Property portal Lamudi said 2015 was a good year for Philippine real estate.
In the first part, we gave a rundown of 12 of the 25 lessons in property development in 2015.
The remaining 13 are as follows:
13. Forbes Park is the most expensive subdivision in the Philippines
Average monthly rents in the very exclusive Forbes Park—home to business tycoons, foreign dignitaries, and boxing icons—stand at Php402,459, making the enclave the most expensive area to rent a
house anywhere in the Philippines.
15. Filipino-Americans prefer houses
Despite the condo boom happening in Metro Manila and other major cities across the Philippines, it seems that many Filipinos based in the United States still prefer to purchase houses, at least according to
January–June 2015 search data from Lamudi. More than half (57.83 percent) of all searches in the Lamudi website were for houses, followed by condos (16.58 percent). The most searched cities? Quezon
City, Makati, Manila, Tagaytay, and Baguio, in this particular order.
16. Cities affordable for first-time homebuyers
There are cities surrounding Metro Manila abound with affordable options for first-time homebuyers. These cities include San Jose Del Monte, Bulacan, where average home price stands at Php495,999; and followed by San Mateo, Rizal (Php549,259); Dasmariñas, Cavite (Php1.189 million); Imus, Cavite (Php1.858 million); Bacoor, Cavite (Php2.777 million); Antipolo, Rizal (Php3.668 million); Santa Rosa, Laguna (Php4.16 million).
17. Condos close to train stations are more expensive
An average condo located within 100 meters of an MRT station is at least Php16,645 more expensive per square meter than a similar, newly built condo situated more than 500 meters away, according to
listings data from Lamudi.
18. Ayala Center, Century City, and Rockwell Center lead most expensive list
Ayala Center—the commercial core of the Makati CBD—commands the most expensive condo rent per sqm than any area Metro Manila. Living in the area, which is within striking distance of Greenbelt, Glorietta, and most of Makati’s luxury hotels, can set a renter back Php1,144 per sqm per month, meaning a 100-sqm condo here can command monthly rent of more than Php110,000. Following Ayala Center are Century City and Rockwell Center in Makati’s Poblacion area, where condos command monthly rents
of Php986 and Php973 per sqm, respectively.
19. Pricier condos are not necessarily bigger
On a per-square-meter basis, more expensive condos do not necessarily mean bigger space. Areas where condos are on average bigger are actually cheaper on a per-sqm basis. These areas include Ayala Triangle/Apartment Ridge, where condos average 275 sqm and where monthly rents average Php568 per sqm. This area is followed by Salcedo Village, where the average size of condos is 126 sqm and average monthly rent stands at Php652 per sqm. In contrast, in the Mall of Asia Complex and Newport City, the average sizes of condos are 34 and 50 sqm, but monthly rents average Php850 and Php785 per sqm, respectively.
20. Caloocan will be the second most populous city by 2020
The City of Manila will be overtaken by nearby Caloocan as the Philippines’ second most populous city by 2020. This is according to an analysis by Lamudi using the annual average population growth rate issued by the Philippine Statistics Authority in 2010. Caloocan’s projected 2020 population will be 1.88 million, compared to Manila’s 1.72 million.
21. Eleven PH cities will have populations of more than 1 million by 2025
Using the annual population growth rates recorded in 2010, 11 cities in the Philippines are projected to have populations of more than 1 million. These are Quezon City (3.95 million), Caloocan (2.115 million), Davao City (2.056 million), Manila (1.76 million), Dasmariñas (1.27 million), Antipolo (1.25 million), Zamboanga City (1.25 million), Cebu City (1.14 million), Taguig (1.12 million), Bacoor (1.11 million), and Pasig (1.022 million).
22. Can BPO workers afford condos?
With an average monthly salary of Php22,500, entry-level customer care representatives cannot afford to rent a condo in either of these “affordable” areas: Eastwood City, Pioneer-EDSA, Poblacion (Makati), and San Antonio (Makati), where average rents range from Php19,838 to Php22,563 per month. Using the 30 percent rule (spending not more than 30 percent of one’s monthly income on housing), only those working as managers, with an average compensation of Php75,000 per month, may only afford to rent a condo in these select areas.
23. How long Filipinos should work to buy a home
A salaried Filipino with more than 20 years of work experience and earning Php1.43 million per year may need 128 years’ worth of his salary in order to afford a house in Makati where average home price stands at Php184 million. In contrast, this same person needs 4.16 months’ worth of his annual salary in order to afford a home in San Jose Del Monte, Bulacan, where the average home price is Php495,999.
24. Are Filipinos buying or renting?
Based on its third quarter 2015 search data, Lamudi found that there is an almost equal proportion of renters and buyers among 18- to 24-year-old online property-hunters (50.2 percent for rent versus 49.8 percent for sale). Quite interestingly, there is a tendency for property-hunters to check out for-sale properties online as they get older. Among 25- to 34-year-old users, 57.3 percent are checking out for-sale properties. In the 35–44, 45–54, and 55–64 age groups, it is even higher; 70.8, 72.6, and 71.1 percent of the website’s users, respectively, are checking out for-sale properties.
25. Most sought-after locations for land
Quezon City, Tagaytay, and Baguio are the top three most popular locations among property-hunters looking for land online. These cities are followed by Davao and Antipolo. “Clearly there are cities preferred by people researching about land for sale online, and we hope these findings will give real estate developers insight into how to properly plan their next projects,” said Lamudi. In addition, the fact that only five Metro Manila cities were in the top 10 indicate that Filipinos are not too keen into buying residential land within the National Capital Region, either due to lack of supply, unaffordability, or both.
Source: http://www.malaya.com.ph/business-news/special-features/lessons-learned-2015
Showing posts with label buyers. Show all posts
Showing posts with label buyers. Show all posts
Thursday, January 21, 2016
Friday, April 10, 2009
Self-made Millionaire at age 14
REAL ESTATE INVESTMENT, we will guide you...
REAL ESTATE FORECLOSURE, we will help you...
Very Truly Yours,
REALTOR SAMUEL "SAM" LAO
Mobile # (Phil.) - 0918.9236123
Telephone # - 032-5166194
Email Address : laosamuel@yahoo.com
Rich People Own Real Estate - Real Estate Principle #1
REAL ESTATE INVESTMENT, we will guide you...
REAL ESTATE FORECLOSURE, we will help you...
Very Truly Yours,
REALTOR SAMUEL "SAM" LAO
Mobile # (Phil.) - 0918.9236123
Telephone # - 032-5166194
Email Address : laosamuel@yahoo.com
Real Estate Investments and How to Make Them
REAL ESTATE INVESTMENT, we will guide you...
REAL ESTATE FORECLOSURE, we will help you...
Very Truly Yours,
REALTOR SAMUEL "SAM" LAO
Mobile # (Phil.) - 0918.9236123
Telephone # - 032-5166194
Email Address : laosamuel@yahoo.com
Tuesday, April 7, 2009
Pag-ibig sees rise in housing loans
Updated April 08, 2009 12:00 AM
CEBU, Philippines - The Home Development Mutual Fund (Pag-IBIG Fund) expects more members to avail of the housing loan especially now that adjustments have been made to lower the interest rates.
Pag-IBIG announced that as the Housing and Urban Development Council redefined housing packages, the new housing loan interest rate has been lowered and brackets have been expanded.
Interest rate structure retains the six percent rate for loans up to P400,000 below. Before, the interest rate of six percent is only applicable to loans of P300,000 below.
Loans over P400,000 up to P750,000 will only have a seven percent interest while interest rates have been slashed from 10.5 percent to only 8.5 percent for loans over P750,000 up to P1 million.
The rate for loans of P750,000 before is 8.5 percent, which is 1.5 percent higher than the new rate.
For loans over P1 million to P1.25 million, the interest rate will now be 9.5 percent.
The maximum loanable amount has also increased from P2 million to P3 million with only 11.5 percent interest rate.
Pag-IBIG Cebu City assistant department manager for operations Rio Teves said that they are expecting an increase in application for housing loans especially between the P750,000 to one million loan bracket.
Teves said they have observed that most of the loans are in that bracket and with the decrease in the interest rate, they foresee that more members will take advantage of the lowered rate.
Teves said that Pag-IBIG Cebu City has allotted around P43 billion for housing, which they believe will be a big help to the economy.
With the new changes, members can now afford to buy their own home which is a better alternative to renting. The new rates can give members with one million loans a 15.92 percent savings.
“In a one million loan, a member is paying around P9,147 but with the new rates they will only pay P7,689,” Teves said.
As of March 2009, the number of borrowers in Cebu City reached 548, which totaled to a release of P400 million. Pag-IBIG still expects that it will increase this month.
According to Pag-IBIG, the latest amendments are intended to make the housing loan program more affordable to members, especially workers in highly urbanized areas whose housing needs often range from more than P750,000 up to P1 million.
“Likewise, with the board’s approval of raising the loan ceiling to P3 million, Pag-IBIG will be able to meet the home financing needs of members belonging to the middle-income earners.” – Jessica Ann R. Pareja/LPM (THE FREEMAN)
Friday, April 3, 2009
MODIFIED GUIDELINES OF THE PAG-IBIG PROGRAM FOR THE DEVELOPMENT OF MEDIUM/HIGH-RISE CONDOMINIUM BUILDING (MHRB) PROJECTS
Pag-IBIG Fund CIRCULAR NO. ______
MODIFIED GUIDELINES OF THE PAG-IBIG PROGRAM FOR THE
DEVELOPMENT OF MEDIUM/HIGH-RISE CONDOMINIUM BUILDING (MHRB)
PROJECTS IN METRO MANILA AND HIGHLY URBANIZED CITIES
A. COVERAGE
These guidelines shall cover Medium/High-Rise Condominium Building
(MHRB) Projects located in Metro Manila and Highly Urbanized Cities.
B. OBJECTIVES
1. To provide a ready inventory of condominium units for sale at more
affordable prices to eligible Pag-IBIG members in the Metro Manila area
and highly urbanized cities;
2. To provide Pag-IBIG members who are working in the Metro Manila area
and highly urbanized cities with the opportunity to acquire condominium
units in the area, thereby reducing transportation costs to and from their
places of habitat;
3. To provide developers with a liquidity mechanism that will increase
capacity for housing production and reduce project financing costs,
through a faster turnaround of their investments in the construction and
development of medium/high-rise condominium buildings in the Metro
Manila area and highly urbanized cities;
4. To simplify and facilitate the processing of end-user financing for eligible
Pag-IBIG members, given time-savings realized in the wholesale appraisal
and inspection of housing units in medium/high-rise condominium
buildings which have been accredited by Pag-IBIG Fund.
C. PROJECT ACCREDITATION
The proposed medium/high-rise building (MHRB) project must conform with
Pag-IBIG Fund’s standards, attached hereto as Annex “A”, and must have the
following general specifications:
1. The project must be a medium/high-rise residential building with a
minimum floor area of 18 square meters per unit;
2. The site of the project must be characterized by the availability of basic
socio-economic institutions such as government centers, churches,
hospitals/health centers, schools, public markets and commercial
establishments within a five-kilometer radius, and must be accessible
to public transport;
3. The selling price of the condominium units must not be more than
P3.0 Million.
4. The MHRB project plan must provide for basic amenities and
community facilities.
227
2
The MHRB project shall likewise be evaluated as to market feasibility,
technical feasibility and financial feasibility on the basis of the Pag-IBIG
Evaluation Criteria attached hereto as Annex “B”.
D. THE DEVELOPER AND ITS ROLE
1. To qualify under the Pag-IBIG Program for the Development of MHRB
Projects, a company must have an established track record of at least
three (3) years in housing development, having completed at least 1,000
house and lot or condominium units at the time of application.
If with previous dealings with the Fund, the developer must have an
established track record of delivering quality mortgages.
A company which fails to meet the aforementioned criteria but can show
convincing proof of its financial and technical capability to complete the
project according to the Fund’s project specifications/standards, shall be
given due consideration.
The company shall be notified whether it qualifies under the program or
not within fifteen (15) days from submission of the required corporate
documents.
2. The Company shall enter into a Memorandum of Agreement (MOA) with
Pag-IBIG Fund stipulating, among others, that it shall:
2.1 Deliver completed condominium units as per specifications in
accordance with a delivery schedule;
2.2 Secure and obtain all necessary licenses, permits and approvals
required by government agencies in connection with the proposed
MHRB project;
The Development Permit must be secured prior to loan approval
while the License to Sell may be submitted within six (6) months
upon receipt of Notice of Approval (NOA), otherwise, the loan
application shall be deemed cancelled.
2.3 Warrant satisfactory and faithful performance of all the works and
services attendant to the project in accordance with the drawings,
plans and specifications approved by the Housing and Land Use
Regulatory Board (HLURB) and such other regulatory agencies;
2.4 Correct, rework and/or reconstruct, at its own expense, delivered
units which are found defective and/or below specifications within
a period of one (1) month after the sale and turn-over of the unit
to a member-buyer;
2.5 Warrant the validity, legality and authenticity of the individual
titles, as well as the construction of the units in accordance with
HLURB and Pag-IBIG Fund approved standards;
2.6 Execute in favor of, and deliver to Pag-IBIG Fund, the individual
Assignment of Take-out Proceeds with Real Estate Mortgage and
individual Promissory Note, assigning the takeout proceeds, Real
Estate Mortgage and Condominium Certificates of Title (CCTs)
3
covering the condominium units for which the Fund shall release
funds;
2.7 Handle the marketing of the condominium units in the proposed
MHRB project to qualified Pag-IBIG member-buyers. The
condominium units must be sold within six (6) months from date
of release of funds.
2.8 Buy back unsold condominium units at the end of the six-month
marketing period, at a price equivalent to the amount of funds
released by Pag-IBIG Fund for the units, plus accrued interest
charges, within fifteen (15) calendar days from receipt of notice.
2.9 Ensure the extension and installation of electrical and water
facilities to serve the MHRB project, the cost of which shall be
shouldered by the company;
2.10 Maintain all condominium facilities at its own expense until such
time that the facilities are turned over and accepted by the proper
authorities; and
2.11 Secure an interim fire and other allied perils insurance on the
property assigned/mortgaged to the Fund for an amount
equivalent to the funds released by Pag-IBIG Fund.
E. Pag-IBIG FUND’s PARTICIPATION
1. The Pag-IBIG Fund shall release funds, which shall be based on the
lowest of the following: seventy percent (70%) of the appraised value of
the completed condominium unit, seventy percent (70%) of the
developer’s selling price or One Million Five Hundred Thousand Pesos
(P1,500,000.00), for every completed condominium unit delivered to
Pag-IBIG Fund in accordance with the terms and conditions of the MOA.
2. Pag-IBIG Fund shall release funds in tranches up to maximum of 250
condominium units, within a period of three (3) years. Pag-IBIG Fund shall
only release funds if the condominium building where the subject
properties are located, is already complete in accordance with the plans
and specifications.
Subsequent funds shall be infused into the project only when fifty percent
(50%) of the completed condominium units delivered under the preceding
tranche have been sold out, and one hundred percent (100%) of the
completed condominium units delivered under any previous tranche have
been sold out.
3. Pag-IBIG Fund shall provide long-term financing via the Contract-to-Sell
(CTS) or Real Estate Mortgage (REM) scheme to qualified memberbuyers.
4. Upon take-out of the borrower’s Pag-IBIG housing loan, the Fund shall
deduct the following from the loan proceeds, if applicable:
4.1 The amount of funds already released by Pag-IBIG Fund to the
developer for the borrower’s unit;
4
4.2 Unpaid Interest charges, herein defined as the prevailing market
rate (on Friday preceding the date of release of proceeds) of
2-year Treasury Notes, plus three percent (3%) during the six (6)
months marketing period, and 5% thereafter, which shall in no
case be less than 8.5%.
4.3 Retention value to cover for the expenses on the conversion
of CTS accounts to REM, in accordance with the rate
prescribed in the prevailing guidelines on the Pag-IBIG Fund
housing loan program; and
4.4 Other unpaid obligations of the developer.
5. Pag-IBIG Fund shall have the following options in the event the developer
fails to dispose of the condominium units within a period of six (6) months
from the date of release of funds:
5.1 Grant the developer a grace period of not more than three (3)
months within which to dispose of the unsold units.
5.2 After the expiration of the grace period, Pag-IBIG Fund shall
require the developer to buy back unsold units within fifteen (15)
calendar days from receipt of notice, at a price equal to the funds
released for the said units, plus accrued interest charges.
Pag-IBIG Fund shall likewise have the option to suspend the
release of funds.
5.3 Register the individual Real Estate Mortgage (REM) on the
individual Condominium Certificates of Title covering the unsold
condominium units’ subject of the funds released and institute
foreclosure proceedings.
All expenses pertaining to the registration of the REM shall be for
the account of the developer.
6. Pag-IBIG Fund shall enter into a Memorandum of Agreement (MOA) with a
developer for the development of one MHRB project in Metro Manila and
highly urbanized cities at a time, until such time that the company shall
have established a track record that will merit Pag-IBIG Fund’s entering
into a MOA with the developer for the simultaneous development of
several MHRB projects in the area.
F. TERMS AND CONDITIONS FOR AVAILMENT
1. Amount.
Each drawdown shall not exceed the lowest of the following: seventy
percent (70%) of the appraised value of the completed condominium unit,
seventy percent (70%) of the developer’s selling price or One Million Five
Hundred Thousand Pesos (P1,500,000.00), for every completed
condominium unit delivered to Pag-IBIG FUND in accordance with the
terms and conditions of the MOA.
5
2. Maturity
Each drawdown shall have a maturity period of six (6) months.
3. Interest
The loan shall bear an interest rate defined as the prevailing market rate
(on Friday preceding the date of release of proceeds) of 2-year Treasury
Notes, plus three percent (3%) during the six (6) months marketing period,
and 5% thereafter, which shall in no case be less than 8.5%.
4. Collateral
The developer shall execute, in favor of, and deliver to Pag-IBIG Fund the
individual Assignment of Take-out Proceeds with Real Estate Mortgage
(REM) and individual Promissory Note, assigning the takeout proceeds,
Real Estate Mortgage and TCTs covering the house and lot packages for
which Pag-IBIG Fund shall release funds.
5. Project Timetable
The construction of the project must commence within one (1) year from
the receipt of the Notice of Approval (NOA) and must be fully completed
within a maximum period of three (3) years. Failure to comply within the
specified time shall lead to the cancellation of the loan approval.
6. Funding Commitment Line
The developer shall secure from Pag-IBIG Fund a Funding Commitment
Line either under Window 1 (With Buyback Guaranty on CTS
accounts of defaulting prospective beneficiaries) or Window 2
(Without Buyback Guaranty).
6
7. Loan Payment
The loan principal and the applicable accrued interest charges shall be
paid from the take-out proceeds. Pag-IBIG Fund shall furnish the
developer a statement of the application of payment on the outstanding
loan balance and accrued interest charges, within seven (7) working days
from submission of complete loan documents required for the release of
take-out proceeds.
Should the take-out proceeds fully cover the developer’s outstanding loan
balance and accrued interest charges, Pag-IBIG Fund shall remit any
remaining amount thereon to the developer.
8. Commitment Fee
The developer shall submit an annual schedule of drawdowns, the first of
which shall not be later than sixty (60) calendar days after execution of the
Memorandum of Agreement. The developer shall pay a commitment fee
equivalent to one-fourth of one percent (1/4 of 1%) of the amounts
scheduled for drawdown during the first ninety (90) days or first quarter
following the execution of the MOA. If availments or drawdowns are made
as scheduled, said fee may be refunded or may be applied to the
scheduled drawdown/s for the subsequent quarter/s. Otherwise, it shall be
forfeited.
9. Loan Processing Fee
The developer shall pay a processing fee of ¼ of 1% of the approved loan
amount or fifty thousand pesos (P50,000.00), whichever is lower, inclusive
of a non-refundable filing fee of ten thousand pesos (P10,000.00).
10. Service Fee
The developer shall pay a service fee equivalent to 0.1% of the amount for
drawdown.
G. OTHER PROVISIONS
Upon execution of the Memorandum of Agreement (MOA), a standby Letter
of Credit (LC) may be granted in favor of the developer provided that the
following requirements are complied with:
1.) Development Permit from HLURB
2.) Building Permit from LGU
3.) Environmental Clearance Certificate (ECC) from DENR
4.) License to Sell from HLURB
In addition, the developer must have at least thirty percent (30%) proof of
sales based on the total number of residential condominium units.
MODIFIED GUIDELINES OF THE PAG-IBIG PROGRAM FOR THE
DEVELOPMENT OF MEDIUM/HIGH-RISE CONDOMINIUM BUILDING (MHRB)
PROJECTS IN METRO MANILA AND HIGHLY URBANIZED CITIES
A. COVERAGE
These guidelines shall cover Medium/High-Rise Condominium Building
(MHRB) Projects located in Metro Manila and Highly Urbanized Cities.
B. OBJECTIVES
1. To provide a ready inventory of condominium units for sale at more
affordable prices to eligible Pag-IBIG members in the Metro Manila area
and highly urbanized cities;
2. To provide Pag-IBIG members who are working in the Metro Manila area
and highly urbanized cities with the opportunity to acquire condominium
units in the area, thereby reducing transportation costs to and from their
places of habitat;
3. To provide developers with a liquidity mechanism that will increase
capacity for housing production and reduce project financing costs,
through a faster turnaround of their investments in the construction and
development of medium/high-rise condominium buildings in the Metro
Manila area and highly urbanized cities;
4. To simplify and facilitate the processing of end-user financing for eligible
Pag-IBIG members, given time-savings realized in the wholesale appraisal
and inspection of housing units in medium/high-rise condominium
buildings which have been accredited by Pag-IBIG Fund.
C. PROJECT ACCREDITATION
The proposed medium/high-rise building (MHRB) project must conform with
Pag-IBIG Fund’s standards, attached hereto as Annex “A”, and must have the
following general specifications:
1. The project must be a medium/high-rise residential building with a
minimum floor area of 18 square meters per unit;
2. The site of the project must be characterized by the availability of basic
socio-economic institutions such as government centers, churches,
hospitals/health centers, schools, public markets and commercial
establishments within a five-kilometer radius, and must be accessible
to public transport;
3. The selling price of the condominium units must not be more than
P3.0 Million.
4. The MHRB project plan must provide for basic amenities and
community facilities.
227
2
The MHRB project shall likewise be evaluated as to market feasibility,
technical feasibility and financial feasibility on the basis of the Pag-IBIG
Evaluation Criteria attached hereto as Annex “B”.
D. THE DEVELOPER AND ITS ROLE
1. To qualify under the Pag-IBIG Program for the Development of MHRB
Projects, a company must have an established track record of at least
three (3) years in housing development, having completed at least 1,000
house and lot or condominium units at the time of application.
If with previous dealings with the Fund, the developer must have an
established track record of delivering quality mortgages.
A company which fails to meet the aforementioned criteria but can show
convincing proof of its financial and technical capability to complete the
project according to the Fund’s project specifications/standards, shall be
given due consideration.
The company shall be notified whether it qualifies under the program or
not within fifteen (15) days from submission of the required corporate
documents.
2. The Company shall enter into a Memorandum of Agreement (MOA) with
Pag-IBIG Fund stipulating, among others, that it shall:
2.1 Deliver completed condominium units as per specifications in
accordance with a delivery schedule;
2.2 Secure and obtain all necessary licenses, permits and approvals
required by government agencies in connection with the proposed
MHRB project;
The Development Permit must be secured prior to loan approval
while the License to Sell may be submitted within six (6) months
upon receipt of Notice of Approval (NOA), otherwise, the loan
application shall be deemed cancelled.
2.3 Warrant satisfactory and faithful performance of all the works and
services attendant to the project in accordance with the drawings,
plans and specifications approved by the Housing and Land Use
Regulatory Board (HLURB) and such other regulatory agencies;
2.4 Correct, rework and/or reconstruct, at its own expense, delivered
units which are found defective and/or below specifications within
a period of one (1) month after the sale and turn-over of the unit
to a member-buyer;
2.5 Warrant the validity, legality and authenticity of the individual
titles, as well as the construction of the units in accordance with
HLURB and Pag-IBIG Fund approved standards;
2.6 Execute in favor of, and deliver to Pag-IBIG Fund, the individual
Assignment of Take-out Proceeds with Real Estate Mortgage and
individual Promissory Note, assigning the takeout proceeds, Real
Estate Mortgage and Condominium Certificates of Title (CCTs)
3
covering the condominium units for which the Fund shall release
funds;
2.7 Handle the marketing of the condominium units in the proposed
MHRB project to qualified Pag-IBIG member-buyers. The
condominium units must be sold within six (6) months from date
of release of funds.
2.8 Buy back unsold condominium units at the end of the six-month
marketing period, at a price equivalent to the amount of funds
released by Pag-IBIG Fund for the units, plus accrued interest
charges, within fifteen (15) calendar days from receipt of notice.
2.9 Ensure the extension and installation of electrical and water
facilities to serve the MHRB project, the cost of which shall be
shouldered by the company;
2.10 Maintain all condominium facilities at its own expense until such
time that the facilities are turned over and accepted by the proper
authorities; and
2.11 Secure an interim fire and other allied perils insurance on the
property assigned/mortgaged to the Fund for an amount
equivalent to the funds released by Pag-IBIG Fund.
E. Pag-IBIG FUND’s PARTICIPATION
1. The Pag-IBIG Fund shall release funds, which shall be based on the
lowest of the following: seventy percent (70%) of the appraised value of
the completed condominium unit, seventy percent (70%) of the
developer’s selling price or One Million Five Hundred Thousand Pesos
(P1,500,000.00), for every completed condominium unit delivered to
Pag-IBIG Fund in accordance with the terms and conditions of the MOA.
2. Pag-IBIG Fund shall release funds in tranches up to maximum of 250
condominium units, within a period of three (3) years. Pag-IBIG Fund shall
only release funds if the condominium building where the subject
properties are located, is already complete in accordance with the plans
and specifications.
Subsequent funds shall be infused into the project only when fifty percent
(50%) of the completed condominium units delivered under the preceding
tranche have been sold out, and one hundred percent (100%) of the
completed condominium units delivered under any previous tranche have
been sold out.
3. Pag-IBIG Fund shall provide long-term financing via the Contract-to-Sell
(CTS) or Real Estate Mortgage (REM) scheme to qualified memberbuyers.
4. Upon take-out of the borrower’s Pag-IBIG housing loan, the Fund shall
deduct the following from the loan proceeds, if applicable:
4.1 The amount of funds already released by Pag-IBIG Fund to the
developer for the borrower’s unit;
4
4.2 Unpaid Interest charges, herein defined as the prevailing market
rate (on Friday preceding the date of release of proceeds) of
2-year Treasury Notes, plus three percent (3%) during the six (6)
months marketing period, and 5% thereafter, which shall in no
case be less than 8.5%.
4.3 Retention value to cover for the expenses on the conversion
of CTS accounts to REM, in accordance with the rate
prescribed in the prevailing guidelines on the Pag-IBIG Fund
housing loan program; and
4.4 Other unpaid obligations of the developer.
5. Pag-IBIG Fund shall have the following options in the event the developer
fails to dispose of the condominium units within a period of six (6) months
from the date of release of funds:
5.1 Grant the developer a grace period of not more than three (3)
months within which to dispose of the unsold units.
5.2 After the expiration of the grace period, Pag-IBIG Fund shall
require the developer to buy back unsold units within fifteen (15)
calendar days from receipt of notice, at a price equal to the funds
released for the said units, plus accrued interest charges.
Pag-IBIG Fund shall likewise have the option to suspend the
release of funds.
5.3 Register the individual Real Estate Mortgage (REM) on the
individual Condominium Certificates of Title covering the unsold
condominium units’ subject of the funds released and institute
foreclosure proceedings.
All expenses pertaining to the registration of the REM shall be for
the account of the developer.
6. Pag-IBIG Fund shall enter into a Memorandum of Agreement (MOA) with a
developer for the development of one MHRB project in Metro Manila and
highly urbanized cities at a time, until such time that the company shall
have established a track record that will merit Pag-IBIG Fund’s entering
into a MOA with the developer for the simultaneous development of
several MHRB projects in the area.
F. TERMS AND CONDITIONS FOR AVAILMENT
1. Amount.
Each drawdown shall not exceed the lowest of the following: seventy
percent (70%) of the appraised value of the completed condominium unit,
seventy percent (70%) of the developer’s selling price or One Million Five
Hundred Thousand Pesos (P1,500,000.00), for every completed
condominium unit delivered to Pag-IBIG FUND in accordance with the
terms and conditions of the MOA.
5
2. Maturity
Each drawdown shall have a maturity period of six (6) months.
3. Interest
The loan shall bear an interest rate defined as the prevailing market rate
(on Friday preceding the date of release of proceeds) of 2-year Treasury
Notes, plus three percent (3%) during the six (6) months marketing period,
and 5% thereafter, which shall in no case be less than 8.5%.
4. Collateral
The developer shall execute, in favor of, and deliver to Pag-IBIG Fund the
individual Assignment of Take-out Proceeds with Real Estate Mortgage
(REM) and individual Promissory Note, assigning the takeout proceeds,
Real Estate Mortgage and TCTs covering the house and lot packages for
which Pag-IBIG Fund shall release funds.
5. Project Timetable
The construction of the project must commence within one (1) year from
the receipt of the Notice of Approval (NOA) and must be fully completed
within a maximum period of three (3) years. Failure to comply within the
specified time shall lead to the cancellation of the loan approval.
6. Funding Commitment Line
The developer shall secure from Pag-IBIG Fund a Funding Commitment
Line either under Window 1 (With Buyback Guaranty on CTS
accounts of defaulting prospective beneficiaries) or Window 2
(Without Buyback Guaranty).
6
7. Loan Payment
The loan principal and the applicable accrued interest charges shall be
paid from the take-out proceeds. Pag-IBIG Fund shall furnish the
developer a statement of the application of payment on the outstanding
loan balance and accrued interest charges, within seven (7) working days
from submission of complete loan documents required for the release of
take-out proceeds.
Should the take-out proceeds fully cover the developer’s outstanding loan
balance and accrued interest charges, Pag-IBIG Fund shall remit any
remaining amount thereon to the developer.
8. Commitment Fee
The developer shall submit an annual schedule of drawdowns, the first of
which shall not be later than sixty (60) calendar days after execution of the
Memorandum of Agreement. The developer shall pay a commitment fee
equivalent to one-fourth of one percent (1/4 of 1%) of the amounts
scheduled for drawdown during the first ninety (90) days or first quarter
following the execution of the MOA. If availments or drawdowns are made
as scheduled, said fee may be refunded or may be applied to the
scheduled drawdown/s for the subsequent quarter/s. Otherwise, it shall be
forfeited.
9. Loan Processing Fee
The developer shall pay a processing fee of ¼ of 1% of the approved loan
amount or fifty thousand pesos (P50,000.00), whichever is lower, inclusive
of a non-refundable filing fee of ten thousand pesos (P10,000.00).
10. Service Fee
The developer shall pay a service fee equivalent to 0.1% of the amount for
drawdown.
G. OTHER PROVISIONS
Upon execution of the Memorandum of Agreement (MOA), a standby Letter
of Credit (LC) may be granted in favor of the developer provided that the
following requirements are complied with:
1.) Development Permit from HLURB
2.) Building Permit from LGU
3.) Environmental Clearance Certificate (ECC) from DENR
4.) License to Sell from HLURB
In addition, the developer must have at least thirty percent (30%) proof of
sales based on the total number of residential condominium units.
Pag-IBIG lowers housing loan rates anew
April 03,2009 |
| VICE President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees, today announced further adjustments to its end-user financing program, this time creating additional housing loan brackets with corresponding lower interest rates. The rate adjustments are aligned with the redefined housing packages set by the HUDCC. The new Pag-IBIG housing loan interest rate structure retains the 6%-rate for loans up to P400,000, and 7% for loans over P400,000 up to P750,000. Interest rates have been slashed from 10.5 percent to only 8.5% for loans over P750,000 up to P1 million, and to 9.5% for loans over P1 million to P1.25 million. Meanwhile, interest for loans over P1.25 million to P2 million remains at 10.5%. Along with the latest rate adjustment, the Pag-IBIG Board also approved the increase in maximum loanable amount to P3 million, at an interest rate of 11.5% per annum for loans starting at over P2 million. De Castro said the latest amendments in the Pag-IBIG housing loan program are intended to make the program more affordable to members, especially workers in highly-urbanized areas whose housing needs often range from more than P750,000 up to 1 million. Likewise, with the Board’s approval of raising the loan ceiling to P3 million, Pag-IBIG will be able to meet the home financing needs of members belonging to the middle-income earners. “This should give Pag-IBIG members a wider range of choices in buying a house,” he said. Over the last two years, the Fund has implemented significant improvements in its end-user financing program. In 2007, Pag-IBIG has reduced the interest rates for loans over P300,000 to P750,000 from 10.5% to 7%. Earlier this year, the socialized housing bracket was expanded to cover loans of up to P400,000. With the new changes taking effect April 1, Pag-IBIG member-borrowers can look forward to more value for their money as well as savings especially at this time of economic difficulties. “The savings given the lower monthly amortizations should convince Pag-IBIG members that buying their own home is a more practical alternative to renting,” De Castro added. Members who avail of a P1 million housing loan stand to save 15.94% per month with amortizations of only P7,689.13 (covering principal and interest) over a 30 year period, compared to P9,147.39 under the old rate of 10.5%. Year-on-year figures show the Pag-IBIG Fund is able to maintain the growth in its housing loan takeout. From P4.59 billion, the Fund recorded a P5.83 billion total takeout from January to February of the current year, representing a 27% increase. “The demand for housing, especially from the low and middle-income earners, continues to be strong despite the global financial crisis,” he said. Following these amendments in the Pag-IBIG housing loan program, the Fund expects to maintain a steady growth in loans granted to members and attain its target of P43 billion takeout for 2009. “This will further sustain the housing sector by providing financing to home buyers at very attractive, affordable rates,” De Castro said. (end) |
Thursday, December 25, 2008
7 Mistakes Every Real Estate Investor Makes and How You Can Avoid Them
by Charrissa Cawley
What sets truly successful investors apart from those who are only moderately successful or – worse – those who prematurely pack it in and decide to give up on real estate investing altogether? Mistakes do it every time. However, all investors are prone to mistakes. The key to moving forward is recognizing those mistakes and working proactively to keep them to a minimum. Here are some of the most common mistakes – and how you can avoid them:
Treating real estate investing as an unusual hobby – Real estate investing is serious business. Fortunes can be made in real estate investing, so treat it seriously. Get a business card and distribute it. Successful investors pass business cards out like Halloween candy.
In addition, don’t neglect to establish yourself as a serious investor. Set up an LLC, get a Federal Tax ID number and open a business checking account. You can survive with a personal checking account, but doing so screams “amateur”. Be professional and take the steps necessary to prove that you’re serious about your success.
Thinking that your need for education ended with your first property purchase – Your need for an ongoing real estate investing education is as real as the needs your physician or your children’s teachers have for ongoing education. It keeps you up-to-date on strategies and techniques that you otherwise might never hear about.
Thinking the Internet is a passing fad – For too many investors, being steeped in the “old” way of doing things is costing you money, profits, and deals. 92% of all sellers begin the sales process online. If you don’t have a website, you’re severely restricting your options – and your cash flow. If you have an artery with a 92% blockage you’re a prime candidate for a stroke. Don’t do this to your business.
Ignoring your business credit file – If you have a pulse, you know you have a credit file, but did you know you can build business credit and expand your opportunities? Separating your personal credit file from your business credit file can help you to more quickly take advantage of opportunities, especially if your personal credit is less than stellar.
Another benefit to working to build business credit is that all business creditors don’t require a personal guarantee by you, which means that you won’t be personally liable for all of the debts of your business. An added benefit is that you might be able to get better terms for a real estate transaction with your business credit than you could secure with your personal credit, and it won’t affect your ability to buy a new car when you need one.
Thinking real estate agents and brokers are for "uneducated investors" – A good real estate broker can be one of your best friends. The key is finding one who understands your investing strategy and what it is you’re trying to accomplish. Sure, real estate brokers charge commissions, but if the value of what you receive is greater than the cost, you’ll be money ahead – and it will be reflected in the value of your portfolio.
Being secretive about what you do for a living – Let everyone know that you’re a real estate investor. Everyone. From your accountant to your veterinarian, it’s critical that you let as many people as you can know that you’re actively seeking property. The current credit crunch has some unlikely people in a world of hurt financially.
Most people either know someone or know of someone that you might be able to help out of an embarrassing and time-sensitive situation. Your stock in your community will go up if you can help a friend or even a family member of someone in your sphere of influence. That can pay off dividends now and in the future, so don’t be tight-lipped. Get the word out!
Hiding from the press – You may not think that what you have to say is noteworthy, but your local media may disagree. Newspapers and TV stations are always on the lookout for interview targets and sources for national news stories with a local spin. The press won’t come beating down your door – at first, but once they’re aware you exist and that you are an intelligent, articulate interview subject, they might.
Get the process started. Send a reporter an email explaining a real estate-related concept or principle – keeping in mind that it has to have a local spin. If you’re feeling particularly bold, issue a press release.
While it’s possible to have some success as a real estate investor even if you make some of these mistakes, why would you want to? It doesn’t take much to set yourself apart from the crowd and increase your visibility and your credibility. The fewer mistakes you make the better off you are. Go ahead, correct these mistakes that many investors make and free the entrepreneur that’s struggling to rise to the surface. It’s worth the effort. Go ahead, give it a try!
To Learn more about Cebu Real Estate Industry, Call:
RealtyOPTIONS Marketing & Consultancy Inc.- President/CEO
Tel Nos: (+63 32) 5166194 / 2550374
Mobile: (+63 918) 9236123 / 0922.8236123
www.laosamuel.com
www.laosamuelmls.blogspot.com
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