Since banks usually have more strict requirements when it comes to loans, you can take out a mortgage from a private lender instead of traditional sources. Mortgages from private lenders are usually short-term asset-based loans, and the decision to lend is based on the value of your property as collateral, and not on your credit history. Private mortgages are also used by those who need immediate financing but who do not have the documents required by banks and other lending institutions.

Private mortgages are easier to get because the lender usually bases his or her decision to lend based on the asset used for collateral, which is the property. If the value of your property is high enough and you generate income that will pay off the interest of the loan, your personal financial situation will not affect the lender’s decision.

For non-income producing properties like homes, a private loan will get you at most a 55% loan of the appraised value of the property. Besides the value of the property, private lenders usually look at how the borrower intends to repay the loan before approving it. Since private mortgages usually last from six months up to three years, lenders have to consider if an exit strategy (how the borrower intends to pay the loan) is viable.

Beauty pagaents are usually frivolous affairs, but not Miss Real Estate Philippines. Held at the Philippine Real Estate Festival on July 25 at the SMX Mall of Asia, Miss Real Estate Philippines is a competition that aims to find ambassadresses for the country’s real estate industry.

Out of 200 candidates, who were all educated about the real estate industry and why it is vital in the Philippine economy today, only 24 made it to the pre-pagaent screening. The name of the winner has not been released yet but whoever she is, she’s going to do more than just wear a crown, look pretty, and enjoy the valuable prizes that include a house and lot. She will also represent the Philippines in the first ever Miss Real Estate Asia and handle the responsibility of heading the outreach projects that will provide homes to the underprivileged. I don’t think there’s ever been a beauty pagaent in the Philippines that is as socially involved as this one.

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If there are a lot of questions you’d like to ask about the Philippine real estate industry, you can get all the information you need about the latest developments, financial institutions, investment advice and more at the Philippine Real Estate Festival 2008. Themed “Living Under One Roof”, the festival will be held at the SMX Convention Center from July 24 until July 26 and will be populated by over 150 real estate practitioners, professional groups, expatriates, and overseas Filipino workers.

Besides exhibits and booths of real estate developers and contractors, the Philippine Real Estate Festival will also hold free lectures on a wide variety of topics such as making your dream home under a tight budget, tips on how to avail affordable housing loans, identifying fake titles, and identifying practical investments. Pag-Ibig Fund and other financial institutions will also be around to answer any questions you might have on housing loans and related topics. Specialized sessions for OFW groups and real estate brokers will also be held to discuss topics related to real estate investments or to honor newly passed Brokers and the best Filipino real estate investors.

Schedule of Activities

Visit the Philippine Real Estate Festival website for more information on the activities and exhibits.

What with the rising prices of gas, food, and basics of everyday living, would it be a good idea to buy property or close deals before prices rise again?

According to senior economist Prince Christian Cruz, if a buyer can pay in cash and the property is bought for the purpose of owner occupancy, any time is the best time to buy it regardless of the price increase of goods. If the purchase will be financed by a loan, however, the buyer will need to consider other factors like his income, savings, expenses, and the amount allotted for the monthly amortization. Although it’s easy to estimate how much income you’ll make in a year, the unstable economy makes it harder to predict how much your expenses will be. Even if prices seem stable for a week, it can increase unpredictably and without warning.

If you’re buying the property simply to invest in it, it gets a little trickier. Just because you bought the property with a 20% markup does not mean it will also be sold at a higher price. The price is determined by the demand for it, and it seems as though we are nearing the end of the housing price boom.

The best time to buy is now, according to President of the Subdivision and Housing Developers Association Eduardo Alunan. The interest rates are still low thanks to Pag-Ibig and other commercial banks, and you can still dodge increasing gas bills by carpooling or using public transport. But as the peso appreciates, the interest rates could rise as well.

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Thanks to the boom in the business process outsourcing (BPO) industry, the Philippines is the hottest real estate market in Southeast Asia Today. According to CB Richard Ellis Group Philippines general manager Trent Frankum, the BPO created newer opportunities for the real estate market. Major businesses and investors are expanding their presence in the Philippines due to the large work force and because it is one of the biggest English speaking nations in the world.

This assessment was recently made in Hong Kong at the Smart Investment and International Property Expo, the biggest real estate exposition in Asia. The expo showcases global real estate market opportunities and invites property experts and investors from global companies in Asia, the UK, and Australia.

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