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

“An unreliable credit information system also stifles economic growth because it reinforces the sense of distrust of banks to extend loans. But if the banks are sure that a client is credit-worthy, then they will not entertain doubts about approving a loan; and more money will flow to those who need it, creating more economic activity,” Lim said.



______________________________



Bourse wants Angara bill passed to cushion crisis
Daily Tribune
http://www.tribune.net.ph/business/20070821bus1.html

The local stock market sounded an appeal yesterday for legislative rescue amid the turbulence in global financial markets by approving a proposed law designed to lessen credit risks and loan defaults.

In a press statement, the Philippine Stock Exchange (PSE) said it is seeking urgent help from lawmakers to stabilize the local stock market.

PSE president Francis Lim said the enactment of the proposed Credit Information System Act (Cisa) will help the country steer away from the sub-prime lending problem now bothering the US.

The proposed Cisa, which is authored by Sen. Edgardo Angara, is now pending in the Senate.

Local financial markets were closed yesterday for a public holiday. Trading resumes today.

Analysts said trading today will take its cue from the US stock market amid the continuing global concerns over the credit problems in the United States.

They said the local bourse had failed to react to favorable local news as investors remain too caught up in fears over the tightening of the global credit market due to problems in the US housing market.

For the week to Aug. 17, the composite index fell 12.1 percent to 2,884.34 points, its lowest finish since Dec. 27 last year.

Average daily turnover fell to 3.26 billion shares worth P4.3 billion from 4.36-billion shares worth P5 billion in the previous week.

“The Dow Jones industrial average is close to an important support level at 12,800 level. A rebound in the US market will propel the local market back above 3,000,” forecast Jose Vistan of AB Capital Securities.

But he warned that “a break of the 12,800 support (level) can have disastrous consequences.”

Asian markets, alongside global markets elsewhere in the world, have been sold-off since late July when the sub-prime problems associated with risky home loans first became evident through losses to major New York hedge funds.

Falls on the stock markets have accelerated since then, when most benchmarks were trading at record or multi year-highs.

Dealers, however, remain uncertain how far the markets can go before bottoming out because many feel the full extent of the sub-prime problems is yet to be made public.

Major stock exchanges all over the world, including the local bourse, started suffering from massive sell-offs, triggered by nervous investors, after US lenders noted an increase in loan defaults among sub-prime borrowers. The selling frenzy has wiped out the record-breaking gains this year of the PSEi, the main barometer of local stock price movements.

“The PSE remain confident that, notwithstanding the PSEi’s setback, the stock market still stands on solid macro-economic ground,” Lim pointed out. “Our listed companies remain profitable; interest rates, along with inflation rates, remain stable; while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” Lim said.

“But we need Cisa just to make sure our financial system can count on an additional layer of support as buffer, if global repercussions from the US sub-prime lending problem were to linger,” Lim stressed.

Sub-prime loans represent borrowings of persons with blemished or limited credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

The US stock market started to suffer late last month from massive sell-offs due to concerns over the sub-prime mortgage market following the collapse of big US hedge funds with heavy investments in doubtful sub-prime mortgages. The collapse of the hedge funds prompted major credit rating agencies to downgrade sub-prime mortgage securities.

“Let me stress that our financial market does not face a risk similar to what is confronting our US counterpart,” Lim pointed out. “Nevertheless, the proposed Cisa will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly, while at the same time, increasing the accuracy of credit information to a reliable level.

“Gathering accurate information about a borrower lessens the likelihood of a dreaded business problem in the form of a loan default,” Lim explained. “So, if we liken the US sub-prime lending problem to an ailment, then the Cisa will be a welcome vaccine that the lawmakers will be administering on our credit information system,” Lim explained.

“More than ever, we need such a vaccine shot so we can lessen chances that a crisis similar to what hit US will afflict our financial system,” he explained. “Definitely, the image and fundamentals of our stock market will be affected, if our banks suffer a similar increase in loan defaults.”

Cisa will create the Credit Information Corporation (CIC), which will set the standards for credit reporting operations. The CIC’s goal is to improve the availability and cost of credit to borrowers while greatly reducing the lender’s credit risk, resulting in a more stable and consistent financial system.

PSE supports credit bureaus
By Zinnia B. Dela Peña
PhilStar
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2007082046

Amid a global sell-off in stocks triggered by increasing uneasiness on the mortgage and corporate lending markets in the US, the Philippine Stock Exchange (PSE) is seeking the passage of the Credit Information System Act (CISA) to further strengthen the country’s financial system.

The CISA aims to put in place an extensive and reliable system for the collection and dissemination of fair and accurate credit information to promote and support credit-based economic activities. The proposed measure, authored by Sen. Edgardo Angara, is now pending in the Senate.

PSE president and chief executive officer Francis Lim said the proposed legislation will help the country steer away from the subprime lending problem that the US is facing.

Under the proposal, a credit information corporation will be established to consolidate credit-related data that banks, their affiliates and subsidiaries are legally mandated to submit.

Credit bureaus will be able to serve as reliable source of information to allow lenders to accurately evaluate risks and select between credit-worthy and poor-quality borrowers.

Financial markets worldwide tumbled last week as investors fret over the increasing loan defaults among subprime borrowers. With the exodus of foreign funds in the PSE, the market has wiped out all its gains for the year.

Lim, however, believes that the local stock market remains fundamentally sound.

“We in the PSE remain confident that, notwithstanding the PSE’s setback, our stock market still stands on solid macro-economic ground. Our listed companies remain profitable; interest rates, along with inflation rates, remain stable while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” he said.

Lim pointed out that the Philippine financial market does not face a risk similar to what is confronting the US stock market.

He said the Philippines needs the CISA just to make sure its financial system can count on an additional layer of support if global repercussions from the US sub-prime lending problem were to linger.

“Nevertheless, the proposed CISA will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly while at the same time, increasing the accuracy of credit information to a reliable level,” Lim said.

Subprime loans represent borrowings of persons with blemished or poor credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

“An unreliable credit information system also stifles economic growth because it reinforces the sense of distrust of banks to extend loans. But if the banks are sure that a client is credit-worthy, then they will not entertain doubts about approving a loan; and more money will flow to those who need it, creating more economic activity,” Lim said.



______________________________



Bourse wants Angara bill passed to cushion crisis
Daily Tribune
http://www.tribune.net.ph/business/20070821bus1.html

The local stock market sounded an appeal yesterday for legislative rescue amid the turbulence in global financial markets by approving a proposed law designed to lessen credit risks and loan defaults.

In a press statement, the Philippine Stock Exchange (PSE) said it is seeking urgent help from lawmakers to stabilize the local stock market.

PSE president Francis Lim said the enactment of the proposed Credit Information System Act (Cisa) will help the country steer away from the sub-prime lending problem now bothering the US.

The proposed Cisa, which is authored by Sen. Edgardo Angara, is now pending in the Senate.

Local financial markets were closed yesterday for a public holiday. Trading resumes today.

Analysts said trading today will take its cue from the US stock market amid the continuing global concerns over the credit problems in the United States.

They said the local bourse had failed to react to favorable local news as investors remain too caught up in fears over the tightening of the global credit market due to problems in the US housing market.

For the week to Aug. 17, the composite index fell 12.1 percent to 2,884.34 points, its lowest finish since Dec. 27 last year.

Average daily turnover fell to 3.26 billion shares worth P4.3 billion from 4.36-billion shares worth P5 billion in the previous week.

“The Dow Jones industrial average is close to an important support level at 12,800 level. A rebound in the US market will propel the local market back above 3,000,” forecast Jose Vistan of AB Capital Securities.

But he warned that “a break of the 12,800 support (level) can have disastrous consequences.”

Asian markets, alongside global markets elsewhere in the world, have been sold-off since late July when the sub-prime problems associated with risky home loans first became evident through losses to major New York hedge funds.

Falls on the stock markets have accelerated since then, when most benchmarks were trading at record or multi year-highs.

Dealers, however, remain uncertain how far the markets can go before bottoming out because many feel the full extent of the sub-prime problems is yet to be made public.

Major stock exchanges all over the world, including the local bourse, started suffering from massive sell-offs, triggered by nervous investors, after US lenders noted an increase in loan defaults among sub-prime borrowers. The selling frenzy has wiped out the record-breaking gains this year of the PSEi, the main barometer of local stock price movements.

“The PSE remain confident that, notwithstanding the PSEi’s setback, the stock market still stands on solid macro-economic ground,” Lim pointed out. “Our listed companies remain profitable; interest rates, along with inflation rates, remain stable; while the country’s economic growth forecasts look attainable. So we have no reason to doubt the strong fundamentals supporting our stock market,” Lim said.

“But we need Cisa just to make sure our financial system can count on an additional layer of support as buffer, if global repercussions from the US sub-prime lending problem were to linger,” Lim stressed.

Sub-prime loans represent borrowings of persons with blemished or limited credit histories. The loans, which carry higher interest rates, often expose the lenders to higher credit risks.

The US stock market started to suffer late last month from massive sell-offs due to concerns over the sub-prime mortgage market following the collapse of big US hedge funds with heavy investments in doubtful sub-prime mortgages. The collapse of the hedge funds prompted major credit rating agencies to downgrade sub-prime mortgage securities.

“Let me stress that our financial market does not face a risk similar to what is confronting our US counterpart,” Lim pointed out. “Nevertheless, the proposed Cisa will lessen the likelihood of such loan defaults by making the credit investigation process less tedious and less costly, while at the same time, increasing the accuracy of credit information to a reliable level.

“Gathering accurate information about a borrower lessens the likelihood of a dreaded business problem in the form of a loan default,” Lim explained. “So, if we liken the US sub-prime lending problem to an ailment, then the Cisa will be a welcome vaccine that the lawmakers will be administering on our credit information system,” Lim explained.

“More than ever, we need such a vaccine shot so we can lessen chances that a crisis similar to what hit US will afflict our financial system,” he explained. “Definitely, the image and fundamentals of our stock market will be affected, if our banks suffer a similar increase in loan defaults.”

Cisa will create the Credit Information Corporation (CIC), which will set the standards for credit reporting operations. The CIC’s goal is to improve the availability and cost of credit to borrowers while greatly reducing the lender’s credit risk, resulting in a more stable and consistent financial system.

Is there a reason why you keep posting the same articles on multiple threads?

I've seen lots of houses listed for sale in Ayala Albang and they don't seem to sell very fast... very nice houses as well.

If you develop cheaper property you have a much bigger group of potential buyers.

Is there a way to verify the land titles or TCTs (Transfer Certificates of Titles) and deeds in the Philippines or any liens or reconveyances on these by someone who is not based in the Philippines?

Or even say when the person is not based in the locale of the Registry of Deeds where the property is located? (For example, one who is based in Cebu is buying property in Zamboangga.)

There are certain instances when this is important and one does not have time to travel to make these title verifications. For example, if an original title of a co-owned property was sold without the consent of a co-owner or if a property is partitioned but a co-owner is not informed of it, or if a lien was placed on the property, is there a way to find out?

Do they have a database of land titles in the Philippines that is accessible for research online even for a fee? I think this is the way to go in order to safeguard the integrity of land titles and to prevent fraudulent sale and disposition of properties.

^ I think @3cr does that for forumers who only visit certain threads and not have time to browse other threads.

There is nothing wrong with that as long as they are on topic and not too much.

^^ That's it mismo. Thank You Lili. You really know me so well now after all these years in SSCF. Congrats nga pala on the topping-off of SOHO. :) :) :)



Arnold, Aside from what Lili has already mentioned, I'm just also making it easier especially for the newbies to find info by posting the articles on related thread topics in this Forum. Since some of the sub threads do overlap in topic/subject-matter, there is nothing wrong with such practice of reposting (other members do that as well) as long as it's related to the thread topic and not "bashing" in one way or another. I would think newbies such as yourself will appreciate finding some info you may be looking for quite easier rather than having to dig for it. Hope this answers your inquiry. :) :) :)

^^ That's it mismo. Thank You Lili. You really know me so well now after all these years in SSCF. Congrats nga pala on the topping-off of SOHO. :) :) :)



Arnold, Aside from what Lili has already mentioned, I'm just also making it easier especially for the newbies to find info by posting the articles on related thread topics in this Forum. Since some of the sub threads do overlap in topic/subject-matter, there is nothing wrong with such practice of reposting (other members do that as well) as long as it's related to the thread topic and not "bashing" in one way or another. I would think newbies such as yourself will appreciate finding some info you may be looking for quite easier rather than having to dig for it. Hope this answers your inquiry. :) :) :)

I just think its a waste of bandwidth to keep posting the same info in multiple threads. Maybe just create a new thread that says news articles about Philippine Real Estate and update that continuously if you want. I seriously don't think the articles add anything to the discussion thread where they are posted.

I'm been lurking on this board for over a year so I'm certainly not a newbie. I also click on most new topics posted. Seeing your articles multiple times on different threads is just annoying.

^^ Well for someone who is more seasoned navigating through the threads such as yourself, I can understand why you might be annoyed but this is a public forum after all. There are alot of newbies and other people who don't get to check each and every thread to find updates/info unlike yourself. Besides I didn't open all these overlapping threads in the first place. Don't get me wrong I do see your point but if you are really annoyed by it, you are very much free to simply skip the post which is easy enough to do. And in the same manner isn't it a waste of bandwidth having to quote a post (especially a long one at that like post#175) when one is acually replying to a post just above it? It also doesn't add any value to the thread. Just use the ^^ instead of a quote if you're really conscious in saving bandwidth di ba. Also rather than start another thread as you suggested it's probably a better idea if the mods can just combine/merge the threads with similar thread topics into one encompassing thread to avoid this kind of situation moving forward. These last few posts are out of topic and a waste of bandwidth in itself so I'll just cut this short and end it here. Peace! :) :) :)

No such thing as online database. There are title verification services from the usual suspects. Land Lawyers, Property Appraisers, Brokers etc.
You can try this service too by the Chamber of Developers
http://www.crebaland.com.ph/index.php?option=com_content&task=view&id=64&Itemid=126

GOOD BUY, CLEAN TITLE

If you think you have found the right property, the next step is to ascertain that it is indeed a wise buy. Here are some tips:

• Buy only from a real estate developer who has a good reputation and has no record of abandoning a project. Or if it's not a brand new house, deal only with and authorized or licensed real estate broker, or better yet, the owner of the property you are buying.

• To ensure that the property is really worth its asking price, consult the zonal value set by the BIR for the land. You could also get an idea of the market price by checking the market values in the classified ads. It would also be good to hire a real estate appraiser.

• Verify the title. Some properties have titles which are unacceptable for mortgage, and may pose some problems for you if you push through with buying it. These are

1. Free and Homestead Patented title- these titles carry restrictions from being encumbered except in favor of the Philippine Government.

2. Emancipation Patent and Certificate of Land Awards- titles which have been awarded to tenant farmers of the land they were tilling.

3. Titles with adverse claims or third party claimants and choice of lis pendens, Tax liens, etc.

4. Titles that have mortgage annotations that have not been cancelled by the Registry of Deeds.


If the title looks clean, check if it's for real. Here are some ways you can detect if a title is not real or fake.

- Check if the owner's duplicate certificate copy is an exact copy of the original title. Note the signature and any variances in the entries and technical descriptions and the manner by which they are typewritten.

- Verify the judicial from used in accomplishing the title. Make sure it is the correct form for that title.

- Make sure that the title was issued by the proper office and that the Officer who signed the title was still in office when it was issued.

- Check the authenticity of the Deed of Conveyance which supports the Transfer Certificate of Title.

- Trace back the title. Verify if the title which was purportedly Transfer to the present Registry of Deeds was actually issued by the register of origin ..

- Wet the seal. If the owner's duplicate copy is authentic, the red Printed words "Owner's Duplicate" will blot when wet.

- Check the area of land by patent. Make sure that the patent was Issued by DENR field office that has territorial jurisdiction over the land. Otherwise, the patent is void.

- Ascertain if the title is reconstituted. See if it is prefixed by RT with a set of figures in parenthesis.

- Check also for updated payment of real estate-related fees, such as: real estate taxes (preferably, get a copy of the tax clearance from the seller or owner of the property), subdivision or condominium dues.

^^ Thank you so much for the info @Bustero. You're the best! :okay:

^My questions too. Thanks guys for posting!

^^This particular lurking newbie is very appreciative. Keep up the good work, guys! One day I will be as smart as you! ;)

I've seen lots of houses listed for sale in Ayala Albang and they don't seem to sell very fast... very nice houses as well.

If you develop cheaper property you have a much bigger group of potential buyers.

My observations too, cropduster. A retired Pinoy here in Chicago has been trying to sell his house and lot in AA for 4 years na. No buyers pa raw.

Perhaps, a "build and sell strategy" targeting low income, medium income and/or moderately high income groups would be more profitable. Diversification kung baga is lower risk in the long run.

My observations too, cropduster. A retired Pinoy here in Chicago has been trying to sell his house and lot in AA for 4 years na. No buyers pa raw.

Perhaps, a "build and sell strategy" targeting low income, medium income and/or moderately high income groups would be more profitable. Diversification kung baga is lower risk in the long run.

ive also seen a lot of houses in alabang. probably viewed 100 in past 2 years. lot of rubbish out there. strange designs, dated houses. overpriced etc. but you do it properly and you will rent it out no problem for a good 6% yield. plus in 5-10 years time whose to say aa wont be same as dasma/forbes etc.

My observations too, cropduster. A retired Pinoy here in Chicago has been trying to sell his house and lot in AA for 4 years na. No buyers pa raw.

Perhaps, a "build and sell strategy" targeting low income, medium income and/or moderately high income groups would be more profitable. Diversification kung baga is lower risk in the long run.

Yep, existing high end houses sell slowly in the Philippines market. There is just not a lot of movement.

However, newly built houses that a contractor builds and sell sold pretty well at Ayala Westgrove. BTW, these houses (about 5-6 total) sold for about 7-8m each including the land. Most were about 250sq m floor areas sitting on 300+ sq m lots. I think the target buyers were balikbayans who didn't want the hassle of building their own houses.

One other avenue is to concentrate on those Pag-Ibig type housing. Those are selling like hotcakes.

Yep, existing high end houses sell slowly in the Philippines market. There is just not a lot of movement.

However, newly built houses that a contractor builds and sell sold pretty well at Ayala Westgrove. BTW, these houses (about 5-6 total) sold for about 7-8m each including the land. Most were about 250sq m floor areas sitting on 300+ sq m lots. I think the target buyers were balikbayans who didn't want the hassle of building their own houses.

One other avenue is to concentrate on those Pag-Ibig type housing. Those are selling like hotcakes.

Great! However, long term Ayala Alabang will see more apprecation and meanwhile houses will be easier to rent out.

My aunt used to have a house for rent in AA. It will surely appreciated. I think she really did good.

However, It took a very long time to sell and sometimes had to wait for long time for a renter.
I'm just guessing but it might be because AA is a very big subdivision so usually there are alot of homes for rent and for sale at any given time.
More competion.

Plus, I think that the market for people having P20M plus cash to pay is a bit limited.

^^This particular lurking newbie is very appreciative. Keep up the good work, guys! One day I will be as smart as you! ;)

^^ Thank You! :) :) :)


RP banks’ health improving but threats remain — Fitch
Daily Tribune
http://www.tribune.net.ph/business/20070831bus3.html

London-based credit watchdog Fitch Ratings noted local banks’ improved financial health due to better asset quality and enhanced capitalization over the past 18 months.

In a statement, Fitch said improvement of asset quality of Philippine banks was due mainly to disposal of non-performing loans (NPLs) and some foreclosed properties, rising property prices on the remaining foreclosed properties, greater provisioning and balance-sheet growth.

“Most banks have satisfactorily provided for NPLs, particularly given that deterioration in loan quality is unlikely, owing to limited loan growth in recent years and generally benign economic outlook,” it said.

It, however, noted that provisioning for foreclosed properties remains low.

Prices of high-quality commercial office spaces and higher-end residences are increasing, it said, but “price growth has not been so great in other markets, where much of the banks’ assets lie.”

It further said “in addition, many banks still maintain a significant amount of other assets that are either impaired or of questionable value, including deferred losses subordinated debt issued by special purpose vehicles (SPVs) that purchased such NPLs and foreclosed properties, goodwill, and deferred tax assets.”

Thus, the agency expects local banks’ financial health to “come under some pressure.”

Fitch said even if some banks were able to raise common and/or hybrid capital as well as subordinated debt due to upbeat equity and debt markets “assets quality remains a key challenge for a number of banks.”

“Some weaker banks may necessitate additional capital raisings,” it pointed out.

In terms of profitability, the agency said banks’ margin remain high as most banks continue to earn from their large holdings of long-term, fixed-rate government debt papers as well as fee income from various services and products particularly remittance service and trust sales.

The agency, however, said “they (banks’ profitability) have been decreasing as a result of rising competition and a declining interest rate environment.”

“Fitch expects that earnings are likely to come under some pressure given the steepening yield curve,” it said.

Mods, please change the thread title to "Real Estate for Dummies: Real Estate-Related Documents". I feel that it would be better to expand the topic to include other relevant documents (not just CTS) such as:

Contract to Sell (CTS)

A Contract to Sell or CTS is a document where developer promises to transfer to the buyer the ownership and physical possession of the property upon the buyer’s fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale. Once the property is paid in full, a Deed of Sale (DOS) is executed by the developer and buyer.

Deed of Sale (DOS)

A Deed of Sale or DOS is a document executed when the buyer pays the developer in cash (whether using his or her own funds or through funds barrowed from bank or financing institutions). In the DOS, the developer transfers ownership of the property to the buyer, subject to the compliance by the buyer with the Deed of Restrictions or Master Deed with Declaration of Restrictions governing the project and the other terms and conditions of the sale.


Master Deed with Declaration of Restrictions

The Master Deed with Declaration of Restrictions is the enabling act or deed which constitutes, among others, the description of the land, building, common areas, facilities, intended purpose of the building, and the statement of the nature of the interest and obligation acquired by the buyer

A Deed of Restrictions is adopted by the developer of the subdivision in order to enhance and preserve the general plan or scheme or development for the subdivision, as well as to safeguard the general welfare of its owners or occupants. The Deed of Restrictions is annotated as a voluntary lien on the Transfer Certificate of Title (TCT) covering the lots, and thereby binds all parties having or acquiring any right, title, or interest in such lots.
The use and occupancy of lots within residential development are normally governed by certain covenants, restrictions and limitations on each lot within a subdivision, itemized in the Deed of Restrictions.


Transfer Certificate of Title (TCT)

A Transfer of Certificate of Title (TCT) is a proof of ownership of subdivision of lot issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located.


Condominium Certificate of Title (CCT)


A Condominium Certificate of Title (CCT) is a proof of ownership of a condominium unit issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.


Tax Declaration (TD)

Ownership of a single-detached house or townhouse constructed on a subdivision lot is evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or municipality where the project is located. Subdivision lots and condominium units are also covered by a TD. The TD shows the assessed value of the property which is used as basis for charging the real property tax (RPT) imposable on the property.

Upon the payment of the relevant taxes and fees to the government units and agencies, and obtaining the necessary clearances to register the property from the BIR and the local government unit concerned, the TCT or CCT shall be transferred from the name of the developer to the buyer by the appropriate Register of Deeds.

The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by the appropriate City Assessor from the developer to the buyer upon submission of the sale documents and the BIR tax clearance authorizing the registration of the property in the name of the buyer.

The TD for a subdivision lot in the name of the buyer is issued after the issuance of the covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse, or a condominium unit, is issued only after the local government unit has issued an occupancy permit which allows the occupancy of the same by the owner of the unit.

Mods, please change the thread title to "Real Estate for Dummies: Real Estate-Related Documents". I feel that it would be better to expand the topic to include other relevant documents (not just CTS) such as:

Contract to Sell (CTS)

A Contract to Sell or CTS is a document where developer promises to transfer to the buyer the ownership and physical possession of the property upon the buyer’s fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale. Once the property is paid in full, a Deed of Sale (DOS) is executed by the developer and buyer.

Deed of Sale (DOS)

A Deed of Sale or DOS is a document executed when the buyer pays the developer in cash (whether using his or her own funds or through funds barrowed from bank or financing institutions). In the DOS, the developer transfers ownership of the property to the buyer, subject to the compliance by the buyer with the Deed of Restrictions or Master Deed with Declaration of Restrictions governing the project and the other terms and conditions of the sale.


Master Deed with Declaration of Restrictions

The Master Deed with Declaration of Restrictions is the enabling act or deed which constitutes, among others, the description of the land, building, common areas, facilities, intended purpose of the building, and the statement of the nature of the interest and obligation acquired by the buyer

A Deed of Restrictions is adopted by the developer of the subdivision in order to enhance and preserve the general plan or scheme or development for the subdivision, as well as to safeguard the general welfare of its owners or occupants. The Deed of Restrictions is annotated as a voluntary lien on the Transfer Certificate of Title (TCT) covering the lots, and thereby binds all parties having or acquiring any right, title, or interest in such lots.
The use and occupancy of lots within residential development are normally governed by certain covenants, restrictions and limitations on each lot within a subdivision, itemized in the Deed of Restrictions.


Transfer Certificate of Title (TCT)

A Transfer of Certificate of Title (TCT) is a proof of ownership of subdivision of lot issued by the Register of Deeds of the relevant city or municipality where the subdivision project is located.


Condominium Certificate of Title (CCT)


A Condominium Certificate of Title (CCT) is a proof of ownership of a condominium unit issued by the Register of Deeds of the relevant city or municipality where the condominium project is located.


Tax Declaration (TD)

Ownership of a single-detached house or townhouse constructed on a subdivision lot is evidenced by a Tax Declaration (TD) issued by the City Assessor of the city or municipality where the project is located. Subdivision lots and condominium units are also covered by a TD. The TD shows the assessed value of the property which is used as basis for charging the real property tax (RPT) imposable on the property.

Upon the payment of the relevant taxes and fees to the government units and agencies, and obtaining the necessary clearances to register the property from the BIR and the local government unit concerned, the TCT or CCT shall be transferred from the name of the developer to the buyer by the appropriate Register of Deeds.

The TD covering the lot and/or dwelling unit or condominium unit shall be transferred by the appropriate City Assessor from the developer to the buyer upon submission of the sale documents and the BIR tax clearance authorizing the registration of the property in the name of the buyer.

The TD for a subdivision lot in the name of the buyer is issued after the issuance of the covering TCT. The TD for a dwelling unit, whether a single-detached house, townhouse, or a condominium unit, is issued only after the local government unit has issued an occupancy permit which allows the occupancy of the same by the owner of the unit.

This information is indeed very helpful . . . thanks a lot . . . do you have any information as to "what to expect" during turn over? I read it somewhere that, aside from the balance that has to be paid either by cash and/or financing, there are other expenses that will be added upon turn over which includes, parking, maintenance cost, etc.....thanks...

For what to expect during turnover, check out the Real Estate for Dummies: Punchlisting and Turnover (http://www.skyscrapercity.com/showthread.php?t=512063) thread



For costs, I am reposting your question in the Real Estate for Dummies: Miscellaneous Costs (http://www.skyscrapercity.com/showthread.php?t=512046) thread

thanks a lot . . .

thanks a lot . . .

There is not much content yet in those threads but if you will post your specific queries there, I am sure our SSC friends will be able to answer them for you.:)

One should be able to get both (location and view) in BGC! View from Manila Golf side condos in Fort Boni is really stunning like these ones Fbgcxxxx and Dvorak posted... :okay::okay:

http://i34.photobucket.com/albums/d113/fbgcxxxx/ManilaAug2006withkids094.jpg

pic taken by double_bee
http://i155.photobucket.com/albums/s282/aldrinbee/MakatiDusk01.jpg


And here's more taken by Phman/Francis at Fairways Tower in BGC...



Hope you'll enjoy looking at these photos. Here are the views from up there...


Pano:
http://farm2.static.flickr.com/1394/3336742049_5fc1e934ae.jpg


The view to 'die' for:
http://farm4.static.flickr.com/3330/3336524307_1c73e5344b.jpg

http://farm4.static.flickr.com/3404/3336586739_803b516c8c.jpg http://farm2.static.flickr.com/1421/3337534310_baba026271.jpg

Seibu Tower, Serendra and SOMa. The Singaporean Embassy is a block away from Seibu Tower.
http://farm4.static.flickr.com/3315/3336532219_08c8f8ec37.jpg http://farm4.static.flickr.com/3612/3336536521_81e9134150.jpg

Ortigas and the rest of Fort Bonifacio
http://farm2.static.flickr.com/1094/3336610285_aa8a480d8c.jpg

Regent Parkway, Essensa, McKinley Hill, Heritage Park (Libingan ng mga Bayani)
http://farm4.static.flickr.com/3546/3337403474_6163a5b39a.jpg http://farm4.static.flickr.com/3352/3336659665_095d1af415.jpg


If you look farther, you'll see planes on departure or final approach...Mt Makiling is also looking majestic from afar.
http://farm4.static.flickr.com/3582/3337409394_cf39fc784c_b.jpg

Unobstructed view of Makati Skyline with Manila Golf on the foreground
http://farm4.static.flickr.com/3621/3337378252_2cf0d7c159.jpg

http://farm4.static.flickr.com/3603/3337391968_b966cba2ac.jpg

And of course...the famed sunset at Manila Bay
http://farm2.static.flickr.com/1245/3337460354_3ca79e62d0_b.jpg

Makati skyline at night
http://farm4.static.flickr.com/3631/3336670197_a756f51db4.jpg

http://farm2.static.flickr.com/1362/3337492674_8ac9ff7215.jpg

Fireworks at MOA
http://farm4.static.flickr.com/3643/3336652019_45bdd4fa58.jpg

Sorry guys, there's too much photos. I hope my collection did not consume too much of your bandwidth...:)

Very exciting times for BGC! :banana: :banana: :banana:

http://www.manilatimes.net/national/2007/aug/26/yehey/property/20070826prop2.html

New buildings to fill strong demand
for office space in Bonifacio Global City


Seventeen new office buildings in different stages of construction and planning are expected to meet the robust demand for office space in Bonifacio Global City in the next three years. Once completed, the 17 edifices will make available about 340,000 sqm of leasable space, complementing the existing fully occupied 76,000 or so sqm spread in four office buildings and on the second floor of Bonifacio High Street An indication of the growing attractions of this premium business district, Bonifacio Global City will have total office leasable space of more than 400,000 square meters by 2010.

According to Jun Bisnar, head for commercial operations of Fort Bonifacio Development Corp. (FBDC), “The high demand for office space in Bonifacio Global City is due to the fact that the business district is considered the natural extension of the financial district in Makati. It is near most of the headquarters of the top 100 corporations. At the same time, it offers a refreshing work environment.”

He adds that because of BGC’s proximity to Makati CBD, there is a tendency to attract the same superior labor quality and worker profile. The premier business district further has several access points, which contributes to the smooth flow of traffic in the area.

The existing office buildings enjoying 100 percent occupancy rates are the FBDC-owned Bonifacio Technology Center and the Hong Kong and Shanghai Banking Corp. (HSBC) building, as well as the Net Group-owned Net One and Net Square structures.

Net Group has three more buildings being developed—the Net Cube, Net Quad and Net Plaza. Five other buildings which are under construction are the Chancery of Singapore, Fort Legend, Fort 26th, Total Corporate Center 1, and the HanJinPhil Philippine Headquarters.

An office building earmarked for BPO locators will also be developed by FBDC. Other office buildings that are in the blueprint stage are projects of Daiichi and ADVL Land Corp. Further, the corporate headquarters of the Philippine Stock Exchange (PSE)—what is likely to be the crown jewel of Bonifacio Global City—is set to rise in the City Center. The PSE headquarters will serve as a unified trading floor for brokers now doing business in Pasig and Makati.

Multinationals and large companies like JP Morgan, Deutsche Knowledge Systems, GE Money, GE Philippines, Transnational Diversified Group and several technology-based firms such as Intel Philippines, Ericsson Philippines and Tetra Pak Philippines, among others, have chosen Bonifacio Global City as their new corporate address.

Bonifacio Global City, located in the progressive City of Taguig, has also emerged as a favored location of business process outsourcing (BPO) companies, which have snapped up allocated office spaces in Market! Market! Only 2,700 sqm of spaces is available for lease in the shopping complex. “We foresee that these remaining units will be taken up within the next two months,” says Bisnar.

Another attraction of BGC to IT firms is the presence of a special economic zone offering fiscal incentives to the locators. PEZA-registered buildings in BGC include the Bonifacio Technology Center and the Net Group edifices. Bonifacio Technology Center counts among its tenants IT and BPO firms such as call center Ventus, software providers NEC Telecom Software and Data Horizon, hospitality service provider Nex C, and facility provider Hatchasia.com.

The healthy mix of office, residential, and commercial establishments along with measures taken by FBDC to preserve the green areas of BGC contribute to the place’s prominence as a premier business district where one can indulge in one’s passion for work and other interests.


Top guns bid for ‘primest’ of Boni
FOREIGN, LOCAL DEVELOPERS BUY T.O.R. AS B.C.D.A. RETREATS FROM ‘LEASE-ONLY’ OPTION
http://www.businessmirror.com.ph/09062007/headlines01.html
By Max V. de Leon
Reporter

BIG foreign and local property developers are now crowding the bidding for a prime 1.2-hectare lot inside Fort Bonifacio in Taguig after the Bases Conversion and Development Authority (BCDA) reversed its earlier option to merely offer it for lease when it suffered a failed bidding last year.

Narciso Abaya, BCDA president and CEO, said Ayala Land Inc., SM Prime Holdings Inc., Megaworld Corp., Shangri-La Hotel, the Net-Trump Group, Landco Pacific and Robinsons Land have so far bought the P50,000 terms of reference (TOR) papers for the bidding of the property popularly known as the Expanded Big Delta Lots or the former Government Center for Investment at the Bonifacio Global City (BGC).

The lot was actually mortgaged with the Banco de Oro (BDO) because the BCDA needed a standby facility in case it needs additional funding for the construction of the Subic-Clark-Tarlac Expressway.

That mortgage was the cause for the failure of bidding last year.

But so far, the BCDA has not needed yet to draw from the BDO standby loan, so it decided to open the lot either for sale or joint venture—and not merely for lease—making the property more attractive.

Abaya said a sale, joint venture or combination of the two will be allowed, provided the bidders will propose a solution to address the mortgage issue. “They can propose a substitute facility that will allow BCDA to transfer titles or they can propose to frontload the value of the property to pay off the mortgage.”

With the big developers swamping the bidding and with the real-estate market going up, the BCDA also decided to increase the minimum bid price to P160,000 per square meter from P150,000 per square meter.

“We are optimistic that the bidding will not only generate for BCDA revenues for conversion projects but more important, it will further maximize values of the whole Bonifacio Global City,” said Abaya.

The lot is the remaining parcel in the E-Square area since most of the properties there were already sold by the Fort Bonifacio Development Co. consortium to third-party buyers.

The 1.2-hectare prime lot has a floor area ratio (FAR) of 12, which means the proponent can develop on the area structures with a gross floor area of approximately 144,000 square meters or 14.4 hectares for mixed-used development of residential, office or commercial/retail complex.

The lot along 5th Avenue is also across The Fort and is the gateway of the city center, “the primest portion of the BGC.”

Since it is also within the E-Square area, which is accredited by the Philippine Economic Zone Authority (Peza), the developers can avail themselves of government incentives if the project is qualified under Peza rules.

[URL]
The prebid conference is set on September 10, while the actual bidding is on November 5.


-------------------------------------------------------------------------------------------------------------------------------
http://www.businessmirror.com.ph/09062007/headlines09.html

[FONT=Arial] BCDA opens Shimao offer to challenge
By Max V. de Leon
BusinessMirror
September 6, 2007

THE two properties in Fort Bonifacio that Shimao Property Holdings Ltd. is eyeing for its integrated development project are still not in the bag for the Chinese firm, whose proposal will still be subjected by the Bases Conversion and Development Authority (BCDA) to a Swiss challenge.

Aileen Zosa, vice president for business development of BCDA, said Shimao has submitted preliminary offers for a 7.4-hectare lot in North Bonifacio and the 35-hectare property inside the former Joint US Military Advisory Group (Jusmag) area.

Zosa said the Chinese firm will submit its complete proposal to the BCDA, which owns the properties, in November.

After this, Zosa said the BCDA will publish a public advisory that Shimao has submitted offers for the two lots and it is opening the proposals to any challenge from other interested groups.

“Any firm, local or foreign, if eligible, can submit their competing proposals,” she said.

If no other firms can match Shimao’s offer, Zosa said the Chinese group will automatically get the rights to the properties.

BCDA president and chief executive officer (CEO) Narciso Abaya said Shimao is willing to invest at least $2 billion for an integrated development that includes hotel, commercial and residential projects in the two properties.

Abaya said they are willing to enter into a joint- venture deal with Shimao for its proposed projects.

“The terms of reference are now being worked out by Neda [National Economic and Development Authority] on how to conduct the joint venture,” Abaya said.

Should this push through, Abaya said it will be one of the government’s biggest partnerships for property development in 2007.

The BCDA and Shimao earlier agreed in principle to enter into the joint project after signing a memorandum of understanding in March.

“This will boost the asset disposition program of BCDA, and enhance its revenue-generating capability, translating to more funds for the AFP modernization program and other beneficiaries,” Abaya said.

Meanwhile, the BCDA announced it was able to privatize P38.29 billion worth of government properties as of August.

Of that amount, 80 percent was from the disposition of Fort Bonifacio lots, P30.36 billion. This was followed by income from lease and joint- venture projects, P4.78 billion. Sales and proceeds from Fort Bonifacio and other camps reached P1.9 billion while securitization was worth P1.25 billion.

A big chunk, or 43 percent of the BCDA-generated funds, went to the AFP both for military replication and the modernization program. The entire AFP share was P16.44 billion—P9.5 billion for military replication and P6.94 for the modernization program.

Another big chunk, or 18 percent, went to site development and relocation expenses at P6.76 billion. Both the BCDA share and the share of other beneficiary agencies were at 15 percent.

Taxes and fees paid by BCDA reached P2.33 billion.


Kuwaiti and Chinese leisure property developers keen on doing business in the country
BusinessWorld
September 6, 2007

(for full article: http://www.bworldonline.com/BW090607/content.php?id=043)

As this developed, Shanghai-based property giant Shimao Group has firmed up plans to develop a high-end hotel and mixed-use buildings in the Bonifacio Global City area, the Bases Conversion Development Authority (BCDA) said yesterday.

In a talk with reporters, BCDA President Narciso L. Abaya said his agency was only awaiting proposals from Shimao for the development of a 7.4-hectare lot in North Bonifacio and a 35 to 40-ha. Joint US Military Assistance Group (JUSMAG) area.

"As is the policy, we will have to have a competitive selection, bidding or a modified bidding like a Swiss challenge... if the offer is a non-solicited proposal. The terms of reference are now being worked out by the government on how to conduct the joint venture," he said.

Trade Secretary Peter B. Favila earlier announced BCDA, which oversees development of former military lands, was discussing a $2-billion investment deal with Shimao.

In March, the BCDA inked a memorandum of understanding with the group to jointly develop prime areas in the Bonifacio Global City area near the Makati business district.

"We own the land they (Shimao) will develop it. As part of the criterion for selecting the best offer, we will be very particular about the project cost or the amount of investment since these are prime lands," Mr. Abaya said.

Shimao is expected to submit its proposal for the 7.4-ha. North Bonifacio lot by November and early next year for the JUSMAG property. Prebidding conference is slated for Sept. 10.

Mr. Abaya earlier described the partnership with the Shimao Group to be among the largest in property development in the Philippines. This, he had said, could make Global City an international business district.

Shimao Group Chairman Hui Wing Mau, in a visit in Manila early this year, said his company would be investing $2-$4 billion in a high-end hotel and mixed-use buildings in Global City, which used to be part of a military base.

Forbes Magazine ranked Mr. Hui as the second-richest person in China in 2002. The 2007 Forbes.com list of the world’s billionaires ranked him 249th.

Shimao Group owns 10 luxury hotels in China, including Shanghai hotels Le Meridian, Royal Meridien — which at 66 floors is the tallest structure in Shanghai — and Grand Hyatt.

Traded on the Hong Kong stock exchange, the Shimao Group has an inventory of more than 20 million square meters of luxury offices and residential condominiums and continues to build an average of four million square meters a year. — R.A.M. Rubio and Bernardette S. Sto. Domingo

If one is to choose, I'd probably choose location over view myself especially for a primary residence but can't beat having a great location with great views like you can get in BGC. Just that views are not easily replicated and havng an unobstructed view means you are not just looking at somebody's window when looking outside. You get to see open space so you don't feel cramp and claustrophobic and you also get natural light in the process.


Fort Bonifacio fast replacing Ortigas Center as alternative CBD
BY KRISTINE JANE R. LIU
BUSINESS WORLD
http://www.bworldonline.com/BW021209/content.php?id=101


LAND PRICES in Fort Bonifacio in Taguig City are expected to continue rising as the 26-square kilometer former military base dethrones Ortigas Center in Pasig as an alternative central business district (CBD) three to five years from now, property experts said.

"Three to five years from now, Fort Bonifacio can easily dethrone Ortigas Center as the alternative business district and by that time, it will be challenging Ayala as the next major central business district," said Victor Asuncion, CB Richard Ellis Philippines director for global research and consulting.

CB Richard Ellis said it expects lease and occupancy rates in Fort Bonifacio to post the highest growth. "Lease rates in the district have been on a steady rise, with most office buildings reporting full occupancy," it said.

Its proximity to the Makati central business district and ongoing improvements in the disctrict also make it an ideal location for business process outsourcing (BPO) companies and traditional office space tenants, it added.

Mr. Asuncion based his assessment on buildings that are set to rise in the area, among these a six-star hotel that the Shangri-La Hotels and Resorts group expects to complete next year.

The 60-storey tower Shangri-La at the Fort will house 500 guest rooms and 234 apartments and is scheduled to open in 2012. Meanwhile, the Philippine Stock Exchange (PSE) will set up a unified trading floor in Fort Bonifacio and vacate its offices at the Ayala Tower One in Makati and the PSE Tektite in Ortigas Center.

Also rising there is a 14-storey St. Luke’s Medical Center that will house 600 beds, and an 11-storey medical arts building with 366 doctors’ offices. The hospital is expected to start operations this year.

Fort Bonifacio will also become a site of the country’s tallest building, the 66-storey skyscraper Federal Land Tower. Construction of the P20-billion project started late last year and once finished, will strip Makati’s 55-storey PBCom Tower of its title.

A number of high-end residential condominiums have been built by the country’s biggest property developers in Fort Bonifacio, among these Essensa, Serendra, Pacific Plaza and Regent Parkway, Forbeswood Heights, Kensington and office buildings like Net Square, Bonifacio Technology Center, HSBC Building, Hanjin Philippines’ building, and the Singapore Chancery.

A month from now, the Bases Conversion and Development Authority will award the contract for the 93-hectare master plan for Bonifacio South, said to be the next major development in the area.

Leanie Sales of Colliers International said the success of the master planning in Fort Bonifacio would depend on the type of projects.

"The master planner and the consultant should create synergy in the area. They have to take into account what is already there and what could be a demand generator," she pointed out.

The property analyst noted that if the developer plans to proceed with building residential condominiums again, they have to make sure that these are different from existing ones.

Ms. Sales said she sees Fort Bonifacio has a potential not only to become a residence for the rich, but also for workers from the BPO industry looking to own their first house.

During the American colonial period, the US government acquired a 25.78-square kilometer property of Taguig for military purposes.

After Philippine independence, the facility, known then as Fort William McKinley, became the home of the Philippine Army and later, the Philippine Navy and became Fort Bonifacio.

When Fort Bonifacio was privatized and placed under the administration of the Bases Conversion and Development Authority, the whole area was restored to Taguig.

Fort Bonifacio has it's first Hotel in the bag! :banana: :banana: :banana:

5-star hotel to rise in Bonifacio
By Ronnel Domingo
Inquirer
http://business.inquirer.net/money/topstories/view_article.php?article_id=87188

MANILA, Philippines -- Fort Bonifacio Development Corp. and a property developer have agreed in principle to put up a five-star hotel that will cost up to $250 million in the Bonifacio Global City prime development area near the Makati business district, the government’s Bases Conversion Development Authority (BCDA) said.

Narciso Abaya, president of BCDA, which has a 45-percent stake in Fort Bonifacio Development, said the hotel would help boost a BCDA drive to encourage high-end tourist facilities in Bonifacio Global City.

Abaya declined to identify the hotel developer, saying the BCDA agreed to keep details confidential.

“We cannot talk about it for now, but the investment will range between $150 million and $250 million,” he said.

“We expect more high-end development activities to come in because of a project like this,” he added.

Abaya also said construction of a branch of St. Luke’s Medical Center in Bonifacio Global City was in full swing and the hospital would be operational by 2009.

“St. Luke’s will be a modern facility that would cater to local residents and people from all over the world,” he said.

Another project in Bonifacio Global City, formerly part of a military base, is a building for business process outsourcing companies, with a gross floor area of 30,000 square meters. A 31-story tower is also expected to be completed by 2010, under an agreement in which the Philippine Stock Exchange will put its two trading floors -- in Makati and in the Ortigas business district -- under one roof, Abaya said.

Completed or ongoing residential projects include Serendra, Forbeswood Heights, Kensington, Bellagio, Fairways, South of Market, and Fifth Avenue Place. Office buildings include Net Square, HSBC Building, Hanjin Philippines’ building, and the Singapore Chancery.

Abaya said an upswing in the real estate industry was sustaining the rapid growth of development in Bonifacio Global City.

Other projects in the former military base involve retail developments like the Bonifacio High Street, which is “on high gear, having completed seven buildings for retail tenants,” he said.

BCDA vice president Aileen Zosa said the BCDA was encouraging high-end projects such as hotels of at least five-star rating. She said China’s real estate development giant Shanghai Shimao group had expressed interest to develop a six-star hotel in the Bonifacio Global City.


______________________________



Wow 2 possible 6 Star Hotels in Fort Boni! Exciting News for BGC! Global City is booming! :banana: :banana: :banana:

Top Chinese realtor keen on Fort Boni land
By Katrina Mennen A. Valdez Reporter
Manila Times
http://www.manilatimes.net/national/2007/sept/06/yehey/business/20070906bus7.html

Shimao Group, China’s top real estate and hotel developer, will bid for two properties in Fort Bonifacio Global City, Bases Conversion and Development Authority announced Wednesday.

Retired general and BCDA President Narciso Abaya told reporters that the Shanghai-based company has expressed serious interest in joining the bid for some 40 hectares of land inside the Jusmag compound at Fort Bonifacio.

He said Shimao plans to invest at least $2 billion for hotel development and mixed-use buildings and will be submitting its proposal by early next year.

Shimao will also bid for the 7.4-hectare land in North Bonifacio and will submit its proposal in November this year. “They are planning to construct a six-star hotel, office buildings and residential buildings,” Abaya said.

Meanwhile, the BCDA’s cumulative earnings reached P38.294 billion in a span of 15 years up to last month. Of the amount, 80 percent, or P30.360 billion were earned through the Fort Bonifacio Development Corp., while 12 percent of which valued at P4.784 billion was generated from lease and joint ventures. The remaining 5 percent, or P1.9 billion were proceeds from the sale of properties at the Fort Bonifacio and other camps managed by the BCDA, while securitization raised P1.245 billion.

Abaya said 43 percent of the earnings amounting to P16,437-billion fund the modernization programs of the Armed Forces of the Philippines, 18 percent, or P6.764 billion goes to the site development and relocation expenses and 6 percent, or P2.335 billion was allotted for tax and fees. BCDA gets 15 percent of the earnings or P5.822 billion, while the other 15 percent, or P5.90 billion is distributed to other agencies.

This year, BCDA expects to complete 59 projects as compared with last year’s 51 projects. These projects include residential developments such as the Serendra, Forbeswood Heights, Kensington, Bellagio, Fariways, South of Market and Fifth Avenue Place, and office buildings such as Net Square, HSBC Building, Hanjin Philippines, and the Singapore Chancery.


_________________________________________



China’s Shimao eyes 2 BCDA lots in Boni
By Ronnel Domingo
Inquirer
Last updated 04:38am (Mla time) 09/06/2007
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=86977

China’s real estate giant Shanghai Shimao group is vying for a joint venture with the Bases Conversion Development Authority (BCDA on two properties for the development of “high-end, mixed-use” projects, BCDA president and chief executive Narciso Abaya said.

The properties include a 7.4-hectare lot where Shimao is planning to invest $2 billion to build hotels, condominiums, offices and a commercial complex, Abaya said.

Abaya said Shimao was also looking at the 35-40 hectare area known as the Jusmag housing area from which retired Armed Forces officials have been evicted after an ownership dispute.

He said the Chinese firm was expected to submit a project proposal for the 7.4-hectare lot by November while another proposal for the larger parcel of land was expected next year.

Abaya clarified that joint venture agreements on both properties would go through bidding or a Swiss challenge, in line with a government policy that requires a competitive process for selecting government partners.

The National Economic and Development Authority “is currently working on the terms of reference” on how to enter into joint ventures like the one proposed, he added.

The Jusmag (Joint United States Military Assistance Group) area -- so-called because it was originally a housing project for the American agency which declined to take it -- was recently the subject of an ownership dispute between BCDA and a homeowners’ association comprised of the wives of retired Armed Forces officials.

The Supreme Court ruled in favor of BCDA, which is preparing to appraise the area toward eventual disposition of the asset through a joint venture with a private company.

Last May, Abaya said Shimao chair Hui Wing Mao personally reiterated his serious and firm interest in investing in Fort Bonifacio during a recent meeting with BCDA officials in Hong Kong that month.

Abaya said Shimao was a world-class, fast-paced developer that could finish a 900-room twin-tower luxury hotel in 18 months, as what they did with the Hyatt Hotel at the Bund in Shanghai.

BCDA chairman Aloysius Santos had said that Shimao’s entry into the domestic setting would set a new standard in real estate development in the Philippines.

The China visit by Santos and Abaya was made upon the invitation of Hui, who came to Manila last March to sign a memorandum of understanding with the BCDA on a joint development of a sizable portion of land at the Global City.

Abaya said this was one of the biggest partnerships of the government for property development in 2007, which would further boost the asset disposition program of BCDA and enhance its revenue-generating capability.

Buying real property in RP

Cagayan de Oro City (11 September) -- One of the world's largest shipping companies, Bejing-based China Ocean Shipping Co., is studying whether to build a multi billion- dollar cargo hub near Manila, company officials say.

This, as the South Korean shipbuilder Hanjin Heavy Industries & Construction Co. is investing $1.7 billion in a new shipyard at a former US Naval Base in Subic Bay attracted by the skilled, English-speaking work force and low costs offered by our coutrymen.

Meanwhile, James Hookway, in his article "For Philippine Economy, Harsh Remedies Pay Off: A Risky Tax Increase by Arroyo Helps Spur New Investments" published by the Wall Street Journal Asia in Aug. 13, 2007, said more than 10 million Filipino expatriates working abroad have taken notice.

"They are now sending home $14 billion a year, double of what they sent five years ago, as government figures indicate," he said.

Economists see this as a relatively secure source of revenue. While 35% of these expatriates work in the US, there are also large pockets in Europe, the Middle East and East Asia. That geographical diversity could provide some insulation against a downturn in the US.

Hookway said the remittances aren't just going to support families, but into the stock market and property investments.

In fact, Ayala Land, one of the country's biggest real-estate companies, says that in 2006, 37% of their revenue came from Filipinos overseas buying land and condominiums, up from 26% the year before and just 16% in 2004.

Recently, the company's chief financial officer, Jaime Ysmael, told shareholders that if economic problems in the US deepen, Ayala Land can still count on Filipinos working in Europe and the Middle East.

Norma Ravanzo, a 58-year old retired nurse from Houston, is one such investor. An American citizen for more than 30 years, Ravanzo is planning to return to her homeland with her husband, who was also born in the Philippines.

Encouraged by the economic progress and improving living condition, she bought property in Cebu City, Manila's financial district and a retirement home in Subic Bay. "It's like living in a first-world community at third-world prices," Ravanzo describes.

Bump :lol: ala mod Kimber

are these type of investments doing well now? I see a potential in these type of investments for rent......medical office, retail, travel agency, insurance, real estate and the like. Do developers sell their commercial space or they rent it themselves?

PROCEDURES/STEPS NEEDED IN TRANSFERRING OF TITLE

STEP 1 : DEED OF ABSOLUTE SALE/DEED OF PARTITION/EXTRA JUDICIAL SETTLEMENT/DONATION

- Must be presented to the BIR re: Capital Gain Tax - within 30days from the date of notarial

: Documentary Stamps - on or before the 5th day of succeeding month from the date of notarial


STEP 2 : CITY ASSESSOR'S OFFICE

- SECURE THE FOLLOWING DOCUMENTS:

1. Certified True Copy of Tax Declaration (House and Lot)

2. Certificate of No Improvement (if there is no building/house)

2 Original Copies - 1 for BIR and 1 for RD


STEP 3 : CITY TREASURER'S OFFICE

- SECURE AND PAY THE FOLLOWING DOCUMENTS :

1. Tax Clearance

2. Transfer Fee - Present Original Deed of Sale/Donation, etc. and Tax Declaration (1/2 of 1% of Sale or Market Value of Tax Declaration whichever is higher)


STEP 4 : BUREAU OF INTERNAL REVENUE (BIR)

- PRESENT THE FOLLOWING DOCUMENTS

1. Certified Xerox Copy of Title

2. Deed of Sale (Original Copy + 2 Xerox Copies)

3. Certified True Copy of Tax Declaration (House and Lot)

4. Certificate of No Improvement (if there is no building/house)

- SECURE AND PAY THE FOLLOWING :

1. Capital Gains Tax and Documentary Stamps (6% Capital Gains Tax for individual seller or 7.5% for corporation and 1.5% Doc Stamps - based on Selling Price, Market Value of Tax Declaration or Zonal Value whichever is higher)

2. Certificate of Registration



STEP 5 : REGISTER OF DEEDS

- PRESENT THE FOLLOWING DOCUMENTS :

1. Owners Copy of Title

2. Deed of Absolute Sale, Extra Judicial Settlement, Donation, etc. (3 copies)

3. Tax Clearance

4. Transfer Fee Receipt

5. Certificate of Registration - BIR

6. Certified True Copy of Tax Declaration

7. Certificate of No Improvement

- PAY THE NECESSARY FEES REQUIRED FOR TRANSFERRING OF TITLE


STEP 6 : CITY ASSESSOR'S OFFICE

- PRESENT THE FOLLOWING DOCUMENTS :

1. Certified Xerox Copy of New Title

2. Deed of Sale, Extra Judicial Settlement, Donation, etc. (Xerox)

3. Copy of Approved Subdivision Plan

4. Latest Tax Receipt

5. Transfer Fee Receipt

6. Transfer of Declaration Fee

7. Certificate of Registration from BIR

Good bump!

Our BPO business is currently renting space in Ortigas. The building is composed of office condos. According to some of the owners I spoke with, the price of space is going up as demand continues to increase. I'm not in tune to the development of commercial space in the Philippines so any information would be greatly appreciated.

As our business grow, staying in a high-rise unit will be too cost prohibitive. BPO's generally don't require a flashy address. A semi industrial/office would be more appropriate as long as it is in a safe location, easy access to staff and amenities are near, due to 24-hour type of operation.

There is a current demand supply gap in commercial office and it is huge. It's being addressed by the big developers with hundreds of thousands of sq.m. being built over the next year alone. Ayala land itself claims a need for a over a millino sq.m. of it till 2010! that being said the demand for these is as pointed out by Rene above, it's not grade A high rise but more inexpensive office park type with the qualification here in the Philippines that it has to be near mass transit as much as possible to have a huge catchment area for workers. Also lessees require huge floorplates and big spaces ussually over 5000 sq.m. a pop so their preference is one landlord.

For smaller office condo's there is still demand and it's rising a bit best to ask the people like queetz who invests in this thing to get a good feel as to the yields they get.

Thanks for the info, Bustero! Metro Manila is becoming (if not already) a very expensive place to run a business. We do plan to diversify to the provinces, as long as there's dependable web access, our staff can literally do their work at home.

BPO companies have been tapping the provinces as well for their operations, Bacolod, Cebu & Davao are amongst the top choice destination for BPO companies...

RP’s housing sector has built-in
shield vs. US subprime woes
By Manuel T. Cayon
Reporter - BusinessMirror

DAVAO CITY—The country has a built-in shield against the repercussion of the US subprime mortgage problem that threatened to spill over into the other sectors of the US economy, a Pag-IBIG Fund executive said here.

Jose W. Banzon Jr., vice president for Southern Mindanao operations of the Pag-ibig Fund, said that the “shield” refers to the “buy-back” provision in the housing law that requires housing developers to absorb back the housing unit of a delinquent or a defaulting borrower.

Banzon said that prior to the addition of this provision, the bulk of the problems in the housing sector, that of delinquent borrowers, has been bought back or shouldered by the different government housing agencies, including the Pag-IBIG Fund.

“This buy-back provision returns to the developers the problem of their poor selection of homeowners,” he said. Due to that provision, developers have been cautious and meticulous enough to select applicants.

He said that developers often consult with them on the background of the borrowers where it was not done before.

The provision was placed in the law sometime in the early 2000 and Banzon said that this was a major protection of the government against real-property ventures going awry. The provision was prompted by the voluminous mortgage problems resulting in foreclosures in the mid-1990s owing to the unregulated proliferation of housing problems.

Defective housing units in the low-cost projects and including the middle-income subdivisions have forced many homeowners to delay or default on their amortizations to pay off repairs that they shouldered personally as government agencies took a long time to act on complaints.

The Asian financial meltdown in 1997 and its lingering effect, however, forced the entire construction industry to absorb the brunt of the effect due to skyrocketing interest rates on real-property borrowings.

An almost similar situation has marked the mortgage problem in the US, forcing homeowners to offer below-prime and market-value offers to buyers just to dispose of their housing units.

The buy-back provision in the Philippine housing law has served as the country’s own shield against a global ripple effect of the subprime mortgage problem in the US, Banzon said.

Despite the buy-back provision, Banzon said that the housing sector continued to contain the ill-effects of the housing woes due to poor collection efficiency and eventual foreclosures of many units, including high-end dwellings and commercial buildings.

In the Davao region, Banzon said that they still have to find buyers of 5,093 housing units, many of them in the low-cost housing communities. The problem was being compounded by the presence of their original awardees still in 2,454 foreclosed units. The rest, 2,639 units, have been unoccupied but still unsolved.

The Pag-IBIG Fund has given its network of offices nationwide to dispose all the reacquired housing units until the end of the month and it has currently offer discounts of as much as 20 percent to cash purchase, a 15-percent discount to acquisition through the buyer’s Pag-IBIG contribution.

On top of any of the two discounted offer, the Pag-IBIG Fund has also allowed another 5-percent discount in housing units that were still occupied by their previous owners “for litigation.”

However, Rose Taasan, head of the Housing and Urban Development Coordinating Council (HUDCC) in the region, said that they have advised buyers of foreclosed but still occupied units to use the 5-percent discount to negotiate with the occupants “instead of going into litigation.”

The HUDCC would be conducting its housing fair next week to sell these foreclosed assets and the new housing projects for the middle- income groups.

Felix Salino, HUDCC chairman for Central Mindanao, and who sat as HUDCC chairman of the Davao region at the height of the housing woes in the late 1990s, said that the country has passed over its critical and problematic period in the housing sector.

Infrastructure work seen to peak in 3 years
Inquirer
http://supplements.inquirer.net/propertyguide/main.php?content=around093

MANILA, Philippines--THE CONSTRUCTION sector in three to five years will experience a boom, helped by low inflation levels and an expanding real estate sector, according to property consultant CB Richard Ellis Philippines Inc.

Inflation, or the rise in prices of goods and services, greatly affects the material and labor costs. Inflation has fallen to single digit-levels, with the lowest rate recorded at 2.2 percent in March 2007.

A real estate boom usually precedes a construction boom, ensuring that demand will sustain the latter.

The real estate boom was perceived to have started in 2005, largely due to a growing outsourcing industry that has spurred demand for office spaces, very low interest rates on housing loans, and an increasing appetite for homes among overseas Filipino workers.

The continuous rise in office space take-up, 70 percent of which come from business process outsourcing (BPO) firms, have spurred office developers to start building again since 2006, albeit at a more cautious manner, such as by pre-leasing the space before projects are completed, said Victor Asuncion, CBRE director for Global Research and Consultancy Services.

"The macroeconomic fundamentals are strong, and so is BPO demand," added Rick Santos, CBRE chairman.

The property consultant said office building supply this year will reach 232,180 square meters, and will grow to 330,425 square meters in 2008 based on commitments by certain firms.

In 2009, commitments to build office space have reached a total of 105,909 square meters.

On the other hand, demand for office space is seen at 220,000 square meters in 2007, almost matching the projected office supply, and will grow 10 to 15 percent a year, CBRE director Paul Ryan Isip said.

The construction boom is also underscored by the estimated 21-percent growth in construction sales in the first semester, as measured by gross value added (GVA).

GVA is a key performance indicator of the construction sector, and is derived by deducting the intermediate goods used in production, such as raw materials, fuel, advertising and other non-industrial overhead costs, from the total value of output or construction sales using 1985 prices as the base year, CBRE noted.

GVA grew almost 21 percent to P29.87 billion in the first half, from P24.76 billion in the same period in 2006, data from the National Statistical Coordination Board showed.

With high-rise residential condominiums, supply is expected to reach nearly 4,500 units in 2008, from over 4,000 in 2007. Asuncion estimates demand right now is for half of the projected supply 4,500 units, with demand mostly coming from BPO workers and middle-class families.

"Most developers nowadays are pre-selling their projects before they break ground to eliminate the risk of speculative demand," Asuncion said. "Moreover, [developers were] able to increase project profitability with the inflow of installment payments from buyers."

CBRE also said the voluntary freeze on major construction work is starting to melt, with activities from both the public and private sectors flourishing.

For the public sector, the Arroyo administration has lined up infrastructure projects for completion by 2010.

Infrastructure work seen to peak in 3 years
Inquirer
http://supplements.inquirer.net/propertyguide/main.php?content=around093

MANILA, Philippines--THE CONSTRUCTION sector in three to five years will experience a boom, helped by low inflation levels and an expanding real estate sector, according to property consultant CB Richard Ellis Philippines Inc.

Inflation, or the rise in prices of goods and services, greatly affects the material and labor costs. Inflation has fallen to single digit-levels, with the lowest rate recorded at 2.2 percent in March 2007.

A real estate boom usually precedes a construction boom, ensuring that demand will sustain the latter.

The real estate boom was perceived to have started in 2005, largely due to a growing outsourcing industry that has spurred demand for office spaces, very low interest rates on housing loans, and an increasing appetite for homes among overseas Filipino workers.

The continuous rise in office space take-up, 70 percent of which come from business process outsourcing (BPO) firms, have spurred office developers to start building again since 2006, albeit at a more cautious manner, such as by pre-leasing the space before projects are completed, said Victor Asuncion, CBRE director for Global Research and Consultancy Services.

"The macroeconomic fundamentals are strong, and so is BPO demand," added Rick Santos, CBRE chairman.

The property consultant said office building supply this year will reach 232,180 square meters, and will grow to 330,425 square meters in 2008 based on commitments by certain firms.

In 2009, commitments to build office space have reached a total of 105,909 square meters.

On the other hand, demand for office space is seen at 220,000 square meters in 2007, almost matching the projected office supply, and will grow 10 to 15 percent a year, CBRE director Paul Ryan Isip said.

The construction boom is also underscored by the estimated 21-percent growth in construction sales in the first semester, as measured by gross value added (GVA).

GVA is a key performance indicator of the construction sector, and is derived by deducting the intermediate goods used in production, such as raw materials, fuel, advertising and other non-industrial overhead costs, from the total value of output or construction sales using 1985 prices as the base year, CBRE noted.

GVA grew almost 21 percent to P29.87 billion in the first half, from P24.76 billion in the same period in 2006, data from the National Statistical Coordination Board showed.

With high-rise residential condominiums, supply is expected to reach nearly 4,500 units in 2008, from over 4,000 in 2007. Asuncion estimates demand right now is for half of the projected supply 4,500 units, with demand mostly coming from BPO workers and middle-class families.

"Most developers nowadays are pre-selling their projects before they break ground to eliminate the risk of speculative demand," Asuncion said. "Moreover, [developers were] able to increase project profitability with the inflow of installment payments from buyers."

CBRE also said the voluntary freeze on major construction work is starting to melt, with activities from both the public and private sectors flourishing.

For the public sector, the Arroyo administration has lined up infrastructure projects for completion by 2010.

rumor has it that sizeable part of the crescent west park which is supposedly all-green in the masterplan will become parking area :ohno:




Good for you 3cr,

I just saw the pic....Fort Boni is my best bet that it will be a clean and green master planned community....congrats and here's to a better Philippines especially when we all decide to come back home...:banana:


http://i26.photobucket.com/albums/c127/coined101/UP_2
_logo_smaller.jpg

US subprime crisis "an accident waiting to happen": Greenspan

Sun Oct 21, 7:32 PM ET

The financial turmoil that erupted earlier this year in the US subprime housing market was "an accident waiting to happen" and could have taken place in any other sector, former Federal Reserve chairman Alan Greenspan said here Sunday.

"Credit spreads across all global asset classes had become compressed to clearly unsustainable levels," Greenspan told an audience at the World Bank's International Finance Corporation.

"Something had to give. If the crisis had not been triggered by a mispricing of securitized US subprime (high-risk) mortgages, it would have eventually erupted in some other sector of our market," the former Fed chief said.

Greenspan defended the Fed's decision to lower its key federal funds interest rate to 1.0 percent, seen in some quarters as having encouraged risky borrowing, and said the US housing bubble had not been caused by the US central bank.

"Central banks around the world have essentially lost control over the markets beyond three or four or five years out," Greenspan said, noting that long-term interest rates did not rise as the federal funds rate was increased, starting in 2004.

US housing is primarily financed by mortgages based on 30-year interest rates.

As US housing prices fell earlier this year and as interest rates started to rise, the subprime sector suffered a wave of foreclosures that ultimately put securities backed by such mortgages at risk.

Greenspan noted that housing bubbles had emerged in nations throughout the globe where the Fed does not control interest rates.

"If indeed, it is short-term interest rates that created the bubble in the US, what created the bubble" in Europe, Australia and other parts of the world, Greenspan asked.

bolded highlights mine

source: http://news.yahoo.com/s/afp/20071021/ts_alt_afp/worldbankmarketsgreenspan_071021230406

:badnews: your thoughts...

yup..when new york sneezes the world catches a cold...

Yup I agree! knowing newyork is the financial capital of the world!

I guess New York is suffering from cancer

And the world doesn't have a clue:lol:

Can we get affected - Possible.

Is it automatic - No, a whole other set of circumstances have to be in place for this to matter.

NY and the US are not the only drivers of the world economy anymore. For the Philippines and Asia in General , China will play a bigger and bigger role in the future in driving this and the it's not as if the Chinese are about to dump the hundreds of billions of US bonds they hold. With the US currency weak , the Euro, Yen and increasingly the Renmenbi for this part of the world is becoming much more important.

depends on which filipinos you're talking about
this one in particular is affected
there's little or no appreciation on my california property

too many highfalutin words there for the common tao to understand...in plain english please...who knows we could be affected but not realize it

re: Prince Plaza 2, I tried to house an expat there once.. i didn't like what I saw.. madilim ang mga corridors.. yung carpet amoy luma.. tapos ang liliit nang units for 3,000.00 a night..

me too... lack of parking spaces and the elevators were tiny..but my sister and her two kids didn't mind it because it was near the shopping malls, greenbelt park, chapel, museum, restos, etc.. i do like the condotel concept but not prince plaza 2 as a potential investment.

Can we get affected - Possible.

Is it automatic - No, a whole other set of circumstances have to be in place for this to matter.

NY and the US are not the only drivers of the world economy anymore. For the Philippines and Asia in General , China will play a bigger and bigger role in the future in driving this and the it's not as if the Chinese are about to dump the hundreds of billions of US bonds they hold. With the US currency weak , the Euro, Yen and increasingly the Renmenbi for this part of the world is becoming much more important.

hmmm..the possibility worries me a little bit. the us stock market yesterday was bearish..my real estate investment trust funds have consistently been going down for over a year. financial pundits were blaming it on the recession that can ensue if people who borrowed at low rates suddenly will find themselves potential victims of foreclosure.

your last paragraph is somewhat reassuring. thanks. i agree...foreign money (e.g. china's increasing investments) probably is what keeps philippine real estate booming.

too many highfalutin words there for the common tao to understand...in plain english please...who knows we could be affected but not realize it

If you know the meaning and correct usage of the word "highfalutin," then I highly doubt you can't understand the other terms that are being thrown into the discussion here. ;)

of course...Filipinos anywhere have already been affected by this mess. The fed was forced to cut interest rate by half percentage point to prevent the slowing of the US economy. This in turn made the dollar depreciate faster making the peso stronger with more purchasing power for filipinos which is good indeed. The gov'nt is now able to pay more of its debts denominated in dollars easily freeing more money for infrastructure. On the other hand US based pinoys has to pay more of their mortgage in the philippines. So we are much affected by it. Its amazing how interconnected is the world we live in. :)

Regarding real estate. Im not sure what percentage are the Fil-Am buyers in the Philippines. Based on anecdotal evidence here at SSC there are lots of them.

I suspect there will be a slowdown among Fil-Am in buying real property in the Philippines. The combination of tightening of credit as well as slower property or even negative appreciation stateside will dampen their enthusiasm in investing over there. I hope our Euro/Asian based kababayans will pick up the slack.

a lot of the buyers are OFWs (for their parents, family, etc) and Filipinos that migrated abroad (not necessary US) in the 80s and now wants to go back.. or at least a place to stay in the city.

of course...Filipinos anywhere have already been affected by this mess. The fed was forced to cut interest rate by half percentage point to prevent the slowing of the US economy. This in turn made the dollar depreciate faster making the peso stronger with more purchasing power for filipinos which is good indeed. The gov'nt is now able to pay more of its debts denominated in dollars easily freeing more money for infrastructure. On the other hand US based pinoys has to pay more of their mortgage in the philippines. So we are much affected by it. Its amazing how interconnected is the world we live in. :)

Regarding real estate. Im not sure what percentage are the Fil-Am buyers in the Philippines. Based on anecdotal evidence here at SSC there are lots of them.

I suspect there will be a slowdown among Fil-Am in buying real property in the Philippines. The combination of tightening of credit as well as slower property or even negative appreciation stateside will dampen their enthusiasm in investing over there. I hope our Euro/Asian based kababayans will pick up the slack.

of course...Filipinos anywhere have already been affected by this mess. The fed was forced to cut interest rate by half percentage point to prevent the slowing of the US economy. This in turn made the dollar depreciate faster making the peso stronger with more purchasing power for filipinos which is good indeed. The gov'nt is now able to pay more of its debts denominated in dollars easily freeing more money for infrastructure. On the other hand US based pinoys has to pay more of their mortgage in the philippines. So we are much affected by it. Its amazing how interconnected is the world we live in. :)

Regarding real estate. Im not sure what percentage are the Fil-Am buyers in the Philippines. Based on anecdotal evidence here at SSC there are lots of them.

I suspect there will be a slowdown among Fil-Am in buying real property in the Philippines. The combination of tightening of credit as well as slower property or even negative appreciation stateside will dampen their enthusiasm in investing over there. I hope our Euro/Asian based kababayans will pick up the slack.

i hope so too portludlow. our ritz condo investment has considerably appreciated compared to our semi-dormant stateside property as bartman has posted.

last year, we applied for a heloc..home equity line of credit (http://www.investopedia.com/terms/h/homeequitylineofcredit.asp) at 7.49% to finance/pay off the ritz mortgage. so far, it has been a wise decision.

luckily, instead of the arm..adjustable-rate mortgage with bank of america heloc going up.... the adjustable rate went down instead to 6.99%. very nice..

...a sort of reprieve but for how long? once, i believed as kyle@1008, jr_laverga and maxxclip have posted..but being more of a skeptic myself.. the saying went this way... "when america sneezes, philippines will catch pneumonia."

not anymore, thank god.. imho, the performance of phisix has completely disproved that. also i trust bustero is dead-on right about the china factor.

another thing that is equally reassuring .... 3cr's posted articles:

Special Feature: 2nd Quarter Real Estate Report

(Business World (Philippines) Via Thomson Dialog NewsEdge) Water levels may have gone up this rainy season, raising the alarm bells for some sectors. But for the resilient real estate industry, which is now awash with investments, the rainy spell does not bring on the blues as the sector awaits to be flooded with more projects.

Having posted significant growth in the past four years, the local property sector looks more bent than ever in beating the dry spell that ravaged the industry in the late 1990s.

In the past two weeks alone, Eton Properties, Inc. launched the 41- storey Eton Emerald Lofts, Rockwell Land Corp. started the construction for the much-anticipated Number One Rockwell, DMCI Homes partnered with Equitable PCI Bank in developing the Riverside Residences, and One Asia Development Corp. jump-started its P100-million business park in Binan, Laguna.

Despite the storm of new projects, David Leechiu, president and general manager of property consultancy firm Leechiu & Associates, insists that supply across all segments remains tight, a lack that at this rate is expected to be relieved no sooner than by June next year.

Coupled with a corresponding deficit in quality stock, these factors are mainly responsible for the escalation of rent values in prime locations, although a widespread increase in land values is yet to be seen.

"Prices have stayed generally flat across Metro Manila and we are nowhere near pre-crisis values yet except in Fort Bonifacio, which makes it the safest place to invest in at the moment," Mr. Leechiu said.

Land values at Fort Bonifacio in Taguig dropped by as much as 50% in the 1997 crisis but have seen a hundred percent increase since the Bonifacio West Development Corp. -a joint venture of Greenfield Development Corp. and Ayala Land Corp. - took over its development, making the area the country's top sales performer in recent months.

Of the central business districts, Makati still holds the prime spot, with average asking prices ranging from P250,000 to P300,000 per square meter. Ortigas, which reached a low of P90,000 per square meter from a peak of P180,000 per square meter in 1997, is now trading between P110,000 and P120,000 per square meter, Mr. Leechiu said.

Despite its 100% occupancy rate in office space, Fort Bonifacio, remains comparatively cheap at P175,000 to P215,000 per square meter, making it a favorite alternative to the Makati central business district.

"We now see a lot of migration to Fort Bonifacio in all segments. Being in close proximity to Makati, many locators choose Fort Bonifacio because it has a well-planned, well-constructed environment that is only one step away from the Makati facilities that they have gotten used to," he said.

According to the latest Colliers International Philippine Property Overview, there had been a 20% increase in office space rents in the second quarter due primarily to the dearth of quality office supply, a factor that has hindered companies from opening businesses in the country since 2005.

Monthly lease rates for premium office space in Makati are now at the P1,200-per-square meter level while Fort Bonifacio is up to P750 per square meter. Meanwhile, for other districts, monthly lease rates are still at the P400- to P600-per-square meter transaction range.

Mr. Leechiu has pegged Fort Bonifacio's annual rate increase at seven to eight percent for the next three to four years, while Makati accrual is calculated at five percent for the next two to three years before slowing down to two percent.

As available space in these two areas will continue to be limited, a significant amount of future office space supply can be found from emerging business districts such as Eastwood City, Binondo and Old Manila.

Next year will bring good news to the business process outsourcing (BPO) sector, which continues to be the main driver for office space demand, as the number of available supply coming on-stream will double towards the third and fourth quarter, offering more quality stock to choose from.

Tight supply in commercial space will be slightly relieved with the completion of the Ayala Center Building Glorietta 5 and the Dela Rosa e- Services Building in Makati, the Total Corporate Center in Fort Bonifacio, and the One E-Com Center at the SM Central Business Park in the Bay area before mid-2008.


Residential development

And as Metro Manila population continues to increase, condo living is fast becoming the habitat of choice for reasons of cost and practicability.

An estimated 23,000 units is due for completion before 2010, 60% of which will be situated in Fort Bonifacio and Makati, with the remaining 40% scattered across Quezon City, Mandaluyong, Las Pinas and other Metro Manila districts. A big chunk of supply will cater to mid to upper market, while small percentage of the total is targeted for the low-end market.

The steady inflow of overseas foreign worker (OFW) remittances, now reaching all-time highs, assures the continuance of strong demand in the residential market.

"Lately, we have seen a shift from semi-skilled workers to high-end professionals leaving the country to work abroad and despite their high- paying jobs, they are still not covered by expatriate packages where the company pays for the whole family's expenses. This in turn becomes a good motivator for OFWs to continue sending money to the Philippines," Mr. Leechiu pointed out.

Single-digit mortgage rates and easier payment schemes will result in more retail purchases from the middle class in the years to come. For professionals, Mr. Leechiu said there's a growing preference for centrally located condominium units over suburban houses in distant locations such as Las Pinas and Rizal.

Another significant source of investment demand are the local families who had parked money abroad during the Asian financial slump, but are now pre-terminating their placements and transferring them back to the Philippines.

Despite visible demand and propitious property forecasts, Mr. Leechiu warns developers against building too much stock. With debt restructuring being made available to developers both big and small, real estate corporations have been able to raise bonds at a much lower rate.

"These companies have done IPOs or secondary or even third offerings and raised a lot of cash through the stock market. They've been able to joint venture with other institutional big players. This means that there is a lot of money flowing into the system," he said.

Instead, Mr. Leechiu reminds developers to consciously watch the demand and supply situation.

[I]Copyright 2007 Business World Publishing Corporation, Source: The Financial Times Limited

colored/bolded highlights mine

If you know the meaning and correct usage of the word "highfalutin," then I highly doubt you can't understand the other terms that are being thrown into the discussion here. ;)

the thing is i was never a star student in economics way back in high school

^^neither was i ...sa don bosco high or college..but to give you an idea where i am coming from:

Size of the Subprime Market

To get an idea of the total direct impact of the subprime lending crisis, we will take a look at its size and make an estimate of the overall loss. (For background reading on what happened, see The Fuel That Fed The Subprime Meltdown.) (http://www.investopedia.com/articles/07/subprime-overview.asp)

According to a July 2007 report by AMP Capital Investors, the total value of all subprime loans is approximately $1.4 trillion, of which only about one-third of outstanding loans could reasonably be expected to default. Even if a loan defaults, it isn't a total loss as the bank can sell the home.

If we assume that in the event of a default, a home can still be sold off, on average, for two-thirds of its original value, the total losses on subprime loans shouldn't go much higher than $150 billion.

Clearly, subprime losses are only a fraction of overall economic activity. The U.S. economy produced around $13 trillion in gross domestic product (GDP) during 2006, and according to January 2007 data from the World Federation of Exchanges, the total value of all stocks in the world is about $50 trillion. So, what this tells us is that even in a worst-case scenario, the pain in the subprime market alone may not have a major impact on the overall economy.

However, it isn't just about the losses from loan defaults that investors and other market participants are worried about. It is the potential spillover effects of the subprime mess that could have a much greater impact on the overall economy - it even brings up talks of the dreaded possibility of recession.

Impact on Borrowers

A major impact stemming from the subprime meltdown has been the reduction in available funds for borrowers. The group most affected by this reduction is "lower quality" borrowers. Subprime lending has dried up as a result of both the collapse of lenders and the reduction in desire to lend to this group. (To learn more, read Subprime Lending: Helping Hand Or Underhanded? (http://www.investopedia.com/articles/basics/07/subprime_basics.asp))

With the recent meltdown in subprime markets, investors are now more aware of the credit risk inherent in these types of investments. As such, they will require a higher rate of return to compensate for the additional, perceived risk. This translates into higher interest costs for lower quality borrowers and a higher cost of home ownership.

Additionally, many lenders have suffered severely for making these types of loans. Numerous firms have gone of out business or had their stock prices pummeled by frantic investors. Firms that are already in the business of making low quality loans will likely be much more stringent in their underwriting standards. Moreover, they may also seek to diversify their portfolio of loans to include more high-quality borrowers. (To learn more, read Dissecting The Bear Stearns Hedge Fund Collapse (http://www.investopedia.com/articles/07/bear-stearns-collapse.asp) and The Rise And Demise Of New Century Financial. (http://www.investopedia.com/articles/07/new-century.asp))

Furthermore, firms that are not currently in the business of making low quality loans will be much less likely to enter into this business for fear of financial losses and investor reprisal on their stock price. These factors will almost certainly work together to decrease the supply of loans to low-quality borrowers, thereby diminishing the pace of growth in home ownership and hurting the housing market.

What this means to borrowers - The next time you go to the bank for a loan or a mortgage it will likely be more difficult to get and more costly.

Housing Prices

As lower quality borrowers lose their homes or find it more difficult to purchase them, this also puts downward pressure on real estate prices, all but closing the spigot of home-equity withdrawals (http://www.investopedia.com/terms/h/home_equity.asp). (For more insight, read Home-Equity Loans: The Costs. (http://www.investopedia.com/articles/pf/05/041905.asp))

:nuts:


source: investopedia (http://www.investopedia.com/articles/pf/07/subprime-impact.asp)

..and where i :ohno: am not planning to go:

http://i.investopedia.com/inv/articles/site/PF-meansbankruptcyb.gif
source: bankruptcy (http://www.investopedia.com/articles/pf/07/bankruptcy.asp)
colored and bolded highlights mine

way back when i was still a shy ssc lurker, i read this (http://www.skyscrapercity.com/showthread.php?t=228665)..

excerpts:

Economists warn of slowdown in the economy by year's end
By Dean Calbreath
UNION-TRIBUNE STAFF WRITER

June 21, 2005

By the end of the year, America's bubbling housing prices will likely flatten or pop, causing an economic slowdown, economists warned in a flurry of reports yesterday and today.

Red flags issued by such diverse sources as the Merrill Lynch investment firm, the University of Maryland and the UCLA Anderson Forecast warn that a stumble in housing prices could take a major bite out of economic growth, damaging the already weak job market.

Other signs of economic trouble also loomed yesterday. The price of oil surged to a 20-year high of almost $60 a barrel and the nation's leading economic indicators fell twice as much as had been projected.

But the economists warned that the most serious problem is in the overpriced housing market.

"Policy-makers need to reckon with the end of the housing boom, which has been holding up consumer spending and the economy," said Peter Morici, economist at the University of Maryland. "With so many buyers benefiting from creative and highly questionable mortgage schemes, and regulators expressing concern about those practices, a pullback in the housing sector seems inevitable. When that happens, growth will skid."

In the past several years, housing has been a key engine of the economy, with home equity loans, refinancings and other forms of creative borrowing helping to fuel retail sales as well as construction activity.

But in a report to be issued today, the Anderson Forecast warns that the construction of new homes is outstripping the natural growth of the population.

The report notes that current population growth supports about 1.5 million to 1.6 million new houses being built throughout the nation. But 1.9 million units were built last year and 2 million are slated for construction this year, indicating that a slowdown is in order.

The report predicts a slow but steady decline in home sales throughout the second half of the year. Because so much economic activity is tied to housing, said Michael Bazdarich, senior economist at the Anderson Forecast, economic growth will decline from its current pace of 3.2 percent to about 1.5 percent by the middle of next year – assuming that the decline is orderly.

"Beyond the housing market, there's really not much going on in the economy," he said. "The rise in housing prices has represented an inordinate part of our economic recovery. If the housing market slows too sharply, there would be nothing to sustain economic growth."

But it may not take an actual decline in housing to put the economy on the skids.

According to a report issued by Merrill Lynch yesterday, if the housing market merely stays flat, rather than declining, it could shave half a percentage point off economic growth this year and a full percentage point in 2006.

Overheated housing markets in cities from Los Angeles to Miami to New York "represent a big enough slice of economic activity that should they falter, we could see a fairly hefty impact on aggregate U.S. economic growth," warned Merrill Lynch economists Sheryl King and Claudia Lokody.

King and Lokody said that home prices have risen far above incomes in 30 of the nation's top 52 metropolitan areas.

"Six cities in the Golden State – San Diego, Riverside/San Bernardino, Los Angeles, San Francisco, San Jose and Sacramento – are well in bubble territory," they wrote.

"On average, home prices for these six cities, which represent about 70 percent of the state's population, have risen about 75 percent since the start of 2001. Per capita income growth has averaged around 3 percent since this time."

Other economists say that the predictions of economic decline are overly dire. But they add that if a decline in the housing market is combined with another economic hurdle, such as a spike in the price of oil, the effect could be serious.

Yesterday, the price of oil surged to $59.37 per barrel, up 90 cents on the day. It was the highest closing price for oil since the energy crisis of the early 1980s, when prices spiked above $80 per barrel, after adjusting for inflation.

In the past month, oil prices have risen almost $12 a barrel because of rising demand. And economists do not see the price slipping any time soon.

So far, consumers have adapted to the rising prices. In fact, gasoline usage has risen in the past several weeks despite the rise in prices.

The past two years, the rising price of oil has contributed to a slowing of the U.S. economy, which grew 3.5 percent during the first quarter compared with 4.5 percent during the same time last year.

Economists say that a price rise above $60 would not be enough to derail the economy. But if oil prices rise to $65 or $70 at the same time the housing market stalls, it could inflict serious damage.

"I don't think a price rise of an additional $5 a barrel will be all that life-threatening to the economy," said economist Morici. "But if housing prices decline at the same time that oil prices rise, then the whole economy's in the soup."

In the meantime, the nation's leading economic indicators, as tallied by the Conference Board in New York, fell by 0.5 percent, more than double the 0.2 percent that economists had been forecasting.

Only one of the indicators rose in May: stock prices. Building permits, vendor performances, consumer expectations, manufacturing orders, consumer goods and unemployment claims were all negative indicators.

The indicators suggest that growth will slow over the next three months worldwide, said Ken Goldstein, labor economist for the board, which is a corporate-funded research agency.

In a prepared statement, Goldstein warned that the sluggishness is "not just a domestic phenomenon."



kindna self-fullfilling prophecy..:ohno:

once, my wife and i looked for a retirement condo in kissimmee, fla. (http://www.visitflorida.com/destinations/area.php/ca=66) but we read this.

(http://www.skyscrapercity.com/showthread.php?t=296815) :ohno:

in 2005, we actually rented a condo townhouse there to scout the area (including tampa, orlando, kennedy space center and jacksonville) while we vacationed in epcot for a week. it was very nice...but...despite the bubble fiasco (seemingly bargain/discounted homes), it was not affordable then and makati was a logical, much cheaper and better option. why?

1. there was no direct flight to manila unlike la, san francisco or las vegas.

2. cost of living was very high compared to metro manila.

3. not many filipinos live there that we know of.

4. most of our relatives live in subic bay/olongapo and laguna.

:banana:

^^neither was i ...sa don bosco high or college..but to give you an idea where i am coming from:


source: investopedia (http://www.investopedia.com/articles/pf/07/subprime-impact.asp)

..and where i :ohno: am not planning to go:

http://i.investopedia.com/inv/articles/site/PF-meansbankruptcyb.gif
source: bankruptcy (http://www.investopedia.com/articles/pf/07/bankruptcy.asp)
colored and bolded highlights mine

did you study sa don bosco makati??

once, my wife and i looked for a retirement condo in kissimmee, fla. (http://www.visitflorida.com/destinations/area.php/ca=66) but we read this.

(http://www.skyscrapercity.com/showthread.php?t=296815) :ohno:

in 2005, we actually rented a condo townhouse there to scout the area (including tampa, orlando, kennedy space center and jacksonville) while we vacationed in epcot for a week. it was very nice...but...despite the bubble fiasco (seemingly bargain/discounted homes), it was not affordable then and makati was a logical, much cheaper and better option. why?

1. there was no direct flight to manila unlike la, san francisco or las vegas.

2. cost of living was very high compared to metro manila.

3. not many filipinos live there that we know of.

4. most of our relatives live in subic bay/olongapo and laguna.

:banana:

This I can rebutt. I live here in Orlando, and have been living here a long time. The Kissimmee-Saint Cloud area is teeming with Filipinos. There are a lot of Pinoy stores, restaurants, and businesses down there. If you were holed up in the touristy part of Kissimmee, then of course you wouldn't find/see lots of Pinoys there. But if you leave the confines of the tourist attractions and it's environs, you will discover enclaves of a burgeoning Pinoy community.

But if you really want to know where the Pinoys live and congregate here in the Metro Orlando area, go to the east side of Orlando, down near the airport and the campus of UCF (University of Central Florida), there are tons of them there. :colgate:

last year, we applied for a heloc..home equity line of credit (http://www.investopedia.com/terms/h/homeequitylineofcredit.asp) at 7.49% to finance/pay off the ritz mortgage. so far, it has been a wise decision.

luckily, instead of the arm..adjustable-rate mortgage with bank of america heloc going up.... the adjustable rate went down instead to 6.99%. very nice..



Good for you. :)The fed is meeting on tuesday this week....they are expected to cut a quarter of a percentage point again. Try to figure out now if consolidating your 1st and 2nd mortgage would make sense. Regarding the the fed lowering interest again. The conventional wisdom is that the dollar will again devaluate and the stock market will rally although I believe those are already priced in the market except if they will cut more aggresively like a half a percentage point.


This I can rebutt. I live here in Orlando, and have been living here a long time. The Kissimmee-Saint Cloud area is teeming with Filipinos. There are a lot of Pinoy stores, restaurants, and businesses down there. If you were holed up in the touristy part of Kissimmee, then of course you wouldn't find/see lots of Pinoys there. But if you leave the confines of the tourist attractions and it's environs, you will discover enclaves of a burgeoning Pinoy community.

But if you really want to know where the Pinoys live and congregate here in the Metro Orlando area, go to the east side of Orlando, down near the airport and the campus of UCF (University of Central Florida), there are tons of them there. :colgate:

he he he....I knew you cant resist to rebutt on this. How about those ubiquitous pinoys selling time shares? :) :nuts: :lol:

^^ Getting too predictable? ;)

US slowdown would hit Philippines hard, says bank


By Doris Dumlao
Inquirer
Last updated 01:24am (Mla time) 10/30/2007


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US slowdown would hit Philippines hard, says bank

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Close this The Philippines, with its high dependence on exports, could be among the worst hit among Asia’s developing economies by a looming slowdown in the US economy, French banking giant BNP Paribas said.

In its October global outlook report, BNP Paribas said the expected softening of the US economy this year and next would have a diverse impact on Asian economies, depending on their export reliance in general, and that to the United States in particular.

To analyze the impact of an expected US slowdown on various economies in Asia, BNP Paribas used a simple scoring system that took into account the three key economic growth drivers for developing Asian economies: investment, consumer spending, and net exports.

“Net exports remain, on average, the smallest contributor to Asian GDP [gross domestic product] growth, but Thailand and the Philippines score high at this phase of their cycles and hence remain susceptible to the impact of a US-induced export slowdown,” the report said.

BNP Paribas noted that Thailand was already in the grip of a confidence-induced downturn that may take at least six months or more to reverse.

“For the Philippines, there is an additional negative consideration in that it has one of the highest export dependencies on the US among the Asian economies, [more than] 22 percent of the total, and is thus, in a sense, twice exposed,” the report said.

India, on the other hand, was seen as fairly well insulated from any export-generated impact, having one of the lowest scores for the export driver.

In a recent report released in Washington DC, the International Monetary Fund has urged emerging Asia to reduce over-reliance on exports and increase exchange rate flexibility to avoid sowing the seeds of a new crisis 10 years after the devastating turmoil that caused an unprecedented currency freefall in Thailand, Indonesia, the Philippines, Malaysia and South Korea.

just curious.

for the fil-ams that have helocs, if the value of their homes drastically goes down (like what I hear is happening in stockton and sacramento) will the banks ask for additional collateral cover the loan amount ?

maybe somebody here can help me..
why is the market value way too low from the real price when bought?

^^No they dont have to provide more collateral.

HELOC are a small part of a bigger problem. People who have the so called "suicide loans"....interest only loans with low introductory teaser rates that resets in 2 years are the one bedeviling a lot of the subprime borrowers. Monthly payments can easily double or even triple with no chance of refinancing as their mortgage are "upside down"....their property values are much lower than their mortgage debt. People literally just walk out and leave the keys from their houses to be foreclosed.

Im sure there are some Fil-Ams who bought properties in the Philippines who are feeling the heat from this mess. Not only that they will have a bigger mortgage stateside but they also have to contend with a depreciating dollar which translates to a higher payment in the Philippines.

kaibigan, there are many reasons why market value of a property becomes lower through time:

it could be that the property was bought at a very high price with no room to appreciate;

you may be valuing it at the low end of the property cycle where values are lower than when you bought the property which may have been at it's higest;

external circumstances such as political instability, natural disasters etc may make people think twice about the desirability of a location;

the changing natures of cities means that what is popular and "in" today may not be tom so very expensive escolta or binondo are not the primest areas in the country anymore

etc etc etc

One important thing though is that you need to take a look at this from a nominal and relative basis.

Nominally (on the face of it) the values may be gone lower or appreciated versus the original selling price but depending on the economic and financial condition of the place you have bought into you may need to look at this relative to other currencies or markets or investments you compare it too.

did you study sa don bosco makati??

nope...went to hs north of zambales..but we got the next best thing....wife and i exchanged marital vows in your beautiful chapel..met a lot of friends, teachers, including an italian priest.:)

tho we belong to urdaneta parish cuz ritz tower is closer to that church, we tend to attend mass there.

that's also why we're heavily invested in makati..bubble/or not, rich/poor, in sickness/health...til death do us part.:lol:

Good for you. :)The fed is meeting on tuesday this week....they are expected to cut a quarter of a percentage point again. Try to figure out now if consolidating your 1st and 2nd mortgage would make sense. Regarding the the fed lowering interest again. The conventional wisdom is that the dollar will again devaluate and the stock market will rally although I believe those are already priced in the market except if they will cut more aggresively like a half a percentage point.



thanks...am seriously studying the option of consolidating if the federal rate comes down further this week. as of yesterday...

Stocks slip as investors await Federal Reserve interest rate move
The Associated Press

Article Last Updated: 10/30/2007 08:08:32 AM MDT


Posted: 8:11 AM- NEW YORK - Wall Street pulled back in early trading Tuesday as investors grew more uneasy ahead of the Federal Reserve's decision on interest rates.

The market has been angling for a rate cut following the Fed's half-point reduction in September, and investors expect the central bank to deliver a quarter-point cut at the conclusion of its two-day meeting on Wednesday. But inflation remains a threat, with oil prices near record highs and the dollar in sharp decline, and there is no certainty the Fed will indeed lower rates.


i do recall when the fed rate was at its lowest, we re-financed at 4.7% and the dollar was 55 pesos. i guess those days are gone.:ohno:

US slowdown would hit Philippines hard, says bank

By Doris Dumlao
Inquirer

US slowdown would hit Philippines hard, says bank

The Philippines, with its high dependence on exports, could be among the worst hit among Asia’s developing economies by a looming slowdown in the US economy, French banking giant BNP Paribas said.

In its October global outlook report, BNP Paribas said the expected softening of the US economy this year and next would have a diverse impact on Asian economies, depending on their export reliance in general, and that to the United States in particular.

To analyze the impact of an expected US slowdown on various economies in Asia, BNP Paribas used a simple scoring system that took into account the three key economic growth drivers for developing Asian economies: investment, consumer spending, and net exports.

“Net exports remain, on average, the smallest contributor to Asian GDP [gross domestic product] growth, but Thailand and the Philippines score high at this phase of their cycles and hence remain susceptible to the impact of a US-induced export slowdown,” the report said.

BNP Paribas noted that Thailand was already in the grip of a confidence-induced downturn that may take at least six months or more to reverse.

“For the Philippines, there is an additional negative consideration in that it has one of the highest export dependencies on the US among the Asian economies, [more than] 22 percent of the total, and is thus, in a sense, twice exposed,” the report said.

India, on the other hand, was seen as fairly well insulated from any export-generated impact, having one of the lowest scores for the export driver.

In a recent report released in Washington DC, the International Monetary Fund has urged emerging Asia to reduce over-reliance on exports and increase exchange rate flexibility to avoid sowing the seeds of a new crisis 10 years after the devastating turmoil that caused an unprecedented currency freefall in Thailand, Indonesia, the Philippines, Malaysia and South Korea.

your post according to doris is very gloomy...:(

here's buffett's more balanced take:

Buffett: More pain for consumers from subprime market

By Kelly Olsen, AP Business Writer

DAEGU, South Korea — Billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years but that the U.S. economy will weather the storm.

The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."

Rising default rates among mortgage holders with poor credit histories have rattled global credit, stock and currency markets since August and raised concerns about a possible recession in the U.S. economy.

"In the next 6 months, one year, two years, the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States," he said at a press conference after arriving earlier in the day from China on his private jet.

The U.S. economy has often had to face various difficulties and the present was no exception, Buffett said.

"Overall the economy will make progress," he said.

^^warren has been demoted..now the third richest man in the world but ever the perpetual optimist. :lol:

my source (http://www.usatoday.com/money/economy/housing/2007-10-25-buffett_N.htm?csp=34)

This I can rebutt. I live here in Orlando, and have been living here a long time. The Kissimmee-Saint Cloud area is teeming with Filipinos. There are a lot of Pinoy stores, restaurants, and businesses down there. If you were holed up in the touristy part of Kissimmee, then of course you wouldn't find/see lots of Pinoys there. But if you leave the confines of the tourist attractions and it's environs, you will discover enclaves of a burgeoning Pinoy community.

But if you really want to know where the Pinoys live and congregate here in the Metro Orlando area, go to the east side of Orlando, down near the airport and the campus of UCF (University of Central Florida), there are tons of them there. :colgate:

i stand corrected...being there for only a week does not make me an expert:bash:

reminds me of "one blind man describing an elephant like a snake/tail"... :nuts:

Getting too predictable?

you selling time shares too? :lol:

^^ Thank you so much for the info @Bustero. You're the best! :okay:


i second the motion! :cheers: adding my do-list: check title and save another cold san-mig for peter!

a whiff of good news?

Mortgage lenders pressured
Countrywide to offer refinancing, modifying loans to help borrowers
By Alex Veiga

The Associated Press

LOS ANGELES - Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans with interest rates set to adjust by the end of 2008.
But as defaults and foreclosures snowball, the mortgage industry is under increasing pressure to do even more to help financially strapped borrowers hang on to their homes.

The Mortgage Bankers Association is surveying its members to determine how many mortgages have been modified in recent months. Moody's Investors Service recently surveyed 16 mortgage servicers that accounted for 80 percent of the market for subprime loans made to borrowers with shaky credit histories.

It found that most of those companies had modified only about 1 percent of loans with interest rates that reset in the first half of this year.

So far this year, Countrywide said it has completed 20,000 loan modifications - a figure that represents less than 5 percent of the more than 500,000 loans the lender reports were behind in payments as of last month.

The figure amounts to 24 percent of the roughly 82,000 loans the company said were in foreclosure.

On Tuesday, the company said it would discuss possible loan changes with borrowers who are current on loans but face pending interest rate resets. The lender said it intends to refinance about $10 billion in loans and modify another $4 billion.

It also plans to contact holders of loans totaling $2.2 billion who are late on their loans and struggling because of recent rate resets.

Countrywide said it has already helped more than 40,000 borrowers and would reach out to 82,000 more to provide some kind of relief.
Countrywide shares fell 63 cents, or 4.02 percent, to $15.05. The shares have traded in a 52-week range of $14.40 to $45.26.

Earlier this year, Washington Mutual Inc., with a mortgage servicing portfolio valued at $713.3 billion, said it would refinance up to $2 billion in subprime loans to discounted fixed-rate loans for borrowers who are current on payments.

Wells Fargo & Co., with a mortgage servicing portfolio of $1.41 trillion at the end of June, declined to say how many home loans it has modified.

The bank reported that less than 4.5 percent of its loans were delinquent at the end of June, while 0.56 percent had entered foreclosure.

Bank of America Corp., the nation's second-largest bank, said it modified 3,200 home loans representing $240 million during the eight months ended Aug. 30 and had just 192 homes in foreclosure as of Sept. 30.

The mortgage industry probably will face growing pressure to alter loans in the coming months, as 2 million adjustable-rate loans begin resetting to higher monthly payments.

Treasury Secretary Henry Paulson has called for Congress and mortgage lenders to move more quickly.

Some people do manage to hold on to their homes.

Patsy Brinson, 52, was in danger of losing her home in Victorville, Calif., last year.

The registered nurse fell behind on payments because of problems with other debts. Her loan servicer, American Servicing Co., tried various work-arounds to get her current, including making bigger payments every month to catch up on what she owed.

In June, her loan servicer modified her terms from an adjustable rate to a 40-year, fixed at her original rate of 7.99 percent, she said. Along the way, she paid around $4,000 in fees.

underlined and bolded excerpts mine

my source (http://www.sltrib.com/realestate/ci_7263720)

The fed is meeting on tuesday this week....they are expected to cut a quarter of a percentage point again. Try to figure out now if consolidating your 1st and 2nd mortgage would make sense. Regarding the the fed lowering interest again. The conventional wisdom is that the dollar will again devaluate and the stock market will rally although I believe those are already priced in the market except if they will cut more aggresively like a half a percentage point.


ap must have read your post, port...

latest news:

Ahead of the Bell: Federal Reserve
Wednesday October 31, 6:26 am ET
Analysts Expect Federal Reserve to Cut Interest Rates Again

NEW YORK (AP) -- Analysts say the Federal Reserve is under pressure to make another rate cut Wednesday, due to the still-flagging nature of the economy.
The central bank on Wednesday is expected to issue a decision about whether to cut, raise, or hold steady the 4.75 percent target fed funds rate. Most investors are expecting the agency will cut the rate -- which is its most powerful tool for influencing the economy -- to 4.50 percent. That rate affects many other interest rates charged to individuals and businesses.

The housing industry is still lagging, consumer spending has been crimped due to high costs, and credit markets are still tight -- pointing to a need for further monetary easing.

But a lower rate could contribute to inflation, and oil prices -- a key gauge -- are already near record highs, while the dollar has been on a long-term downward spiral.

Wachovia Securities analysts, in a recent report, said the Fed's last rate cut didn't have the healing impact the bank hoped it would.

"While the rate cut helped forestall an immediate credit crunch, data since then suggests that more easing is needed," the analysts wrote.

BlackRock Inc.'s Bob Doll, who is vice chairman and global chief investment officer of equities, said the Federal Reserve will likely continue to make moves to ease market conditions, even if it does not cut rates Wednesday.

"The ongoing struggles in the housing market, some disappointing earnings figures and negative earnings guidance from the financials and consumer sectors underscore the pressure on the Fed to continue cutting rates," he wrote.





my source (http://biz.yahoo.com/ap/071031/fomc_ahead_of_the_bell.html?.v=1&printer=)

i stand corrected...being there for only a week does not make me an expert:bash:

reminds me of "one blind man describing an elephant like a snake/tail"... :nuts:

That's okay, I was just letting others know as well that there are Pinoys here in the area. You just have to look hard enough to spot us, we just blend well that's why. :lol:

you selling time shares too? :lol:

Nope, I don't sell timeshares. I was just replying to Terrapin's post stating that he had a feeling that I couldn't resist replying to your previous post that there aren't that many Pinoys here in the Central Florida region. :colgate:

by Gail MarksJarvis

November 4, 2007

The Federal Reserve gave the economy another teaspoonful of tonic last week, and investors gulped it down and liked it.

The hope is that it will cure what could ail the economy and keep the doctor away.

But it's too early to expect a clean bill of health. The incubation period for economic remedies and problems is often six to 12 months, and the economy could be sickened by more than tumbling home prices and the potential that house-poor consumers might not spend much.

There remains a hangover from the summer's credit crunch and ongoing weakness and mistrust in the financial system. The nation's largest banking firms have been reporting the damage they caused themselves and investors by cavalierly creating securities backed by undependable subprime mortgages.

The breakdown in trust that Wall Street brought about through lax lending and underwriting standards, along with secretive accounting, cannot be cured by interest rates alone, she said. "People didn't think: Can people pay these back?"


It started, he said, by lenders changing the rules of lending—financing 100 percent of the costs of borrowing a home by using such strategies as piggy-back loans, in which the borrower takes out more than one loan. Then, Wall Street bundled the flimsy mortgages into securities and sold them widely without alerting people to the risks. Rating agencies, such as Moody's and Fitch, also failed to analyze the risks or warn investors about them, Moskow said.

As Wall Street churned out hundreds of billions of dollars in mortgage-related securities the last few years, rating agencies gave the safest ratings of AAA to many that, in retrospect, were not that safe. During the last few months, the agencies have said they need more reliable data than they have had. They have evaluated their analysis and marked down ratings.

For example, Fitch reported recently that of 431 structured finance collateralized debt obligations representing about $300.1 billion of outstanding debt, 150 are now showing signs of greater risks than were first assumed. The questionable securities represent about $36.8 billion in debt obligations.

When securities like these are downgraded, investors won't pay full price for them. Prices drop in the marketplace. Given the continued uncertainty about the underlying analysis and value of the mortgage-related securities, investors are reluctant to touch them. And prices are spiraling down.

In fact, some securities held in bank-related structures known as structured investment vehicles, or SIVs, are so troubled that the U.S. Treasury Department has stepped in to help large financial institutions such as JP Morgan Chase, Citigroup and Bank of America form their own rescue plan. The idea would be to place the declining securities in another institution—known as a super SIV—so confidence could grow and lift prices of the securities. Presumably, that would help prevent the institutions from taking losses.

Moskow, as well as former Federal Reserve Chairman Alan Greenspan, has raised questions about the wisdom of the plan. Yet Moskow noted there is concern that without a solution, banks might have to take larger write-offs and that "could restrict credit availability."

In other words, banks would cut back on granting loans—potentially a crippling effect on the economy.

Tavakoli notes that one of the troubles in the system now is that investment banks are "denying their losses. That's shaken confidence."

Interest rate cuts don't solve those problems, she said: "The markets can deal with a lot, but not cover-ups. It shakes the markets' confidence, and we have a long way to go in coming quarters."

my source: chicago tribune (http://www.chicagotribune.com/business/yourmoney/chi-071104gail-column,0,3708342,print.column)

how does it affect me? dividend worries:

Bank of America, which has raised its dividend for 30 straight years, has a yield of 5.7 percent. Yields are 3.5 percent at JPMorgan Chase & Co , 6 percent at Wachovia Corp and 3.8 percent at Wells Fargo & Co . All their shares, like Citigroup, fell to 52-week lows this week.

A high dividend provides a cushion when times are or look tough. But that is little comfort in a year when banks shares have lagged the broader market by 24 percentage points.

"Given what's in the market and what we expect to see, getting a solid dividend return is extremely positive," said Richard Bove, an analyst at Punk, Ziegel & Co. in Lutz, Florida.

He expects Bank of America, Wachovia, Wells Fargo and U.S. Bancorp to raise their dividends in 2008.

Yet investors worry that further losses and write-downs could hurt dividend payouts.

bolded excerpts mine.

^^it sounds like you have money invested on financial stocks.....you probably have to get out of those ASAP until things stabilized. The big banks and investment houses on wall street dont really have any idea how to value their exposures to this subprime fiasco. Just the last three days the CEO's of Citigroup and MerrylLynch have been ask to resign because of billions of dollars in losses on CDO's. Share prices of WAMU, Bankof America, Wells Fargo, Bear Stearns have taken a beating. Even Goldman Sachs is under
investigation.

What are the implicationns for us Filipinos? ahhhhh....We live in interesting times. If the US goes into a recession because of all this mess. the Phiippines will be much affected and surprise surprise......the dollar will rise and peso will depreciate. What a contradiction. This just of course my own opinion.

Buying a home the quick and easy way
Manila Times

Forget all the debates about whether you’re ready to buy a home or not. And don’t get wound up about the usual worries—the location to consider, the downpayment to save up for, the risk of getting duped by pre-selling upstarts and the credit checks.

Discerning first-time homebuyers and urban achievers can now reward themselves with the home they’ve always dreamed of, without all the mandatory inconveniences, through a progressive program called the Homestarter Financing program from Community Innovations, Ayala Land’s subsidiary for pioneering developments.

A is for amortization

Of all the hassles of buying a house or condo, first prize usually goes to monthly amortization since this can unexpectedly fluctuate depending on the prevailing interest rates in the local market. With the Homestarter, buyers are protected by interest rates that are unique for two reasons. First, they are the lowest in the market, at 5.5 percent. Second, they are fixed, which means you’re assured of the same schedule of payments for the full length of your term, so that managing your expenses is simple and straightforward. To top it all off, the program also offers payment terms that extend up to 15 years—the longest in the market—making owning a home a breeze.

Low downpayment

The program gives buyers unprecedented convenience and financial freedom with the lowest down payment in the market at 10 percent—which eliminates all excuses for you not to buy a home.

Application

Conventional financing usually involves a tedious application process but because Community Innovations is the only developer offering customers financing using in-house support, buyers go through a seamless, one-time transaction. This means the great inconvenience—now accepted as a norm—of having one’s credit checked upon down payment for a house or condo, and then again for a bank loan to make the required balloon payment doesn’t apply to buyers of Community Innovations selected properties.

Location, location, location

The cardinal rule in real estate, and the first consideration of any homebuyer, is now a thing of the past with the extensive roster of prestigious developments waiting to be owned through the Homestarter.

Buying a home the quick and easy way
Manila Times

Forget all the debates about whether you’re ready to buy a home or not. And don’t get wound up about the usual worries—the location to consider, the downpayment to save up for, the risk of getting duped by pre-selling upstarts and the credit checks.

Discerning first-time homebuyers and urban achievers can now reward themselves with the home they’ve always dreamed of, without all the mandatory inconveniences, through a progressive program called the Homestarter Financing program from Community Innovations, Ayala Land’s subsidiary for pioneering developments.

A is for amortization

Of all the hassles of buying a house or condo, first prize usually goes to monthly amortization since this can unexpectedly fluctuate depending on the prevailing interest rates in the local market. With the Homestarter, buyers are protected by interest rates that are unique for two reasons. First, they are the lowest in the market, at 5.5 percent. Second, they are fixed, which means you’re assured of the same schedule of payments for the full length of your term, so that managing your expenses is simple and straightforward. To top it all off, the program also offers payment terms that extend up to 15 years—the longest in the market—making owning a home a breeze.

Low downpayment

The program gives buyers unprecedented convenience and financial freedom with the lowest down payment in the market at 10 percent—which eliminates all excuses for you not to buy a home.

Application

Conventional financing usually involves a tedious application process but because Community Innovations is the only developer offering customers financing using in-house support, buyers go through a seamless, one-time transaction. This means the great inconvenience—now accepted as a norm—of having one’s credit checked upon down payment for a house or condo, and then again for a bank loan to make the required balloon payment doesn’t apply to buyers of Community Innovations selected properties.

Location, location, location

The cardinal rule in real estate, and the first consideration of any homebuyer, is now a thing of the past with the extensive roster of prestigious developments waiting to be owned through the Homestarter.

i saw this online...

Real Estate transactions in the Philippines are sometimes a cause for worry due to the many inherent problems in the system. What follows are some tips and rules to follow for a worry-free (or "less problematic") Real Estate transaction:

Tip #1. Deal only with titled property.

There are many properties in the Philippines that are not titled, or registered under the Torrens system. If you buy an untitled property (usually evidenced by only a Tax Declaration), you would not enjoy the benefits of the Torrens system, and you will be forced to investigate for yourself the "chain of ownership" from the present owner up to the first, which usually dates back to the 1920's. With titled property, you can rely on the fact that the owner of the property is that which is stated in the title.

Tip #2. Stick to those properties registered in the names of actual sellers themselves.

Most properties in the Philippines are titled in the names of the grand parents or even great grandparents of the owners. Thus, there is still the need to execute an extra-judicial settlement, which has a "grace period" of two years within which an excluded heir can question the settlement and the sale. This type of litigation is fairly common and is the usual source of problems. Thus, avoid properties not titled in the names of the actual seller.

Tip #3. Avoid SPAs (Special Power of Attorney) - deal with the actual sellers themselves.

Another of the common sources of property litigation in the Philippines are those involving special power of attorneys. This is an instrument that empowers a party to deal with the property of another, usually for the purpose of selling the property. Oftentimes, unscrupulous individuals procure a special power of attorney surreptitiously from the unwitting owner who is led to believe that the document being signed is something else. Believe it or not, most of the property owners in the Philippines have finished only primary schooling and cannot read English documents. If you must deal with property being sold through an SPA, verify the SPA by questioning the notary public who executed the same, and even meeting the property owner himself.

Tip #4. Always check the copy of the title on file with the register of deeds.

In the copy on file with the register of deeds are annotated the "involuntary liens" (i.e. claims of third parties and the government, road right of way, etc.). Although the title may still be registered in the name of a person, ownership might have been transferred, questioned, or otherwise affected, and this can be seen at the back of the title on file with the register of deeds. Secure a certified true copy of the title from the register of deeds. Do this yourself or through a trusted party, never from the seller or his middleman.

Tip #5. Always have the property identified by a licensed surveyor to be what is being stated in the title.

Once you have decided to buy the property, ask the seller to allow you to conduct a relocation survey. Although you might be required to shell out additional expense for the survey, then you can actually be assured of the metes and bounds of the property and that the property you are buying is actually that stated on the title. Furthermore, by asking for a relocation survey, the adjacent owners are summoned, and thus if there be any unforeseen questions some of them would be voiced out during the relocation survey.

Tip #6. Always see to it that you have a road right of way

Just merely looking at the property and seeing a road is not enough. Check the title and see whether or not it is actually bounded by a road lot, road, or street. The surveyor can point this out to you. Most foreigners like the countryside and coasts, where agricultural lands are located. Thus, most agricultural lands when subdivided into smaller parts do not provide for a road in the subdivision plan. Be sure therefore that you have access to the land otherwise, you might be required to purchase a right of way, oftentimes at exorbitant prices such that you are forced to enter into litigation to have the court fix a reasonable price.

Tip #7. Never forget to have your deed of sale, contract of sale or other document over the land annotated on the copy on file with the register of deeds.

This should be clear enough to be sure that your records are correctly stored and your property properly transferred to you in official government documents.

We hope this small article would be of help to you and your real estate transactions. Nothing is still better than having the services of a trusted Real Estate broker or realtor helping you along the way.


This article has been generously contributed with the express permission of Mr. Martin "Jerry" Cornelio.

my source (http://investph.com/showart.asp?artid=1)

^^ Great tips!

i think this news belongs here

No summary titling of private lands without just compensation, Devanadera
22 October 2007

Acting Justice Secretary Agnes VST Devanadera has held that there can be no summary titling of private lands as well as those belonging to the local government units without just compensation.

In comments sent to the Senate Committee on Justice and Human Rights chaired by Senator Francis Escudero, the Department of Justice through the Acting Secretary, said that summary titling cannot be done with respect to property owned by private individuals as well as local government units without just compensation as this would be tantamount to unlawful deprivation of property.

The Department's comments were sought by Escudero relative to Senate Bill No. 167 entitled “Summary Titling of Real Properties Used as Sites for Public Schools”.

Expropriation proceedings should be undertaken if the government wants to acquire ownership or title over the lands in issue. Just compensation is to be computed from the time of “taking” of the property which usually coincides with the commencement of the expropriation proceedings.

Secretary Devanadera emphasized the need to balance the arbitrary exercise of governmental powers and the individual rights of the owners of the lands in issue. She said that any expropriation proceedings should consider five requisites, namely, the necessity of the exercise, the land is private property, “taking” in the constitutional sense, the land is for public use, and payment of just compensation.

The bill filed in the Senate committee failed to pass the fifth requirement, the payment of just compensation, she said. The Secretary opined that it is the right of the land owners to be paid the value of their land for they will be deprived of any beneficial use of their property, even if the purpose of the “taking” is for the public in general. Jurisprudence holds that the exercise of the right of eminent domain, whether directly by the State, or its authorized agents, is necessarily a derogation of private rights, and the rule, according to her, is that this authority must be strictly construed..

Hello.

I have invested in condo units in Bonifacio Global City. However, I realized that if I were to re-sell my condo unit upon turnover, the price will be ridiculously high or my profit/return on investment ridiculously low.

Consider for example, a 2-BR condo unit bought for 8 Million pesos pre-sell (my unit cost), VAT included. If I sell it at 10 Million pesos to my buyer, I need to pay the following:

6% of the SELLING price as capital gains (as per Philippine law and definition of capital gains) = 600,000 pesos

12% of SELLING price as VAT = 1,200,000 pesos

So, my net profit will only be a dismal 200,000 pesos even though I priced my condo unit 2 Million pesos more than the price I originally paid for?? It is the government who earned the big chunk i.e. 1.8 Million pesos!

What the $^(*&()*&)($%& ???? Real-estate investing doesn't seem attractive anymore, doesn't it??

Why do we have to pay VAT on sales? I think real-estate transactions should be tax-exempt because we don't have OUTPUT VAT to offset the VAT we paid.

What do you guys think?