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