Investing during challenging times

[ manilastandardtoday.com ] February 25, 2010


Crisis can be turned into an investment opportunity, according to Alveo Land, an Ayala Land company.

Rex Ma. Mendoza, Ayala Land’s senior vice president for corporate sales and marketing, and a financial expert, flew to Singapore recently to speak to the Filipino community on how to invest their money during challenging times.

“Equipped with proper knowledge and courage, you can actually turn a crisis into an investment opportunity,” Mendoza said during the talk in partnership with Singapore Management University and Philippine National Bank.

The talk, supported by Philippine Ambassador to Singapore Minda Calaguian-Cruz is part of Alveo Land’s Wealth Management Series.

“There is always risk involved in any investment, even during good times. You just have to double the vigilance and forethought on where you put your money,” Mendoza explained.

He said investing in the so-called hard assets such as real estate, especially prime properties, is a more viable and secure option than putting one’s money in stocks of bonds. This, he added, is because of real estate’s unique value feature: economic crisis tends to stabilize real estate prices due to an increase in demand. When the situation improves, prices can rise very quickly, giving significant returns on the investment made during the crisis.

“You don’t have to wait for the recession to be over to reap the benefits of your new real estate purchase. You can enjoy a great address or earn from rentals. It’s also a good way to manage your wealth for your future. It’s just a matter of perspective and foresight,” Mendoza said.

Alveo Land has been on full swing in developing residential projects. Verdana, the company’s family oriented community in the South, launched a new phase while Treveia, a neighbourhood in Nuvali, is starting to take shape with roads and amenities already being completed. Other developments like Senta in Legazpi Village and Two Serendra’s second high rise section in the third phase The Red Oak is also making progress.

“We will deliver as promised, good times or bad so our clients don’t need to worry that their dream homes will just vanish. We stand by our company’s thrust of giving the market the life they deserve and this includes return on their investment,” said Robert Lao, Alveo Land vice president for sales and marketing. Dinna Chan Vasquez

Cebu tops Asian BPO hub; Makati slides — survey

By Ayen Infante

03/03/2010 [ tribune.net.ph ]


A global survey on preferred business process outsourcing (BPO) sites has stricken off Makati City, where the local BPO boom started, among top Asian BPO cities but named Cebu as the top outsourcing hub in Asia.

The 2008 global outsourcing list of Tholons, a strategic advisory firm for global outsourcing and investments, ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China.

Three other Philippine cities — all in Metro Manila — are included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.

Makati Vice Mayor Ernesto Mercado said it was unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom.

“The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Mercado said.

Mercado admitted Makati’s business support services have deteriorated, turning off many investors, including BPO firms.

He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.

“Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.

Mercado added the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.

“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado added.

“I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.

Condo buyers to lose tax breaks, incentives

March 12, 2010

by Elaine R. Alanguilan

[ manilastandardtoday.com ]


INTERNAL Revenue has revoked the tax breaks and incentives to so-called build-your-own real estate developers in a bid to collect P500 million more in revenue.

In a build-your-own project, the developer manages the construction of a condominium or property, while funds contributed by individual investors are treated as investments in a joint venture and pooled in a bank. Previously, such projects were considered non-taxable as the developed units were treated as transactions to return investors’ capital contributions.

But Internal Revenue Commissioner Joel Tan-Torres said this practice deprived the government of value-added and income taxes, saying that five or six such projects now being built could bring in as much as P500 million more into the national coffers.

He cited the joint venture transactions of Meridien East Realty & Development Corp. and Century Properties Inc.

The two companies are part of businessman Jose E.B. Antonio’s Century Properties Group, the largest privately-owned real estate company, with 40 projects in its portfolio, including Essensa East Forbes and South of Market in Fort Bonifacio.

“There are about five to six ongoing projects being developed under the same scheme,’’ Tan-Torres said.

“Under the previous [Internal Revenue] ruling, developers of these projects were only required to pay the document stamp tax and were exempted from paying VAT and income tax.”

The agency has since rectified its June 2005 ruling and now treats such projects as a form of pre-selling that is not tax-exempt.

Tan-Torres said the Housing and Land Use Regulatory Board also rejected the build-your-own scheme as being contrary to the policy behind a presidential decree that protects subdivision and condominium buyers.

“These build-your-own developers can also be seen as traditional developers and should be subject to taxes. So the tax breaks and incentives [previously granted to them] are now repealed,” Tan-Torres said.

GMA inks land titling, tax info sharing laws

Posted on 11:27 PM, March 18, 2010 [ BusinessWorld Online ]

TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.

Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.

"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.

It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.

The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.

Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.

While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.

Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.

It amended Commonwealth Act 141 or the Public Land Act.

The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.

It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.

Landowners, however, will only be given titles as long as the land will be used for commercial purposes.

Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.

"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday. -- G. S. dela Peña

Cebu Future Potential

Submitted by admin on Tue, 2006-11-14 23:16.

The economic success of Cebu is the result of positioning, serious planning, an industrious population and local governments which understand the needs of business.

This success will continue, and to facilitate this growth, infrastructure projects are being implemented right now.

The connection of Cebu to geothermal power grids from neighboring islands will ensure that supply of cost effective and reliable electricity supplies will continue.

The construction of dams at strategic sites will maintain adequate water supplies.

New road construction projects will improve access and the continuing program of road widening and bridge construction will keep traffic moving.

Ongoing investments in world class accommodation will ensure Cebu emerges as the preferred Tourist and Convention destination in the region.

Most importantly, the development of more special economic zones with incentives for investors ensures industry will continue to profit by being based in Cebu, the Philippines' best-seller.

Astute investors will position themselves to take advantage of the benefits of Cebu. Cebu's attractions make it the Philippines' premier tourist destinations.