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Investing in Real Estate in the Philippines

937K views 4K replies 442 participants last post by  grayrhino1 
#1 ·
I wonder if most of the condo/townhouse developers have a good record of delivering the units on time as promised.

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

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

Thanks.
 
#4,137 ·
^^ To bat21 here's my input to your question

Apartment

* usually its a medium rise building
* multi-dwelling concrete structure
* multiple owner or individual owner
* individual water and electric meter (not sub-meter)
* No common ammenities like club house, swimming pool, gym, playground, playing court
* common laundry area if provision
* common parking space sometimes no provision for parking
* Maybe common security guard, common maintenance personnel
* If 4 storey below no provision for elevator
* Less density in terms of units per floor

Condominium

* typical comprises of several medium rise building or a high rise building
* multi-dwelling concrete structure
* govern by condominium corporation
* centralize water system, centralize electric meter (typically sub-meter per unit)
* parking space have seperate title
* centralize ammenities such as swimming pool, clunhouse, sport gym, playground, playing court, garden or small park
* some condominium have provision for individual laundry area while others have none.
* At least 5 storey high or more
* Has provision for elevator
* Centralize common area such as lobby
* Centralize security, janitorial, plumbing, etc.
* medium to high density units per floor
* individual multiple owner
 
#4,138 ·
definitely a house and lot for me.

condo units are so expensive plus you need to pay dues and other fees for the use of ammenities.

condo-living has it advantages, as mentioned in previous posts, but imo for someone who wants to raise a family and has only one chance to purchase a property considering availability of funds and income it would be more practical to avail a house and lot.

studio-type condo units (~25 sqm) cost somewhere around 1.5 m - 2.5 m, and with the same amount you could actually purchase a decent house and lot (~100 sqm lot area).

if you already own a house and lot, and still has disposable income then i think that's the right time to consider investing in a condo unit.
 
#4,255 ·
definitely a house and lot for me.

if you already own a house and lot, and still has disposable income then i think that's the right time to consider investing in a condo unit.
I agree that everyone has their own preferences and that one's decision is influenced by his/ her personality and lifestyle. But do know that condominium nowadays aren't only for business people, single or whatnot, they can also offer good spaces to start- up families, and bigger families too.
 
#4,139 ·
@b-two

^^..i most definitely agree...:banana:

btw..my brother is a mapuan...viva :)


.
 
#4,142 ·
^^ Nowadays its not economical to get your own house & lot within M. Manila. Since most available units are extremely expensive and hard to find. The only good finds its either you go farther north (Bulacan), farther east (somewhere in Antipolo) or farther south (some where in Paranaque, Las Pinas).

This mean the only way to get a good dwelling inside the city is we go vertically up. By means of getting a medium rise or highrise condominium.

Another factor you should consider in choosing your future dwelling if you can withstand the travel time between your residence and your work place. Meaning spending many hours either in your car and public transport.

I have a friend who live in Cavite and Laguna and work in Makati/Ortigas. They need to be on the road around 4-5am in the morning and arrive home at around 9-10pm daily. Would you waste your time in traffic rather than spending quality time with your family?

Not to mention additional money you need to spend for gasoline, toll fee and incidental cost just to go home to your house & lot.

Just try to imagine that my friend? Would you??... :cheers:
 
#4,146 ·
^^ Nowadays its not economical to get your own house & lot within M. Manila. Since most available units are extremely expensive and hard to find. The only good finds its either you go farther north (Bulacan), farther east (somewhere in Antipolo) or farther south (some where in Paranaque, Las Pinas).

This mean the only way to get a good dwelling inside the city is we go vertically up. By means of getting a medium rise or highrise condominium.

Another factor you should consider in choosing your future dwelling if you can withstand the travel time between your residence and your work place. Meaning spending many hours either in your car and public transport.

I have a friend who live in Cavite and Laguna and work in Makati/Ortigas. They need to be on the road around 4-5am in the morning and arrive home at around 9-10pm daily. Would you waste your time in traffic rather than spending quality time with your family?


Not to mention additional money you need to spend for gasoline, toll fee and incidental cost just to go home to your house & lot.

Just try to imagine that my friend? Would you??... :cheers:
Its so not worth it- wasting time & energy travelling to & from work.
 
#4,143 ·
^^^^

as i mentioned in my post, there are advantages in condo-living as well as in owning a house and lot.

With your own yard and generally more square-footage, houses tend to be more family friendly. A fenced-in backyard for children to play in can be a big benefit. Plus, a house allows the option of having pets that may not be permitted in a condo.

Not only do kids need space, so do most grown-ups. If you’re a couple, you have to determine how much time you will be spending together at home and whether or not you need quiet, private rooms. The same is true if you work from home or have a hobby that requires dedicated space.

Most condominiums have monthly maintenance fees. The money goes toward the collective upkeep and development of the property. Combine these fees with monthly mortgage payments, inusrance and taxes and you end up paying more for a condo than a house of equal value.

How your condo fees are spent is the purview of the condo board. You could find yourself subsidizing the salary of a concierge or the maintenance of a parking garage you don’t use. And what if you want to do some renovations? Yes, the condo board decides that, too.

usually, parking space is not provided in condos so you'll end up paying a couple of hundred thousand pesos more just to have a niche for your beloved automobile.

Of course, regardless of whether you buy a house or a condo, it’s important to do your homework and consider the future of the neighborhood you’re buying into. The old axiom of “location, location, location” remains true for both. Each is a significant investment, and you need to find a safe and vibrant neighborhood capable of nurturing your investment into the future.
 
#4,144 ·
^^^^

as i mentioned in my post, there are advantages in condo-living as well as in owning a house and lot.

...... A fenced-in backyard for children to play in can be a big benefit.....


.... Most condominiums have monthly maintenance fees. The money goes toward the collective upkeep and development of the property. Combine these fees with monthly mortgage payments, inusrance and taxes and you end up paying more for a condo than a house of equal value. ....
Some condo developments offer dedicated space for children to play.

Almost all condo developments have gym facility, and swimming pools that we
seldom see in houses and lots due to financial constraint/s.

You forget to mention that a house and lot also requires maintenance that is, more often than not, costlier.

Don't they (house and lot owners) pay mortgage, insurance, and taxes? Everybody does! :bash:
 
#4,145 ·
^^^^


i read my post over and over again just to make sure if i mentioned anything about house and lot owners not paying mortgage payments, insurance, and taxes but i did not... i clearly stated, "you end up paying more for a condo than a house of equal value."

and the maintenance fee i was talking about has got nothing to do with repairs within the condo unit but with the upkeep of all facilities and amenities of the entire building.

yes, most homes do not have swimming pools and gym but these facilities are being paid for by condo unit owners through their dues. it is not for free. and there are also good subdivisions that have the same amenities as these and more. and like that in condos... it is not also free.

again, i will repeat, there are advantages in condo-living as well as in owning a house and lot.
 
#4,152 ·
GMA inks land titling, tax info sharing laws
BusinessWorld - March 19, 2010

TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.

Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.

"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.

It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.

The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.

Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.

While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.

Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.
It amended Commonwealth Act 141 or the Public Land Act.

The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.
It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.

Landowners, however, will only be given titles as long as the land will be used for commercial purposes.

Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.

"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday. -- G. S. dela Peña

|
 
#4,153 ·
Megaworld as a developer

Hi. i just what to know your opinion about megaworld as a developer. i heard so many horror stories about megaworld. like fully paid units being repossessed because of their unability to produce the cts. many contractors complaining about megaworld not paying them for their service. i even heard a rumor that resort world is complaining kasi mahirap daw silang kausap.
 
#4,157 ·
Hi. i just what to know your opinion about megaworld as a developer. i heard so many horror stories about megaworld. like fully paid units being repossessed because of their unability to produce the cts. many contractors complaining about megaworld not paying them for their service. i even heard a rumor that resort world is complaining kasi mahirap daw silang kausap.
I did head some complains... But I read it only from forums.. I am not sure how true
 
#4,160 ·
Mode of Payment

Payment Plan / Mode of Payment in your purchased units or for people who are also planning to purchase their future units?
Please share some thoughts, advices, comments, reactions, suggestions or anything related to payment schemes will be appreciated.. :)


1. Cash
- Reason why you choose this payment type
- Discounted price from the TCP

2. PAGIBIG Financing
- Name of Developer & Project
- Required documents
- Location and How to process the documents
- Processing period
- Interest Rate
- Date of purchased
- Reason why you choose this payment type

3. Bank Financing
- Name of Developer & Project
- Location and How to process the documents
- Required documents
- Processing period
- Interest Rate
- Date of purchased
- Name of Bank / Location
- Reason why you choose this payment type

4. In-House Financing
- Name of Developer & Project
- Location and How to process the documents
- Required documents
- Processing period
- Interest Rate
- Date of purchased
- Reason why you choose this payment type

Please provide Additional Tips or Guide for newbies in the real estate business. Thank you. :)
 
#4,161 ·
Remittance question

Not sure if this correct thread for this but I'd like to know , especially from investors based abroad, on how they remit their payments.
What's the best option so you could maximize the highest conversion to peso?
Which remittance service do you use?
Is it better to remit in dollar then just convert to peso in the Philippines?
Thanks for any input.
 
#4,167 ·
Not sure if this correct thread for this but I'd like to know , especially from investors based abroad, on how they remit their payments.
What's the best option so you could maximize the highest conversion to peso?
Which remittance service do you use?
Is it better to remit in dollar then just convert to peso in the Philippines?
Thanks for any input.
In my case I opened a checquing account when I was in the Philippines and issued PDCs for my unit. Once every two months, or everytime Canadian dollar is of good value - like now CAD is at parity with USD - I send money to my Philippine account via remittance centres. I find them cheaper than sending money thru banks although it takes them 3 days to deposit the money (pinagkakakitaan din nila ang interes :D) . I'm not worried anyway coz I availed of remote statement from my bank so I monitor every transactions, deposits and withdrawals, by email.

There's nothing much you can do about maximizing the currency conversion. Kung talagang malapit na ang due date kahit pa mababa para sa'yo ang palitan mapipilitan ka pa rin magpadala. A few months ago, when the interest rate was an all time low, I refinanced my mortgage and consolidate all my debts. I had a fixed 5.05% 5 year term for my house here, then a good deal for me and was below average, when the housing crisis happened the interest rate dropped to 3.8% . With good bullying tactics plus excellent credit I convinced my bank to blend the rates kahit hindi pa tapos ang term ko. I didn't have to pay the penalty also, which is good dahil talagang lalayasan ko sila...hehehe. Of course you can only do these kung steady ang source of income at mataas ang credit scores mo. Canadian banking is the soundest and the best banking system in the world, mahigpit at kuripot sila magpautang..walang subprime mortgage dito. So the money that I saved from lowering the interest rate of my mortgage here covers the payment for my condo unit there, which is 0% interest for 5 yrs. by the way.
 
#4,169 ·
interest rates of inhouse financing is always higher ... commercial banks are 9-12%. in house can go upto 20% interest annually. as for pag ibig, interest rates are comparable to commercial banks but they have tougher requirements but they allow longer financing. upto 25 years to pay.
 
#4,164 ·
I invested a unit in La Breza Tower. Mine is 20% downpayment spread in 36 months with no interest then either Pagibig or bank financing upon turn over. Unionbank offers upto 15 years. BPI is 5 to 10 years, mas strict sa requirements compared to Unionbank.

RLC projects have good tie up with good banks too (BDO, BPI, and Unionbank).
 
#4,166 ·
Yup...kaya amongst the projects that I sell and market (RLC, Avida and Sta Lucia), I invested towards La Breza kc its the project with the friendliest payment scheme - something which I can afford and pwede ko pang ipasok sa Pagibig after. And nakatayo na ang building, tinatapos na lang.

Re banks, BPI and BDO.
 
#4,168 ·
Ako naman I bought one unit in cash with cityland and another with smdc naman with 20% down 36 months @ 0% interest to pay and 80% balance upon turnover which I plan to pay in cash.

Ganda talaga ng 20% down 36 months to pay na 0% interest. Even if you can pay in cash, I suggest you don't yet even if the developer is giving cash discounts for paying the whole amount. You can earn equal or more than the discounted amount by placing it in various financial instruments and you also limit your risk in case of non delivery by the developer since you are only paying the small M.A but remember to stay liquid.
 
#4,170 ·
One advantage of getting a loan from Pag-ibig (based on my first loan) is that if you have extra cash say 50,000 or less Pag-ibig will accept your extra cash and credited this extra cash from the principal (provided you have no arrears)

While the bank like East West Bank If you have a loan with no arrears and wants to pay extra cash. East West Bank will penalize you 3% of the extra cash that you plan to pay and the remaing 97% will go to the principal.

It happened to us two months ago when we tried to pay P100,000 of the remaining P300,000 mortgage loan. The bank told us that 3% of P100,000 or P3,000 will be a sort of penalty and P97,000 will only be credited to the principal. We refused and will just wait on the anniversary date (July xx, 2010) and we will pay the remaining balance.

I would suggest that when dealing with banks make sure that you include as one of the
conditions that:
1. There should be no penalty for early full payment of the loan.
2. There should be no penalty if you want to pay any amount in excess of your monthly amortization.
3. Any amount paid in excess of your monthly amortization will be credited to the principal
 
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