Archive for the ‘TIPS for Buyers’ Category

The Game of Monopoly and Real Estate Investing

Thursday, February 17th, 2011

Have you ever played the world-famous board game Monopoly? It’s a game where in players seek to dominate each other by acquiring properties and building houses/hotels on these properties so that every time your opponents land on your properties, they have to pay you for rent. Play continues until one player has all the money left and the other players run out of funds.

QUICK TIP: If you want to learn the basics of earning through real estate investing, try playing the Monopoly board game over and over again. You will realize that by having properties in different prime locations, you stand to gain much Rental Revenue in the long term. This applies both in winning the Monopoly board game, and also in real life. Plus, you get to have lots of fun playing it! :-)

Happy playing folks! Kudos to my client, Ms. Josephine Munoz, for this blog post :-) .

Outlook for Philippine Real Estate in 2011

Thursday, January 6th, 2011

Happy new year folks! Indeed, 2010 was a strong year for Philippine Real Estate, as buyers continued to invest heavily into properties. This is because there is a real shortage for housing in the Philippine market (unlike in the 1997 Asian crisis where most buyers were just speculators, and hence the bursted housing bubble which dragged down all property prices). This shortage falls mainly on the affordable market, or the masses in short. Again, as stated before, the Philippine population is accelerating at a very fast rate compared to its neighbors (see related article in http://www.realestatephilippinesblog.com/philippine-properties-still-good-bargains/), and so the demand for a primary home increases for us Filipinos.

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Why Philippine Pre-Selling Properties Have An Advantage…

Monday, November 22nd, 2010

Perhaps some of you property buyers and investors are asking… Why are Philippine Pre-Selling Properties better than the rest, like secondary properties or foreclosed properties? Here’s why:

Philippine Real Estate After the May 10 elections

Wednesday, May 5th, 2010

Here’s an interesting question: What will happen to Philippine Real Estate after the May 10 elections? The answer: it will depend on how orderly the elections proceed…

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Real Estate Philippines Compared to the Rest of Asia (as of February 16, 2010)

Wednesday, February 17th, 2010

I read an article recently in Global Property Guide (www.globalpropertyguide.com) about the state of Real Estate Philippines compared with the other property markets in Asia. Fortunately, we’re quite attractive to foreign investors, but not exactly the best. Take a look at the table they have given below…

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For those Who Plan to Avail a Pag Ibig Housing Loan…

Monday, November 9th, 2009

To those of you who are planning to avail of a Pag Ibig Housing Loan and are first-timers at it, kindly take note that the maximum loanable amount for a Pag Ibig House Loan is P3 million pesos. Also, most of the applicants of Pag-Ibig are usually borrowing P400,000 to P700,000, and you will get the lowest interest rates of these amounts. Hence, Pag ibig housing loans are actually more ideal for middle-income earners.

Below is the Interest Rate table for the corresponding Pag-ibig Loan Amount (30 year maximum loan term):

Up to P400,000 6%
Over P400,000 upto P750,000 7%
Over P750,000 upto P1,000,000 8.5%
Over P1,000,000 upto P1,250,000 9.5%
Over P1,250,000 upto P2,000,000 10.5%
Over P2,000,000 upto P3,000,000 11.5%

In addition, take note of these guidelines when applying for a Pag ibig housing loans

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What if your desired Philippine Property is a GHOST HOUSE?

Tuesday, August 11th, 2009

philippine ghost house We have been talking about the legal and technical aspects of Real Estate Philippines investing for the longest time, but now let’s ask go into a more supernatural aspect of it: the possibility of your desired property of being a GHOST HOUSE. Not everybody believes in ghosts, and there has been no concrete scientific proof of their existence. Still, so much interest has been devoted to this topic. In fact, we Filipinos are the number 1 Google internet searchers for ghost house activities in the whole world! Perhaps it’s better for us to be wary of such paranormal possibilitie, and here’s why…

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#1 Rule of Real Estate Investing: LOCATION LOCATION LOCATION

Saturday, June 27th, 2009

Those with experience in real estate investments say that there is only ONE RULE in property buying summarized in three words: LOCATION LOCATION LOCATION!

Indeed, the location of the property itself is very crucial because it must be accessible to other places which serve your other basic needs and wants. Let’s break down these important factors of choosing YOUR ideal location one-by-one to help you decide…

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What You Should Choose: Land vs Condominiums

Tuesday, June 2nd, 2009
Given a particular location, many Filipino buyers contemplate on whether to buy land (this includes House & Lots and Townhouses), or a condominium for which to live in or invest in. Allow me to enumerate the advantages and disadvantages of Land vs Condominiums below…
LAND – ADVANTAGES

  • Your Living Space tends to be BIGGER
  • You have more privacy for your family
  • Land will always remain present no matter how many houses you build on it, so it can be passed on to future generations of your family
  • Land values appreciate over time (since they don’t make new land)
  • You can have your own garden, garage, and even a swimming pool if it’s big enough and if you’re rich enough
LAND – DISADVANTAGES

  • More expensive especially if you want to live in highly developed areas – these prime lands are usually high-end private villages with large lots and hefty prices
  • All the repairs and maintenance of the house will be shouldered by you
  • Cheaper Lands are usually farther from highly developed areas and offices
CONDOMINIUMS – ADVANTAGES

  • Locations are usually very near the highly developed areas which house offices and malls, making it very convenient in terms of travel expenses
  • Available in small sizes, which allow small families and individuals to live in highly-urbanized areas as well
  • Enjoy the Amenities like the Swimming Pool, the Gym, and Function Rooms
  • Commands higher Rental Revenues and Income to Investors
  • Repairs and maintenance of the Condominium will be taken care by the Condominium  Administration like the electricity, water piping, maintenance of the amenities, building facade and interiors
CONDOMINIUMS – DISADVANTAGES

  • Living Spaces tend to be smaller
  • Monthly dues can be burdensome especially for big-sized condominium units
  • Building itself depreciates over time, although the land value increases
  • High density – you have plenty of neighbors sharing the same building and amenities
Know what you’re investing into – Think about these given observations first before choosing between a land or a condominium in your desired Philippine Property location. Depending on your available finances, your preferences and your dislakes, you should be able to discern whether a landed property or a condominium suits you and your family better.
Choose well!

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The Five Vs Before Buying Philippine Property

Tuesday, April 7th, 2009
Here are the five Vs or the 5 Verifys every buyer must remember before investing in any Philippine property and declaring it “Safe to Buy”:
V1.) Verify if the Transfer Certificate of Title (TCT) is authentic by getting “Certified True Copy” of the title from the Register of Deeds. This office is usually located at the city or municipal hall where the property is located. Ask the seller of the property for a photocopy of the title since you will need the title number and the name of the owner get a certified true copy of the title from the Register of Deeds.
V2). Verify that title is free of liens & encumbrances, or that there are no mortgages or claims on the property by other parties. You can see that at the back of the title with the heading “Encumbrances”. This section must be blank. (sometimes the space for the technical description is too long that it reaches “Encumbrances” page, which is ok)
V3). Make sure that the sellers are the real owners. If you are buying from an individual property owner, ask for identification papers like passport or driver’s license. You can also ask from the neighbors if they are indeed the true property owners.
V4). Verify if the yearly real estate taxes (“amilyar” in Tagalog) are paid. Ask for certified true copies of the Tax Declaration and original Tax Receipts to confirm that real estate tax payments are up to date.
V5). (Applicable to Land Titles) Verify if the land described on the title is the actual land that you are buying. You can validate this at the Register of Deeds or by hiring a private land surveyor or a geodetic engineer. Land titles don’t have any street name and number, so it is a must to confirm that the actual property you are buying matches the technical description on the Transfer Certificate of Title
Just remember these 5 Verify’s before buying ANY

Here are the five Vs or the 5 Verifys every buyer must remember before investing in any Philippine property and declaring it “Safe to Buy”:

to make sure you’re placing your money in a truly safe investment. Happy Hunting Folks! :-)

Feng Shui Tips for Real Estate

Tuesday, March 24th, 2009
Feng Shui is one of the ancient Chinese methods that provide insight for sustainable living as well as harmonious relationship between people, time, space and the environment. They define in terms of energy which they called “chi”. This method gives precise information to design your living area in alignment with the opportunities and your needs.
There are generally two types of Feng Shui you will find out there: traditional and modern style. Each Feng Shui master has different interpretations of the principles to be followed. They may agree in some, and disagree on other points.
This guide doesn’t follow one school of Feng Shui exclusively. Instead, it gives an overview of different methods and provides practical steps that you can use to introduce Feng Shui into your own area.
PROPERTY
Like in real estate, location plays a key role in Feng Shui. The correct location of our home, where we spend more of our time, is the primary key to having good Feng Shui.
So, just what are the things that we should look out for?
Situate your home within the natural landscape, floral and fauna that represents life and more positive energy.
Mountains and hills: The hills and mountains should lie behind the house (south-facing), because they provide protection against harsh winds from the north.
Rivers and roads: Rivers and roads are considered favorable as long as they’re not too fast-moving and don’t point directly at the home’s entrance.
Pools and ponds: Pools and ponds are particularly valuable to the south and west of a house, where they’ll cool warm summer winds. Pools and ponds should never have straight edges.
A flat terrain is acceptable in Feng Shui but it is better if the land at the back of the house is higher that at the front. As a general rule it is ideal if the house sits on land that is higher or the same level as the road. Try to avoid a house that sits on land that is lower than the access road.
Lot Shape
Feng Shui favors lot shapes that are balanced, such as squares or rectangles. Feng Shui considers triangular, trapezoidal, and L-shaped lots less favorable since the irregular contours of the lot can trap chi or prohibit it from entering. The worst shape is a triangle.
Manmade Structures to Avoid:
a. Bridges, offramps, and tunnels – Highly trafficked areas generate a wild and overwhelming chi.
b. Churches and houses of worship – Though these sites don’t attract bad chi, they can attract such intense chi that it overwhelms the chi of your home.
c. Garbage dumps, sewers, and landfills – Bad chi is attracted to refuse and rot.
d. Hospitals, cemeteries, and funeral homes – Bad chi clings to places of death and sickness.
e. Military bases, police stations, and prisons – With their connotations of war and violence, they generate mostly bad chi.
f. Power stations – These stations generate massive amounts of electromagnetic energy and bad chi.
g. Railroads and airports – Large, loud, fast-moving machines discourage gentle, flowing chi.
h. Schools – Schools are loaded with energy that can overwhelm the chi within your home.
If you do live close to any of these locations, you can still protect the chi in your home by following these guidelines:
1. Face your front door away from the location.
2. Put curtains on the windows that face the location.
3. Get more secure windows or double windows.
Watch out for more Feng Shui Tips and guidelines to maximize the potential of your home in my next blog. Happy Property Hunting! :-)

How to Choose: PRE-SELLING vs FORECLOSED vs SECONDARY PROPERTIES

Sunday, March 22nd, 2009
When one wants to invest in a Philippine Property, (or any property for that matter), the careful buyer will always find three types of properties to choose from by canvassing around: Pre-selling, Foreclosed, and Secondary Properties.

Given a budget to work with, whether it’s a million-peso figure and/or a monthly budget based on your income, how will you know which of the three suits you best?

Aside from the location of the property itself which of course is crucial to you depending on where you live and work, allow me to give you this chart below so you will know what to expect on each of the three: (All Caps means an ADVANTAGE)


Pre-Selling Foreclosed Secondary
Quality BRAND NEW Usually Plenty of repairs
to be done
May have minimal or many
repairs
Availability of Use 1 to 5 years, depending on
type of property and developer reputation
After Repairs (unless it
needs none which is very very rare)
MOST READY due to minimal
repairs
Price per Sqm Lower than Units Ready for
Use
LOWEST and CHEAPEST Brand New = Expensive. Older
= Cheaper
Payment Terms BEST – Very flexible
depending on buyer’s capabilities = Either High down and Low
Monthly, or Low Down High Monthly (sometimes even NO DOWN)
Good = Usually 10 –
20 % down and the rest of the balance in bank loan for Monthly’s
= Low Down, High Monthly’s
Mostly Cash or Bank Loan
of 50 to 70%, which means Down of 30 – 50% = High Down, Lower
Monthly’s
Best Traits BRAND NEW, BEST TERMS CHEAPEST, can do RENT-TO-OWN READINESS for USE
Worst Traits Have to Wait before using
it
Tons of Repairs, time needed Sometimes Expensive, rigidness
of Payment Terms
I believe this chart speaks for itself and is very very helpful especially to the newcomers in the Real Estate Philippines Industry. Now you know what you getting into when it comes to real estate investing. Feel free to bookmark this link for your continued reference and give it out to your friends and relatives who are looking for a property, whether for their own use of for investment. Now, if a Philippine Pre-Selling property suits you the best, check my blog’s category of the same name at http://www.realestatephilippinesblog.com/category/pre-selling-condominiums/

If you are looking for a Foreclosed Philippine Property, you can check the banks for their listings by going there at their branches, looking at the newspapers, calling them up, or checking their websites. You can also go to http://foreclosedrealestate.blogspot.com since they specialize in Philippine Foreclosed Properties.

And lastly, if you are looking for a Secondary Property, you may look at the classified ads (especially the Manila Bulletin), check the internet, or ask your Philippine Real Estate Brokers and friends who may have such up for sale.

Happy Property Hunting to all!

Foreigner’s Guide to Philippine Real Estate

Friday, December 5th, 2008

For those who are non-Filipinos, I hope you find this Foreigner’s Guide to Philippine Real Estate helpful. Read on until the bottom to get your full tips :-)

By law, foreigners don’t have the right to acquire Philippine land (there have been many proposals to amend this law but of this writing, it is unlikely to change). The simplest way for a foreigner to acquire Philippine real estate is to have a Filipino spouse purchase a property. Another alternative is having a Filipino partner when acquiring a property. The partner owns 51% or more and the remainder is owned by the foreigner. (Tip: The foreigner can have a blank deed of sale signed by the Filipino partner for security)

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Balikbayan Buyers Guide for Real Estate Philippines

Friday, December 5th, 2008

For our fellow Balikbayan countrymen who have made their careers abroad but wish to invest and earn from the different properties in the world of Real Estate Philippines, read this Balikbayan Buyers Guide for Real Estate Philippines to help you out, especially for beginners :-) This guide includes summarized Real Estate Philippines Laws which are organized for your convenience and education. Click the link below to see the guide…

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Lessons in Philippine Real Estate from the Past Crashes

Monday, November 17th, 2008

In light of the current global slowdown brought about by the U.S. financial crisis, which originated from sub-prime property loans by the careless U.S. banks, we now reflect on the lessons that we Filipinos learned from our past. Builders have already started to review their plans amid fears that the huge Overseas Filipino Worker contingent that last year sent home more than 14 billion dollars, could shrink as jobs are lost in the recession-hit West. Two major players in Philippine Real Estate have already made some trimming moves to adapt to the current headwinds.

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