VICE President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees,  today  announced further adjustments to its end-user financing program, this time creating additional housing loan brackets with corresponding lower interest rates. The rate adjustments are aligned with the redefined housing packages set by the HUDCC.

The new Pag-IBIG housing loan interest rate structure retains the 6%-rate for loans up to P400,000, and 7% for loans over P400,000 up to P750,000. 

Interest rates have been slashed from 10.5 percent to only 8.5% for loans over P750,000 up to P1million, and to 9.5% for loans over P1 million to P1.25 million.

Meanwhile, interest for loans over P1.25 million to P2 million remains at 10.5%. 

Along with the latest rate adjustment, the Pag-IBIG Board also approved the increase in maximum loanable amount to P3 million, at an interest rate of 11.5% per annum for loans starting at over P2 million. 

De Castro said the latest amendments in the Pag-IBIG housing loan program are intended to make the program more affordable to members, especially workers in highly-urbanized areas whose housing needs often range from more than P750,000 up to 1 million.  Likewise, with the Board’s approval of raising the loan ceiling to P3 million, Pag-IBIG will be able to meet the home financing needs of members belonging to the middle-income earners.   “This should give Pag-IBIG members a wider range of choices in buying a house,” he said.

Over the last two years, the Fund has implemented significant improvements in its end-user financing program.   In 2007, Pag-IBIG has reduced the interest rates for loans over P300,000 to P750,000 from 10.5% to 7%.  Earlier this year, the socialized housing bracket was expanded to cover loans of up to P400,000. 

With the new changes taking effect April 1, Pag-IBIG member-borrowers can look forward to more value for their money as well as savings especially at this time of economic difficulties.  “The savings given the lower monthly amortizations should convince Pag-IBIG members that buying their own home is a more practical alternative to renting,” De Castro added.

Members who avail of a P1 million housing loan stand to save 15.94% per month with amortizations of only P7,689.13 (covering principal and interest) over a 30 year period, compared to P9,147.39 under the old rate  of 10.5%.

Year-on-year figures show the Pag-IBIG Fund is able to maintain the growth in its housing loan takeout.  From P4.59 billion, the Fund recorded a P5.83 billion total takeout from January to February of the current year, representing a 27% increase.

“The demand for housing, especially from the low and middle-income earners, continues to be strong despite the global financial crisis,” he said.

Following these amendments in the Pag-IBIG housing loan program, the Fund expects to maintain a steady growth in loans granted to members and attain its target of P43 billion takeout for 2009.  “This will further sustain the housing sector by providing financing to home buyers at very attractive, affordable rates,” De Castro said. (end)

PROPERTY owners in Cebu are not lowering the rates of their projects despite the economic crunch, a real estate industry
official said.

This is caused by a “balance” in the supply and demand of real estate in the market, Philippine Association Real Estate Board Inc. vice president for Visayas Tomasito Academia said.

Panagbenga 2009 blog

“Cebu is better in terms of real estate compared to other areas in the country, like the National Capital Region where (most) property owners there are lowering their prices. People here know that the crisis is only temporary,” he said.

Even when the industry anticipates a “gradual” slowdown in the local real estate industry, stakeholders remain optimistic as  real estate-related activities in Cebu are continually “moving.”

Migration

Academia attributed this to Cebu being a preferred point of migration by both locals—especially those from Region 9 (Western Mindanao)—and foreigners.

“Many are coming to Cebu because the commercial activities here are fast and are working. The peace and order (situation) is better here. And the tourism industry is very attractive,” Academia said.

The growing number of condominiums being constructed in the province manifests an “active market,” he added.

While Cebu still has a lot of room for property development, he asked developers to improve the quality and cost of their products “from good to even better.”

Products

While all types of real estate products—residential, commercial, agricultural and institutional—have a fair share of demand in the market, he lamented the backlog in the availability of low-cost housing products, which are in demand due to their affordability through the Home Development Mutual Fund (Pag-Ibig Fund).

He noted that not many developers are coming up with more low-cost housing projects due to their low profit margins. (NRC)

Source: http://www.sunstar.com.ph/cebu/demand-keeps-property-owners-%E2%80%98confident%E2%80%99

Real estate prices as financial soundness indicators

Real estate has been a neglected area because it has always been treated as an independent sector. Now, the real estate sector is viewed as a significant contributor to the financial position of financial institutions in terms of mortgage loans as well as asset holdings. Thus, real estate prices are critical for the financial sector and in terms of measuring the wealth of the country. This is an area where information is lacking. In our country, there is no agency that collects real estate market prices.” This comment was received by the International Monetary Fund (IMF) in response to comments on the draft Compilation Guide on Financial Soundness Indicators (Guide) that was posted on the IMF’s public website in March 2003. It sums up succinctly a common view of real estate prices from both the user and compiler perspectives. The data are needed but are lacking.

What are financial soundness indicators?

Financial Soundness Indicators (FSIs) are indicators of the current financial health and soundness of the financial institutions in a country, and of their corporate and household counterparts. They include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for the purpose of supporting national and international surveillance of financial systems. In short, the development of FSIs is a key tool in the IMF work to strengthen financial system stability.

This initiative was prompted by the financial market crises of the late 1990s and the growing observation of the number of banking crises that has occurred globally in the last two decades. As has been well reported in research by the IMF, BIS, and others, there are significant costs arising from these crises, both direct (such as the cost of recapitalising the deposit-takers) and indirect (such as the loss of real economic activity), and this has demonstrated a need to develop a body of  statistics that could support policymakers in identifying the strengths and vulnerabilities in their financial system and in taking action to prevent the likelihood of such crises occurring.

FSIs are only one part of the IMF’s work in the field of crisis prevention, and of course the IMF’s work itself is part of a larger international effort, including the Bank for International Settlements and others. Notably, FSIs are an input into the IMF-World Bank Financial System Assessment Program (FSAP). This programme is designed to identify financial system strengths and vulnerabilities and to help develop appropriate policy responses. More information on FSAPs, including the countries that have participated, is available at http://www.imf.org/external/np/fsap/fsap.asp.

Where do we stand with the FSI project?

The work began in 1999 with a conference of experts in the field of financial stability issues. That  conference was similar to this one on real estate, with private and public sector experts exploring key user and compiler issues. Taking forward the outcome of that meeting, and after undertaking wide consultation, in 2001 IMF staff presented the IMF Executive Board with a list of FSIs, which it endorsed. The list (attached) is divided between core indicators and encouraged indicators in order to help prioritise future work at the national level. All the core indicators - FSIs considered to be useful in all countries and generally available - relate to deposit-takers, which are institutions that are central in all financial systems. The encouraged FSIs include real estate prices and the extent of deposit takers’ exposures to residential and commercial real estate.

Where do real estate prices fit into FSIs?

From the very start of the work on FSIs at the conference for experts, it has been evident that for most economies monitoring real estate prices is important for financial stability analysis. Others will discuss this issue in more depth ahead so I will not dwell on the reasons why, but simply note that from the viewpoint of deposit-takers, and other sectors, there can be large exposures (both direct and indirect) to an asset whose price can be volatile not least because of the actions of lenders themselves. For this reason, residential and commercial real estate prices are included in the list of FSIs along with
deposit-takers’ lending on such real estate.

We expect that implementing the new Guide is likely to prove a medium-term rather than a short-term process. This is nowhere more true than in the field of real estate prices.

Types of questions raised

Finally, let me turn back to the author of the quote at the start of this presentation. The commentator went on to raise a number of possible technical issues that could be discussed. I leave them as examples of the types of questions that those who want to move forward with real estate prices are

asking:

1. “How do we deal with the large diversity in residential and non-residential buildings?
2. Another problem is the lack of an inventory of residential/non-residential buildings. How is this compiled?
3. How are prices for real estate assets collected? Can unit values be used instead of actual prices? Does market price refer only to current cost of construction and land or the selling price of the real estate unit?
4. How do we deal with conversions of agricultural land to commercial properties? Prices can increase significantly.”

I often hear stories about real estate deals that went bad, sellers who were charged very high commissions, buyers who were harassed by brokers for a commission, and realty practitioners who were not justly paid for an appropriate commission by the sellers or by their co-brokers.  Now as a realty practitioner how do you protect yourself and your clients from these unhealthy, and often fraudulent, practices? How do you avoid the frustrations of being tricked into a deal which was very promising in the beginning?  How do you gain acknowledgment as a professional in a business that you know you are good at and that is providing you high unlimited income?  The answer is simple—get a real estate salesman license.

The first thing that gets affected when you don’t have a license is your ability to market the properties.  You will be limited to your own means.  You cannot attend exhibits and other developers’ activities that give you the chance to meet prospects because at least a real estate salesman license is required. 

Whatever marketing strategy works best for you, a real estate salesman license will give you a more secure and wider coverage to market your business and thereby gives you a bigger chance of finding potential clients that will respect and acknowledge you as a professional in the business.  Marketing strategies and real estate laws in the Philippines is changing and so should you.  Along with these changes come new rules and regulations set by the authorities which you have to abide by and follow in order to remain successful in this business. 

A real estate licensed salesman, specifically of Land Asia, gets the benefit of being well-informed about his rights and responsibilities in relation to the government, to the public, to the client, to his fellow practitioner, and to his organization, because we are a company that highly supports continuing education of these licensed salesmen.  Securing a license doesn’t end once you get your license card; in fact, it is only the beginning of your education as a professional realty service practitioner. 

Like all other professions, you are bound to a National Code of Ethics for the Realty Service Practice.  A Land Asia real estate licensed salesman doesn’t have an excuse to ignorance of these laws and ethics because we make sure that you are well-educated, updated, and well-informed of new regulations that affect your realty service practice.  We promote highly competitive real estate licensed salesman who knows what he is doing wherever you put him in the globe.

Remember that you are no ordinary person when you are in real estate.  You must be trustworthy—your client’s lifetime investment is in your hands, you must have the skill to negotiate, you must be analytical, you must be patient and persistent. 

As a true-blue Realtor, I encourage my colleagues to get a license to protect them from unfair competition. As a citizen becoming a professional in a field that you love, that you are very good at, a genuine license is also a way of empowering yourself, building high self-esteem, and boosting your self-confidence.  

The qualifications of an applicant for the real estate salesman license are the following:

1.    He is at least 21 years old;

2.    He is honest, truthful and of good moral character;

3.    He has not been convicted of any offense involving moral turpitude. As proof, he shall submit to the Director his clearance either from the Clerk of City or Municipal Court or Regional Trial Court of the locality where he has resided or held office, for at least one year immediately prior to the date of application or from the National Bureau of Investigation.

IN THE CASE OF SALESMAN, HE SHALL SUBMIT A RECOMMENDATION OF THE EMPLOYER BROKER INSTEAD OF THE AFORESAID CLEARANCE.

4.    An applicant for a license as salesman must have satisfactorily completed at least HIGH SCHOOL COURSE OR ITS EQUIVALENT WITHOUT TAKING QUALIFYING EXAMINATION.

Source: Article V, Section 4 of Ministry Order 39

Land Asia with its effort to support its members obtain their real estate salesman license will assist in the processing of the license at no cost at all.  As a Land Asia member all you have to do is to comply the following requirements set by DTI:

1.    Original copy of NBI clearance.

2.    Original copy of Transcript of Records or Diploma.

3.     3 pieces 1×1 picture.

4.     Payment of P2,100.00 license and insurance fee.

Breakdown of payment:

- HLURB fee – P750.00

- DTI fee – P600.00

- Insurance – P750.00

This is your chance to become a professional in your business.  Get it now and forget your worries.

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Cebu’s beautiful homes

than any other website

LandAsiaBIGSellers.com 

 

Condo Unit for Rent in Cebu City

Most of the residents in cebu prefer to buy a condo unit specially if it is coveniently located wiuth in the Metropolitan Area of Cebu. Cebu City, Mandaue City, Talisay City, or Lapulapu City.

CEBU CITY, Philippines–An estimated P10-billion residential community is being developed in the mountains of Cebu City.

Monterrazas de Cebu, which literally means mountain terraces, sits on a 200-hectare property and cuts across three barangays (villages) — Labangon, Sapangdaku and Guadalupe.

It is a joint venture of Landco Pacific Corp. and Genvi Development Corp.

Landco president and chief executive officer Alfred X. Burgos said they are currently developing the highest peak (Peak 1) of the eight hills, which covers 90 lots.

Around 20 to 30 percent of these lots are now reserved.

This percentage, Burgos said, is proof that there is healthy interest for real estate development from buyers and potential buyers.

Peak 1 is located 335 meters above sea level, which is equivalent to a 105-story building. Considered as the prime lots, each square meter costs P15, 000.

“We start with the most expensive lots to make a statement that Landco is a very high-end developer. With this arrangement, it would be easy for us to move from top-of-the-line to upper middle class targets,” Burgos said.

Francis V. Ceballos, Landco executive vice president and chief operating officer, said lot prices will be “lower as they move to the lower peaks.”

Along with the houses, condominiums will also rise in the site. Other amenities include a resort-inspired clubhouse, jogging trails, fitness and health facilities and theme parks, among others.

The gated community also features a 24-hour security system, including an electronically-controlled entry system, integrated walkways, graded roadways and other facilities.

Developers have also ensured that the community has 24-hour access to the Internet.

Ceballos said Peak 1 will be on continuous development for the next two years, while the entire project will have ongoing developments (considering all its amenities) in the next 10 years.

Drainage system

As for the drainage system, Ceballos said the developers are working closely with the city government to ensure that flooding will not be an issue.

“We are constructing detention ponds so that rain can be detained for a certain period (up here) before it rushes down (to the plain),” he said.

He added that topnotch engineers, who are working on the site’s infrastructure, are cross-matching data from the Philippine Atmospheric, Geophysical and Astronomical Services Administration and the University of San Carlos.

Landco is a multi-product developer of high-quality residential resorts, leisure farms, residential communities, shopping centers and memorial parks.

It developed the world-class seaside communities of Peninsula de Punta Fuego and Terrazas de Punta Fuego located in Nasugbu, Batangas.

A.   Attend a loan counselling session at the Pag-ibig office concerned and be  briefed on the eligibility.Accomplish a preliminary loan counseling questionnaire, Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS). This will find out if one has an outstanding obligation with
       Home Development Mutual Fund (HMDF).  If eligible, secure the following documents:

        * Members Status Verification Slip (MSVS)
        * Notarized Housing Loan Application (HLA), Principal / Co-borrowers
        * Latest payslip duly certified by the employer (Indicate printed name and designation of assigned signatory)
        * Notarized Certificate of Employment Compensation (CEC)
        * Income Tax Return (ITR) with W2 form
        * Proof of billing address (Electric bills, PLDT. water bills, subscriptions, letters, credit card billing)
        * Certified true copy of Condominium Certificate of Title (CCT). Latest title and its trace back through the Registry of Deeds
        * Tax Declaration of the property and/or parking
        * Tax Receipts of the property
        * Contract to Sell (CTS)
        * Special Power of Attorney (if applicable) (SPA). a) marriage contract / Birth Certificate. B. Valid ID’s Passport, License, Voters I.D. SSS I.D., Company I.D.
        * Location Plan and vicinity map signed by surveyor
        * Building, Electric, Sanitary Permits
        * Building / Floor plans signed by the borrower
        * Specification and Bill of Materials signed by a licensed Engineer.
        * License to Sell, Certificate of Registration and Development Permit (if applicable)
        * Note: Incomplete documents shall not be accepted.    Submit two (2) sets of documents. Original / photocopy. Always bring the original for authentication and verification. Filing fee: P1,000

B.   Receive Notice of Approval / Letter of Guarantee and sign loan documents

C.   Proceed to BIR and present Deed of Absolute Sale (DOAS) between the developer of the condo unit and applicant for payment of documentary stamps and capital gains tax (if needed).

D.   Proceed to the City Hall for payment of transfer tax

E.   Proceed to the Registry of Deeds for payment of Registration Fees for the transfer of title.

F.   Proceed to the Notary Public for notarization of Loan Mortgage Agreement (LMA) and annotation of mortgage with the Registry of Deeds.

G.  Proceed to Assessor’s office to secure new tax declaration in the name of the applicant.

H.  Secure occupancy permit from the local government Unit.

I.    Submit the following documents to Pag-ibig office concerned:

      * Original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in case of a condominium unit, in the name of the applicant with annotated mortgage.
      * DOAS with original Registry of Deeds stamp.
      * New tax declaration in the name of the applicant.
      * Updated real estate tax receipt (if applicable)
      * Occupancy Permit
      * Assignment of loan proceeds to the developer

J.   Release of loan proceeds to the developer

F.  Start amortization on the month immediately following loan take out / final loan release.

Important Note: The requirements above may appear voluminous and the steps may be troublesome to follow through. On the other hand, our group of consultants are trained to work closely with developers so that all these requirements will be complied with for our buyers’s worry free transaction and minimal participation in the process. We do not charge any fees for processing or any commission whatsoever. The developers will take care of us and their prices remain the same even if sales are made without the agents or brokers.