Residential Free Patent for Landowners!

Good news for landowners in Region 6 of the Philippines!  The Department of Environment and Natural Resources (DENR) has declared that free land titling is available for residential landowners, subject to the requirements under Republic Act 10023, otherwise known as the Residential Land Patent Act of 2010.  This act stipulates that landowners occupying untitled lands that are free and alienable may avail of free titling.  It's time for that land you've been greedily occupying and staunchly protecting with your life to be yours! 

If you are:

• a Filipino citizen
• occupying said residential land (alienable public land) for 10 years or more
• has paid the real estate property taxes on subject land parcel for the past 10 years or more

Then you're in luck!  Head on over to the DENR field office to submit your application for evaluation and assessment!

Some more information about how much residential land may be eligible for titling:

• Highly urbanized city - maximum of 200 sq.m., 500 sq.m.. in other cities
• 1st to 2nd class municipalities - maximum of 750 sq.m.
• 3rd class towns - maximum of 1,000 sq.m.

Now isn't that just exciting news?  Free land, just for living on it for 10 years or more, and for paying the property taxes ("amilyar" in Filipino).  Take care of it, land is precious, people have been known to kill for much less.

Residencefully yours,
Jon
PRC License No. 0004326

Rainy Season: How Is The Philippines So Far?

Hey it's the rainy season!  The season when a lot of people start sweating bullets despite the cold weather.  I don't mean to sound like it's no big deal, because it is.  A lot of Filipinos die when the storms come around, and millions, if not billions, of pesos go down the drain, literally.  I won't claim to know a lot of things where flooding is concerned, as well as storms, but to a certain extent, I know what I'd like to blame: People. 

People throwing things indiscriminately, clogging drains, pipes and sewers.  Add to that the country's antiquated sewerage design, and the sinking land masses and you have a sure recipe for disaster every time we have prolonged rains.  Heck, even some people in my home can't keep up the discipline necessary to keep the house free from garbage, and I'm talking about educated people here, what more those "underprivileged, uneducated" people living under the bridge and in squatter areas?  Well, with large areas of land being transformed into dumpsters, you'd hope that our government would learn to dispose of garbage better, but alas, that's not to be.  Not when ordinary Juans can't summon the wherewithal to find a garbage can to throw their garbage in.  It seems that the country's becoming one giant garbage bin, and it's not going to get better unless everybody starts pitching in and carrying their own weight.  Until then, our floods are going to get worse.  Our people are going to keep drowning.  Our country's going to sink deeper into 3rd world status.  Enough of my rants, here are some stories around the country about the floods:

• Firefighters to declog drainage in Metro - Yeah, now firemen have to do work that's not theirs, just because of people indiscriminately throwing garbage.  Go figure.
• Falcon victims reach 1M - And the toll will just keep on rising...
• Bulacan clears roads after Falcon - Kudos to the governor, but it's sad that we're always just reacting.
• Falcon losses up to P54M - People's resiliency is amazing.  What's more amazing is that they don't learn the lessons that would have prevented the problem in the first place.
• Pampanga in state of calamity as well as Still no classes in Pangasinan
• Falcon leaves but more to come - Maybe we should build arks?

In a bit of good news though, for a change:

• Praise for the country's weather forecasters - It's toward the end of the article, just keep reading ^_^
• Tax breaks for calamity victims - It's like a dark comedy; a tongue-in-cheek joke... But you take the good with the bad, and I guess this isn't as bad as it is good.
• Marikina is prepared - That's excellent news, isn't it?  It is ^_^. 

All this grief from a typhoon that's rated at a fourth of Ondoy (International name: Ketsana)?  I shudder to think what's in store for us in the coming days or weeks of the rainy season!

Let's start now!  Segregate our trash, clean up our sewers and rivers, upgrade our drainage systems!  Let's not wait for something like Ondoy to happen again before we finally do what needs to be done.

Invest in floaters,

Jon
PRC License No. 0004326

Real Estate Salespersons: What Do You Need To Know?

So you want to be a real estate salesperson?  Great!  Before the RESA Law (Republic Act 9646), things were simpler, and you could dive right in and start selling real estate.  It's different now, especially with the advent of the RA 9646 and its implementation.

For your information, according to the RESA Law (R.A. 9646), real estate agents can only be accredited under a licensed real estate broker:

Section 31. Supervision of Real Estate Salespersons. - For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction. (this means that the broker will be the one who will collect payment and then pay you.) 

No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson. 

In other words, once you're accredited under a licensed broker, all your real estate activities will be under the broker, including your listings and commissions.  If you decide to break away from the broker, you will have to file for accreditation with the PRC again under a different broker.

For simplicity's sake, here's a table I made to show you the requirements for PRC accreditation:

In case you can't see it, feel free to right-click on it and download it for your convenience.

If you'd like to see what topics might be included in a 12 CPE units seminar, check out Urban Institute's page.  Typical costs for taking the 12 CPE units training range from 1,500 to 1,800.

I can't give you any info yet about how much PRC accreditation will cost as they have not released any information regarding that.  I will update this blog post as soon as I get information.

Additionally, after accreditation, you need to:

• Get registered with the HLURB - this is required if you are going to engage in project selling such as condominiums, townhouses, etc.
• Get acquainted with the different taxes that you are required to pay such as withholding tax, income tax, percentage tax and e-vat.  Check out the BIR's page for more information.

For now,  if you want to be an accredited salesperson, find a licensed broker, take the 12 CPE units seminar, order your NSO birth certificate and NBI clearance, and get everything else in order.  Once the PRC releases the final guidelines, you'll be ready! 

By the way, I'm a licensed broker hehe!
Jon

Real Estate News Around The Philippines

Here we go with another assortment of real estate articles for your reading pleasure. 

• Baguio To Develop Idle Lots - Great!  They should've thought of this a long time ago.
• TPLEx Toll Plaza Location Discussed - Easier access to Baguio?  Bring it on!
• BPO Boom Delights Developers - It was only a matter of time.  You gotta give developers credit for forward-thinking!

That's all for today, folks.  Somewhat slim pickings, I agree, but worthwhile news from the world of real estate nonetheless.  Stay tuned for more in the coming days *^_^*

Stay Dry,
Jon

Assorted News Around The Philippines

Well, as usual, I'm concentrating on topics that are near and dear to me: real estate and anything that might affect it.  Here are some of the more notable stories today that I think will have a positive (or negative) impact on Philippine real estate now, or soon!  Maybe?  I hope so!

• New Pasay Tourism Drive Launched - Tourism has the potential to improve Pasay's property prices.  Just imagine what anti-littering can do for your neighborhood.  A clean and green city can do wonders for real estate development!
• Building Owners Urged to Install Sprinklers - It's commonplace nowadays, but for those buildings that weren't required to install fire sprinkler systems when their buildings were constructed, RA 9514 (Comprehensive Fire Code of the Philippines 2009) has given you 2 years since the implementing rules and regulations were approved.  Make sure you comply!
• Plant Trees to Get Married in Tadian, Mt. Province - Definitely my fave story for today!  What a really creative way to underscore the link between humans and nature!  Wanna get married?  Plant trees first.  This law should be enacted worldwide!  Imagine how much 10 trees planted per couple will change the landscape  of this planet?  I can rave about it all day hehehe!
• UAE to Offer Low-cost Loans to OFWs - Some good news for our overseas countrymen.  I'm glad that the Department of Labor and Employment is getting some good things done for our countrymen working overseas.  Props to the UAE too, for the assist!

That's all for today, folks!  Stay tuned for more news tomorrow *^_^*
- Jon

Real Estate Investment Trusts (REIT) On The Move!

Ready?  Invest!

This isn't really about real estate as it is about investing, but it's such good news that I can't help but talk about it! If you search around for REITs (or Real Estate Investment Trusts), it's hard not to be excited, especially if you like investing your money in stocks, mutual funds, or the like.  However, REIT hasn't really taken-off in the Philippines, despite the passing of the law last 2009.  Apparently though, it looks like the Bureau of Internal Revenue is optimistic that the implementing rules and regulations (IRR) of the REIT act will be ready to go as early as July 2011.  If it happens and REIT gets off the ground, we're in for one sweet ride!  So investors, get your finances ready, be ready to move once the light turns green.  Let's GO!

Here are some relevant links about REIT that you may want to read:

• RA 9856: REIT Passes Into Law
• REIT Tax Exemptions
• REIT Delays Due To Disagreements
• REIT Rules Expected in July 2011

Where's my investment broker?!?

Jon

It's "A Countdown to One tHOUSEand LIKES" Contest!!!

Scan Me!

It's a countdown to one tHOUSEand LIKES! Once my page hits 1,000 "LIKES", I will hold a draw for a lucky person to win P500 worth of Starbucks GCs! It's easy!

How?
1. LIKE MY PAGE - http://facebook.com/ihy4real
2. SHARE THIS PHOTO ON YOUR WALL (and your page's wall if you have one);
3. Your comment should be: "real estate ≈ ihy4real!"

Rules:
1. Only fans of my page are eligible to win
2. I can only meet up in Marikina, Ortigas, Greenhills. If you're not from Metro Manila, you may assign somebody to get the GCs from me. 
3. The prize is non-convertible to cash or any other item. I may choose to offer a mix of other GCs, however. I will announce it here in case there are changes.
4. I will announce the winner and give him/her 2 weeks to redeem the prize. Failure will mean choosing another winner, until the prize is redeemed.

Let's GO!

5th Philippine Real Estate Festival (PREF 2011)

On July 28-30, 2011 at the World Trade Center in Pasay City, the 5th Philippine Real Estate Festival (PREF 2011) will be held!  It will be a 3-way collaboration among the real estate, tourism, and media industries.  Three (3) days of excitement and entertainment!

• Get advice from the industry's best
• Find properties that you want
• Network with other industry professionals
• Meet potential investment partners
• Know the latest trends and innovations
• Rub elbows with the who's who of the property sector
• Win prizes
• AND MUCH MORE!

Entrance is FREE for all!

For more information and for booths, please call (02)819-2058 or e-mail pref_events@yahoo.com.

See you there,
Jon
REBL No. 0004206

Pre-Selling or Ready-For-Occupancy?

These terms aren't jargons, as they're really self-explanatory.  Pre-selling properties are those that are being offered before they're actually habitable or ready to be lived-in, while Ready-For-Occupancy, more commonly known as RFO, are those that are, well, ready for occupancy.  Let's dissect.

Pre-sold properties are definitely way cheaper than RFOs.  Some factors to consider:

• Developers would be using your money to partly finance the construction of the property.  Therefore, it would be to their advantage (and yours) to offer these properties at considerably more affordable prices to encourage "investors" to participate.
• Pre-selling properties are invisible.  In other words, they're all concept, and they only look as good as the artist's render.  In other words, you can never be fully sure how it'll turn out.  Revisions can happen anytime, and worse, it may not even get completed at all.
• Market demand will determine price increases.  If the property is marketed well, and if it's warmly received (meaning even before completion it's already close to being sold out), the price will definitely hike up as more units are sold.  By the time it's RFO, the prices can be as much as double the original pre-selling offer.
• Long payment periods without interest.  More often than not, because the completion and turn-over of the property is 3-5 years away, the developer would provide payment terms that are very easy on the pocket.  The downpayment would usually be stretched by as much as 30 to 40 months without interest, and the rest to be paid through bank financing or lump sum.  You'd be hard-pressed to find an RFO offering the same deal.  
• Time value of money.  More often than not, putting your money in property being pre-sold will yield a better return than putting it in a bank.  I'd give an example, but that would over-complicate this article.  Suffice it to say, that people who purchase during pre-selling and then sell the property when it's RFO will make more money.
• You get first pick.  Suffice to say, if the project is received well because of the developer's reputation, the location, amenities, etc., by the time it's completed, most of the best units would already be sold out.  
• The developer's reputation.  The more well-known and financially-capable a developer is, the safer your investment is.  Such is the case with Federal Land Inc., which is owned by George Ty, the guy behind Metrobank.  Also Eton Properties of Lucio Tan, and Ayala Land Inc. by the Ayalas, of course.

Buying pre-selling properties is a gamble, but one that is very easy to win.  The factors involved are very easy to read: the developer, track record of projects, location, target market, amenities, etc.  In other words, it's more of thinking ahead, planning where and how you'll spend your hard-earned money.  

RFO properties are much less of a risk.  The property is already there, you can see it, check it for structural integrity and/or defects, design, etc.  You can see the kind of people already living there (most probably those who bought during pre-selling) so you have an idea what kind of community will emerge.  You can see how the property impacts the location, if it enhances the value or not.  The only downside is the price, as I already stated.

If you've learned anything from Economics 101, the riskier, the higher the potential return.  If you keep your eyes and ears open, buying pre-selling properties is definitely a little riskier than RFO, but the potential to make more money (if you're an investor) or save money (if you're a home-buyer) is definitely better.  If, however, money is not an issue for you, and you're a little risk-averse, then RFO is the way to go.

Mi casa es su casa,

Jon

PRC REBL No. 0004206

Dual Citizenship and Land Ownership in the Philippines

My cousin, who married an Australian, came home from Australia to attend to some personal matters.  I got to speak to her about real estate, and found out surprisingly that there are a lot of unknowns where ownership of land by "former Filipinos" is concerned.  So I took it upon myself to help clarify some things about land ownership and dual citizenship to "former Filipinos."

Dual Citizenship

Former Natural-born Filipinos now have the option to re-acquire Filipino citizenship under Republic Act 9225, otherwise known as the Citizenship Retention and Re-acquisition Act of 2003.

Dual citizenship is available to those who, at the time of birth, a parent (or both parents) was a Filipino citizen.

Sec 3.    RETENTION OF PHILIPPINE CITIZENSHIP - Any provision of law to the contrary notwithstanding, natural-born citizens of the Philippines who have lost their Philippine citizenship by reason of their naturalization as citizens of a foreign country are hereby deemed to have re-acquired Philippine citizenship upon taking the following oath of allegiance to the Republic:

"I _________________, solemnly swear (or affirm) that I will support and defend the Constitution of the Republic of the Philippines and obey the laws and legal orders promulgated by the duly constituted authorities of the Philippines, and I hereby declare that I recognize and accept the supreme authority of the Philippines and will maintain true faith and allegiance thereto; and that I impose this obligation upon myself voluntarily without mental reservation or purpose of evasion."  
Natural-born citizens of the Philippines who, after the effectivity of this Act, become citizens of a foreign country shall retain their Philippine citizenship upon taking the aforesaid oath.
 

That's it.  An oath and you regain your Filipino citizenship w/o giving up your current citizenship.  All your questions about dual citizenship is answered succinctly by the Bureau of Immigration's FAQ.

I'm heartened to find out that you don't pay dual taxes either!  If you're living and working in the Philippines, you pay taxes in the Philippines only.  If you're living and working in the other country that you're a citizen of, you pay that country's taxes only.  So why not be a dual-citizen now?

Land Ownership

Land Ownership is a different matter, altogether.  If you're a former natural-born Filipino, your right to purchase land in the Philippines is limited.

The Law on former natural-born Filipinos on land ownership for residential purposes:

Batas Pambansa 185, Sec. 2:
"Any natural born citizen of the Philippines who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of private land up to a maximum area of one thousand square meters (1,000 sq.m.) in the case of urban land or one (1) hectare in the case of rural lands to be used by him as his residence.  In the case of married couples, one of them may avail of the privilege herein granted: Provided that if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed.  In case the transferee already owns urban or rural land for residential purposes, he shall still be entitled to be a transferee of additional urban or rural land for residential purposes which, when added to those already owned by him shall not exceed the maximum area herein authorized."

The Law on former natural-born Filipinos on land ownership for business purposes: 

Republic Act 8179, Sec. 10:
"Any natural-born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural lands, used by him for business or other purposes.  In the case of married couples, one of them may avail of the privilege herein granted: Provided that if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed.  In case the transferee already owns urban or rural land for business or other purposes, he shall still be entitled to be a transferee of additional urban or rural land for business or other purposes which, when added to those already owned by him shall not exceed the maximum area herein authorized."

"A transferee under this Act may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines: Provided, that the total land area thereof shall not exceed five thousand (5,000) square meters in case of urban land or three (3) hectares in the case of rural land for use by him for business or other purposes.  A transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa."  


As you can see, it's pretty easy to remember:  If you're a natural-born Filipino who have acquired a different citizenship, you may still purchase land in the Philippines:

• FOR RESIDENTIAL PURPOSES - 1,000 sq.m. urban land OR 1 hectare rural land
• FOR BUSINESS PURPOSES - 5,000 sq.m. urban land OR 3 hectares rural land

So in essence, you can still own a maximum of 1 hectare rural land for residential purposes AND 3 hectares rural land for business purposes.  In other words, you can still own a total of 4 hectares of rural land if you're a former natural-born Filipino.  This of course doesn't include land that you inherit.  These laws only apply to land you can buy after becoming a "former Filipino."

In my honest opinion, dual-citizenship rocks!  You can still call yourself a Filipino, AND you get to buy land properties in the Philippines without any limits!

Wave those two flags,
Jon

More About "LOVE" or Pag-IBIG

Guess where I will take you?

Of course, when I say "LOVE" I mean Pag-IBIG, otherwise known as the Home Development Mutual Fund or HDMF.  I notice a lot of people don't know how to use it, and don't understand it.  So, I wrote a Pag-IBIG Primer, available for FREE on my Facebook page "I'll House You 4 Real."  All you need to do is to visit my page and LIKE it, and you'll get my Pag-IBIG Primer, along with my FREE REPORT on what you need to know to buy real estate with confidence.  It's exclusive to my page's followers, so be sure to go over to http://facebook.com/ihy4real right now and get it!