WHAT IS REAL ESTATE?

Is A House A Good Investment?

WHAT IS INVESTMENT?

IS REAL ESTATE INVESTMENT FOR YOU?

WHY SHOULD YOU INVEST IN REAL ESTATE?

WHAT ARE THE DIFFERENT TYPES OF REAL ESTATE YOU CAN INVEST ON?

HOW YOU CAN MAKE MONEY FROM YOUR REAL ESTATE INVESTMENT?

HOW TO TARGET THE RIGHT REAL ESTATE INVESTMENT FOR THE RIGHT MARKET?

SHOULD I BUY A CONDO OR A HOUSE AND LOT?

WHAT REAL ESTATE INVESTMENTS TO WATCH OUT IN THE PHILIPPINES?

HOW TO OWN A REAL ESTATE PROPERTY IN THE PHILIPPINES?

CHECKLIST BEFORE BUYING REAL ESTATE IN THE PHILIPPINES

9 THINGS TO CHECK BEFORE BUYING A HOME

HOW TO MANAGE YOUR OWN RENTAL PROPERTY?

9 LEGAL STEPS FOR TRANSFER OF TITLES FOR LANDS AND APARTMENTS

TRANSACTION FEES FOR REAL ESTATE PURCHASES IN THE PHILIPPINES

8 THINGS YOU SHOULD AVOID WHEN BUYING YOUR OWN PROPERTY

What is Real Estate?
Real estate literally refers to physical property, land, buildings, air rights and underground
rights, which are above and below the ground.

What is Investment?
Investment is something that is purchased with an intent to _____________________ or
________________________ at a _________________ price.

Is Real Estate Investment For You?

1. It is for people who wants to make their dreams come true
2. It is for people who want to diversify their investments
3. It is for people who want to create a consistent source of cash flow
4. It is for people both experienced and inexperienced investors
5. It is for people who want to create enormous wealth

Why Should You Invest in Real Estate?

1. YOU DON’T NEED TO BECOME AN EXPERT

2. RESIDUAL INCOME
3. APPRECIATES IN VALUE
4. PROTECTS YOUR MONEY FROM DEPRECIATION
5. RELATIVELY LOW RISKS
6. LAND IS SCARCE
7. IT CAN MAKE YOU RICH
What are the Different Types of Real Estate You Can Invest On?

• Residential
- Residences (whether single-family, multiple-family, or multigenerational)
- House and Lot
- Townhouses
- Apartments
- Condominiums

• Commercial
- Office (BPO, Companies, SME’s)
- Restaurants
- Banks
- Restaurant
- Shops
- Hotels
- Condotels
- Malls
- Shopping Centers
- Gasoline Station
- Spa / Salons

• Industrial
- Warehouses
- Manufacturing Buildings
- Food Storage Buildings
- Data Hosting Centers
- Showroom Buildings
- Research Centers

• Land
- Residential
- Commercial
- Industrial
- Farms
- Ranches

How You Can Make Money from Your Real Estate Investment?

1. SALE
2. RENTALS
• Short-term
• Medium-term −1 to 4 years
• Long-term −5 years and above
3. HOUSE FLIPPING
4. LEISURE RENTALS
5. SUBLEASING
How to TARGET THE RIGHT Real Estate INVESTMENT for THE RIGHT
MARKET?

1. CONDOMINIUMS
LIFESTYLE:
• Convenience
• Want to avoid rush hour traffic
• Walking distance to work / to grocery / shopping malls / market / schools
TARGET MARKET:
• Millennials
• Young families
• Elderlies
• Professionals
• Expats

2. RESIDENTIAL
LIFESTYLE:
• Privacy
• Space
• Walking distance to work / to grocery / shopping malls / market / schools
TARGET MARKET:
• 30s to 50s
• Growing Families
• Bigger Families
• Retirement Homes

3. VACATION HOMES
LIFESTYLE:
• Privacy
• Space
• Walking distance to work / to grocery / shopping malls / market / schools
TARGET MARKET:
• Travellers / Vacationers
• Backpackers
• Tourist (Local / International)

4. WAREHOUSES
LIFESTYLE:
• Storage ( Food and Non Food)
• Point of Distribution
TARGET MARKET:
• Business People
• Wholesalers
• Distributors
• Manufacturers
• Courier Services
• Logistics Providers
• Restaurants Owners
5. COMMERCIAL LOTS IN STRATEGIC AREAS
LIFESTYLE:
• High Foot Traffic
• For Business Purposes
TARGET MARKET:
• Business People
• Investors
• Brokers

6. DORMITORIES
LIFESTYLE:
• Convenience
• Security
• Want to avoid travel time
• Walking distance to school / to grocery / shopping malls / market /
TARGET MARKET:
• Students
• Young Professionals
• BPO Agents
• Off Shores Gaming Operators

7. COMMERCIAL BUILDINGS
LIFESTYLE:
• High Foot Traffic
• For Business Purposes
TARGET MARKET:
• Business People
• Investors
• Brokers

Should I Buy a Condo or a House and Lot?

CONDO

Advantages
• CONVENIENCE
• SECURITY
• AMENITIES
• LOW MAINTENANCE

Disadvantages
• BUSY ENVIRONMENT
• HIGH MONTHLY DUES
• POOR BUILDING MAINTENANCE
• LACK OF FLEXIBILITY
HOUSE AND LOT

Advantages
• FREEDOM TO BUILD AND RENOVATE
• YOU CAN OWN YOUR OWN PETS
• BIGGER SPACE
• MORE AFFORDABLE
• MORE PEOPLE PREFER TO OWN HOUSE AND LOT

Disadvantages
• POSSIBLE HIGHER MAINTENANCE COST
• SECURITY
• DISTANCE
• PAY FOR YOUR OWN AMENITIES

Real Estate Investments To Watch Out in the Philippines

• Quezon City
• Makati City
• Muntinlupa City
• East
• Bulacan
• Baguio City
• Tagaytay City
• Angeles City
• Cebu City
• Iloilo City
• Bacolod City
• Davao City

How to Own a Real Estate Property in the Philippines

• FILIPINO CITIZEN
• NON FILIPINOS ARE ALLOWED TO OWN RIGHTS CONDO
• MARRIED TO A FILIPINO CITIZEN
Checklist Before Buying Real Estate in the Philippines

If you are buying from an Individual:

1. AUTHENTICITY
- Make sure the “Transfer Certificate of Title” is authentic.
- Make sure that the sellers are the real owners.

2. CLEAN TITLE

3. VERIFY
- Make sure that the land described in the title is really the land that you are buying.
- The yearly real estate taxes are paid.

If you buy from a developer:

1. CHECK
- For the availability of the Mother Title
- (HLURB)
- License to Sell
- Track Record of Completed Developments
- Contract Before You Sign

2. LEARN HOW TO NEGOTIATE

FINAL REMINDER:
- Choose to Buy Direct from Developers
- Choose a Licensed Real Estate Broker or Agent You Can Trust

9 Things To Check Before Buying A Home

1. Check The Location

2. Check The House
3. Check The View
4. Check If It Is Sunrise or Sunset
5. Check The Surrounding Area
6. Check The Utility Bills
7. Check The Developer Experience
8. Check The Amenities
9. Check The Real Estate Tax
ASK FOR MORE INFO:
• Ask The Reason For Selling
• Ask The Sellers
• Ask The Neighbors

2 QUESTION TEST BEFORE FINALLY MAKING THE DECISION:

• Will It Fit Your Family’s Needs or Lifestyle?
• Will It Fit Into Your Budget?

How To Manage Your Own Property?

• Check Out The Credit History Of The Lessee
• Run a Background Check
• Interview Their Previous Two Landlords
• Chat with Their Employer
• Interview the Candidate
• Get 2 Months Deposit and Advance
• Get a Lease of Contract
• Make Sure You Have It Signed and Notarized

9 Legal Steps for Transfer of Titles for Lands and Apartments

• TERMS OF AGREEMENT
• NOTARIZED ABSOLUTE DEED OF SALES
• CHECK TAXES TO BE PAID
• PAY YOUR TAXES
• TRANSFER OF TITLE

Transaction Fees for Real Estate Purchases in the Philippines

•Capital Gains Tax: equivalent to 6 percent of the selling price on the Deed of Sale or the zonal value, whichever
is higher

•Withholding Tax: applies only when the seller of the property is a corporation

•Unpaid Real Estate Taxes Due (if any)

•The Commission of the Agent or Broker

•Documentary Stamp Tax: this is commonly set at 1.5 percent of the selling price, or its zonal value or fair
market value, depending on which is higher.

•Transfer Tax (Local Treasurer’s Office): this is tax is imposed on the sale, barter, or any other mode of
transferring of ownership or title of real property, at the maximum rate of 50 percent of 1 percent (75 percent of 1
percent in the case of cities and municipalities within Metro Manila) of a property’s worth.

•Transfer Tax (BIR): Transfer taxes may also be owed to the Bureau of Internal Revenue. According to the BIR, if
the property was/is donated, this is in the form of donor’s tax. If the property was transferred by way of inheritance,
this is in the form of estate tax.

•Registration Fee: commonly set at 0.25 percent of the selling price, or zonal value or fair market value,
depending on which is higher.

•Incidental and Miscellaneous Expenses incurred during the registration process, such as notary fees.

8 Things You Should Avoid When Buying Your Own Property

• Never Allow Emotions To Do The Buying For You
• Never Buy Without Counting The Cost
• Never Buy Beyond Your Capability
• Never Missed A Payment
• Never Use Your House Payment For Other Purposes
• Never Take Major Risk When Paying Off Mortgage
• Never Incur Much Mortgage Debt At The Same Time
• Never Buy Without Check The Legalities And Documentation