2013: New Year. New Hope.

It's 2013!  How time flies...  Happy New Year!

2012 was a tumultuous year for me.  I'm proud to say that I learned a lot about myself, and I was able to do some things I didn't know I was capable of.  I had the pleasure and honor of working for an Ayala Land subsidiary (Alveo Land), and I met some cool hardworking people in the course of that stint (shout out to Orange Stallions!).  I'm happy to say that my confidence went up accordingly, even as my wallet got lighter overall.  I'm also ecstatic to add that last December 15, 2012, my fiancee and I went ahead and 'officially' got engaged by telling our parents of our plans to settle down by December 2013 (woot woot!!!).

Now, it's 2013, a new year again.  It's time to really buckle down and start making some serious income.  So I decided to go back to the BPO industry to get a steady income which is badly needed, especially with the upcoming events.  I'm not saying goodbye to real estate, though, I'm just going to let it take a back seat for now.  After all, I am a licensed broker, and that distinction is NOT easy to come by, especially in the years ahead, with plans to finally require a real estate course in college before you can get a license.  However, if you want to get me as your broker to help you buy or sell property, just holler (or contact me via my Facebook page).

So this short post is only to greet you good people out there, and to announce my intentions.  I know that things will work out, and good things will come to pass this year.  For the licensed professionals like me, it's additionally the time to renew your CoR (certificate of registration with the BIR) and the PTR (with your local municipal hall).  That's another Php 800 right there.  But you know what they say, the only things permanent are change, death, and taxes.

Happy New Year!  May God bless us all.

- jon

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

For Announcement Only: The Aventi Townhomes

Wow, I haven't blogged in such a long time!  Once a blogger, always a blogger I guess.  It's one of those things you just have to do, otherwise it's going to nag at you after some time.  So here I am again, with one project I'm proud to present - The Aventi Townhomes.  Located along Panay Ave. in Quezon City, this townhouse development is ideal for those who want everything to be close by.  Sure, those who work in Makati or The Fort might have to take some shortcuts, the location still is ideal overall.  It's flood-free, in a relatively quiet neighborhood, just a few blocks from schools, the Amoranto sports complex, Capitol Medical Hospital, and the lively Timog area for all your gastronomic and party needs.  More than that, this is a green development, designed to reduce electricity needs which lowers your overall electric bill!  It's beautiful and practical, and priced just right for the value and benefits you get!

Here's a gist of the project:

• Townhouse property, not condo.  You get a title for the land and the house (TCT)
• 4-storeys, 115 sq.m. lot area, 350 sq.m. floor area, 3-car garage
• Maid's room, driver's room, small office or guest room, den, family room, garden
• 200K to reserve, 16-17M to own, turnover tentatively this December 2012

For more information and tripping, please contact me! 

Sale of Principal Residence

Just a short post about the capital gains tax exemption on the sale of your primary residence.  What this means is, you're selling your main/primary residence, and moving to another residence that will become your new primary residence.  In this case, you get a capital gains tax exemption.  From the BIR's website:

• The proceeds of the sale of the principal residence have been fully utilized in acquiring or constructing new principal residence within eighteen (18) calendar months from the date of sale or disposition; 
• The historical cost or adjusted basis of the real property sold or disposed will be carried over to the new principal residence built or acquired;  
• The (BIR) Commissioner has been duly notified, through a prescribed return, within thirty (30) days from the date of sale or disposition of the person’s intention to avail of the tax exemption;
• Exemption was availed only once every ten (10) years; and  
• There is no full utilization of the proceeds of sale or disposition. The portion of the gain presumed to have been realized from the sale or disposition will be subject to Capital Gains Tax. 

In case of sale/transfer of principal residence, the Buyer/Transferee shall withhold from the seller and shall deduct from the agreed selling price/consideration the 6% capital gains tax which shall be deposited in cash or manager’s check in interest-bearing account with an Authorized Agent Bank (AAB) under an Escrow Agreement between the concerned Revenue District Officer, the Seller and the Transferee, and the AAB to the effect that the amount so deposited, including its interest yield, shall only be released to such Transferor upon certification by the said RDO that the proceeds of the sale/disposition thereof has, in fact, been utilized in the acquisition or construction of the Seller/Transferor’s new principal residence within eighteen (18) calendar months from date of the said sale or disposition. The date of sale or disposition of a property refers to the date of notarization of the document evidencing the transfer of said property. 

In other words, if you're selling your primary residence, and you intend to use the proceeds to buy or construct a new primary residence, you have to let the BIR know within 30 days of the sale of your intention to do so.  Additionally, the money from the sale of your primary residence has to be utilized in full within 18 months or else anything that is left over will be subject to the capital gains tax.  You can only avail of this exemption once every 10 years, and once you sell your old primary residence, the 6% capital gains tax will have to be deposited first in an authorized partner bank of the BIR and will only be released to you once it is proven that the full proceeds of the sale (less the 6% of course) was in fact used to buy the new primary residence.

Just making sure everybody is aware of this so you can save some money that you would otherwise pay to the BIR.

That's it pancit.

Jon

New Sales Paradigm

Okay, it's not really new.  I just said so to get your attention.  So, what is this sales paradigm?  It's very simple, one that bears remembering for those who would like to pursue a career in professional selling.  This is how a person should divide his time and effort in order to make a career in selling.

• 1st Step (40%) - Foundation building, rapport, trust building, establishing credibility
• 2nd Step (30%) - Establishing needs (lacking/wants/needs), fact-finding, qualifying
• 3rd Step (20%) - Presenting features and benefits based on needs analysis
• 4th Step (10%) - Confirming understanding, answering objections, closing the sale 

 Of course, this is rather condensed.  There are a lot of things that go into selling, but this is the basic structure.  Nowadays, the effective salesperson spends time building relationships.  To build relationships you need to give 3 things:

• your TIME
• your CARING
• your RESPECT

 Maybe some of you would think "Why should I waste time building relationships in selling?"  Well, the short answer is, because people will not buy from people they don't like and trust, unless you're the only one selling what they want/need, and they want/need it badly.  Otherwise, if they can get it elsewhere, and they don't like and trust you, you don't sell.  In most cases, as long as people like and trust you, and you were able to demonstrate that your products' value is worth more than what they would pay for it, you would be immensely successful in this profession.

Of course, in majority of cases, the price issue will always be the last objection.  People have a wealth of options now, and if the cheaper alternative is acceptable, your last ace is if they like you enough to actually buy from you despite your product being more expensive.  Sometimes, even that's not enough, and people will buy the cheaper alternative despite liking you and despite you demonstrating that your product's value outweighs the price.  Remember not to blame yourself in those situations.  Some people are just like that, price over quality and service.  In most cases, people like those will get what they pay for, and they'll eventually come around to your side of the fence.  Most times, those kinds of people are really on a tight budget, so money really is an issue.  It's okay, other people value quality and service over price, so concentrate on finding more of those kinds of people and build relationships with them.

Finally, I'll share with you the 7 traits of the top salespeople according to Brian Tracy:

• Ambitious - hungry, always setting goals and sees quotas as a minimum
• Courageous - faces fears, unafraid of failure, unafraid of "NO"
• Honest - reliable, genuine, does not exaggerate, does not speak ill of the competition
• Empathetic - understands the client, listens fully, sensitive to needs
• Professional - sees themselves as consultants, expert adviser, knowledgeable, problem-solver, asks pertinent questions
• Prepared - does research, gets updated information, knows the material and details
• Responsible - accepts responsibility and makes no excuses, in charge of own life

To your success!

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

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!

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