Time Value of Money: So What?

I know there have been a lot of speculation and general mystery on  whether or not one investment vehicle is better than the other over a period of time.  Some people think why should they invest their money, and would it be better to invest it elsewhere? 

The answer generally lies in the time value of money (TVM), what a certain sum of money will be worth later in the future depending on a specified rate of return.  For savings accounts, it's typically around 0.375% per annum.  For mutual funds or stocks, around 7%, and for time deposit around 3% per annum.  Specifically for Ayala projects, the rate of return is projected to be anywhere from 8% to 20%, so that should already be a good indication how much the project would be worth after a period of time, especially for our pre-selling projects. 

For example, over a 5-year period, with the above-mentioned rates:

• Savings account: Future value of a 3M investment will be 3,056,673.46
• Mutual funds or stocks: Future value of a 3M investment "could" be 4,207,655.19 (stocks and mutual funds are not fool-proof and carries with it a certain degree of risk especially if not managed properly)
• Time deposit: Future value of a 3M time deposit for 5 years will be 3,477,822.22

Ayala projects with a projected rate of 8% conservatively, the future value of a 3M investment in a condo project such as The Lerato or Kroma Tower in Makati would be around 4,407,984.23 at time of turn-over.  More so now that Ayala is investing around 60 billion in the ongoing development of Makati, real estate property rates will typically trend positively as well.

That's just an example of how much your investment might be worth 5 years from now, with rates remaining more or less the same as they are now.  If you want to read up more on TVM, click HERE.  Play around with a future value calculator to get a better feel of it.

Hope that helps you understand how to make better investment decisions! 

-Jon

Alveo Land: Learn From The Best!

I joined Alveo Land last April 16, 2012.  Although I'm a licensed real estate broker, I joined as a regular in-house property investment consultant (PIC), or a sales agent in other words.  During the interviews, I was asked why I was agreeing to a sort of a step back instead of getting accredited as a broker (which pays a higher commission).  Truthfully, it's not a step back at all.  It's a step forward for someone like me who has no actual working sales background.  So I was elated when I was accepted to their ranks.

For those who don't know, Alveo Land is an Ayala Land subsidiary.  Ayala Land has diversified their real property business to address income segments.  Here's the breakdown for your information:

• Ayala Land Premier (ALP)
• Alveo Land
• Avida Land
• Amaia Land

More people can now enjoy the prestige and value offered by Ayala Land properties because of this diversification.  The diversification does not affect the quality of the properties.  What actually sets them apart is how near the property is to a commercial business district (CBD), and the size of the properties.  For Premier property owners, they enjoy accessibility and proximity to major establishments and business centers.  For Alveo Land property owners, they might have to walk a little.  For Avida Land property owners, one or two rides away.  And for Amaia Land property owners, their property might be on the outer fringes of the city, or already in the suburbs, which makes it very affordable.

Our current projects in Metro Manila are:

• The Lerato (tower 2) - pre-selling, turnover in 2016, Malugay St., Bel-Air, Makati
• Kroma Tower - pre-selling, turnover in 2017, Dela Rosa St., Legaspi Village, Makati
• High Street South - pre-selling, , south of high street in Bonifacio Global City
• Two Serendra - The Sequoia - pre-selling, final tower in Two Serendra, Bonifacio Global City
• Ametta Place - townhouses in Pasig City, turnover in 2012
• Ferndale Villas - townhouses in Quezon City near Commonwealth Ave., turnover in 2014
• Celadon Park (tower 2) - condo within Celadon Residences, Sta.Cruz, Manila (behind SM San Lazaro)
• And the one in Tagaytay - Kasa Luntian, pre-selling, turnover in 2017

It's been said that Ayala properties are expensive...  But are they, really?  If you're serious about real estate, sooner or later you'll start thinking of Ayala properties.  The Ayalas have been in the Philippines for more than 100 years now, and they have a reputation to protect, so you can always expect the best and the finest from Ayala properties.  Ayala properties are not the lowest priced, that's true, but they're the lowest risk (and ISO-certified!), and if you know the value of money, that should be enough to tell you why Ayala properties are very well regarded in the industry.

So what are you waiting for?  Our inventories are always almost sold out within 1-2 years of launching.  Invest wisely.  Invest in Alveo Land.

We have an ongoing promo for The Lerato, and now is the perfect time to invest in Makati.  Wanna know more?  Call me, text me or email me, I'm here for you.

 
Live Well,
Jon