HOA Insurance Vs. Condo Insurance
The condo lifestyle is all about sharing – sharing the fitness center, pool, elevators, garage, and insurance responsibilities. As a condominium owner, it is important that you know where the HOA’s insurance is limited and leaves you responsible. Gathered are a few essential HOA insurance questions to ask so that you can properly insure your new condo:
It is important that you ask the HOA what kind of condo master policy they have. The type of policy used will tell you what coverage they have and where coverage is limited.
Additionally, you will want to know how the HOA insurance covers liability. Since their policy will likely only cover liability concerns that occur within the shared areas of the complex, you will need your own liability insurance.
Does your HOA’s insurance cover renovations within your unit? HOA insurance policies vary, but they may cover any home improvement projects that you complete to your condo.
It is important for you to find out if you will need to obtain loss assessment coverage if the HOA insurance limits do not suffice.
Most importantly, ask if the HOA regulates your personal condo insurance policy. Knowing the answer to this question will allow you to make more informed decisions.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Huwebes, Abril 30, 2015
Miyerkules, Abril 29, 2015
Six Tips To Remember When Buying Your First Condo In The Philippines
Here are six things you must remember when buying your first condo in the Philippines.
Your broker is not your friend. Unless you and your broker go way back (like childhood friends who grew up together), remember that brokers earn their keep by getting a commission out of your purchase. That special attention you are now getting will exponentially decrease to near zero the moment you sign your contract to sell. Make sure that you have all the information you want (and need) from your broker before signing. Once you sign it, your broker will move on to the next buyer.
Understand the payment scheme. Most developers offer various types of payment schemes for installment buyers. In choosing an installment plan, the payment scheme should match the flow of your income. Most developers will require you to fully pay a condo before you are allowed to occupy.
A payment scheme with low flat monthly amortizations typically means that you will be left with a huge balloon payment at the end of the installment term. Be wary of built-in balloon payments in your installment plan. Typically, you will need to make a payment (in addition to your monthly installments) at the end of each calendar year.
Before signing your contract to sell, ask your broker to breakdown your installment scheme and to give you a list of the amounts that you should pay every month.
There are other costs. Owning a condo means that you will become a bona fide owner of real property. Unfortunately, the costs do not stop upon full payment of the purchase price.
Your contract will normally state that you will shoulder the cost of taxes and of registering the title to your condo in your name. This should amount to no more than an additional 4% of the purchase price.
Condominium buildings will also charge monthly or annual association dues for the maintenance of the building. Costs will vary depending on the type of services and amenities available to residents, however, the broker should be able to provide you with a ball park figure.
Owning real property also means that you will need to pay for insurance and real property taxes annually.
There are rules. Your condo will be governed by a deed of restrictions. The restrictions will dictate what you can and cannot do when you move in to your condo. Ask for a copy of the master deed and restrictions of the project and read through it. If you are a pet lover, you should know if the building will restrict or even prohibit pet ownership. Some condominium buildings prohibit the use of LPG. If you plan on renting out the place, you need to know if the deed of restrictions will require you to course the leasing of your condo through an appointed exclusive lessor.
Location is key. You should verify the location of your building and your condo before signing a contract. Ask your broker to bring you on-site so you know the exact location of the building. Go there during rush hour traffic. Chances are, the estimated travel time in the brochure you have seen will not take into account heavy traffic. Remember that you will need to travel during rush hour and travel time to and from your condo should be an important consideration. If you are already looking at a specific development, pass by the location during heavy rains and check if flooding is an issue.
Apart from the location of the building, you should also choose the location of your condo within the building wisely. If you work a night and need to sleep through the day, pick a unit on the upper floors so you can isolate yourself from street noise. Units which are near the elevator or the garbage chute are cheaper for a reason – elevators opening and garbage plummeting down the chute make a lot of noise.
Always read everything. Yes, including the fine print. This is the most important rule of the lot. Good luck on your purchase!
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
The Risks of Pre-selling Condo in the Philippines
A pre-sale contract is full of terms like “more or less” and “subject to change without prior notice”. The primary risk with pre-selling condo is that the finished unit may not be what you have in mind. There can be material changes in unit sizes, floor plan, finishing, features, or amenities about which you may not be notified. You might end up paying for a unit that falls below your expectations.
Another risk is the delay in completion and turnover as the developer may not deliver on time. Pre-sale contracts have delay clauses that allow the developer to be late for up to a year or more. The bigger risk, however, is that you may not get a refund for your deposit in case the pre-selling project does not push through or the developer goes bankrupt.
OFWs who plan to buy pre-selling condos from abroad run the biggest risk. Many have lost their deposits and payments through corrupt representatives or agents who take advantage of their absence and use the complicated paperwork to collect “fees” from them. One sure way to lessen the risk of being duped is to research. Read our ultimate guide on buying properties in the Philippines from abroad.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Another risk is the delay in completion and turnover as the developer may not deliver on time. Pre-sale contracts have delay clauses that allow the developer to be late for up to a year or more. The bigger risk, however, is that you may not get a refund for your deposit in case the pre-selling project does not push through or the developer goes bankrupt.
OFWs who plan to buy pre-selling condos from abroad run the biggest risk. Many have lost their deposits and payments through corrupt representatives or agents who take advantage of their absence and use the complicated paperwork to collect “fees” from them. One sure way to lessen the risk of being duped is to research. Read our ultimate guide on buying properties in the Philippines from abroad.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Martes, Abril 28, 2015
Benefits of Pre-selling Condo in the Philippines
Cheaper prices, flexible payment schemes, promising investment
According to the Global Property Guide, with the Philippine mortgage market relatively underdeveloped, “most of the houses are sold for cash or pre-sold”. In the condo market, it’s a toss between ready-for-occupancy (RFO) units and pre-selling ones.
Many buyers go for the pre-selling option, due largely to its much lower introductory price, which can be 30% cheaper than a finished unit. On top of that, developers throw in a 10%-15% discount or offer flexible payment schemes where the down payment can be as low as 10% payable for 3 years, with the lump sum to be paid either through a bank financing, government sponsored home loan (Pag-IBIG), or the developer’s in-house financing options.
If you are a real estate investor, pre-selling condos are a promising investment since their market value can increase by the time they are finished. Given favorable market conditions, you can resell the finished units for twice the price you put down when they were in the pre-selling stage.
Better options, new features
You may also have more options when buying a condo in a pre-selling stage. You get to choose your preferred unit location and floor plan, not to mention the better views, easier access to amenities, and lesser foot traffic. Depending on the pre-sale contract, you can also inspect your unit at the end of every construction phase and inform the developer of the unit’s defects or of any adjustments you may want. Pre-selling condos give you the time and opportunity to customize your condo unit according to your preferences.
In terms of condo development, pre-selling condos usually offer something new, if not the latest, in terms of design, features, or amenities. Whether this might be a state-of-the-art waste management system, resort-style amenities, or eco-friendly materials and construction, new features are not only appealing but also necessary if the changes they bring matter to you.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
Lunes, Abril 27, 2015
8 Things First-Time Home Buyers Need to Know About Condominium Association Dues
Now that you’ve bought your own condominium and moved-in, you suddenly received a statement of account saying you have to settle your association dues for the month. But what is it exactly and why do you need to pay this? Many first time-time home buyers are not familiar with this monthly fee that is part and parcel of owning a condominium.
Here are the things you need to know about association dues:
1. Why do you need to pay association dues?
Association dues are monthly payments made by the unit owner or tenant to contribute for the overall operational expenses of the entire condominium building. This is mandated by the homeowners’ association.
A home buyer automatically becomes a member once:
the unit is turned over to him or her,
he or she has signed the Deed of Absolute Sale,
or the title is transferred to the buyer’s name.
2. Who collects your payments?
The property management office is responsible for collecting association dues and other condo fees. The condominium developer employs them to manage and to maintain the building. They provide the services that residents need, including security personnel, maintenance personnel, janitorial services, and other necessary services for the building’s upkeep.
3. What do association dues cover?
One of the best things about owning a condominium is that you can take advantage of amenities such as swimming pools and playgrounds and not worry about its upkeep. You can also have a peace of mind knowing your family is comfortable and safe. But someone has to do the maintenance or man the building for you, right? That’s where your association dues come in.
Your association dues are used for building maintenance and repairs, taxes and licenses, wages of condominium employees (property management staff, maintenance staff, security personnel, etc.), utility expenses for common areas, and other miscellaneous fees needed to keep the building and all shared spaces well-maintained and working properly. Whenever the building is in need of repair or repainting, these funds will be taken out from the association dues that you’ve paid for.
4. How much do you need to pay for the association dues?
The cost of association dues vary in every project, depending on the operating expenses of the building. If the building offers more amenities, then it is more likely pricier. It is then computed based on the size (total area in square meters) of your unit. This includes the balcony space, if you have one.
For example, in One Serendra, the association dues cost Php 96 per sqm excluding VAT. Thus, if you own a 70 square meter unit, you have to pay Php 6,720 per month plus tax. So for those who have or are planning to buy a bigger unit (two- or three-bedroom), you would have to shell out more.
5. What are the possible penalties if you fail to pay?
You may be charged a penalty, depending on the condominium developer, when you fail to pay your association dues on time. Some developers charge 3 or 4% interest. And if you continue to not pay at all, developers such as DMCI Homes will consider your account as delinquent. When this happens, the building management will have the right to cut-off or deny your basic utilities. In some cases, they may also prohibit you from using the shared amenities.
6. When do you start to pay?
Once the unit is turned over to the owner, he or she is obliged to pay the association dues. Whether you have moved in or not, or even if no one is occupying the unit, you need to pay the dues. For example, the unit was turned over to you in May, but you only moved in on July, you still have to pay the association dues for May and June.
7. Are association dues subject to tax?
Yes. Earlier this year, the Bureau of Internal Revenue released Revenue Memorandum Circular No. 9-2013 which states that association dues and other fees collected by the homeowner’s association are now subject to Value-Added Tax (VAT). Although this has been contested, BIR noted that the recent rulings remain valid.
8. What will happen if I don’t want to become a member of the association and not pay the association dues?
Pursuant to Section 5 of Resolution No. 770 Series of 2004 (Framework for Governance of Homeowners Association), membership should be voluntary unless otherwise stated or stipulated in the contract, Deed of Sale, or property title.
As such, you may opt not to become a member. However, Republic Act 9904, or the Magna Carta for Homeowners and Homeowners’ Association, stipulates that a homeowner will get the
right to enjoy the basic community services and facilities, provided that he/she pays the necessary fees and other pertinent charges.
The operative word here is provided. As long as you pay association dues, you will not be denied the use of the shared amenities and facilities. But if you don’t, then you can’t use them.
GET YOUR CONDOMINIUM NOW AT CONDYSHOP.COM
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Here are the things you need to know about association dues:
1. Why do you need to pay association dues?
Association dues are monthly payments made by the unit owner or tenant to contribute for the overall operational expenses of the entire condominium building. This is mandated by the homeowners’ association.
A home buyer automatically becomes a member once:
the unit is turned over to him or her,
he or she has signed the Deed of Absolute Sale,
or the title is transferred to the buyer’s name.
2. Who collects your payments?
The property management office is responsible for collecting association dues and other condo fees. The condominium developer employs them to manage and to maintain the building. They provide the services that residents need, including security personnel, maintenance personnel, janitorial services, and other necessary services for the building’s upkeep.
3. What do association dues cover?
One of the best things about owning a condominium is that you can take advantage of amenities such as swimming pools and playgrounds and not worry about its upkeep. You can also have a peace of mind knowing your family is comfortable and safe. But someone has to do the maintenance or man the building for you, right? That’s where your association dues come in.
Your association dues are used for building maintenance and repairs, taxes and licenses, wages of condominium employees (property management staff, maintenance staff, security personnel, etc.), utility expenses for common areas, and other miscellaneous fees needed to keep the building and all shared spaces well-maintained and working properly. Whenever the building is in need of repair or repainting, these funds will be taken out from the association dues that you’ve paid for.
4. How much do you need to pay for the association dues?
The cost of association dues vary in every project, depending on the operating expenses of the building. If the building offers more amenities, then it is more likely pricier. It is then computed based on the size (total area in square meters) of your unit. This includes the balcony space, if you have one.
For example, in One Serendra, the association dues cost Php 96 per sqm excluding VAT. Thus, if you own a 70 square meter unit, you have to pay Php 6,720 per month plus tax. So for those who have or are planning to buy a bigger unit (two- or three-bedroom), you would have to shell out more.
5. What are the possible penalties if you fail to pay?
You may be charged a penalty, depending on the condominium developer, when you fail to pay your association dues on time. Some developers charge 3 or 4% interest. And if you continue to not pay at all, developers such as DMCI Homes will consider your account as delinquent. When this happens, the building management will have the right to cut-off or deny your basic utilities. In some cases, they may also prohibit you from using the shared amenities.
6. When do you start to pay?
Once the unit is turned over to the owner, he or she is obliged to pay the association dues. Whether you have moved in or not, or even if no one is occupying the unit, you need to pay the dues. For example, the unit was turned over to you in May, but you only moved in on July, you still have to pay the association dues for May and June.
7. Are association dues subject to tax?
Yes. Earlier this year, the Bureau of Internal Revenue released Revenue Memorandum Circular No. 9-2013 which states that association dues and other fees collected by the homeowner’s association are now subject to Value-Added Tax (VAT). Although this has been contested, BIR noted that the recent rulings remain valid.
8. What will happen if I don’t want to become a member of the association and not pay the association dues?
Pursuant to Section 5 of Resolution No. 770 Series of 2004 (Framework for Governance of Homeowners Association), membership should be voluntary unless otherwise stated or stipulated in the contract, Deed of Sale, or property title.
As such, you may opt not to become a member. However, Republic Act 9904, or the Magna Carta for Homeowners and Homeowners’ Association, stipulates that a homeowner will get the
right to enjoy the basic community services and facilities, provided that he/she pays the necessary fees and other pertinent charges.
The operative word here is provided. As long as you pay association dues, you will not be denied the use of the shared amenities and facilities. But if you don’t, then you can’t use them.
GET YOUR CONDOMINIUM NOW AT CONDYSHOP.COM
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Huwebes, Abril 23, 2015
Philippine Condominium Buying Advices to Share to Condo Buyers
Things Not To Do Before Buying a Condo in the Philippines,
Condo Property Connsiderations:
• No Major Purchases of Any Kind, Appliances, Car, Jewelries and Travel
• Don't Move Money Around
• Think about: Should You Change Jobs?
• Check your Possible Reasons to Delay Buying a Condo Property
Buying a Condo With Resale Value: Location
• Most important factor is - Location, Location, Location..
• Condominium Location : Local Community, Town or City
• Condominium Location: the Local Neighborhood
• Condominium Location: the Residential Neighborhood
Buying a Condo With Resale Value: the Condominium is your Home
• A Condo With a View?
• Condo Floor Cut, Type
• Condo Size
• Bedrooms & Bathrooms
• Closets, Parking & Laundry
• Health and Fitness
• Kitchen Area
• Amenities and Security
Know Why Buying a Condo is a Good Idea
• The Best Investment
• Stable Monthly Housing Costs
• Forced Savings
• Freedom and Individuality
The Business Cycle and Buying a Condo
• Know the Supply and Demand
• Recession and Expansion
• Should You Try to "Time the Market"?
• What's More important - Buying a House? Or a Condo?
Don't Buy a Car - or Did You Already Got One?
• When Income Grows and You Want to Buy "Stuff"
• Debt-to-Income Ratios and Car Payments
• How Buying a Car Reduces Your Purchase Price
Importance of having A Realtor Broker?
• Finding an Agent in the web
• Listing Agents vs. Selling (Buyer's) Agents
• Should You Call the Listing Agent?
• Agent's Advertising - Is the Purpose What You Think?
• Try Finding Your Own Realtor
• Some Basics about the Search
• Know How to Conduct the Search
• Discussion with a Good Realtor
Issues Affecting Your Rea Estate Condo Offer Price
• How Property Condition Affects Your Offer
• How Condo Improvements Affect Your Offer
• How Market Conditions Affect Your Offer
• How Seller Incentive Affects Your Offer
• The Final Conclusion on Your Offer Price
Overview to Purchase Real Estate: the Basics
• Introduction and Overview
• Contingencies in a Purchase Offer
• Earnest Money Deposit
• The Closing Date
• Transfer of Possession
How Financing Facts Affect Your Offer
• Down Payment
• Interest Rate
• Closing Costs and Financing Incentives
• Seller Financing
• Cash Offers
Characters of an Offer: Protect Regarding the Property
• Disclosures from the Vendor
• Condition of the Property upon Transfer
• Condominium Inspections You May Require
• Final Walk-Through Inspection
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Condo Property Connsiderations:
• No Major Purchases of Any Kind, Appliances, Car, Jewelries and Travel
• Don't Move Money Around
• Think about: Should You Change Jobs?
• Check your Possible Reasons to Delay Buying a Condo Property
Buying a Condo With Resale Value: Location
• Most important factor is - Location, Location, Location..
• Condominium Location : Local Community, Town or City
• Condominium Location: the Local Neighborhood
• Condominium Location: the Residential Neighborhood
Buying a Condo With Resale Value: the Condominium is your Home
• A Condo With a View?
• Condo Floor Cut, Type
• Condo Size
• Bedrooms & Bathrooms
• Closets, Parking & Laundry
• Health and Fitness
• Kitchen Area
• Amenities and Security
Know Why Buying a Condo is a Good Idea
• The Best Investment
• Stable Monthly Housing Costs
• Forced Savings
• Freedom and Individuality
The Business Cycle and Buying a Condo
• Know the Supply and Demand
• Recession and Expansion
• Should You Try to "Time the Market"?
• What's More important - Buying a House? Or a Condo?
Don't Buy a Car - or Did You Already Got One?
• When Income Grows and You Want to Buy "Stuff"
• Debt-to-Income Ratios and Car Payments
• How Buying a Car Reduces Your Purchase Price
Importance of having A Realtor Broker?
• Finding an Agent in the web
• Listing Agents vs. Selling (Buyer's) Agents
• Should You Call the Listing Agent?
• Agent's Advertising - Is the Purpose What You Think?
• Try Finding Your Own Realtor
• Some Basics about the Search
• Know How to Conduct the Search
• Discussion with a Good Realtor
Issues Affecting Your Rea Estate Condo Offer Price
• How Property Condition Affects Your Offer
• How Condo Improvements Affect Your Offer
• How Market Conditions Affect Your Offer
• How Seller Incentive Affects Your Offer
• The Final Conclusion on Your Offer Price
Overview to Purchase Real Estate: the Basics
• Introduction and Overview
• Contingencies in a Purchase Offer
• Earnest Money Deposit
• The Closing Date
• Transfer of Possession
How Financing Facts Affect Your Offer
• Down Payment
• Interest Rate
• Closing Costs and Financing Incentives
• Seller Financing
• Cash Offers
Characters of an Offer: Protect Regarding the Property
• Disclosures from the Vendor
• Condition of the Property upon Transfer
• Condominium Inspections You May Require
• Final Walk-Through Inspection
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Danger! 5 Warning Signs To Beware Of
Even after an investment has gone through copious amounts of due diligence, it is still very possible that the project is going to be a dud. Here are some clear warning signs that you should consider:
1. Trouble with the city/planning department.
If you find that a developer is having difficulties with the city’s planning department, it is usually for a good reason. Even if they resolve their issues, the project timing would be extended and at the very least, your capital will be tied up and not earning money. On the more aggressive side, you could lose your entire deposit to an unfinished project.
2. Slow sales.
Ever wonder why a developer pushes Realtor commission to 5 per cent or offers a Mercedes as an incentive bonus? It is because sales are slow so they do everything in their power to attract buyers and their agents. Unfortunately, sometimes it works. But a project should sell itself. If buyers are currently staying clear, what will happen when it is built?
3. Terrible curb appeal.
Selling real estate will never change – some developers get it and some do not. It sounds simple but some developments fail because of the curb appeal.
4. Extenuating circumstances
Some developments just can’t get away from extenuating circumstances , either by design or due to the building code. For instance, one building in Toronto was prohibited from having any operating windows on the north side of the building. This does not hurt the south facing suites, but the building now has a negative reputation. Using common sense is the best way to avoid involvement in a building that has the potential to gain negative publicity.
5. Too good to be true.
If you find a building or development that is selling far below the market and neighbourhood value, and it seems like it is too good to be true – it usually is and will likely attract the wrong investors. Every market has these developers and they usually mask their awful products with great marketing. Be cautious of below market prices.
The important point to remember is that investing in real estate can still be very risky. It is a big commitment to understand and find the right opportunities in the market place. The good news is that there are professionals that can help you with this.
Whether you decide to work alone or hire a professional, make sure that you have a solid plan; one that is dynamic and flexible enough to shift with the changing markets. The plan should have a timeline, projections, milestones and goals. It is very similar to crafting a comprehensive business plan with your ultimate goal as the underlying motivator. Your strategy and processes will most likely adapt but your goal should not.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
1. Trouble with the city/planning department.
If you find that a developer is having difficulties with the city’s planning department, it is usually for a good reason. Even if they resolve their issues, the project timing would be extended and at the very least, your capital will be tied up and not earning money. On the more aggressive side, you could lose your entire deposit to an unfinished project.
2. Slow sales.
Ever wonder why a developer pushes Realtor commission to 5 per cent or offers a Mercedes as an incentive bonus? It is because sales are slow so they do everything in their power to attract buyers and their agents. Unfortunately, sometimes it works. But a project should sell itself. If buyers are currently staying clear, what will happen when it is built?
3. Terrible curb appeal.
Selling real estate will never change – some developers get it and some do not. It sounds simple but some developments fail because of the curb appeal.
4. Extenuating circumstances
Some developments just can’t get away from extenuating circumstances , either by design or due to the building code. For instance, one building in Toronto was prohibited from having any operating windows on the north side of the building. This does not hurt the south facing suites, but the building now has a negative reputation. Using common sense is the best way to avoid involvement in a building that has the potential to gain negative publicity.
5. Too good to be true.
If you find a building or development that is selling far below the market and neighbourhood value, and it seems like it is too good to be true – it usually is and will likely attract the wrong investors. Every market has these developers and they usually mask their awful products with great marketing. Be cautious of below market prices.
The important point to remember is that investing in real estate can still be very risky. It is a big commitment to understand and find the right opportunities in the market place. The good news is that there are professionals that can help you with this.
Whether you decide to work alone or hire a professional, make sure that you have a solid plan; one that is dynamic and flexible enough to shift with the changing markets. The plan should have a timeline, projections, milestones and goals. It is very similar to crafting a comprehensive business plan with your ultimate goal as the underlying motivator. Your strategy and processes will most likely adapt but your goal should not.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Miyerkules, Abril 22, 2015
Costly Mistakes Investors Make
We will take a look at some issues that are often overlooked by investors. Failing to consider these issues could be disastrous.
1. Not understanding the tax implications.
The whole point of investing is to make money, correct? Before you jump into any investment, you must understand the tax implications of buying, owning and selling that investment. Using an accountant that specializes in real estate will help you understand terms such as Recapture of Capital Cost Allowance.
2. Assuming that it will appreciate.
Over the past three years, Canada has seen some explosive growth, especially in the major cities. But appreciation is never guaranteed. Aggressive growth investors looking to buy and sell under three years of ownership could run into problems if they don’t consider this fact.
3. Not double checking surrounding real estate lots.
There is nothing worse than buying real estate only to find out that your view and building will be completely obstructed by a new building. Any sign of cranes or even a zoning amendment application can be detrimental to the value of the property. Even if you are surrounded by protected heritage properties, do some research with the city.
4. Not running the numbers.
Real estate is a game of numbers. The upside is that these numbers make real estate investments predictable and controllable. Running the numbers before taking the plunge puts you in control of the situation and ensures that you maximize your capital placement.
5. Ignoring the market signs and signals.
Ignoring the market signs and signals is an amateur move that can be devastating to your bottom line. Ignore the media, read industry reports and ask the right questions.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
1. Not understanding the tax implications.
The whole point of investing is to make money, correct? Before you jump into any investment, you must understand the tax implications of buying, owning and selling that investment. Using an accountant that specializes in real estate will help you understand terms such as Recapture of Capital Cost Allowance.
2. Assuming that it will appreciate.
Over the past three years, Canada has seen some explosive growth, especially in the major cities. But appreciation is never guaranteed. Aggressive growth investors looking to buy and sell under three years of ownership could run into problems if they don’t consider this fact.
3. Not double checking surrounding real estate lots.
There is nothing worse than buying real estate only to find out that your view and building will be completely obstructed by a new building. Any sign of cranes or even a zoning amendment application can be detrimental to the value of the property. Even if you are surrounded by protected heritage properties, do some research with the city.
4. Not running the numbers.
Real estate is a game of numbers. The upside is that these numbers make real estate investments predictable and controllable. Running the numbers before taking the plunge puts you in control of the situation and ensures that you maximize your capital placement.
5. Ignoring the market signs and signals.
Ignoring the market signs and signals is an amateur move that can be devastating to your bottom line. Ignore the media, read industry reports and ask the right questions.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Martes, Abril 21, 2015
Four Traps To Avoid When Buying a Condo
With signs of uncertainty in the market, it has never been more important to analyze your next real estate investment. Jumping into the unknown and hoping for the best is risky business. While this tactic may have worked over the past three years during Canada’s lucrative real estate market, it is no longer the case. Real estate has never been a fool’s game’ and now is the time to switch strategies and become diligent for a greater chance of success.
It is also unwise to sit on the sidelines in cash. Downward market shifts are healthy for a number of reasons because it amplifies the good, the bad, and weeds out the average.
Tactical investing is the act of leveraging a strategy behind every decision. All too often, real estate investors make decisions based on past performance or success – the same type of mistakes are found in capital markets. As an investor, it is important to treat every decision independently, and perform the proper due diligence with the right set of tools.
Just because Uncle Joe bought on speculation and got lucky, doesn’t mean that you have a sure bet. The only certainty in real estate is that the market can take it away as fast as it can give it. By taking a few simple steps, you will put yourself in a better position for success and maximize your working capital. Below, we examine some very relevant tools for performing your own due diligence, common traps in the market, some issues that are often overlooked, and some warning signs that the development will fail.
None of these tools are meant to make you invincible, but they will definitely help to put you in a position to take advantage of potential market changes. If you’re an expert already, they are likely to reinforce your current investment strategies.
Four critical test of a good condo investment
These Four core filters are the bread and butter of investing in real estate. If your next purchase does not pass at least four of the five filters below, it is likely a good time to reconsider the investment.
1. Developer experience
The problem with heated markets is that it attracts amateurs that want to get in on the action. But, more often than not, these products lack quality and design. They may look good on paper, but the underlying issues will make you want out faster than the ink can dry. Try to buy from a local developer that has a portfolio of successful products in the neighbourhood.
2. Location and neighbourhood
Condo investments, resale or new, hinge on their location and the neighbourhood that surrounds them. The neighbourhood makes the condo and not the other way around. This doesn’t mean that the neighbourhood has to be completely gentrified; it just means that it has to have the foundation for resale and rental capacity.
3. Pricing
The old proverb remains true: you make money in real estate by what you pay for it, not what you sell it for. Pricing is the easiest way to ensure that you are on the right track. If you are buying in a heated market or in a ‘hot’ neighbourhood, it is likely that you’re buying at the fifty two-week high (or three year high in Toronto’s case). Stay away from inflated prices.
4. Development logistics
Even if the price is right and the developer is great, you will still need to examine the size of the project, layouts, designer, amenities, etc. If the project is reaching for the stars, you can bet that it will feel less like a community and more like a transient bus station.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
It is also unwise to sit on the sidelines in cash. Downward market shifts are healthy for a number of reasons because it amplifies the good, the bad, and weeds out the average.
Tactical investing is the act of leveraging a strategy behind every decision. All too often, real estate investors make decisions based on past performance or success – the same type of mistakes are found in capital markets. As an investor, it is important to treat every decision independently, and perform the proper due diligence with the right set of tools.
Just because Uncle Joe bought on speculation and got lucky, doesn’t mean that you have a sure bet. The only certainty in real estate is that the market can take it away as fast as it can give it. By taking a few simple steps, you will put yourself in a better position for success and maximize your working capital. Below, we examine some very relevant tools for performing your own due diligence, common traps in the market, some issues that are often overlooked, and some warning signs that the development will fail.
None of these tools are meant to make you invincible, but they will definitely help to put you in a position to take advantage of potential market changes. If you’re an expert already, they are likely to reinforce your current investment strategies.
Four critical test of a good condo investment
These Four core filters are the bread and butter of investing in real estate. If your next purchase does not pass at least four of the five filters below, it is likely a good time to reconsider the investment.
1. Developer experience
The problem with heated markets is that it attracts amateurs that want to get in on the action. But, more often than not, these products lack quality and design. They may look good on paper, but the underlying issues will make you want out faster than the ink can dry. Try to buy from a local developer that has a portfolio of successful products in the neighbourhood.
2. Location and neighbourhood
Condo investments, resale or new, hinge on their location and the neighbourhood that surrounds them. The neighbourhood makes the condo and not the other way around. This doesn’t mean that the neighbourhood has to be completely gentrified; it just means that it has to have the foundation for resale and rental capacity.
3. Pricing
The old proverb remains true: you make money in real estate by what you pay for it, not what you sell it for. Pricing is the easiest way to ensure that you are on the right track. If you are buying in a heated market or in a ‘hot’ neighbourhood, it is likely that you’re buying at the fifty two-week high (or three year high in Toronto’s case). Stay away from inflated prices.
4. Development logistics
Even if the price is right and the developer is great, you will still need to examine the size of the project, layouts, designer, amenities, etc. If the project is reaching for the stars, you can bet that it will feel less like a community and more like a transient bus station.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Lunes, Abril 20, 2015
CONDO IN THE PHILIPPINES
Condominiums are changing the way we live, or at least changing the way we want to. Real estate in the Philippines has never been this bullish. In 2013 alone, 51,000 new high-rise units were unveiled based on the data released by property consultancy firm, Colliers International Philippines.
This boom in the real estate industry may be attributed to affordable payment terms, according to National Real Estate Association Inc. president, Benigno Cabrieto. In an interview with the Business Mirror in February 2013, he said that low interest rates and Pag-IBIG fund have helped boost the condo industry. Cabrieto mentioned that more Filipinos are now embracing vertical living because land is scarce and expensive. The seemingly unstoppable urban migration also has a hand in this.
He also pointed out the increasing demand from Overseas Filipino Workers. Estimates show that 30% or P240-billion of the $20-billion remittances was invested in real estate, mostly to condominiums in Metro Manila.
The demand, he adds, is dictated by the need and affordability. For example, OFWs buy for investment while professionals for location and convenience. Starter families are also encouraged to leave their apartments because they may find that the rent is almost the same as the monthly amortization cost for a condo.
Rock Star Economy
Local real estate developers and foreign investors have never been more confident with the Philippine economy. In 2013, the Philippines recorded the second highest economic growth in Asia with a gross domestic product (GDP) of 7.2%, next only to China. The National Economic Development Authority is confident that the trend will continue this year.
True enough, even the International Monetary Fund hiked the country’s growth forecast this year. The initial forecast of 6.3% was increased to 6.5%. Credit rating firms Moody’s and Standard and Poor’s also raised their forecasts. Moody’s analytics are so optimistic that they even predicted that the Philippines will be the economic leader in Asia in 2014.
Thanks to the robust economy, the business of real estate is showing no signs of slowing down. According to the World Bank, there is an increase in consumer confidence to buy real estate properties. The WB latest Philippine Economic Update stated that low interest rates are mostly to be credited for the boost. Furthermore, the report also put emphasis on the luxury residential segment that is significantly picking up largely because of OFWs and expatriates.
This is phenomenal because in 2013, the average price of a luxury 3-bedroom condominium in the Makati Central Business District soared by 12.92%, nearly P129,000 per square meter, according to Colliers International. In other high-end districts like Bonifacio Global City and Rockwell, the average price of a premium 3-bedroom unit was pegged at P127,000 and P132,000 respectively.
We can measure economic progress through the real estate industry’s success. It can also measure how foreign investors are perceiving Philippine markets now. In a survey by the Urban Land Institute and PwC, Manila ranked 4th out of 23 Asian cities as a real estate market and investment prospect, next only to Tokyo, Shanghai, and Jakarta. In the survey, the country edged out Sydney, Guangzhou, Singapore, and Beijing. The fast growing economy and increasing popularity as an alternative to traditional markets allowed the Philippines to jump from the twelfth spot to fourth place. Specifically, in the category city development, the Philippines ranked 8th and received a “buy” rating for the capital’s residential sector.
Foreign investments show a positive outlook for the real estate industry despite typhoons, earthquakes, and even traffic. In an interview with Inquirer Business, Managing Director of real estate firm KMC MAG Group, Michael McCullough, said that Metro Manila is a perfect place for business. “Metro Manila remains the best value city to do business, largely because of the relatively low real estate costs, and Makati remains to be the location of choice of luxurious residential spaces.” Although there are risks, he said the benefits outweigh them.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
This boom in the real estate industry may be attributed to affordable payment terms, according to National Real Estate Association Inc. president, Benigno Cabrieto. In an interview with the Business Mirror in February 2013, he said that low interest rates and Pag-IBIG fund have helped boost the condo industry. Cabrieto mentioned that more Filipinos are now embracing vertical living because land is scarce and expensive. The seemingly unstoppable urban migration also has a hand in this.
He also pointed out the increasing demand from Overseas Filipino Workers. Estimates show that 30% or P240-billion of the $20-billion remittances was invested in real estate, mostly to condominiums in Metro Manila.
The demand, he adds, is dictated by the need and affordability. For example, OFWs buy for investment while professionals for location and convenience. Starter families are also encouraged to leave their apartments because they may find that the rent is almost the same as the monthly amortization cost for a condo.
Rock Star Economy
Local real estate developers and foreign investors have never been more confident with the Philippine economy. In 2013, the Philippines recorded the second highest economic growth in Asia with a gross domestic product (GDP) of 7.2%, next only to China. The National Economic Development Authority is confident that the trend will continue this year.
True enough, even the International Monetary Fund hiked the country’s growth forecast this year. The initial forecast of 6.3% was increased to 6.5%. Credit rating firms Moody’s and Standard and Poor’s also raised their forecasts. Moody’s analytics are so optimistic that they even predicted that the Philippines will be the economic leader in Asia in 2014.
Thanks to the robust economy, the business of real estate is showing no signs of slowing down. According to the World Bank, there is an increase in consumer confidence to buy real estate properties. The WB latest Philippine Economic Update stated that low interest rates are mostly to be credited for the boost. Furthermore, the report also put emphasis on the luxury residential segment that is significantly picking up largely because of OFWs and expatriates.
This is phenomenal because in 2013, the average price of a luxury 3-bedroom condominium in the Makati Central Business District soared by 12.92%, nearly P129,000 per square meter, according to Colliers International. In other high-end districts like Bonifacio Global City and Rockwell, the average price of a premium 3-bedroom unit was pegged at P127,000 and P132,000 respectively.
We can measure economic progress through the real estate industry’s success. It can also measure how foreign investors are perceiving Philippine markets now. In a survey by the Urban Land Institute and PwC, Manila ranked 4th out of 23 Asian cities as a real estate market and investment prospect, next only to Tokyo, Shanghai, and Jakarta. In the survey, the country edged out Sydney, Guangzhou, Singapore, and Beijing. The fast growing economy and increasing popularity as an alternative to traditional markets allowed the Philippines to jump from the twelfth spot to fourth place. Specifically, in the category city development, the Philippines ranked 8th and received a “buy” rating for the capital’s residential sector.
Foreign investments show a positive outlook for the real estate industry despite typhoons, earthquakes, and even traffic. In an interview with Inquirer Business, Managing Director of real estate firm KMC MAG Group, Michael McCullough, said that Metro Manila is a perfect place for business. “Metro Manila remains the best value city to do business, largely because of the relatively low real estate costs, and Makati remains to be the location of choice of luxurious residential spaces.” Although there are risks, he said the benefits outweigh them.
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Biyernes, Abril 17, 2015
Where's The Best Condominium in Manila
Where's The Best Condominium in Manila
Are you going to spend your vacation here in the philippines? We have the best place for your stay!
visit www.CondyShop.com for more info.
So what is Condy Shop?
The word was generated from the word candy shop, for our customers are highly satisfied to the service we provide them
Like a candy store, you will leave with a smile!
Why Condy Shop?
We provide the most straight forward dealing procedures
All conditions are simple and professional
We help you have a suitable condominium stay for you!
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Are you going to spend your vacation here in the philippines? We have the best place for your stay!
visit www.CondyShop.com for more info.
So what is Condy Shop?
The word was generated from the word candy shop, for our customers are highly satisfied to the service we provide them
Like a candy store, you will leave with a smile!
Why Condy Shop?
We provide the most straight forward dealing procedures
All conditions are simple and professional
We help you have a suitable condominium stay for you!
FOR INQUIRIES PLEASE CONTACT:
RAQUEL CINENSE
(0920) 6273091
(0915) 3636381
(02) 736-1731
FOR MORE PROPERTIES VISIT:
WWW.BAHAYSHOP.COM
WWW.CONDYSHOP.COM
Mag-subscribe sa:
Mga Komento (Atom)