Advantages of In-House Financing

In-house financing is a loan directly from the developer or the subdivision. Most home buyers in the Philippines choose in-house financing over bank loans because processing the former is easier and faster than the latter.

For one thing, no background checks of the applicant are made and the developers who offer the in-house financing program do not usually require the applicant to submit proof of income. The approval of the loan is made once the buyer is able to pay the reservation, submit the required documents, and fill out the forms. The interest rates of in-house financing for the duration of the loan is also fixed, meaning that the amount the buyer has to play is not affected by any political or economic developments, which makes bank interest rates rise up or fall down.

Bank loans have lower interest rates and greater flexibility (9% per year for a 1-3 year loan, 12% for a 15 year loan), but many buyers get turned off by the stringent requirements and the length of time it takes for the loan to get approved. One of the requirements for a bank loan is a proof of income – a reason why freelancers or workers in the informal sector need to formalize their businesses before they can get a loan. Some applicants who earn by commission also do not qualify for a loan because they don’t have a fixed salary. While there are banks who are more flexible about these nuances and only need proof of consistent income, these are few and far in between.

Condotels in the Philippines

Condo-hotels or condotels are high-rise buildings that are developed and operate as a luxury hotel, but they also have condominium units that serve as fully-functional vacation homes. Condotel units are a great investment. As a unit owner, you can can live in the unit for about thirty days per year; during this time, you have access to world-class amenities like room service, a gym, and a spa. For the rest of the year, you can choose to rent out the unit together with the hotel and receive a percentage from it. Alternately, you can also live in the unit permanently and enjoy five-star hotel living day in, day out.

Condotels operate just like serviced apartments and are great for investors who want to test the waters in hotel investment in the Philippines. Buyers own their condotel units just as though they were regular condos – there is no time limit to ownership, and all units come with freehold title deeds.

The best cities to invest in a condotel are Metro Manila and Cebu. The hotel-condo investment trend in the Philippines is already accelerating in these major metropolitan hubs. Given the country’s expertise in the service and hotel management industries, there’s no doubt that condotels are a profitable operation that ensures maximum return on investment.


Miss Real Estate Philippines

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.


Community Innovations Launches New Name to Alveo

Community Innovations, an Ayala Land company, is one of the fastest growing real estate developers in the country. Since its inception in 2002, Community Innovations earned Php 15 billion in sales revenue. The company received its highest earnings in 2007 at Php 4.6 billion with the launch of their new projects like The Aston at Two Serendra in Bonifacio Global City; Marquee Place in Angeles City, the first Ayala Land development in the North; and Treveia at Nuvali in Canlubang. Among their current projects are Senta, a new condominium development in Legazpi Village that generated Php 1 billion in sales during the first five weeks, and Red Oak, the second high-rise building in Two Serendra that earned Php 455 million during the first day of selling.

Two Serendra at Bonifacio Global City

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The Philippine Real Estate Festival 2008

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.

When is the Best Time to Buy Property?

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.