June 30 2007, it was the day when I attended the Basic Orientation Course provided by Land Asia which was my first encounter with real estate business. Beginning with a curious mind to explore what it was all about, undergoing tremendous learning and training process, experiencing the battle field in real estate selling and now I am addicted to it.

I like real estate is not only because there is huge potential to have above average income which can provide a decent life for my family but also it is a noble profession to provide a necessity that everyone needs, a home. There are a lot of excitements in conducting this business. But if you prefer to have a simple job and do not like to deal with people, real estate is not for you.

Real estate business can be simply described as to provide a property to a buyer, close the deal and get the commission. But in reality, the simple process can be complicated to handle due to our non-uniformed human nature. In order to excel in this business, you must be capable to know yourself, your product and understand your client well. Certainly we cannot disregard our fellow real estate practitioners who can help or compete with us. Because of the constant changes in the environment, in order to survive in the business, you must keep on learning and improving yourself so that you will not be left behind by your colleagues.

The nature of our business gives us opportunities to deal with different kinds of people with different attitude in different walks of life. If you cannot adapt changes to provide the needs of your clients, you will be outdated. To keep yourself in always updated and upbeat status, you must have consistency in learning, determination to pursuit the goal and patience in handling your client. Laziness must be denied. Honesty is a safe pass for you to have a strong foundation in your business. Short term gain out of dis-honesty will never achieve a long term goal because corrupted personality cannot fool others forever.

Although my experience in real estate is only less than four years, certainly, I may not be qualified to comment or try to perceive myself as an expert in this business. All the observation and understanding of the above are only my little contribution to be shared to our dearly real estate practitioners as my 4th anniversary gift. I hope you can make good use of it to become successful in this business and minimizing unnecessary unhealthy competition among ourselves. Up hold our ethics in practicing our business.

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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 P1 million, 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.

Posted by:
Raymond Ong
Chief-Land Asia Institute Philippines
http://www.landasia.com.ph
http://www.cebuhome.net

Mobile No.+63920-2666080
Mobile Landline No.+6332-5158989

Venue: Land Asia Realty & Development Corp.
Corporate Training Center
Unit 4, Ground Floor,
Geson Building,
D. Jakosalem Street,
Cebu City,
Cebu, Philippines.

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MARKETING & COMMUNICATIONS OFFICE

PRESS RELEASE

Land Asia Realty & Development Corp. and its subsidiary Land Asia Global Properties Network became the first to visit Johndorf Ventures new office on September 26, 2008 located at Ayala FGU Bldg. in Cebu Business Park.

The activity also showcased the new projects of Johndorf Ventures that will boost the buying power of the public as it provides value for money and quality of the projects they have delivered.

Land Asia on the other hand trooped to the venue with more than 50 property consultants in attendance and was treated with prizes and games. It was truly a half day filled with fun and laughter and all enjoyed the moment of a get together.  The activity was capped with a certificate of recognition that was awarded by Johndorf to Land Asia by Johndorf’s Marketing Manager Ms. Glenda Tupaz gladly accepting the award in behalf of the whole Land Asia organization is Joey Sison, Vice President for Marketing & Communications.

The staff and the whole participants were graced with a surprise song number by the Project Marketing Manager GID Eddel Ilustrisimo who performed a song of American Idol’s David Cook to the hearts delight of the whole marketing staff of Johndorf and were each given flowers upon the song’s rendition.

Indeed the activity was a strong bond of developer support and marketing commitment.

To know more about Johndorf projects you may contact Land Asia Realty and Development Corp. and visit our website at www.landasia.com.ph or www.landasiaglobalproperties.com 

By: JYS

The recent turn of events in the world of high oil price, directly or indirectly affect our real estate industry. As we can understand that oil is a precious commodity. Its price fluctuation gives direct and great impact to other products, commodities or services which also affect the economy. Especially as an oil import dependent country we are, higher oil price means a bigger burden for our development. Higher electricity rate because of higher fuel costing unavoidably increase our cost of living. Manufacturers have to increase the price of their products so as to compensate the higher cost of materials and production. Transportation freight charges do need an upward adjustment due to the fuel rise. Products have to suffer a higher delivery cost. As we know our real estate industry has an undeniable dependency on the supply of steel and cement. Therefore can you imagine if our steel products price has a rise of more than 100% since last quarter of year 2007 up to now, what influence it can cause to our industry. Developers have no recourse but to increase the price of their products, real estate property. As far as I know, property prices have been increased a few times since this January 2008 especially frequent since May 2008. It makes houses affordable to buyers previously become more expensive. Some of these buyers who can buy before with tight budget have to hold back their purchase because of lack of capacity. Investors will either reconsider their purchase since it is less profitable or wait for the lowering of the price. These simple and sudden change of purchase habit, effectively reduce the thrust of momentum to propel our real estate industry to a higher level. As we know the principle of supply and demand, lesser buyers will have an adverse effect on our industry. Not only we have to concern about the lack of buyers, the developers’ capacity to complete their projects within their previous budget to deliver the properties that buyers have purchased with a lower costing is also questionable. Sad to say developers with lesser capital may default their promises to the poor buyers who have reserved and purchased properties due to lack of interest, lack of funding or lack of profitability.

As we cannot avoid in keeping our business within our industry since it is our bread and butter, we should have some adjustment of our strategy towards our industry, in spite of the present scenario, in order to survive and sustain our income. Since people cannot avoid in having a place to abode, if they cannot own, then they have to rent. Therefore, incapably home buyers will become home lessee, whether it is residential or commercial property. As for investors, in order to sustain their profit in investment, they will look for property with lesser cost to invest. Where can they possible to have lower cost property during the present situation of higher costing in construction? Who are willing to sell their property when the par value of property is warranted by the situation to have a higher price? I suggest we should take a look on foreclosed property. We all know that foreclosed property is owned by a lender who acquires its possession and ownership as a result of the default of the borrower to settle his obligation. No lender will be out of his mind to grant a loan to a borrower more than the fair market value of the collateral property which is used to secure the repayment of the loan. The loan amount is usually a fraction of the fair market value. Therefore, actually, the lender acquires the foreclosed property way below the fair market value whenever the borrower cannot afford to settle his obligation to the lender and transfer the ownership of the collateral property to the lender as stipulated on the agreement of the loan which we call mortgage. Whenever the lender wants to convert the foreclosed property, always a non-performing asset without earning interest, into liquid asset such as monetary currency to continue the cycle of lending in order to earn profit, he is willing to dispose of the foreclosed property even below fair market value but not less than the outstanding loan.  Because of this kind of sacrifice, buyer of foreclosed property can easily acquire bargain priced property way below fair market value. The miserable lost of the borrower will become the potential gain of the investor who purchases the foreclosed property.

In conclusion, I can say that even we may have some difficulty in our regular real estate activities in selling project properties, we may have alternatives in positioning ourselves in the renting and foreclosed property market or even brokerage properties owned by private owners who can be more flexible in adjusting the selling price according to their needs. My personal opinion is that the foreclosed property market is the most stable market in the real estate industry especially for investors, whether in good times or in bad times, except that it may not provide you the exact property that you need or you may have to invest for improvements before you can re-sell it for profit. As for a brokerage firm, comprehensive listings in all avenues will have more advantages in weathering all kinds of situations that we have to face and encounter.

Please feel free to contact us for whatever information and advice you need relating to Cebu real estate.

website: http://www.cebuhome.net/

Email: 8raymond@gmail.com, raymond8888@yahoo.com, raymond-8888@hotmail.com

Skype: raymond-8888