Real Estate and Housing Industry

[Ady001]

Ayala Land is already cashing in on it's latest development Bella Vita...

[jpdm]

Originally Posted by Ady001

I think we need to have categories for housing. If we need tenement style housing, we need to classify which needs which. For example, families with incomes less than 150,000 a year should be qualified to at least a one bedroom bare apartment with yearly appraisals. Those who cannot pay their rent or upkeep should immediately be penalized. Of course probable reasons should be provided. Yung mga matitigas ang ulo talaga at batugan, dapat daanin sa dahas and throw them out of the property and give them a 5-7 year blacklist period.

Agree here.

[Coniocondo]

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

[LuckyLady]

san bang location gusto mo? sa luzon area lang ba?

[Ady001]

Originally Posted by Coniocondo

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

Mukhang mahihirapan ka conio (I will assume that when your savings will pile up your condo savings will be changed to "house" savings in the future. )

Not all companies go online and there's a lot of developers na din.

[jpdm]

Originally Posted by Coniocondo

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

If you want great H & L projects near Manila check Ayala Lands and Vista Land's properties along Daang-Hari, in Bacoor, Las PInas, Muntinlupa area.. Great projects.

[tchitz]

Originally Posted by todjikid

Does it mean that it is a bit scary to buy metro manila properties?

http://newsinfo.inquirer.net/169895/...to-land-titles

Registered owners of more than half of the land in Metro Manila may lose their properties as a result of a recent Supreme Court ruling that the “sale certificates” of former friar lands that lacked the signatures of prewar government officials should be deemed void, a senior justice of the court said.
In a 23-page dissenting opinion, Senior Associate Justice Antonio Carpio said the Supreme Court’s March 6 decision in the ownership dispute involving the Manotoks and Barques over the P4-billion Piedad Estate in Quezon City would render millions of residents homeless.
“This is a disaster waiting to happen—a blow to the integrity of our Torrens system [of titles] and the stability of land titles in this country,” Carpio said.
“Hundreds of thousands, if not millions, of landowners would surely be dispossessed of their lands in these areas,” he said.
With a split vote of 8-7, the tribunal upheld its Aug. 24, 2010, decision that awarded the ownership of the 1,282-hectare of lands to the national government.
Chief Justice Renato Corona, who is facing impeachment in the Senate, agreed with the majority ruling written by Associate Justice Martin Villarama Jr.
Corona votes twice
Curiously, Corona virtually participated twice in the decision as he also voted with the winning bloc on behalf of Associate Justice Mariano del Castillo, who was supposed to be on sick leave when the court voted on the matter.

No, I don’t believe so. But it was surely an eye catching news item worthy of publication for the purpose of selling newspaper, at least in the eyes of publishers.

In this specific case, the litigants failed the “litmus test” for ownership, the stringent requirements of the law for a valid acquisition of the land.

[anakngpasig]

kung millions ang affected, ewan ko lang kung di babalatan ng mga tao at susunugin nang buhay ang mga justices na yan

[todjikid]

quick question: do you guys think that the current mortgage rates are high? I saw 5.75 but only fixed for 1 year. the 10 year fixed is still around 10 to 11%. tama bang matakot sa utang? or credit facility is something that we should be taking full advantage of?

[tchitz]

Originally Posted by todjikid

quick question: do you guys think that the current mortgage rates are high? I saw 5.75 but only fixed for 1 year. the 10 year fixed is still around 10 to 11%.

I will skip answering the first question regarding whether an interest rate of 5.75% fixed for one year is high because I don’t reside there. The only thing I can say is to shop a few banks to compare. HSBC http://www.hsbc.com.ph/1/2/personal/...WS_MOL_HL_0001 is showing a 5.25% in their website, but I don’t know the details of this loan.

Prevailing interest rates for home mortgages in the Philippines has never been lower historically, although higher when compared to other countries like in the U.S. or Canada. My preference is to choose the shorter term (one year) to take advantage of the lower interest rate. You would still come out ahead when you get a smaller interest rate on short term loan, renewable, till paid in full, than getting a higher interest rate for a longer term. If you were getting the 10 year loan at 11% interest rate now, your monthly rental income might not suffice to cover your monthly expense, putting the soundness of the investment at risk.

Originally Posted by todjikid

tama bang matakot sa utang? or credit facility is something that we should be taking full advantage of?

As long as sustaining the credit (loan) is manageable, I wouldn’t have fears, but guarded. For me, it’s important that I choose my investment property (for rental) in a desired location so it makes it easy for rental and, the income generated pays for the expenses.

The use of credit is how most self made millionaires became rich. Your outlay is a smaller down payment, but with the appreciation of the value of your property over the years, it has a compounding effect on your return on investment. That is called leveraging.

[Ulidia]

Interested by the discussion on mortgage rates.

Wondering how difficult it is for foreigners who are non-resident to obtain mortgage financing as I've heard inconsistent information about this over recent years. I live in London and, until relatively recently, PNB provided mortgage financing to UK residents for property purchases in the Philippines but they no longer have a UK banking licence.

I think HSBC may provide mortgage financing to non-Filipino residents?

I have a number of condos in Makati turning over in another 12 to 18 months, originally purchased in early 2008 and with 40% of the total contract price paid. Therefore, assuming "paper" price appreciation, the loan-to-value levels I would be looking to finance are relatively modest.

Just trying to asccertain my options at this stage or whether I should be preparing to pay the remaining balance in cash? Any views, insights or recommendations would be much appreciated.

[todjikid]

if you can get UK rate for a philippine property...that's a sweet deal.

[tchitz]

Originally Posted by Ulidia

Wondering how difficult it is for foreigners who are non-resident to obtain mortgage financing as I've heard inconsistent information about this over recent years. I live in London and, until relatively recently, PNB provided mortgage financing to UK residents for property purchases in the Philippines but they no longer have a UK banking licence.

I think HSBC may provide mortgage financing to non-Filipino residents?

I have a number of condos in Makati turning over in another 12 to 18 months, originally purchased in early 2008 and with 40% of the total contract price paid. Therefore, assuming "paper" price appreciation, the loan-to-value levels I would be looking to finance are relatively modest.

Just trying to asccertain my options at this stage or whether I should be preparing to pay the remaining balance in cash? Any views, insights or recommendations would be much appreciated.

In our case, we opted to finance our pre-selling condo not through local bank loans. We knew from the start the interest rate is higher for a local mortgage and, we have other means of financing more favourable to us, from savings and line of credit with very attractive rates that are at its lowest historically. We are making yearly balloon payments that started 2 years ago, culminating in 2 years when it will be paid in full upon possession.

If you don’t get a response to your specific question (local loan), suggest that you post at the property page. I’m sure others have explored that route.

If you don’t mind, I am curious as to your motive of buying a number of condo units in Makati? Do you have a short term view (aka flip it) or long term view (rent it out, or move back there eventually)?

[Ulidia]

Originally Posted by tchitz

If you don’t mind, I am curious as to your motive of buying a number of condo units in Makati? Do you have a short term view (aka flip it) or long term view (rent it out, or move back there eventually)?

I'm not moving back to Philippines as I'm not Filipino, although have spent much time there in previous years. Wouldn't rule out the Philippines as a potential retirement option for me but that's not for some years yet (I'm late 30s).

The purpose of buying in Makati was for a number of reasons - primarily for long-term capital investment (not a flip but, rather, to retain the property and rent out). I'm less certain about the investment prospects than I was due to the volume of projects coming downstream added to the higher value of the peso.

I might sell one or more of the units at, or around, turnover - in part, due to appreciation of the peso since I originally bought the units which would, in £ sterling terms, add significantly to mortgage payments if the units are not let out.

[todjikid]

an officemate got the 5.something rate from HSBC, but im yet to ask them how much it went up after repricing. borrowing needs mental preparedness especially for those who are generally scared of long term debt. It may have something to do with watching too much telenovela which typically involves losing one's home from a nasty relative or heartless bank reps.

[todjikid]

I guess my next question is, while you use a certain percentage of your liquidity to pay for the house in the form of equity (or you may opt to pay in full), how many percent do you keep as cash? Not sure about the "spending habit" of Filipinos, but I have office mates who have minimal savings and live from payday to payday paying off their mortgage and car loans at the same time! Is it okay to borrow while you are young and while credit facility is available? and have zero savings? It seems to be the norm now and these people get by.

I know that the "savings rate" of Americans aren't that stellar either.

[tchitz]

Originally Posted by todjikid

I guess my next question is, while you use a certain percentage of your liquidity to pay for the house in the form of equity (or you may opt to pay in full), how many percent do you keep as cash? Not sure about the "spending habit" of Filipinos, but I have office mates who have minimal savings and live from payday to payday paying off their mortgage and car loans at the same time! Is it okay to borrow while you are young and while credit facility is available? and have zero savings? It seems to be the norm now and these people get by.

I know that the "savings rate" of Americans aren't that stellar either.

Ah, you raised a valid point. Although not quite exactly the same like your office mates, we are pretty much in similar circumstance, in that we live from paycheck to paycheck, well almost, on a cash reserve for 2 months (for us), and in my opinion not to be copied. But that’s more on account of our spending habits, as we travel a lot, about 3 or 4 times a year in far flung places. We could easily stop that, and increase our reserve to last us for a year. But attachments are hard to let go, especially when you enjoy so much the lifestyle it brings, as it pampers the ego so much and we succumb to the delusions of this ephemeral existence. However, I’m lucky to live in a country where there is universality of healthcare. That’s where similarity ends in Philippine setting. Should I, or a family member require expensive medical care, no out of pocket expense will be incurred by me. By maximizing our credit, we were able to acquire properties in Canada, U.S. & the Philippines. To answer your question, yes, I would maximize my credit with the following caveat: have an adequate reserve matching your circumstance (maybe at least 3 months reserve in Philippine setting) and your means of income is relatively secure to sustain your credit (loan). Simplistically speaking, “as long as you can afford it”. Imagine yourself 5-10 years from now. Would you be better off having bought some property or not? For me, the answer is yes, that’s why we pursued it.

[tchitz]

Originally Posted by Ulidia

I'm not moving back to Philippines as I'm not Filipino, although have spent much time there in previous years. Wouldn't rule out the Philippines as a potential retirement option for me but that's not for some years yet (I'm late 30s).

The purpose of buying in Makati was for a number of reasons - primarily for long-term capital investment (not a flip but, rather, to retain the property and rent out). I'm less certain about the investment prospects than I was due to the volume of projects coming downstream added to the higher value of the peso.

I might sell one or more of the units at, or around, turnover - in part, due to appreciation of the peso since I originally bought the units which would, in £ sterling terms, add significantly to mortgage payments if the units are not let out.

Oh, I see. Well, you are much more brave than me. All our other rental properties are within easy reach, close to home, where I can exercise control and maintenance. The Philippines right now is at arms length, so we have limited our acquisition there to one pre-selling condo and some land, for vacation purposes and maybe future retirement in mind, but not for rental.

[Ulidia]

Originally Posted by tchitz

Oh, I see. Well, you are much more brave than me. All our other rental properties are within easy reach, close to home, where I can exercise control and maintenance. The Philippines right now is at arms length, so we have limited our acquisition there to one pre-selling condo and some land, for vacation purposes and maybe future retirement in mind, but not for rental.

Not sure about brave. I am Irish and sold my property interests there in 2007 and 2008, just as the property market was on the edge of a cliff (and it's been a long fall since).

I have other investments (equities etc) but also like to have property interests but the real estate possibilities closer to home looked over-valued and, in fact, the subsequent years have proved that to be the case.

Metro Manila, in my view, is a good alternative notwithstanding the well known negatives, given it's a large and growing metropolis with improving infrastructure. The potential downside to this is the number of condos coming onto the market. Longer-term, I see this as positive (a well developed, large metropolis needs these buildings) but, short-to-medium term, I think it will provide challenges. Time will tell

[todjikid]

Happy to hear that you are investing in Philippines.
I just wish these condos would allow four-legged companions. Like dogs.