Kroma Tower [52F|157m|res]

[superboyish]

Originally Posted by manilaboy2007

I got it at 114k/sqm on the 26th floor facing Bolanos. I prefer the one facing Legazpi but I have to buy a car park which I don't want.

Great buy for yourself! I see you have been buying a few units in the forum. U are working and staying in Manila?

Mine is facing in Legazpi, lower floor though, I prefer to be near the amenities floor. Yup, I am based in Manila.

[Maddawg]

Originally Posted by leechtat

Sales - brisk for Kroma. Some non-vat units left.



I beg to disagree. Property developers who are now offering No DP, such as alveo, shows only that the competition is getting better in the market. It drives property giants such as ALI to give what the market wants.

If the market is better, why do you have to offer incentives? As a business, you only offer incentives if you cannot sell at the current structure. Offering no down payment means the people that can afford the downpayment have already bought or are not buying. Supply > Demand

[robluat]

Originally Posted by Maddawg

If the market is better, why do you have to offer incentives? As a business, you only offer incentives if you cannot sell at the current structure. Offering no down payment means the people that can afford the downpayment have already bought or are not buying. Supply > Demand

My take on this is that their direct competitor offers No DP terms. They need to match the offer for them to catch the race. Those that avail No DP terms does not necessarily mean they don't have money for downpayment..its just that its a better option especially when other developer are offering it.

Marketing strategy. The total price of these units are not getting lower. The terms are just getting better and better because of competition.

[Maddawg]

Originally Posted by robluat

Marketing strategy. The total price of these units are not getting lower. The terms are just getting better and better because of competition.

That's the next step if the No DP doesn't work.

[manilaboy2007]

There is too much projects and only this much qualified buyers. To make that pool bigger, no DP came out so that those without readycash can buy. But at the the time of turnover, if economy is no good or unable to get a bank loans at that time, the buyer is screwed.

[Maddawg]

Originally Posted by manilaboy2007

There is too much projects and only this much qualified buyers. To make that pool bigger, no DP came out so that those without readycash can buy. But at the the time of turnover, if economy is no good or unable to get a bank loans at that time, the buyer is screwed.

Agreed. I just hope that doesn't happen.

[leechtat]

Originally Posted by robluat

My take on this is that their direct competitor offers No DP terms. They need to match the offer for them to catch the race. Those that avail No DP terms does not necessarily mean they don't have money for downpayment..its just that its a better option especially when other developer are offering it.

Marketing strategy. The total price of these units are not getting lower. The terms are just getting better and better because of competition.

that's right! I have repeat investors who prefer to not pay more than 20-30% DP or No DP if possible so that they can do more with their cash.

They will not have problem on getting a mortgage on the lumpsum or if they like, they pay the lumpsum in cash.

So why not take the spread terms since cash discount is so small.

I actually tell my clients to choose a lower DP or the most investor-friendly term since 1) turnover is years away and 2) those terms are available, so take advantage. Main reason: pre-selling investments will only accrue paper gains, so why pay cash if discount is not substantial.

Originally Posted by manilaboy2007

There is too much projects and only this much qualified buyers. To make that pool bigger, no DP came out so that those without readycash can buy. But at the the time of turnover, if economy is no good or unable to get a bank loans at that time, the buyer is screwed.

Agree! Yet such is not the fault of the seller/developer but the investor, more so if the lumpsum/mortgage projection has been explained well by agent/broker. If one will not come up with the funds to pay off a scheduled payment, then its the investors fault.

[Coniocondo]

Delete.

[Ulidia]

Originally Posted by leechtat

that's right! I have repeat investors who prefer to not pay more than 20-30% DP or No DP if possible so that they can do more with their cash.

They will not have problem on getting a mortgage on the lumpsum or if they like, they pay the lumpsum in cash.

So why not take the spread terms since cash discount is so small.

I actually tell my clients to choose a lower DP or the most investor-friendly term since 1) turnover is years away and 2) those terms are available, so take advantage. Main reason: pre-selling investments will only accrue paper gains, so why pay cash if discount is not substantial.

Highly leveraged strategy which is very indicative of a property bubble i.e. people purchasing for short-term speculative purposes and not as end-users or end buy-to-let.

[manilaboy2007]

Originally Posted by Ulidia

Highly leveraged strategy which is very indicative of a property bubble i.e. people purchasing for short-term speculative purposes and not as end-users or end buy-to-let.

I will not be surprise there be a lot of people trying to sell before TOP just to make a bit of money and avoid tax.

[Maddawg]

Originally Posted by leechtat

that's right! I have repeat investors who prefer to not pay more than 20-30% DP or No DP if possible so that they can do more with their cash.

They will not have problem on getting a mortgage on the lumpsum or if they like, they pay the lumpsum in cash.

So why not take the spread terms since cash discount is so small.

I actually tell my clients to choose a lower DP or the most investor-friendly term since 1) turnover is years away and 2) those terms are available, so take advantage. Main reason: pre-selling investments will only accrue paper gains, so why pay cash if discount is not substantial.

I don't pretend to know the Philippines market but those the same signs people point to here in the US. People buying multiple properties, using special financing so they can leverage their money to buy more properties, thinking values can never go down, no credit checks/income verification (not sure if this is happening in the Philippines now), etc. I just hope I'm wrong and the same thing doesn't happen in the Philippines.

[robluat]

Originally Posted by manilaboy2007

There is too much projects and only this much qualified buyers. To make that pool bigger, no DP came out so that those without readycash can buy. But at the the time of turnover, if economy is no good or unable to get a bank loans at that time, the buyer is screwed.

An advantage of pre selling is that when you reach turnover balance you are pre approved of the loan already. The bank only requires 20% equity which you will definitely reach upon completion of 4 year amortization.

Usually 4 year amortization will comprise 40-50% of the total contract price already.

[manilaboy2007]

Originally Posted by robluat

An advantage of pre selling is that when you reach turnover balance you are pre approved of the loan already. The bank only requires 20% equity which you will definitely reach upon completion of 4 year amortization.

Usually 4 year amortization will comprise 40-50% of the total contract price already.

I really hope this is not the start of a property bubble. It be too devastating to the fragile Philippines economy.

[joshualegaspi32]

Originally Posted by superboyish

Mine is facing in Legazpi, lower floor though, I prefer to be near the amenities floor. Yup, I am based in Manila.

For projects within Makati, better nga ang lower floors near the amenities. Useless ang top floors, not so much views, kasi tabi tabi lang ang bldgs.

[superboyish]

Originally Posted by joshualegaspi32

For projects within Makati, better nga ang lower floors near the amenities. Useless ang top floors, not so much views, kasi tabi tabi lang ang bldgs.

That's what I thought too. Also, units with balcony I think is better in lower floors, because it is just too windy already in the higher floors.

[Germain_7]

What happened ba sa Jaka Towers na yun? It's an eyesore in the middle of Ayala Avenue.. Sobrang sayang! The podium parking pa lang can already accommodate hundreds of cars. Wala ba plan ang Ayala to take over that project?

[xavierdude]

Originally Posted by Germain_7

What happened ba sa Jaka Towers na yun? It's an eyesore in the middle of Ayala Avenue.. Sobrang sayang! The podium parking pa lang can already accommodate hundreds of cars. Wala ba plan ang Ayala to take over that project?

Was working at rufino tower from the time JAKA was launched until it was discontinued. That was the period when JPE and wife separated. Ang chismis was it has something to do with conjugal assets.

[HOC]

Looking at getting a 1 bedroom here for investment purposes. How much is the rental rate in Makati for projects like this?

[skyscraper2012]

Originally Posted by HOC

Looking at getting a 1 bedroom here for investment purposes. How much is the rental rate in Makati for projects like this?

900-950/sqm depending on the condition of the unit - if its unfurnished rent is 900/sqm. if its furnished rent will be 950/sqm

dont price it high because most likely there are other units that will open for rent at a lower price. post your unit in many ad websites or even connect it to brokers so your unit will be known to a wider network.

[iamthomas]

On the offering of incentives, such as low or no DP or no interest on installment of DP, I think these are just part of a broader marketing strategy to generate more revenues for the company. It is possible for the developers to already tuck-in the cost of money into their simulated payment terms. So when they say no interest on DP installments, its because the monthly installment on the DP could already incorporate the interest income. We only see the monthly payments and not its components.