Feed: Jump now, Fly later. - AggScore: 50.1

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

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! 

Kickstart The Sales Process

---

So how do you motivate people to buy from you?  As I mentioned in my last post, if your product is unique, and you're the only one selling it, and it's something that is needed and wanted, you'd be laughing your way to the bank, and you don't even need to be nice or build relationships.  However, that's not very likely.  What should you be looking at to improve your odds of selling then?  We should look at the reasons why people buy.  As far as I know, there are 3 reasons why people buy:

• There's a need and/or want that has to be satisfied; and/or
• There's a dissatisfaction from a product/service that has to be alleviated; and/or
• There's a problem that has to be solved.

Knowing the reasons why we buy, what then motivates us to buy?  What hastens the decision-making process to make us part with our hard-earned money and overcome the fear of failure (failure of making the wrong choice/decision)?  According to the venerable Brian Tracy, there are 7 motivators to the buying behavior, provided any or all of the 3 reasons to buy exist:

• Money - the offer will make more money for the buyer
• Lower Cost - the offer will save money for the buyer
• Convenience - the offer is more convenient or bring more convenience
• Speed - the offer saves time or does not waste time
• Beauty - the offer satisfies the aesthetic taste of the buyer or makes the buyer feel beautiful
• Ego - the offer gives the buyer the impression of being first in line or top of the line or state of the art or the object of envy; boosts the buyer's pride and self-image
• Position (business sales) - the offer improves the buyer's position in the company and/or in the eyes of his/her immediate superior

Okay, long story short, the objective is to show people that buying your product will improve their lives dramatically in ways that are important to them.  Let's now move to the questions that you have to be ready for when you offer your product or service.  Keep in mind that even if your product or service answers a need and/or want, solves a problem they have and alleviates dissatisfaction, you have to be able to prove this to them.  The questions that you have to be able to answer are:

• "Why should I listen to you?" and "So what?" - You should be able to hurdle these two questions when you first approach a prospect.  Imagine your prospect asking you why they should listen to you, and for whatever answer you have to that, the next question is "so what?"  The purpose of keeping these two questions in mind is for you to focus on how you can help the prospect better than anybody else.  This will help you think of ways to position yourself and your product/service that will make it hard for your prospect to ignore you and the solution you have for whatever problem they have.
• "Who else has done it?" or "Who else has bought this product/service?" - This is all about social proof.  We all want to know who else owns it or who else has had the same challenge we have that the product/service has helped.  We don't want to waste time, we don't want to unnecessarily take a risk and buy something that nobody else has bought.  The best social proof is somebody who's relatively famous or well known.  If you can bring out signed testimonials of people who own and enjoy your product/service even if they're not famous, that will still be better than nothing at all.
• "Who says so other than you?" - This is a subset of the previous question.  When you claim something about your product/service, remember that your word doesn't mean much because you stand to gain from the sale of it.  Hence, the buyer will always remain skeptical of your claims.  We are all aware of how unscrupulous salespeople have played up the features and benefits of whatever they're selling, so that only brings up a defensive barrier.  A testimonial that specifically backs up your claim will come in handy here.
• "What do I get?" and "What's in it for me?" - You prepare for this question by making sure you know what gets delivered to your buyer if and when he makes the purchase.  Make sure to equate features with benefits that are important to your prospect.  Just like in real estate, when you present, you have to know what comes with the house and what doesn't.  You can't say "I'm not sure..." because that will definitely cast doubt on your competence, even if it's not your fault that you don't have the information because the seller/developer withheld it from you.  In other words, it's your job to find out everything you can about the product/service that you're selling so you can inform your prospect what's included and what benefits he will enjoy that will satisfy a need/want, and/or alleviate his dissatisfaction, and/or solve his problem.

More Sales!!!
Jon

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

It's January, Time To Pay Your Real Property Tax!

---

It's a new year, and every new year comes with it the responsibility to pay your real estate property taxes, otherwise known as "amilyar."  It's a necessary evil of owning land and property, so don't worry about it and just grin and bear it.  After all, it's all worth it, right? (sound of silence and crickets)

Anyway, just for your information, and as sort of a guide, this here's a short post (really! I promise!) on the topic of real estate property tax.

Collection of Real Property Tax
The real property tax for any year shall be due on January 1 and from that date on, it shall constitute a lien (statutory lien) on the property, to be extinguished only upon payment of the tax and/or any late fees associated with it.  The tax may be paid in four (4) quarterly installments, which shall be paid on or before the last day of the quarter.

Installment Due Dates:

• 1st installment - on or before March 31
• 2nd installment - on or before June 30
• 3rd installment - on or before September 30
• 4th installment - on or before December 30

Tax Discount on Advanced and Prompt Payment
If the tax is paid on time or in advance, in accordance with the prescribed schedule of payment as provided in Article 341 of Republic Act 7160, you may get a discount not exceeding twenty percent (20%) of the annual tax due.  Prompt payments may be given a discount of ten percent (10%) while advanced payments may be entitled to the maximum discount of twenty percent (20%).

Penalty For Late Payments
Unpaid real property tax is subject to a penalty of two percent (2%) per month interest accruing up to a maximum of 36 months or 3 years.

In other words, the penalty only starts accruing after March 31.  So if you want to save some money, I suggest you pay your real property taxes well in advance, if you can afford to do so.  Might also be a good idea to start putting that into your annual budget so you can plan for it in advance.

Till next time, Happy New Year!!!

Jon

*Image above from discoverspringtexas.com, used without permission.

What's The Plan?

---

A couple of months ago, prior to when I stumbled onto the works of Mike Brooks, Brian Tracy and Tom Hopkins, I had a vague image in my mind of what I wanted: a house of my own, a new vehicle, and to get married to my fiancee Me-an.  As far as I know, those were my goals. 

The problem was, I didn't know how to make them come true.  I was trying to hit those targets in the dark.  Sure I passed the licensing exam for real estate brokers, but that didn't really get me any closer to making my goals come true.  My only thought was: if I sell enough, I'll have enough money to hit those goals.  So a couple of weeks ago, a thought hit me back: how am I going to sell enough to make enough money to hit those goals???  Yeah, I know, sometimes my mind is slow to the point of stupidity, but I'm glad I finally came around to the question.  Result: I started looking around online for instructional materials on sales, motivation, and goal-setting.  Hence, the 3 aforementioned gentlemen. 

Listening to their works was like magic!  My mind started to open up to the reality of selling, and how difficult it really is.  I always had this impression that selling was straightforward: if there was a need, just offer the product that answers the need and voila!  Boy was I surprised!  There were steps necessary like prospecting, qualifying, presenting, then finally closing the sale.  There is etiquette involved, tactics and strategies, and mind-altering mental instructions and affirmations!  There's bits and pieces about family, health, friendship, teamwork, and so much more.  More than that, the goal-setting instruction that I got specifically from Brian Tracy has got me moving.  Now, I have real goals, and action plans and steps that I must take to make them happen.

So, what's the plan?

Find out what you want to do, make plans and steps to achieve that, and pay the price willingly.  In other words, keep studying to arm your mind with new ideas and ways, and keep keeping on and never give up.

So, what's changed?

Good question.  At the very least, I've started to learn Tai Chi.  I've started an abs workout to trim my waistline.  And I've set a 200 meters target for my weekly swimming activity.  For my financial health, I have made plans to learn investing in mutual funds and stocks, as well as joint ventures, and buying and selling properties.  I have to fine-tune the action steps, but I now have a light leading to my goals, and that's the best gift I'll ever get this Christmas, maybe for the rest of my life even. 

My goals:
"I earn at least Php100,000 a month by March 2012."
"I own a 3-bedroom townhouse in San Juan by January 2013."
"I own and drive a Mitsubishi ASX by April 2012."
"I marry Me-an by December 2012."
"I enjoy traveling abroad and going to beaches with Me-an by January 2013."
"I own and use a Motorola Xoom by March 2012."
"I am strong and healthy by February 2012."
"I secure an educational plan for Kyle by April 2012."

When The Torii Residences starts selling, you better believe my life's gonna start moving very quickly towards those goals!  I can't wait!!!  Everyday, I'm gonna look at my goals and visualize my house, my car, my wedding, my tablet, my strong and lean body, and my kid's educational plan.  Those things will happen, as sure as the sun rises everyday!  I'm gonna keep keeping on until I can write new goals towards bigger and better things!  Hmmm... Maybe I should upgrade to a 4-bedroom townhouse?

Upgrade your life!!!
Jon

Bank Financing: Understand the Appraisal

---

I'll make this a short post, just to clarify some things about the bank financing appraisal process.  Mostly for my benefit really, so I don't forget haha!

So, let's say you want to buy a townhouse unit from a seller.  The seller agrees to 20% downpayment and bank financing, because really, it's the same banana, and the seller will get paid anyway.  The question is, what do you do to get bank financing?  Well, first of all, go to a bank and ask them for their requirements for the appraisal.  That would usually be a certified copy of the TCT (or CCT if condominiums), etc.  You will also have to pay for the appraisal fee (typically 3 - 3.5K within Metro Manila).  After a week or two, the bank will then let you know how much the property is worth according to their appraisal (fair market value) and up to what percentage they're willing to finance it.  Typically, banks will finance up to a maximum of 70% of the appraised value.

Now here's the tricky part:  the appraised value vs. the selling price.

Don't expect the appraisal value to match the selling price.  In most cases, the appraisal value will be less than the selling price.  So going back to our example, if the seller was selling the property at 5M, and he agrees to a 20% downpayment, but the bank only appraised the property at 4M and will only finance 70%, that means you have to shoulder the difference and that will be your downpayment amount.  To illustrate:

20% of 5M = 1M -> this was supposed to be your downpayment (equity)
70% of 4M = 2.8M -> this is what the bank will finance (loan)
5M - 2.8M = 2.2M -> this is what you will actually have to pay as downpayment (equity)

The reason why developers are able to offer bank financing that is equal in appraised value and selling price is because their properties were pre-appraised by their partner banks already.  That's why they will let you know what banks are affiliated with them.  So unless you can get a better (or same) bank appraisal elsewhere, you should seriously consider the affiliated banks of the developer.  But if you're buying a resale unit such as our example, your best bet would be to ask the seller for a discount or price cut, to lessen your equity contribution aka downpayment. 

Oh, and yeah, the most important factor to get bank financing:  your financial status.

How do banks determine how much you can afford?  They'll look at how much you're making in a month, and will lend you an amount that you can pay off with 30% of your net income, subject to how long the loan will be.  If the property you're loaning for is not within that margin, then you don't get the loan.  Simple eh? Hehe.

Did I say this was going to be a short post?  Ooops.

Don't put your eggs in one basket,
Jon

The Secret to Increasing Sales Productivity

---

You might be wondering why I'm writing about Sales per se.  Well, so am I.  That may not instill a lot of confidence in my article but actually, I've been listening to some sales materials  on CD as well as watching youtube videos about the grand art of selling, all to widen my understanding of one of the most basic and oldest of transactions: Sales.  So I find myself wanting to share the lessons I've learned so far.

It's important to note that all of us are sellers as well as buyers at one time or another.  So when selling, it's important not to lose sight of that fact.  In Sales, the real secret to increasing productivity is asking the right questions (probing) and listening for the real answer.  

And overcoming objections.

And improving your closing technique.

And having a great team. 


The truth is, all of those are true.  However, if you absolutely suck at asking questions, and you don't care enough to listen for the answers, you'll just be going around in circles trying to overcome objections, aside from wasting time and effort trying to close people who won't buy from you anyway.  That's why I believe that asking the right questions and listening for the real answers is the precursor.  When you ask the right questions and you listen to answers, you will find out what your client's reason(s) is/are.  You will find out the why's and why not's, as well as a lot of other things.


Qualifying.  First time I heard that, I knew what it meant, but I didn't know how and what to do in the context of Sales.  In other words, qualifying your clients means finding out if they actually have the intention to buy whatever it is you're selling.  To qualify a lead you need to do a couple of things:

1. Find out their motivation.  Ask them why they're inquiring about your product or service, find out if they have a definite and specific timetable.  Anything other than a straight answer might mean that person is just curious and not really looking to buy.  They might even be asking for a friend or family member, so make sure you ask to be referred instead.  This is important to avoid the "I'm not interested" and "I'm not ready to buy yet" as well as other price objections.
   
2. Ask who are the decision-makers, who else is/are involved in the decision-making process.  Try your best to involve all of them when discussing or presenting your product or service to minimize the "I have to ask (whomever)" scenarios.  If in case you do get the "I have to ask (whomever)" scenario, try to see if you can speak with whomever it is they have to consult.  If they refuse or won't let you speak with that person, it's possible this is not the real objection and you may have to probe deeper.
   
3. Competition.  Find out who they've spoken with, what other product(s) they like or are considering.  Let's face it, we can't always win against the competition.  That's why you need to know if it's a battle you can win.  Find out what's important to your clients, and see if it's something you have or can offer, then play it up for maximum effect.  Please, don't resort to mudslinging to destroy your competition, that's just wrong.
   
4. Price, price, price.  Here's the reality of Sales: Price is King.  Check if your client has a realistic budget, find out what payment options or terms you can offer.  See how much leeway you have in terms of pegging a price on a product or service, how much of a discount or rebate you can bargain with to close the deal.  Dare I say it?  Be blunt if you have to.  Better find out if your client can afford it or not, and if he knows what he's getting himself into.  If you find out that your client can afford your product or service yet a price objection comes up later on when you ask for the deal, it's not the money that's the problem; it's a VALUE issue, you'll need to prove your and your product's value.
   

As you can see, qualifying properly will save you a lot of time, effort and money.  You won't be wasting your time trying to follow-up with unqualified non-buyers.  In the short term, you'll have less clients, but in the long term, you'll gain the few real clients who are ready and willing to buy.

I won't go into overcoming objections, closing techniques and teamwork, but suffice it to say that asking the right questions and listening for answers is the fundamental skill one needs to learn to be effective in Sales.  Don't be afraid to ask the questions that need to be asked, there's no other way unless you're psychic.




Ask and you shall receive,
Jon

The Torii Residences is a TOWNHOUSE - CONDO. What does that mean?

---

Ok, so I'm writing this to make sure people know that The Torii Residences is a townhouse - condominium project.  Sure, it looks like a townhouse, designed as a townhouse, and for all intents and purposes, it IS a townhouse.  At least as far as the type of housing, it is.  But as to type of ownership, it's a condominium.  THAT'S NOT A BAD THING!  I'll explain at the end of this post.  I just need to make sure that it is understood that a condominium is both a type of housing AND a type of ownership.

In other words, The Torii Residences is a "townhouse" type of housing, but it's a "condo" type of ownership.

Huh?  What does that mean, exactly?

It should be made clear that the type of ownership in a townhouse is the same as owning a house, in that if you own a townhouse, you own both the structure as well as the land it's built on.  The condo type of ownership means that the condo owner owns the unit itself (not including the land the unit is built on), which is taxed as an individual entity, as well as a percentage of the common areas of the whole project.

As an owner of a unit in The Torii Residences, your percent of ownership is calculated as your unit's total floor area over the total floor area of all the units combined.  You will see the percentage for each unit in The Torii Residences when you request for the price list.

Again, what does that mean???

It means that, among other things, being a Torii Residences owner means that you will pay annually for your unit's real estate property tax, plus you will also pay a portion of the common areas' real estate property tax based on that percentage.  Additionally, your condo dues will also be computed based on that percentage.

Hmm... Maybe an example would be easier to understand?

Here's an example to make it easier to digest.  Please bear in mind that peso amounts are just examples:

You bought a unit at The Torii Residences, with a floor area of 281.06 sq.m.  The overall floor area of the whole project is 10,648.98 sq.m.  Therefore, your percentage of ownership of The Torii Residences is 281.06 over 10,648.98 which is roughly equal to 2.64%.

So, let's say for example that annually, your unit's real estate tax is P10,000.  Of course, the common areas will also be charged a real estate tax.  Let's say for example that the common areas' tax is P50,000.  Therefore, 2.64% x 50,000 is P1,320.  In other words, you will pay a total of P11,320 annually for real estate tax.

I see...  What about the monthly homeowner's fee or condo dues?

Let's use another example for the homeowners' fees or condo dues in this case.

If the total condo dues assessed is P100,000, since your percent of ownership is 2.64%, your monthly dues will be 100,000 x 2.64%, which is P2,640.  Condo dues are for the maintenance of the common areas*, as well as funds for the condo corporation, and other expenses as the condo corporation may deem necessary.

The Torii Residences has a jogging path, clubhouse, and a swimming pool.  These are just some of the common areas that have to be maintained for your exclusive use and enjoyment.

Lastly, it needs to be emphasized that the percentage of ownership does not affect the weight of your vote in the condo corporation.  Except in cases where Republic Act 4726 (condominium act), as amended, requires the vote of owners owning a specific interest in the common areas as a condition precedent for the approval of certain corporate acts, each owner of a residential unit in The Torii Residences automatically becomes a member of the condo corporation and shall have only one (1) vote. 

*All condo owners share title to common areas. Common areas include land, the exterior of buildings, hallways, roofs, swimming pools -- any area used by multiple owners.

What about ownership itself?

Now we go into the main difference between types of ownership: house/townhouse vs. condo.

As I mentioned, the house/townhouse type of ownership means that you own the structure as well as the land it's built on.  For this type of ownership, you have a TCT, or a Torrens Certificate of Title.  The TCT is proof that you own the land and everything else on that piece of land.  The land is the one titled by the TCT, not the house or structure.

In a condo type of ownership, since you own the unit and a certain portion of the common areas, you get a CCT, or a Condominium Certificate of Title.  This title is for the unit and/or common areas, not the land that the condominium is built on.

Another advantage to the condominium-type of ownership is that foreigners are allowed to purchase a unit, as long as the total percentage of foreign-ownership in the whole project does not exceed 40%, since a condominium project is treated as a corporation.

So, who owns the land?  Where is the TCT for the land in a condominium type of ownership?

Well, as far as The Torii Residences is concerned, the land will be turned over to the condominium corporation upon turn-over of the project.  In other words, the TCT of the land will be in the name of the condo corporation.  So as an owner of a unit in The Torii Residences, you will be a part of the condo corporation that owns the land.  It will NOT reflect in the TCT that you're a co-owner, but as a holder of a CCT, your percent of ownership guarantees your co-ownership.

I co-own The Torii Residences???

Yes, exactly!  Let's say you buy a 78 sq.m. unit.  Since The Torii Residences is a condo type of ownership, you don't get a TCT for the 78 sq.m.  However, since this project is ultra low density, there will only be 37 co-owners of the whole 4,560 sq.m.  In other words, if your percent of ownership is 2.64% according to our earlier example, your share is actually worth 120.38 sq.m. (4,560 x 2.64%) of the whole land!  Of course, you can't sell it separately from the whole, but your share is actually worth more than just 78 sq.m.!  This is the secret of the true value of The Torii Residences: SPACE.

In other condo projects where there are literally hundreds of unit owners for a certain size of land, each unit owner actually co-owns a smaller percent of the actual property, aside from literally owning a small unit!  Here's another example: 200 unit owners in a condo building on a 4,560 sq.m. property.  Each unit is 50 sq.m..  That means every unit owner's percent of ownership is just 0.5%.  Then that also means that each unit owner actually co-owns just 22.8 sq.m. of the land, even less than the actual floor area!  This brings us to another advantage of The Torii Residences - it's a townhouse type of housing, not a condo type of housing.  That's why you have more floor area, because it's designed as a townhouse.

Consider what you get: You get a prestigious address in San Juan, with amenities like a swimming pool, a clubhouse and a jogging path; 4 or 5 bedrooms with its own closet, and toilet & bath; the best materials, workmanship and design; an exclusive enclave for you and your family; more value for the size of land your unit is built on, and the space and convenience of townhouse living!

So, no need to worry.  Just because you don't get a TCT it doesn't mean that you are not an owner of the property.  You are a co-owner of the whole project, you co-own The Torii Residences!

That's definitely a VERY good thing.

Wait...  In a condo-type of ownership, every unit owner owns the land the whole project is built on.  That means I can't do whatever I want to do with my portion of the land?

Since every unit owner is a co-owner of the whole land, decisions about the common areas and the land itself are made corporation style, by majority vote.  If you think about it, in townhouse compounds as well as subdivisions nowadays, there exists a master deed that every owner has to follow.  In other words, even if you own the lot your house or townhouse is built on, it still doesn't mean you can do whatever you want.  Let's say you don't want The Torii Residences because it's a townhouse-condo, and you want a regular townhouse where you get a TCT and the lot is yours, you will find that there is a master deed that mandates what you can and can not do, sometimes even down to the color of your roof!  Do you think your neighbors in the other townhouse units will agree if you suddenly want to tear down your townhouse and build a different one?  Nope.  In other words, it's just the same as what you'll get with The Torii Residences, it's the wave of the future!

But...  What if another unit owner or owners fail to pay their property taxes, won't that mean the whole project might be in danger of being foreclosed by the government?

If that were true, don't you think there would be a lot more of condominiums being foreclosed now?  Since condominium ownership is treated as a separate unit, each unit is taxed individually.  So if a unit owner becomes delinquent, only his unit is in danger of foreclosure (Republic Act 4726, Section 25).  As to the common areas, it is the duty of the condo corporation to pay for the property taxes of those.  Guess who the condo corporation is?  That's right, all of you.  Just like in any good neighborhood, everybody has to help out, it's that simple!

Check out the model unit when it's ready, maybe you'll never want to leave.


Own a unit now at The Torii Residences!
Jon

Moving On With The Torii Residences

---

Alrighty, flyering activity last October 5 - check!  Time to plan for next activities.  More flyering?  You betcha!  But aside from that, since the model unit is nearing completion (it's part of Cluster D, specifically D-13), I expect to see more activity at the site itself.  Definitely, once people see the model unit, they'll be blown away by how excellent and truly beautiful the project is.  I know, I'm too excited!  In line with that, gotta start looking forward to holding open houses, too.  Yup, I'm starting my online education as I type this blog entry.  I'm reading up on articles, watching videos, looking at other possibilities that I may have overlooked before.  Hopefully, I'll be ready when the time comes, and that time is approaching rapidly!

This is a short entry, just something to announce what I'm up to now.  Once the model unit is ready for viewing, I can start inviting those people who have contacted me before asking about The Torii Residences.  And by that time, I'll have something more concrete to show off hehehe.  I can't wait!!!

By the way, if you have any great ideas about how to hold an open house, and you're willing to share, please be my guest!  Any kind of help is welcome, just like a kind heart and a warm smile :)

See you then,
Jon

Arrghhh! The Rainy Season Is Raining On My Parade!

---

It's the rainy season, the last quarter of the year, storms & typhoons abound.  I shouldn't even be surprised anymore.  After all, I've been living here forever!  Still, all this rain is driving me up the wall, especially since I have already paid for the day to do my flyering activity for The Torii Residences.  It was supposed to have been last Sept. 28, but since Metro Manila was under Storm Signal #2 on the day prior, it was normal to expect that my activity would be cancelled.  Good thing I was able to have it moved to tomorrow, Oct. 5.  Well, what do you know, there's another forecast: a storm is a-brewing, and is expected to dump more rains tomorrow.  Ugh, I can't stand this.  On top of everything, I'm having respiratory issues, too.  Which means to say, I haven't been able to put in some much needed physical activity (read: swimming), and it's bringing my morale down to dangerously low levels.  Talk about your downer.

Ah well, still, hope springs eternal, and I'm not anything if not an optimist.  Maybe tomorrow we'll see a bright sunny day, enough to do flyering for 2-3 hours, which will be enough, really.  Just 3 hours of sunshine from 2-5pm tomorrow, and I'll be a happy camper.  Everyday, I hope that next person who calls or sends me SMS would be my first buyer for The Torii Residences.  Heck, if I had money, I'd probably be jonesing for one unit myself.

In any case, tomorrow...  We'll see how tomorrow goes!  The opportunity to let people know how great The Torii Residences is will be enough to sustain my goodwill.  I'm sure it'll be alright.  In case it rains though, I'll just move it to next week again hehe.

Tomorrow, tomorrow, I love you, tomorrow!
Jon 

The Torii Residences: Flyering Activity #2

---

It's been awhile since the last flyering activity.  That's because the last time, we were flagged down and the flyers were confiscated.  Apparently, you need a permit if you want to do flyering activities.  To apply for a permit, you have to write a letter of intent specifying the streets and days you'll hold the activity.  For me, I specified the Immaculate Concepcion Academy (ICA), Xavier School, and Annapolis street, on the 21st and 28th of September, to do my flyering activities.  Total cost was P1,500 or P750 a day.  Yesterday was Sept. 21, so I got my two flyering girls, Angeline and Jobelle, along with my dad's driver, Barok, and off we went to Annapolis street in San Juan to hand out The Torii Residences' flyers.

Barok beside the guard at O.B.

Barok the moonlighter

We parked near the O.B. Montessori school, which incidentally was my first target to do the deed at.  We got there at 10:40a.m., and made plans to meet up around 11:30a.m. to wrap up and have lunch before proceeding to ICA and Xavier.  There really weren't a lot of people to hand out flyers to, as most people there were maids and/or drivers.  Still, there was the odd mom or dad in the crowd so it wasn't a total waste of time.  However, I don't think it's worth the effort to go back there next time, as there just wasn't enough of the target crowd to hand the flyers out to.  After a delicious lunch at Mang Inasal where I gave the owners a flyer too, we headed to Ash Creek to park and plan a little.  The guards there are paranoid, or too earnest, or both.  While just sitting down with flyers in hand, they thought we were there to hand out flyers and said it wasn't allowed.  I had to gently remind them that we were just sitting there and not doing our activity.  Good thing they knew well enough to back off.

Angeline at Xavier

Jobelle at ICA

Long story short, Angeline handed out flyers at Xavier, and Jobelle did her thing at ICA, while Barok straddled the middle.  I told them to choose who to hand out the flyers to: the parents.  Still, it looks like they handed out flyers even to maids and drivers, too.  Well, I don't think it's that bad, since some house help have some clout with their bosses, and in the Philippines, they're considered almost like family, anyway.  Lots of flyers were handed out, we didn't get accosted by the guy in the green uniform, unlike before, and somebody already called me today to ask about The Torii Residences.  So, it was a good day!  See you again on the 28th of September!

Good job, Angeline!

Fly-er me to the moon,

Jon "The Broke-r"
PRC License No. 0004326

Update: PRC Accreditation For Real Estate Salespersons

---

As promised, I'm back with the update on how to be accredited as a real estate salesperson with the Professional Regulation Commission (PRC).  This is known as PRB-RES (Professional Regulatory Board - Real Estate Service) Resolution No. 13, amendment to Section 31 of the RESA Law IRR (Implementing Rules and Regulations).  The major change is the deadline: from July 30, 2011 to December 31, 2011.  This deadline only applies to those who have been salespersons for 3 years or more AND are not at least 2nd year college level.  There is no deadline for those who want to be salespersons AND are at least 2nd year college level.  Without further ado...

The applicant shall follow these steps:

1. Submit the filled-up or accomplished application with supporting documents for pre-evaluation to the Office of the Secretary, PRBs or of the Assistant Secretary, PRBs (3rd floor, Main Bldg) at the PRC Central Office, or Regional Offices processing counters.
2. Proceed to the cashier for payment of fees - P600.00 (Ground floor, Main Bldg.)
3. Proceed to the Customer Service Center for metered documentary stamp (same)
4. Submit duly accomplished application form to the Office of the Assistant Secretary, PRBs (3rd floor)
5. Verify the status of your application at the PRC website: www.prc.gov.ph

Supporting documents for NEW or existing real estate salesperson with no DTI/HLURB registration:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment on the completion of at least two (2) years of college
• Original NBI clearance (valid for the current year)
• Original and notarized Certification of twelve (12) credit units on Real Estate Brokerage (12 CPE units)

Supporting documents for existing real estate salesperson with DTI/HLURB registration:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment (at least High School diploma)
• Original NBI clearance (valid for the current year)
• Original and notarized Certification from his/her DTI-licensed real estate broker or HLURB-registered real estate developer
• Original and photocopy of DTI/HLURB Certificate of Registration as Salesperson
• Original and notarized Certification of at least One Hundred Twenty (120) hours of training and seminar, to be issued by the employer or provider (60 hours classroom lecture or seminars and 60 hours of training or fieldwork)

Supporting documents for existing real estate salesperson with at least three (3) years of active practice:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment (at least High School diploma)
  
• Original NBI clearance (valid for the current year)
• Original and notarized Certification from his/her supervising licensed real estate broker or HLURB-registered real estate developer
• Original and notarized Certification of at least One Hundred Twenty (120) hours of training and seminar, to be issued by the employer or provider (60 hours classroom lecture or seminars and 60 hours of training or fieldwork)

Some more information about the accreditation:

• The Registration Division shall notify the accredited salesperson to enroll their names in the Roster of Accredited salespersons after they shall have paid the prescribed fee.
• Within a reasonable period, the enrolled accredited salespersons shall be issues their identification cards (ID), containing the data or items that are material to the use thereof in their practice as real estate accredited salespersons.
• The said ID shall be renewable every year for a period of one (1) year from his/her birth month.
• The Board (PRB-RES) and the Commission (PRC) shall have the right to cancel, withdraw, confiscate, or not to renew such ID upon violation of any law or rule or non-compliance with the conditions or obligations set forth therein.

There you have it, the implementing rules and regulations for getting accredited as a real estate salesperson with the PRC.  I'm sure some people will be saddened by the fact that the PRB-RES specified only existing salespeople with a high school diploma are eligible to get registered until December 31, 2011.  We can only hope that they'd see fit to amend it once more and soon, at least until the deadline.

Finally, many thanks to www.foreclosurephilippines.com for this.  For more information about real estate and foreclosures, visit Jay Castillo's site, too.

Happy Selling!
Jon