Sunday, May 26, 2013

PHILIPPINES: ECONOMIC “MELTING POT” AND GATEWAY OF THE ASEAN



The Philippines plays a vital role in the formation, implementation and sustainability of the new emerging economic block of the ASEAN.
One of the ships used by Spaniards during the Manila Galleon years.
One of the ships used by Spaniards during the Manila Galleon years.
With a rich historical, cultural and social interaction of several racial groups, the Philippines is considered unique in many ways, thus benefiting the economic backbone of the nation. The “melting pot” of cultures, races, people and economic activity.
The dynamic mix of a basic Malay race, with several Indigenous Native tribes, intertwined with Chinese traders, colonized by Spain for 300 years, and further enhanced by an American education and political structure, the Philippine archipelago is united by 7,107 islands into one nation.
Historically, the Philippines proved its economic strength during the glorious decades of the Manila Galleon (1565-1815). The Galleons were Spanish ships that sailed sailed once or twice per year across the Pacific Ocean between Manila in Spanish East Indies (present day-Philippines), and Acapulco, New Spain (present-day Mexico).
Because of the harsh route, the Galleon Years also saw the devotion to the “Queen of the Galleons”, Nuestra Señora de la Soledad de Porta Vaga in which voyagers will pay homage everytime they had a successful voyage and offer gold and other precious gems.
One may say that the Philippines was indeed the first in global trade via the Pacific, moving goods from Asia, China, the Southern Islands of Malaysia and Indonesia to Southern America and Europe.
The route of Manila Galleon.
The route of Manila Galleon.
The Philippines was then the Gateway to Asia, China and the South East Asian Nations, and today, after a century, and in this new millennium, the Philippines will once more most likely be the Star and Pearl of the Orient.
Being in the crossroads and gateway of the ASEAN Region, the Philippines plays an important strategic location for trade and industry.
During the Standard Chartered’s Singapore Forum, Finance Secretary Cesar V. Purisima said, “We in the Philippines look forward to ASEAN integration in 2015. Our hope is that the Philippines will be the Northern and Pacific gateway to ASEAN.”
Therefore, as reported by B.F.V. Roc of Business World (March 27, 2013), “The Aquino administration is committed to ensure that we continue to invest in infrastructure, our people, and address the constraints to growth.”
The Philippines was once called as the “Sick Man of Asia” before. Until it become “A Tiger Cub of Asia” when economists discover that growth is now beginning to unfold. Until 2012, when the country recorded a 6% growth, the second highest growth in Asia, President Aquino announced that the Philippines is no longer the “Sick Man of Asia”.
And recently, as predicted by international economists including world-renowned, Nouriel Roubini, the Philippines successfully granted an investment grade by Fitch and Ratings. Roubini, in his Twitter account, said “As I predicted in Manila in early February the Philippines was upgraded by Fitch to an investment grade rating. A well deserved upgrade!”
Fitch and Ratings gave Philippines an investment grade, a big boost to the Philippine economy.
Fitch and Ratings gave Philippines an investment grade, a big boost to the Philippine economy.
Soon, other groups such as Standard and Poor, the first to hint of an upgrade when it issued a “positive” outlook on its rating, are seen to grant the country the same recognition.
With this investment grade rating, the country is now “The Rising Tiger of Asia.”
In the article of Philippine Daily Inquirer, DILG Secretary Mar Roxas said that the investment grade “reflects the Philippines’ good fundamentals arising from President Benigno Aquino III’s leadership, enabling takeoff. Our challenge now is to ramp up to cruising altitude, so that we could soar higher.”
In the same article, Senator Loren Legarda also added that “we are the great survivor of the financial crisis which hit Europe and other Asian countries. This impetus will lead to sustainable and inclusive growth, thanks to the cooperation of both houses of Congress with the good governance policies of President Aquino.”
With this investment grade rating, we can see the Philippines to perform well in the 2015 ASEAN Integration.
The demographic, and population strength of the ASEAN nations places the region in a very strategic position for economic activity, market demand and development.
The unity of these nations in the ASEAN is rooted in common cultural, social and historical past with diverse individual competences, yet in a harmonious strength and sharing the same vision and goal of economic integration and cooperation.
Initiatives towards the creation of an ASEAN Economic Community include the lowering of trade barriers, capital markets, integration and greater information sharing, among others.
The TIMP countries: Philippines, Turkey, Indonesia and Mexico.
The TIMP countries: Philippines, Turkey, Indonesia and Mexico.
Aside from ASEAN Integration, the Philippines together with other “new emerging rising stars” Turkey, Indonesia and Mexico are discussing the possibility of creating an informal coalition similar to BRICS (Brazil, Russia, India, China and South Africa) that will create progress in their international interests.
In the article of Conrad De Aenlle (Thru GMA 7 News), Bob Turner, the Chief Investment Officer of Turner Investment Partners, said that what made TIMP countries stand out “is that they possess qualities that should keep them and their stock markets expanding rapidly and profitably. These include favorable demographics and strengthening economies and political institutions.”
The ASEAN and TIMP opportunities will also play a vital role in the real estate industry. For ASEAN, we already have the ASEAN Valuers Association.  With the AEC, Filipino Real Estate professionals can expect to work hand-in-hand with other Real Estate professionals in ASEAN countries. Recently, the 1st Asia Pacific Real Estate Convention and Expo (APRECE) 2013 were held at Marina Bay Sands in Singapore. 15 cooperating real estate associations from Asia learned and explored about Real Estate skills from international speakers and from 1000 real estate professionals composing of realtors, developers, architects, consultants, and marketing tools providers.
The Philippines has the most number of delegates, clearly showing the Filipino Real Estate Professionals willingness to be globally competitive. This is one of the examples on how ASEAN Real Estate professionals can work hand-in-hand.
During the Sectoral Meeting with representatives from different Real Estate organizations, associations, and individuals last November 6 2012, Professional Regulation Commission Chairperson, Teresita Manzala met with the Real Estate practitioners, urging them to integrate and unify. She stressed the need for them to develop, educate, train, and be internationally competent.
She warned them to prepare for the new Trade and Business Agreement with the ASEAN by 2015 whereby the Philippines will open its boundaries with our ASEAN Real Estate Professionals. With this scenario and situation, global competition will demand and call for all Filipino Real Estate practitioners be equip with International best practices, governance, and prestigious professional competence.
Scenes from the AVA 14th Congress held at Manila. ASEAN Real Estate professionals working together.
Scenes from the AVA 14th Congress held at Manila. ASEAN Real Estate professionals working together.
“As the ASEAN unity progresses towards a single market, it is imperative that we assist each other in the development of each member-country. We have observed that the share of Foreign Direct Investments in the ASEAN was dismal compared to the larger economies in Asia. And a professional appraisers, valuers and assessors, we have the duty to contribute our share in the development and promotion of the structure needed for cross-broader investments,” ASEAN Valuers Association President, Federico Cuervo said.
The late Ramon Cuervo Jr., one of the AVA Co-founders, said that “The prevailing spirit of trusts and mutual respect towards one another has fostered a unity towards achieving the principal aim and purpose of AVA- that of attaining an economic and social betterment for our respective citizenry.”
The elder Cuervo, who was also the former AVA President, said that AVA members should continue to pursue and intensify their efforts to ensure qualitative improvements in their intra-ASEAN members through achieving professional standards and that it is their collective desire to establish a broader dialogue – relationship with institutions and /or associations of their kind in developed countries, particularly the Asia Pacific region in order to promote a mutual beneficial relationship.
He assured that “The years ahead will be challenging, yet undoubtedly promising and fruitful, if we (AVA members) cohesively strive to attain our goals.”
According to Mr. Ramon CF Cuervo III, there are really endless opportunities for real estate industry in ASEAN. But this must fit one like a glove or a shoe. “Our field of specialization will develop in time, after years of practice then we will earn that prestige, good reputation, and develop a brand name or create an international institution in real estate. Yes, the Filipino can! The Filipino in essence is international, of Malay race, Spanish – Chinese cultural roots, and American education,” he said.
“To conclude, we Professional Real Estate Practitioners of the Philippines are destined for greater heights, to renew our once number one position in Asia, not just because of the old Manila Galleon Trade, but because our professionals are indeed outstanding in all the corners of the globe.”
With the Philippines as a member of 2015 ASEAN Integration and TIMP, we can expect melting pot of different cultures all with one mission- countries helping and working together as a family.
Source: http://cuervopropertyadvisory.wordpress.com/2013/04/02/philippines-economic-melting-pot-and-gateway-of-the-asean/

Why Do We Need to Have Our Own Real Estate Website



By: Genevieve Flores Bonquin
Real Estate Broker PRC No. 2309
http://philrealestatedirectory.com
http://realestatedirectory.ph
www.greenhuts.net
 Why Do We Need to Have Our Own Real Estate Website
 In the US according to latest survey  by NAR, 90% of home buyers use the internet to search for homes to buy or rent. Even in the Philippines and  Filipinos living or working abroad use the internet extensively to shop for homes here for investments, for their retirement home or for their families here. And if we check the ads online, a great majority of real estate ads are from the non-licensed practitioners or better known as ‘colorums’. Too few are legitimate brokers or agents. So, where do you think most business goes? Are they aware we are legitimate brokers? Are they aware they need to deal only with legitimate brokers? How will people know when they can’t find us online?   Then developers who have in-house marketers hire too many unlicensed agents and give them all the privileges to be able to make a sale making the legitimate brokers a second rate citizens in their companies?
real-estate-clip-art
We, legitimate brokers have a lot of things to catch up as unlicensed agents are overtaking us despite the RESA law. So, we all must not just vigilant and encourage them all to be licensed to level the playing field, recruit these agents and make them licensed under our wings if they are not qualified to take brokers exams. When they are stubborn enough to take a license then we can make their websites, online ads, business cards as evidence of their violation of Sec 39 of RA 9646.
 11905853-website-development-schema

DOMAIN NAME : staking a claim in the internet map.

Aside from introducing our real estate services to the online community,  our domain is the title or the TCT/CCT we give to our space in the internet. This is our business card online. How our clients- buyers, sellers, colleagues will view our business can be seen in our website. If we don’t have a domain, and our listings are just part of another free classified ads, no matter how famous that site is, we are squatters there, we do not have our own identity. We can use those site to lead them to our own domain so that we can establish our credibility. Next time, the client will remember our domain and go back there if they like what they find in our domain/website.
 Our Website is our STORE Online:
 Imagine yourself in a mall where there are many small boutiques. If you are a boutique owner and you only have few display there, will you expect customers to come in? Or you want to be just one of the brands inside a big department store with a few display racks? Though that depends on the quality of your display.  One good thing about the website is that it is open 24 hours a day and you can be found all over the world by clients looking for homes or your services.
 A Very Inexpensive Way of Marketing Your Listings!
 For so many years, many of us have become dependent in advertising in major newspapers which costs easily at P100/line where you can only put about 10 letters per line so you need at least three or more lines so you have a decent ads, else your ads will be drowned by bigger and longer ads. And it appears only one day. Aside from the fact that you can only make very few description such that you have to meet the client to show your listings, so you have to make appointments with them to show the house or your listings. Nowadays with the internet, buyers shop on the internet for homes they like in pictures before they call for appointment to view the house. More likely, they are already half-sold on the house that they saw on your website and only are making a short list for final decision. With the information and the photos of our listings in our website, it also shortens the selling process, less homes to show, as most of the time, buyers negotiate before they even view the actual unit.
(For duly licensed Real Estate Brokers who do not have a website yet, we have a 50% promo (P3,500 only including domain registration and hosting for 1 year). For more information, email to rebgigib@gmail.com or register here:  )
source: http://announcement.philrealestatedirectory.com/why-do-we-need-to-have-own-real-estate-website/

Work to Learn, Before You Work To Earn



by Maita Herce Siquijor
“Work to learn, before you work to earn”.  This paragraph title struck me as I read thru Gary Keller’s “The Millionaire Real Estate Agent” , on the chapter on thinking a million as a start to real millions.
He emphasizes that the quality of preparations you make forBooksForSuccess your real estate profession will greatly determine how high you will be able to climb.
There are real estate brokers and salespersons who take up this profession as a second career or a weekend job.   Reasons for doing so are varied, ranging from a need to get e.g. additional support for college tuition, desire to live a certain lifestyle, or as a get-rich-quick solution to a host of  money problems.  They come into it with a ‘Ready, fire, aim” view.
Yet they wonder why they don’t consistently get leads, couldn’t close a sale well, or couldn’t sustain high production while others seem to do it effortlessly.  The question is, “Did you plan to succeed, or did you simply just want to earn a quick buck?”
It’s different though when you talk of the breed of self-determined change agents. They are here for the long haul.  They create the vision and map out ways to carry out the mission, practically perfectly. The learning edge is part of the goal, as well as the strategy.   To them,  learning is not a waste of selling time.  They have the “Ready, Aim, Fire” view,  where an ounce of preparation saves you tons of perspiration. And when they earn, they earn the exponential income of visionary, driven real estate superstars.
Note that the Millionaire Real Estate Agent presents one vision. But whatever your real estate vision is, make sure it’s clear to you what you want, and ensure that prepared to do your best to get it.  Money comes and goes.  But it’s also how you earn the money that matters, not only how much!
A third of this “Think-a-Million”  formula deals with the mindset:  Attitude and perspective.   Keller lists nine specific categories. I’d like to cite his top two essential mindsets to be a top agent:
1) Think Powered by a Big Why–This is setting the crystal-clear vision. It focuses your energy big-time.  It’s not about the money alone.  That’s a fruit, not an end.  Make sure you tune into your vision. And make sure you capture it in paper or in digital, where you can see it, review it, refine it, and embrace it over and over again!
2) Think Big Goals and Big Models– With a planted vision, grow it with lofty goals to further play it out.  Model the system of action steps well to achieve it; big ideas need a good action plan to accomplish them.  Then create habits of success to sustain it.
Gary further discusses four fundamental business models of the Millionaire Real Estate Agent that forms the entire system to lead you from thinking a million, earning a million, and eventually to netting a million:
1) The Lead-Generation Model- – This tracks the prospecting and marketing activities needed to gain sufficient & quality leads and appointments.
2) The Economic Model – This tracks gross commission income or revenue, cost of sales, operation expenses and net income.
3) The Budget Model – This helps you track and evalute the investments you make in your business.
4) The Organizational Model – This clarifies the division of responsibilities while working with a sales team.
What I appreciate about this is that it highlights how we as real estate service professionals can transform the individual real estate service practice into a full-fledged, sustainable business–if you have the vision and the desire to move that way.
I know that you’re reading thru this post while on-the-go. So to complete today’s learning moment, I’d like to share with you a video version of one of these modules, the Organizational Model,  to give you an intro to both the book and the system.  To me, this particular model is what will truly make the difference of growing your millions, consistently over time & well past your own efforts:

If learning is setting the ground to success then by all means, till the ground of your mind well.  Learn as much as you can.  Even while a real estate professional’s life is perpetually busy, there is nothing like making sufficient time to invest in knowledge, even a few minutes daily, to help you earn bigtime for a lifetime.
(P.S. We don’t sell copies of Gary Keller’s “The Millionaire Real Estate Sales Agent”.  But there are copies available in your local bookstore, or  order at Amazon.com )

source: http://pareb.org.ph/index.php?option=com_content&view=category&layout=blog&id=18&Itemid=25

How To Calculate Internal Rate of Return Without Knowing the Formula


internal rate of returnTrying to calculate internal rate of return (IRR) manually is not very practical for real estate investors (or anyone else for that matter) because the internal rate of return calculation involves tedious mathematical solutions that take a lot time.
Even the most skilled investment real estate specialist probably wouldn’t know the formula for the return and instead would resort to a real estate calculator, MS Excel spreadsheet, or real estate software program to compute it for them.
So rather than to display the actual formula for IRR (it can be found in other places on the web), let’s instead focus on the concept and show you how to make the calculation without knowing the formula.

Concept

In essence, the internal rate of return is the unique rate that discounts the sum of future cash flows until it equals the initial investment.
  • “Initial investment” is the cash investment made by the investor to purchase the income property.
  • “Future cash flows” is the cash derived each year the income property is held plus the reversion (the proceeds received upon sale of the property).

Example

Let’s say that you’re an investor looking at a rental income property and would like to know what your IRR would be if you held the property for six years.
You have to initially invest $435,000 cash to make the purchase, are projecting the property to generate annual cash flows of $43,950, $45,504, $47,108, $23,762, $50,468, and anticipate (based upon your projections) to collect $520,000 upon a sale of the property in the sixth year.
  • Initial investment: 435,000
  • CF1: 43,950
  • CF2: 45,504
  • CF3: 47,108
  • CF4: 23,762
  • CF5: 50,468
  • CF6: 52,227
  • Reversion: 520,000
Okay, now to calculate your internal rate of return you must make your initial cash investment a negative amount (to reflect cash outlay), and combine the sixth years’ cash flow with the reversion (total cash flow anticipated in the sixth year).
  • CF0: -435,000 (initial cash outlay)
  • CF1: 43,950
  • CF2: 45,504
  • CF3: 47,108
  • CF4: 23,762
  • CF5: 50,468
  • CF6: 572,227 (total cash flow in sixth year)
Excel
With Excel, you would enter the amounts as shown in the schema above and then use Excel’s IRR function. The illustration below shows the result.
irr-excel
Real Estate Calculator
Using a real estate calculator similar to ProAPOD’s iCalculator provides the same result but makes the calculation somewhat easier. Primarily because it automatically converts the initial cash investment to a negative amount and combines the cash proceeds resulting from a sale with the cash flow collected in the final year (in this case, the sixth year).
internal rate of return calculation
Real Estate Software
To avoid making the IRR calculation manually, you can use a real estate software solution like ProAPOD Real Estate Investment Software to make it for you automatically. In this case, you simply fill in the forms with the property’s financial data and preview the result in a report like the proforma income statement.

Rule of Thumb

The internal rate of return is only one of many approaches used in real estate investing. But it is one commonly used by real estate investors to make real estate investment decisions. It accounts for the time value of money and thereby considers both the timing and the scale of anticipated future cash flows.

So You Know

iCalculator makes dozens of real estate calculations with the formulas. You can try it risk-free and save 50% (you pay just $24.95). Click here to learn more and get the discount.

source: http://realestateinvestmentsoftwareblog.com


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