PROPERTY EXPERTS NAME TOP PHILIPPINE CITIES FOR YUPPIES
Tessa R. Salazar | Philippine Daily Inquirer | April 13, 2012
IN METRO Cebu, the investments and opportunities are pouring in due to its strategic location.
Last March 31, before the country went into the Holy Week break, Inquirer Property revealed the 11 top criteria for ideal cities to settle into, according to property analysts.
In that story, Enrique Soriano, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, David Leechiu, country head of Jones Lang LaSalle Leechiu, Lui Matti, executive director for asset services, CB Richard Ellis Philippines, and Claro dG Cordero Jr., Jones Lang LaSalle Leechiu’s head of research, consulting and valuation, explained that for the mid-level, upwardly mobile yuppies, the ideal cities should offer the quality of life that enhances the following: uncongested spaces, with the right balance of greens/fresh air and cosmopolitan lifestyle); job opportunities; peace and order; proximity to business contacts, malls, cultural places, theaters, meetings for intellectual discourse, and hospitals.
Cordero clarified, however, that, “Ideally, a formal survey/study should be conducted and a well-defined metric should be in place to rank cities in the Philippines; however, what we mentioned here are only indications and are based from the information that are readily available to us at this time.”
So, given these conditions, what are these most liveable cities for the young generation? Here they are, in no particular order:
Cebu (Metro Cebu)
The “Queen City of the South” is Soriano and Matti’s top pick, and Cordero’s fifth. They explain that in Metro Cebu, the investments and opportunities are pouring in due to its strategic location. Cordero said that “similar to Davao, the masterplanning should be significantly improved to ensure sustainable and efficient growth of various systems (infrastructure, crime prevention and ability to service the basic needs in the long run).”
Matti picked Cebu as a serious option (for young professionals like him to settle into). He described Cebu as “cosmopolitan enough to be interesting for someone from a big city, with a booming local economy, and thus, plenty of job options. The cost of living seems to be lower than in Manila, as well. Traffic is an issue, but still better than in Metro Manila.”
He added that Cebu is also a good jumping point to other places of interest like Iloilo, Bohol and Cagayan de Oro. “The international airport is also a plus. They also have good schools and nearby beaches.”
Taguig (particularly Bonifacio Global City)
Taguig, and in particular BGC, is Soriano’s third pick, while BGC is Leechiu’s top choice. Leechiu said BGC is a prime example of an ideal district. He said that in BGC, “you have everything one needs, full of symmetry and balance of developments, and culture; backed up by strong infrastructure and strong policies and strong owners.” BGC, he said, has the following qualities: the city chic, new buildings, sporty lifestyle and an international community.
BGC is Cordero’s second pick due to its “world-class design for infrastructure (controlled development density, underground facilities, transportation and sustainable designs and practices (i.e., recycling of non-potable water, presence of advanced sewage systems).”
Makati
The city that is home to the financial heart and soul of the Philippines is Cordero’s top pick, mainly for being the “traditional business district where most businesses thrive and mature property developments are located.”
MAKATI is considered the traditional business district where ‘most businesses thrive and mature property developments are located.’ FILE PHOTO
Makati is Soriano’s seventh, and Leechiu’s fourth. “Yes, it’s severely congested today, but gradually that should improve as Ayala Land puts more infrastructure in place. My hope is that Makati and BGC is integrated as one district. This will require a lot of effort and resources, but this is the inevitable direction,” Leechiu said.
“Makati’s congestion is being solved with more infrastructure projects in the pipeline, such as walkways, bus transits and more parks opening. Legaspi Village has been left behind but now there is an effort for old buildings to give way to new ones. Macea-Ayala needs to invest more in making Legaspi Village more pedestrian-friendly and open up more areas for parks and trees, such as replicating what they did in Greenbelt-Glorietta to the rest of Legaspi Village and Makati,” Leechiu added.
IS IT A GOOD TIME TO BUY REAL ESTATE?
Ask Nanay by Socorro C. Ramos, The Philippine Star, July 06, 2009
Q: The prices of stocks and real estate are going up and down because of the global crisis. I have enough money to make a down payment on a house and my family really wants to buy our own dream home. But we are afraid that the value of the property might go down and I will lose money. Our option is to just rent first and buy when the market recovers and is more stable. What should I do to make sure that my investment is safe and we will earn?
A: You have to first realize that, like most other investments, the prices of real estate will fluctuate. Although as a rule the prices will go up over a long period of time, you can never be sure what will happen if you are looking at a much shorter time frame, like one or two years. Walang sigurado. (Nothing is sure.) Puwedeng tumaas ang presyo at puwede rin bumaba. (Prices could go up or down.) So if you are planning to buy the property and intend to sell it in one or two years to make a profit, baka talaga mahirapan ka (that might be difficult).
However, if you are buying the property with the intention of living in it for a long time, then it might be as good a time as any to buy a house or condominium. If you can afford it, then I would say go for it. That will also be forced savings for you. Otherwise, you might just end up spending the money elsewhere.
As I mentioned, real estate still tends to be a fairly safe investment. It is unlikely that you will make a lot of money in a short period of time, but it is also unlikely that you will lose your investment over a long period of time. And for a lot of people, there is nothing like the security of owning the roof over their head.
WHY INVEST IN REAL ESTATE?
Real Estate investment is an all-time investment instrument that gives positive yield, provided you know the strategy.
1. HEDGE AGAINST INFLATION
Adding real estate in your investment portfolio can protect it against the ravages of inflation. The value of a real property increases as inflation rises.
2. RESIDUAL VALUE
Real estate always has residual value. Although prices can certainly fall as well as rise, property values will never fall to zero unlike shares or hedge funds.
3. HYBRID ASSET
Property is a kind of hybrid asset that has a capital appreciation of a stock and income producing capacity of a bond.
4. EXCELLENT COLLATERAL
Real estate in prime locations is always an excellent collateral security against loans, and allows financing to be secured anytime.
5. PRE-DEVELOPMENT APPRECIATION
Units in project that are being sold in pre-development phase generally appreciate in value when the project is finished.
6. EASY TO RENT OUT
Units in project that are near in malls, schools and other high traffic areas are easy to rent out.
7. APPRECIATES AT AN AVERAGE OF 10% PER YEAR
Philippine property appreciates at an average of 10% per year, which is higher than 3% to 6% appreciation of U.S. properties. This translates to a higher Return of Investments (ROI).
7 REASONS TO BUY PROPERTY NOW
Tessa Salazar, Philippine Daily Inquirer, July 22, 2008
Do you realize that the money you throw on fuel could be your monthly amortization for a home? Here are top seven reasons you should invest:
1. Property is still the best investment out there.
“The stock market is very volatile for people who are looking for a place to invest or where to put their money. It’s still real estate. It will still appreciate in value,” said Bobby Disini, vice president of PS Bank’s mortgage banking division. He added that even if people already have houses and still have money to spend, it would still be wise to invest in property. They can sell it later on.
2. Government housing loan provider Pag-Ibig has competitive rates now, making homes more affordable to Filipinos.
(This however, doesn't apply to Robinsons Projects and most property developers' projects)
3. A roof-over-your- head principle
“The family will always want a house over anything else,” Disini said. “That’s why we have a lot of overseas Filipinos working abroad and the first thing in their mind is to buy a house and a car,” he explains.
4. Buy while prices are still low.
Alejandro S. Mañalac, president of the National Real Estate Association, revealed that developers are increasing their prices. “The soaring prices of major construction materials are eating up developers’ margins. If buyers will just compute, the 10 to 20 percent increase that the developers are planning to implement is not even enough since the prices of steel and cement have practically doubled since last May. Those who are constructing their own houses can relate to this.”
5. Cut back on travel cost.
Eduardo M. Alunan, president of the Subdivision and Housing Developers Association, said that whether oil prices are high or low, investing in property under the present environment should be made a priority. Location, especially factoring in the proximity to the workplace, has always been a major factor in order to save in travel costs in and around Metro Manila.
6. Borrow now.
“I would advise people to borrow now. The rates will not hold primarily because inflation is still going up. I expect interest rates to go up and right now I think it’s the best time to apply while the rates are still at this level,” Disini said.
7. Search for the best home financing rate available.
Go where you can find the best rates available because the rates won’t hold for long, Disini said.
“Try to fix (the financing rate) for 5 or 10 years so that you won’t worry about any rate fluctuations. If you go for home financing, look for a bank that’s stable, or a bank that’s going to offer you fast service. Once your rate is approved, it can only lock in for a certain period of time.”
