Goodbye Saudi Arabia, Hello Australia!

At least Australia has beaches!

Some 350,000 Overseas Filipino Workers are set to lose their jobs in the Kingdom of Saudi Arabia (KSA) once the Saudi Arabian government enforces its new policy on migrant workers, but the Philippine Overseas Employment Administration (POEA) remains optimistic, claiming that there are 180,000 jobs available in Australia alone, and another 11,000 or so in Korea.  This development will be due to the strict implementation of the Saudization Policy of 2006, where companies in Saudi Arabia are required to allot at least 10% of their workforce for Saudi nationals.  With this policy, the Saudi government will no longer renew the work permits of foreign workers who have spent 6 years in their country.  Adel Fekyeh (nice sounding name!), labor minister, was quoted as saying that such foreign workers would not be given renewed work permits in a measure aimed at boosting job opportunities for Saudi nationals.  However, the minister did not precisely clarify who will or won't be affected and when.

There are an estimated 10M expat workers in the KSA, employed in trades such as telecommunications, construction, health and service, domestic workers, etc., and majority of these migrant workers are from the Philippines, Pakistan, India, Bangladesh, and other countries.  John Leonard Monterona, Migrante-Middle East regional coordinator, pointed out that around 350,000 OFWs would be affected by the 6-year cap if implemented by the Saudi governement, but POEA Administrator Carlos Cao, Jr. said that the Philippine government is ready should the program pushes through since the Saudi government had given them advanced notice to prepare for its implementation.

Well, it had to happen sooner or later.  After all, it's common for a government to want its own nationals to get job opportunities first before foreigners.  It remains to be seen what kind of impact this will have on our economy, since our OFWs are one of our strongest sources of income.  Hopefully, the POEA doesn't drop the ball on this one because definitely not only the real estate industry is going to feel the pinch.

Babalik ka rin,

Jon

Separate Lives: Divorce Bill

You get the house, I get the tent.

Divorce is a controversial subject in the Philippines, just as the RH Bill is.  There are people who believe in the absolute sanctity of marriage, even if it's blatantly obvious that it's not working.  These people would rather that the spouses remain chained together in a miserable marriage, insisting that things can be worked out by praying to God, seeing a marriage counselor, etc.  Well, I'll grant that it would work on some people, but it's not for everyone.  In my opinion, there's a real need for respite, especially for those who really can't get along despite trying, and would like to live separate lives again.  Enter the Divorce Bill.


Gabriela Women's party-list Reps. Luzviminda Ilagan and Emerenciana De Jesus have re-filed House Bill 1799, known as "An Act Introducing Divorce in the Philippines."  The House Committee on Revision of Laws is set to take another look at the bill.  HB 1799 provides that those who have been separated in fact for five (5) years and those already legally separated for two (2) years may apply for divorce.

One staunch advocate of the RH Bill, Sen. Panfilo Lacson, has however made his stand on divorce known: "I still believe in the sanctity of marriage."  Lacson doesn't think that the Philippines is ready for divorce, saying it will further divide the country and the Catholic church.  He also foresees the possibility of people abusing the divorce law to the extent of legalizing same-sex marriages but did not elaborate on how that will be done.  He stresses that the Philippines already has annulment, there's no need for divorce as it serves the same purpose.

How is this topic relevant to real estate?  In case you didn't know, if you're planning to buy property, you are required to disclose the name of your spouse.  There have been cases where a husband or a wife didn't want to do that, presumably because of marital issues.  Separated people don't want to disclose that they are buying property either because the alienated spouse will have an equal share in the property.  Of course, a prenuptial agreement is preferable nowadays, but for all intents and purposes, especially if you were married without the benefit of such an agreement AND your marriage is irreparable, then the divorce bill is a welcome relief.


Good riddance my love,
Jon

DENR on the Fast Track

The Department of Environment and Natural Resources (DENR) has issued new guidelines (DENR Administrative Order 2011-05) to get the ball rolling on disposing of abandoned and incomplete cadastral survey projects as well as to facilitate actions needed to consolidate information for a database that can be used as a monitoring tool.  As per the new guidelines, DENR regional offices must complete an inventory of abandoned cadastral survey projects and establish a database to determine actions needed to complete it.  This is to support other important projects like land titling, land use planning, taxation and the Internal Revenue Allotment (IRA) program for the different municipalities nationwide.

A cadastral survey is a type of land survey to determine the administrative boundary of a city or a municipality and its component barangays.  It also includes the determination of administrative boundary of lots in alienable and disposable lands of the public domain for purposes of land titling.  A cadastral survey is deemed abandoned or incomplete when field activities are left unfinished after the period stipulated in the contract, or when the contractors fail to correct survey defects within the period determined by the DENR regional office, and when such cadastral project awarded in earlier DENR cadastral programs is listed as “not completed” in the DENR inventory.


Regional Executive Directors (REDs) have been given the authority to cancel abandoned cadastral survey projects and to determine appropriate penalties to be levied on the erring contractor and/or geodetic engineer.  The RED can penalize based on: failure to finish the survey within the contract period; failure to make the necessary correction(s) of the survey projects within the prescribed period; and failure to return survey project records, among others.

Progress is good,
Jon

Pag-IBIG: New Directions

If you came here looking for Glee's New Directions, you're in the wrong place!  New Directions in the sense that Pag-IBIG housing loan borrowers are hereby given notice of a change of venue for the following beginning June 1, 2011:

• Housing inquiries
• MSVS receipt/verification/release
• Receiving of Housing Loan Applications
• Receiving of Mortgage Loan Folders (Developer accounts)
• Processing of Housing Loan Applications (LE 1 & 2)
• Receiving of Post-approval/Compliance Documents
• Releasing of Notice of Approval
• Check releasing for Housing Loans
• Over-the-counter (OTC) payments of Housing Loan Amortization (REM & CTS)
• Acceptance of post-dated checks and Tax Declaration/Tax Receipts
• Request for Statement of Accounts
• Appraisal
• Foreclosure
• Acquired Assets Loan counselling
• Institutional Loans

These Pag-IBIG operations will now be conducted on the 6th and 7th floors of the Filomena Building, which is located at 104 Amorosolo St., Legaspi Village, Makati City, just behind the Makati Medical Center.  For inquiries or more information, you may call 724-4244 or 811-4212.

Glee-ful news,

Jon  

Flyering: Are You Tough Enough?

Okay, so a couple of weeks ago I sent out a survey to get a good feel of what people thought of sales agents doing the usual marketing activity fondly called flyering.  For most, flyering is an activity that is met with derision, dread, shame, and even downright fear.  For some, the "tough as nails" sales people, it's a walk in the park.  I daresay you have to experience flyering at least once if you're in sales, just to be in their shoes, and to better drive home the point that yes, sales is an "in your face" occupation.  The faint-hearted and the timid will definitely cringe at the thought of handing out flyers, just as I used to.  Past-tense?  Not quite there yet.

My first booth-manning session to market Tropicana Garden City at SM Marikina went by uneventfully, with me just sitting there chatting with the battle-tested folks I was blessed to be with.  I was too scared of rejection, and too shy to approach strangers, so I just sat there and watched them do their thing.  Well, I figured I was gonna have to get my feet wet sometime...  So today was my 2nd manning schedule at Blue Wave Mall in Marikina.  Again, I was sharing the booth with Tita Fe, the 70-year old lady (whose life story I already know haha!) and I was determined to finally stand up and reach out!  I stood up, and with my flyers in hand, I smiled, greeted the person who was passing by, and handed the flyer.  I couldn't believe how easy it was once I decided to just do it!  I gave out 5 flyers total, and not one rejected me.  Yeah, 5 flyers, hardly anything to be proud of at this stage of my career, but hey, it's a good start!  Let me share the results of my survey here, the reason why I was more confident:

• Dress well, be presentable.  You'd probably shy away from a stranger dressed shabbily too, wouldn't you?  No t-shirts and slippers, please.
• Once you approach, approach with a smile and a greeting.  People will find it hard to ignore you once you approach with a smile and a simple "Good afternoon sir/ma'am" while offering the flyer.
• Don't be pushy.  If the person asks for more information, that's the only time you should attempt to ask for contact details.  If the person refuses, don't be persistent, just ask the person to contact you anytime once they're willing to find out more.

Here are the full results of my survey, so you can judge for yourself.

So am I tough enough for sales?  I'm getting there my dears, I'm getting there.  Soon, maybe I'll even actually get to sell something!

Want to buy the moon?

Jon

Bitter Much? Better Be Careful Much!

A man landed in jail ("himas rehas" in the vernacular) after posting naked photos of his ex-girlfriend in Facebook.  Romulo Frondozo, 21, of Baranggay Commonwealth, has been charged for violating the Anti-Violence Against Women and Children Act as well as the Anti-Photo and Video Voyeurism Act.  In an apparent sting operation, Frondozo was asked by his ex-girlfriend to visit her in her home in Baranggay Sta. Cruz, San Francisco del Monte, Quezon City.  He was promptly arrested by baranggay officials when he showed up.  Superintendent Audie Madrideo, commander of Station 2 of the Quezon City Police District, said that the suspect and the woman were together for 10 months before breaking up last April 2011, reason undisclosed.

Poor sap, he probably thought he could get back at her for breaking his poor inconsequential heart.  Turns out he got trashed the second time by the same girl.  A broken heart does not excuse his act though, and it really serves him right for doing such a thing.  Some girls might like being photographed (and being taken a video of) in their birthday suit, but it doesn't mean a guy has the right to post it against her will.  Oh the sheer stupidity!


Them inmates have a new toy,
Jon

I'd love to hear your thoughts!

Caloocan Cleans Up The Neighborhood

In a bit of good news, the Caloocan City council has approved an ordinance which bans nightclubs, beer houses, karaoke bars and other similar establishments from plying their wares within a 100-meter radius from institutions like hospitals, schools and churches.  Penned by Councilor Alen Aruelo, this ordinance bodes well for the welfare of Caloocan residents, and ultimately the image of the city, itself.  This also has the nice side-effect of uplifting the value of properties nearby said institutions.

I wonder if Caloocan's zoning laws were even followed, and how those "other" establishments were allowed to setup shop in the first place.  Funny how our government seems to be running around trying to chase its tail.  Let's hope they all get their acts together soon.


"Pare lasheng na ko, check in muna ako sa ospital sa tabi para mag-detox... hehehe!"

Jon

I welcome your comments :)

Tropicana Garden City Site Now Up!

After an exhausting 7 hours, I've finally completed adding pages for Tropicana Garden City, the newest condo project of Federal Land Inc. in the city of Marikina.



Three towers are currently pre-selling:

• Toledo Tower - Scheduled for turn-over in December 2011
• Valderrama Tower - Due for turn-over in 2013, And
• Ibiza Tower - Yours in 2014

There will be 9 towers total in this township condo project, complete with amenities that lucky buyers are sure to love and enjoy, including a mall, swimming pools, parks, etc.

So lock in your units now!  Visit my site for Tropicana Garden City!

I'm waiting for you,

Jon

Quezon City Vs. BIR... FIGHT!

The Quezon City local government is in a tiff with the Bureau of Internal Revenue (BIR) over P400M worth of taxes.  Former actor Herbert Bautista, the current occupant of the QC mayoralty chair, has asked the help of the Department of Finance's Secretary Cesar Purisima in an apparent bid to get the local government of Quezon City exempted from paying the Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) on properties it foreclosed for non-payment of real estate property taxes, or "amilyar" as known by Filipinos.  This developed after the BIR's Commissioner, Kim S. Jacinto-Henares, refused to let the local government off from paying capital gains and documentary stamp taxes on said properties.  BIR Commissioner Henares stands by Section 39 of the Tax Code (Republic Act 8424) which states that "capital gains tax is presumed to have been realized from the sale, exchange or other disposition of real property."  City Administrator Vic Endriga, however, countered that Quezon City did not realize any gains from confiscating the tax delinquent properties.  Instead, he argues that the city will actually be spending more to develop said properties into low-cost housing units for the poor residents of the city.

In this case, the QC local government is acting as the statutory seller in lieu of the owners of the confiscated properties.  I was not able to find any mention in the Real Property Tax Code (Presidential Decree 464) of any exemption for statutory sellers.  I say, pay up QC local government, since you paid yourselves, the Philippines deserves to get a slice of the pie, so to speak.


Death and Taxes,
Jon

A "LOVE" Advisory

Here's a Pag-IBIG/HDMF advisory to inform members about branch offices where they can pay for their housing loan amortizations:

• Kamias Branch - 795 Anchor Center, EDSA, Quezon City (near MRT GMA-Kamuning station)
• Cubao Branch - Union Square 1 Condominium, 145 15th Avenue, Cubao Quezon City
• Ortigas Branch - 611 Westar Building, Shaw Boulevard, Pasig City
• Manila Branch - Park 'n Ride Building, P. Burgos Avenue cor. Dr. Basa St., Ermita Manila (Beside LRT 1 Central Station and Metropolitan Theater)
• Pasay Branch - Roxas Strip Building, Libertad St. cor. Roxas Blvd., Pasay City
• Imus Branch - Olma Building, Emilio Aguinaldo Highway, Imus Cavite
• Calamba Branch - High Rise Business Center, national Highway, Halang, Calamba City Laguna

Please bring a copy of the latest billing statement or statement of account.  Members can access the printable billing statement through www.pagibigfund.gov.ph by clicking on "Member Services" then "Online Housing Loan Verification."

Much love,

Jon

Eton Makes More, Gets More

Eton Properties disclosed to the Philippine Stock Exchange that total revenue for the 1st quarter of 2011 gained 2.6% to P946M from P922M in the same period last year.  That represents a 7.4% hike in 1st quarter net income, which is P199M.  Looks like Lucio Tan made the right decision investing in real estate.  While Eton Properties is rather new compared to Ayala Land and DMCI, the fact that the firm is part of the Lucio Tan Group makes it formidable, despite the recent accident in one of its projects, and it continues to make a name for itself in the real estate industry.

To see some of the properties I market for Eton Properties, please visit my website Real Estate Investments in Manila.


Feng Shui is good,
Jon

I'm Poor, Give Me A House!

The Quezon City local government is looking at purchasing a 34-hectare lot in Montalban, Rizal to accommodate about 10,731 informal settler families living in or near the city's identified danger zones.  Mayor Herbert Bautista, with authority from the QC Council to negotiate for the purchase and acquisition of the property, has signed a Contract To Sell (CTS) with the Arce Family, who owns the land.  The land, valued at P550 per sq.m., can be used to develop 5,100 lots with an area of 40 sq.m. each.

I guess the real question now is, will there ever be an end to this dilemma?  As long as our rural areas continue to remain under-developed or undeveloped, our countryside fellowmen will continue to seek greener pastures in Metro Manila, adding to the burgeoning pollution and over-population, not to mention the problem with land-usurpation and illegal occupation woes of legitimate land owners.  Although I laud the QC local government for this initiative, this is at most a band-aid solution to the squatting problem.  We must develop the whole country, not just the capital.  That way, more people will be inclined to stay where they are.


Let's move to the country,
Jon

Housing Projects Go On A Holiday!

In notable news today, the Bureau of Investments (BoI) has approved six housing projects with combined investments of P1.731 billion for income tax holiday (ITH) privileges, as provided under Article 39(a) of Executive Order (EO) 226, as amended by Republic Act (RA) 7918.  The BoI grants ITH as an incentive for Filipino investors to keep their investments in the country, and for foreign investors to invest in the Philippines.  The approved housing projects are from Masaito Development Corporation (Vallejo Place Phase 4, Imus, Cavite),  DMCI Project Developers Inc. (Cedar Crest, Taguig City), CHMI Land Inc. (Kassel Residences, Parañaque City), St. Francis Ventures (San Fransisco Homes, Pulilan, Bulacan), Johndorf Ventures Corp., and Kenrich Development Corp.

It pays to apply for ITH as it can give you substantial savings, especially when you're plunking in millions in investments.  Everybody's a winner!  It may be a little tough to wade through all the requirements, but I think the gains are well worth it.


I need a holiday,
Jon 

Love Attacks!

How's that for a title huh?  Actually, "love" in this context is actually PAG-IBIG, or the Home Development Mutual Fund (HDMF).  Apparently, HDMF-Cebu has filed cases against 23 companies in Cebu City for violating Presidential Decree 1752 as amended by Republic Act 7742 and 9679.  In essence, what these presidential decrees and republic acts call for are for employers to register all Social Security System (SSS) and/or Government Service Insurance System (GSIS)-covered employees with PAG-IBIG (HDMF), and to pay their counterpart contributions to the HDMF.  Looks like even though those 23 companies were repeatedly sent demand letters, said letters were ignored, prompting the HDMF to take legal action.  Portia Bacalso, Chief of Marketing and Enforcement, has vowed that the agency will continue its drive to monitor and file complaints against companies violating this law.

This bodes very well for employees, as contributions to the Fund will ensure that they will be able to take out a housing loan.  I'm really happy that government agencies are doing their jobs, and that we're seeing some results that are long-overdue.  Way to go PAG-IBIG!  Love can definitely bite back!


From the house that love built,
Jon

Real Estate: Why Should You Bother With Licensing or Accreditation?

I guess many unlicensed real estate agents/brokers are thinking: "Why should I bother with licensing/accreditation?  It's not like anyone's gonna do anything about it anyway."  There are sales managers and directors that aren't licensed when they should be, and sales agents that aren't accredited because their manager isn't a licensed broker.  So, why indeed should they bother?

Well, it's a LAW.  In case you didn't know, the Real Estate Service Act Law (RESA Law), otherwise known as Republic Act 9646, was passed in June 2009, seeking to professionalize the real estate industry, to protect consumers as well as licensed professionals from the "unscrupulous" practices of unlicensed practitioners.

Should you be worried?  After all, it's been almost 2 years and nobody has gone to jail for being unlicensed or for not being accredited.  See if this strikes you as menacing enough:

Article V, Sec. 39.  Penal Provisions - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years, or both upon the discretion of the court.  In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment. 


So without a license or accreditation, under the pain of imprisonment and/or a fine, practice real estate at your own peril.

How does this affect those sales managers and directors working for developers?  Let me state the pertinent provision:

Article IV, Sec. 32.  Corporate Practice of Real Estate Service
a)  No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be.  There shall be at least one (1) licensed real estate broker for every twenty (20) accredited salespersons.


b)  Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.


There you have it, very clear and straight to the point.  Do yourselves a favor and get licensed, so you can get your salespersons the necessary accreditation for them to continue selling for you.

Think you have time?  At the recent oath-taking ceremony, the Professional Regulatory Board of Real Estate Service (PRB-RES) mentioned that by 2014, a Bachelor's degree in Real Estate Service might be implemented by the Commission on Higher Education (CHED).  If and when that happens, the Professional Regulation Commission (PRC) will make that college course mandatory before you can take the licensure examination.  If you don't want to go back to school just to get your broker's license, I suggest you take the 120 CPE units now, and take the next licensure exam this coming November 2011.

Or, you can continue thinking that you can get away with it and not do anything.  As Forrest Gump said, "Life is a box of chocolates, you never know what you're gonna get."  Pray it's not a fine of P200,000 and a 4-year prison term.

Hopefully,
Jon

 

VP Carries The Torch For Mass Housing

Philippine Vice Prez and chairman of the Housing and Urban Development Coordinating Council (HUDCC) Jejomar Binay has signified his concurrence to the terms for the continued inclusion of mass housing projects as a priority sector in the 2011 Investment Priorities Plan (IPP) set to be approved by Malacañang.  HUDCC wants the price ceiling per housing unit to be Php3M and below for a mass housing project developer to be eligible for incentives.  However, the Board of Investments (BoI) is pushing to lower it to Php2.5M.

What's the big deal, you ask?  Eligible developers outside of the National Capital Region (NCR) will be entitled to a 4-year income tax holiday, while those within the NCR will be granted 3 years income tax exemption.  However, the Department of Finance is opposed to the continued tax perks for developers, although it supports a direct subsidy for end-users.

According to Binay, incentives are crucial because housing projects require large capital requirements.  If no incentives are granted, mass housing projects will not be attractive enough to investors.  He hopes that this will also aid in solving the housing backlog in the country which stands at 1.4M housing units, which is projected to hit 5.4M units by 2016.

Mass housing ain't so bad...  For a ceiling of P2.5M - P3M, that's not so bad at all!  Isn't a condominium a form of mass housing too?  It's all in the mind my loves.


Happy Mom's Day!
Jon

Real Estate Pushes Gross Revenue Index UP, UP and AWAY!

From GMA News Online, some good news about the sunshine industry!  The Philippines' gross revenue index went up in the 4th quarter of 2010 mainly because of real estate.  The real estate sector showed the highest growth among all other industries mainly because of increased revenues from real estate projects, renting and leasing operations.


So even though gas prices are rising, real estate is still kickin' it.  Look around you and you'll see all the construction ongoing, down south and even in the metro.  There's still room for growth, and we're gonna ride it straight up!

Let me ride the train with you,
Jon

REIT Tax Rules To Be Tackled

I read in BusinessWorld Online that the government representatives and the private sector are set to give the long-delayed REIT law another go next week.  The implementation of the REIT or Real Estate Investment Trust (Republic Act 9856) in the Philippines has stalled despite the law being passed in 2009.  The private sector, led by BDO Capital and Investment Corp. President Eduardo V. Francisco, wants more tax exemptions, particularly the VAT of 12%, to be eased, to attract more investors.  Several property big names have already expressed interest in REIT ventures, among them SM Prime Holdings, Inc., Ayala Land, Inc. and Robinsons Land Corp.  However, the Department of Finance does not agree, saying that VAT exemption will lead to billions lost in potential revenue.

REIT has the potential to further make investors excited with investing in real estate.  Let's hope the powers-that-be can finally come to an amicable solution.  

1,000 shares please,
Jon

What's More Important: Housing or Biodiesel Production?

Herminio Teves, a former congressman of the 3rd district of Negros Oriental, has proposed the use of public land for Jatropha propagation to help ease the country's need for power and energy.

Jatropha Biodiesel

The Department of Environment and Natural Resources (DENR) has recently declared 14.2 million hectares of public land as alienable and disposable, and he thinks this could be used to plant Jatropha, a tree that could be used for the production of biodiesel.  Teves calculates that if the public land is utilized for this purpose, it will yield around 99.4 billion kilos of seeds which could produce approximately 25 billion liters of Jatropha raw oil as bunker fuel to power the country's diesel power plants.  He further avers that La Union, which has a public land of 111,646 hectares, will be able to power its 215 megawatt Bawang Diesel Plant, while Zamboanga del Sur, which has 316,648 hectares, can sustain the 55 megawatt Southern Philippines Power Corporation and 100 megawatt Western Mindanao Power Corporation.

Someone told me that in 5 years there will be no more land to sell, and the business of real estate will shift to leasing.  It looks like he knows something I don't.  Maybe licensed real estate brokers should start selling trailer homes, too?


I can live in my car, what about you?
Jon

It Pays To Be Homeless in the Philippines

GK Hope Ball

Philippine Vice President Jejomar Binay bears good news from his short visit to the United States: $350,000 raised during the Gawad Kalinga (GK) Hope Ball which will be used to fund the construction of 150 additional houses for 150 families.  Binay, who is the chariman of the Housing and Urban Development Coordinating Council (HUDCC), added that also during the event, GK turned over 30 houses to 30 families.  He is enthused that GK is now a partner of the national government in addressing the issue of shelter, and that GK would play an important role in the government's bid to address the existing backlog of 3.7 million housing units.

So the homeless gets a house awarded by the government, which they in turn would sell off and go back to squatting on privately-owned lands.  It's like a sick joke, really.  Politicians really ought to have a code of ethics as well as a good set of balls; those squatters need to be dealt with, with compassion and resolve, and by force if need be.




I don't have my own house, does that count?

Jon

Gasoline Prices Went Up Anew!

We're running on Empty!

So the "Big Three" oil companies in the Philippines have raised gasoline and kerosene prices again yesterday.  The increases ranged from P1.40 per liter on premium and unleaded gasoline, and P1 a liter on regular gasoline. Kerosene prices went up by as much as P0.30 a liter, too.  Pilipinas Shell, Chevron Philippines, and Petron Corp., the major oil players in the country, said the price adjustments were due to increases in the international product prices based on the Means of Platt Singapore (MOPS).  With this price hike, gasoline prices in Metro Manila is now averaging P57.50 (about $1.34) per liter of unleaded gasoline, and kerosene at P56 a liter.

Gas prices are inching towards the P60 mark.  Pretty soon, prices of basic commodities will also start going up.  Everything will start getting more expensive while wages remain the same.  In other words, we are going to be able to afford less with the money we have.  Sounds very much like inflation, doesn't it?




Let's go back to the horse and buggy,

Jon

Rent-To-Own: How Does It Really Work?

Before today, I've always wondered about the rent-to-own (also lease-to-own and lease-purchase) scheme and what it really meant.  In most cases I've seen, it's just a very clever wordplay on buying the property, making the buyer think he's paying rent when in truth he's already paying for the monthly amortizations.  Or maybe, I really just didn't know any better.  Well, I can't stay ignorant about this any longer, so I took to reading up on it.  I found a great resource from The Mortgage Professor on what the buyer and seller need to know to make the transaction beneficial to both.

In essence, the lessor and the lessee agrees on a price and a period of time that the lessee may purchase the property.  The lessee then pays 1-5% of the agreed-upon price to the lessor, which will serve as the option money, and is credited to the purchase price should the lessee be able to complete the purchase within the agreed period of time.  The lessee pays rent plus a rent premium (that is also credited to the purchase price) every month.  At the end of the purchase period agreed upon, if the lessee is unable to complete the transaction, the option money plus the rent premiums are forfeited in favor of the lessor.

Make sure to read the full article on the rent-to-own scheme to get a better idea if this is something you'd consider down the road.  If you've always wanted to have your own home but can't afford an outright purchase yet, this may not be such a bad idea after all.

Jon

Makati High-Rise To Go High-Tech!

The Makati City government has ordered owners of high-rise buildings in the city to install seismograms (a.k.a. accelerometers) to monitor ground movement during earthquakes as well as the building's response during typhoons.  Makati mayor Jejomar Binay cited the recently issued memorandum by Secretary Rogelio Singson of the Department of Public Works and Highways (DPWH)* to building officials and local engineers as the reason for this necessity.  The directive also covers buildings under construction as well as those still in the design stage.  City building official and city engineer Nelson Morales issued a memorandum to all developers, contractors, owners, and administrators of high-rise buildings to comply with the said directive.  Buildings completed without the device installed will not be granted occupancy permits by the city government, he said.

*DPWH Memorandum Circular no. 03 (March 31, 2011) Section 105(2) of the National Structure Code of the Philippines, requires the installation of accelerometers or seismograms in structures measuring over 50 meters high.

Ummm... I think they meant seismographs.  Seismograms are the paper records that seismographs spit out.  You don't install paper records!  Sheesh, might as well build the high-rises with toilet paper.




Seis-mo-what?

Jon

It's Quezon City's Fault Too!

Quezon City mayor Herbert Bautista has directed the QC Disaster Risk Management Council to send notice immediately to 42 families living near the West Valley Fault in General Del Pilar St. in Barangay Silangan to voluntarily vacate the area and allow the city hall to relocate them.  The area is considered vulnerable to ground rupture and landslides during earthquakes.  Bautista's order was based on the recommendation of the Philippine Institute of Volcanology and Seismology (Phivolcs) during an inspection of the traces of the fault in Barangays Bagong Silangan and Payatas.  The fault also traverses the city's eastern boundary which passes through the area in Libis.  The city government is keen on declaring the 7-kilometer stretch of the Quezon City areas along the fault system as a danger zone.  Should the residents decline to leave the area, the city government will prepare waivers so they will not be held liable in case disaster strikes.  At present, the city has already identified at least 900 property owners residing within the 5 meter wide buffer zone recommended by Phivolcs.

Which is more important, your property or your life?  I hope the affected residents know better...


It's not our fault,

Jon