So far, Robinsons Land Corporation (or RLC) is the biggest real estate developer to invest in what could possibly be the biggest property development in my home city. And this makes me wonder… Why?

Malabon City has earned the unenviable reputation of being The Flood Capital of Metro Manila.

It has 21 barangays and most people who do not live in Malabon think that the entire city is flood-prone. That is not true. There are at least four barangays that remain generally or partly flood-free regardless of how heavy the rain is, and that includes the barangay where I live – Tugatog (which means zenith or apex in English) – the highest elevated barangay in Malabon. The others are Barangays Acacia, Tinajeros and Potrero.

All four barangays are situated in the eastern-most portion of the city with a slope of 5%; the rest are generally flat. They also happen to be the gateway to the other cities of Metro Manila (kindly see the map). In short, if you live in one of these four barangays, you will not encounter flood when going to Caloocan, Manila, Quezon City and more during heavy or prolonged rains.

Click the following link to see the property that was bought by Robinsons Land in Barangay Tinajeros along Gov. Pascual Avenue where public transportation is available 24/7. Place your cursor in the middle to see it light up in yellow; click on it to see its description. On the navigation bar, choose Map Type then choose Google Hybrid to see the streets. Just two kilometers away to the east is Monumento in Grace Park, Caloocan City, an important transportation hub.

With no less than eleven banks just meters away from this property, it’s an indication that the area is highly commercialized and industrialized.

What is the best use for this land?

The property is no less than two hectares, maybe even close to three hectares – too big and unsustainable for a mall given the existing market. RLC’s best bet is to develop a mixed-use commercial and affordable residential condominium project on this property.

Who shall be the target market for these residential condominiums?

Malabon residents in the mid and western portion of the city, those who have grown tired of the frequent flooding but can’t quite leave Malabon for some reason or another, especially those who work or have businesses in the adjoining cities. Residents in Navotas City, farther in the west, are also likely buyers.

It’s a big gamble on the part of Robinsons Land to invest in Malabon City, but given the location of the property and the niche that I believe they will cater to, it’s a gamble that has the potential of a big pay back.

Thank you so much

Image courtesy of zip-codes.philsite.net

In its 3rd quarter 2011 report (this is a PDF file), Colliers International, a respected real estate service provider, disclosed that in Metro Manila, 90 high-rise residential buildings were launched in the first three quarters of this year. That translates to 25,000 condominium units.

We know that a flourishing real estate sector is a good indicator of a healthy economy. It leads to increased employment and the growth of ancillary industries like the construction/building materials industry, furniture industry, the appliance industry and more. (no one moves to a new house without bringing in at least a few pieces of new furniture, appliances and accessories : )

So, is the continuing growth in the number of condominiums being built in Metro Manila an indication that our economy is in a good state?

For me the answer is NO

Let us consider the following:

1. The Philippine Gross Domestic Product (or GDP)

Defined, GDP is basically the total output of ALL the services rendered and all the products manufactured in a country in a given year. The latest official GDP figure that was released in August 2010 by the National Statistical Coordination Board (or NSCB) was for the year 2009. Philippine GDP for 2009 was 7.68 trillion pesos.

2. Metro Manila’s Gross Domestic Product

Metro Manila registered a GDP of 2.8 trillion pesos or 36 percent of the country’s total output.

3. Metro Manila’s land area vis-à-vis the country’s total land area

Metro Manila or the National Capital Region (NCR) is one of the 17 administrative regions in the Philippines. It is divided into 6 districts with the City of Manila as the capital plus one municipality, Pateros.

Metro Manila occupies a total land area of 638 square kilometers whereas the entire Philippines has a total land area (including inland waterways) of 300,000 square kilometers. It means that Metro Manila comprises just 0.21 percent of the country’s total land area.

4. the Population

The latest official population survey by the National Statistics Office goes as far back as 2007. It projected, though, that the national population for 2010 would be 94 million. Metro Manila, with a population growth rate of 2.10% annually was projected to be inhabited by around 12.2 million souls in the same year.

Bottom line is 13% of the entire national population are all bunched up within just 0.21 percent of the country’s total land area but they are contributing 36 percent to the country’s economic output. Conversely, it also means that 87% of our countrymen are living in the remaining 99.79% of our country eking out a living to contribute the remaining 64% of our Gross Domestic Product, many, through some of the harshest working conditions.

It is the over-concentration of economic activities and opportunities in Metro Manila that continue to drive demand for condominiums therein. And this leaves some of the other 16 regions in the country with little of said economic activities and opportunities.

For me, this is a serious form of socio-economic inequity.

The booming demand for condominium in Metro Manila, therefore, should not be viewed as a sign of a healthy Philippine economy but rather as a symptom that the country as a whole remains as the Sick Man of Asia.

Thank you so much

Image courtesy of Flickriver.com

The information I am about to disclose are done purely through my own initiative. Moreover, the information I am about to reveal are not meant to sell the project as it won’t be for sale until October of this year. This is purely for announcement purposes and is meant to probably give you time to think about what might possibly become one of the hottest selling condominium projects around.

So, why am I making this announcement when the project will be launched a far three months from now? It’s because the developer is known to sell out some of its best projects in a matter of several weeks. To write about this project just before the launching will be too late.

The developer is one of the most prolific in the country whose projects are well known for their structural integrity.

The project is located at the corner of E. Rodriguez Sr. Avenue and 12th Street in Barangay Mariana. The place is part of upscale New Manila, Quezon City.

Here’s the actual image of the site:

To the west is Dona Hemady; to the east is Balete Drive and adjacent to the property is Tomas Morato Avenue.

Here are the details of the project:

Given the unit types available (there will be neither studio nor 1-bedroom units), the project is targeted mostly for start-up and growing families.

For those who are interested to receive future information about this project that will be authorized for public release by the developer, kindly get in touch with me by using the Contact Form above or via 447.6328 or through 0929.609.7142.

Thank you so much.

Jun Sanchez
Real Estate Broker
PRC Registration Number 4562

Image courtesy of: http://patentlawcenter.pli.edu

Currently, Araneta Center, Cubao’s commercial hub is undergoing a rebirth with so many modern developments taking shape therein. All these are meant to bring the place back to its former glory.

One thing Cubao is well known for are the various modes of transportation in the area – the confluence of the MRT 3 and LRT 2 at the intersection of EDSA and Aurora Boulevard and the various bus and FX terminals plus the availability of so many taxis and jeepneys that puts one at the center of important destinations both near and far.

Adjacent to Araneta Center at the corner of P. Tuazon Boulevard and 14th Avenue is Portovita – a 26 story, two tower, mixed-use commercial, condotel and residential condominium development by Goldland Group of Companies. Founded in 1987, the company boasts of several condominium and townhouse developments in its portfolio.

See the satellite map below to see the location of Portovita. It’s on the lower right portion of the frame. Move your cursor over it and the other buildings and they will light up in yellow. Click them one at a time and you will see their descriptions. To see the streets, mouse over Map Type and choose Google Hybrid.

Around 20 to 25 percent complete, Portovita’s north tower’s 2nd to 17th floors will be dedicated to condotel units. The 18th floor up to the penthouse will be for residential units. The entire south tower, on the other hand, will be solely for residential use and will have a total of 314 units. There will be a total of 679 units for both towers including 20 commercial units.

Whereas prices of nearby condominiums in Araneta Center range between P95,000 and P100,000 per square meter, units at Portovita are currently priced at P75,000 per square meter. Thus, a 40 square meter unit in a nearby condominium will set you back between P3.8 and P4.0 million while the same sized unit at Portovita will cost you just P3.0 million. (Note: there will be an 8% increase on August 1, 2011)

What is a condotel and what are its benefits to the unit owner?

1. A condotel is a concept in development wherein the person who owns a unit gets to enjoy or use it for a certain number of days in a given year and earns income from it the rest of the year when it is operated and rented out to others like a hotel.

In the case of Portovita, a unit owner can use his unit for 15 days a year during the first 7 years. After the lapse of 7 years, he has the option to renew the contract for his unit to remain as a condotel or he may choose to take full control of the unit by permanently living in it or renting it out under his own price and terms.

2. Aside from earning income by having his unit rented out like a hotel, he will be required to pay association dues for just one year – on the first year of the condotel’s operation. From the 2nd to the 7th year, the maintenance and upkeep of the unit shall be for the account of the hotel operator. Payment of association dues will restart if the unit owner chooses not to renew the contract for his unit to remain as a condotel.

3. A condotel unit will also come complete with appliances, furniture and fixtures, lighting fixtures, airconditioning units, mirrors, drop ceiling, closet and dresser, keycard lockset, curtains, beddings/pillows, linens and coffee set. Said items are not included in residential units.

Two-bedroom unit at North Tower’s CONDOTEL ZONE, 41.25 square meters

Studio unit at South Tower, 21.75 square meters

Two-bedroom unit at South Tower, 45.25 square meters

Two-bedroom unit at South Tower, 43.50 square meters

If you want to take advantage of this opportunity to invest in a project that defines affordable luxury in the heart of Quezon City, use the Contact Form above so I can tell you more about Portovita. Or, you may get in touch with me via 447.6328 or through 0929.609.7142.

Thank you so much.

Jun Sanchez
Real Estate Broker
PRC Registration Number 4562

Mahogany Place I and II are sold out but some parts of Mahogany Place III are still available. Accessible via C-5 Road, it is only a few minutes from Bonifacio Global City and the Makati Central Business District. This gated community is home to a variety of single-detached houses, townhouses and duplexes.

See the location of Mahogany Place III and places nearby in the satellite map below. It is at the lower right corner of the map. Move your cursor over it then click to enlarge the map. To see the streets, mouse over ”Map Type” and choose “Google Hybrid.” Zoom in or out by clicking the + or – sign button on the left. Click the arrow buttons to move around the map.

The following are images of the various house models in the said subdivision.

Single-Detached

Duplex

Townhouse

Just over a year ago, DMCI offered the fast-selling townhouse model unit Cielo (see picture on the right above) – a cluster of 5 attached houses.

Today, June 29, 26 units of a different iteration of Cielo will start selling in response to the market’s clamor for attached houses that offer better ventilation, natural lighting and bigger open spaces. This time, the Cielo model unit will come in duplexes. This means that all houses will be end-units. The following is the floor plan of this model.

Whereas the old Cielo models had lot areas ranging between 75 and 105 square meters, lot sizes of the new version of Cielo will be between 110 and 185 square meters. Prices start of P8.7 million. The 26 units will be distributed over two different blocks. 10 units will be located here, bounded by Thyme, Lavender and Rosemary Streets.

Since DMCI has yet to release an image of the duplex Cielo model, suffice it to imagine the following picture without the 3 inner units.

Below is the price list of the units, their terms and corresponding “Ready-for-Occupancy” dates.

With just 26 units available for sale, this posting is definitely already late as the units are expected to be completely taken within just a day or two. The units will be sold by lottery as there is a long queue of interested buyers.

Be that as it may, this post is meant to give you an idea as to the desirability of DMCI’s subdivision projects in Taguig. And since there are still lots available at Mahogany Place III, DMCI will definitely be coming out with new projects there in the future.

You may still contact me if you’re interested in Cielo as there are cases when units reopen when buyers suddenly back out for some reason. Expect an update of this posting in a few days.

Please get in touch with me using the contact form above or via 447.6328 or through 0929.609.7142.

Thank you so much.

Jun Sanchez
Licensed Real Estate Broker
PRC Registration Number 4562

This post will discuss the tremendous savings and sense of security that a home buyer gains by investing into a project of a real estate development manager (or simply, development manager) like Manosa Properties compared to that of a traditional developer. Other project related issues will also be discussed.

Lantana Lane’s Direct-Cost Development Model vs. a Traditional Developer’s Model

The development manager (Manosa Properties) puts the project together by getting the investor to invest in a unit of his choice. The investor subscribes to the project by depositing an agreed amount into an escrow account at Banco de Oro. This money earns interest.

This money is disbursed monthly by Banco de Oro to 3 entities: Manosa Properties, the landowner, and the general contractor based on the construction schedule and actual progress.

In Lantana Lane’s direct-cost development model, there is no development or construction loan. Taxes are also significantly low since the project is VAT-free, a privilege that a development manager is entitled to. On the other hand, developers are required by law to pay 12% VAT that is traditionally passed on to the buyers.

Note about the images above: the pictures of the facade ware taken over a year ago when only 1 block was being constructed. Currently, all the blocks have been constructed.

The biggest benefit, however, is the assurance that the investor’s money is spent directly on the completion of the project. Since the money is held in a Trust Account, he is guaranteed that his money will not be used by Manosa Properties for its overhead or for another development.

What makes Lantana Lane’s Direct-Cost Model unique?

Lantana Lane’s “direct-cost” model is comparable to building your own home, and paying your contractor and suppliers directly for the cost of construction. Manosa Properties simply charges a professional fee of 10% of the actual project cost. Compare that with the 12% VAT that developers pass on to their buyers plus their profit margin that commonly starts at around 35% of the actual project cost.

The project cost at Lantana Lane is around P61,000 per square meter for the fully fitted units and P49,000 per sqm for bare units. Given the same design and specifications, a traditional developer would charge around P89,0000 per sqm for the same project or about P26.6 million per unit on average.

Since Manosa Properties does not earn any profit from Lantana Lane, it has to protect the project from construction materials price fluctuations.

Contingency/Protection Budget

An amount equivalent to P350,000 for the fully fitted unit and P250,000 for bare unit is set aside to protect the project from any unforeseen price fluctuation of construction materials. This amount is already incorporated into each unit’s Contract Price. In case Manosa Properties needs to dip into this fund, it shall be immediately reported to every investor. Should the project be completed without any need to touch this fund or if a balance remains, it shall be converted into a sinking fund from which the investors’ monthly association dues shall be deducted.

Fully Fitted unit vs. Bare Unit

An investor may opt for a bare unit at Lantana Lane. This is Manosa Properties response to those who prefer some flexibility in the interior design of their units, provided that no part of the exterior shall be altered. Each bare unit is P3 million pesos less than a fully fitted unit.

A bare unit will NOT include the following:
Floor finishes and topping
Interior waterproofing
Stair finishes, wiring and devices
Cabinets and closets
Kitchen counters
Bathroom fixtures, toilets and tile works
All interior doors
Interior paint
Switches and interior electrical wirings

The following are included in a bare unit:
All windows
All exterior finishes (araal stone in the façade), exterior paint, landscaping, front doors, garage finishes, fire protection
Penthouse roofing, casita and sliding door

Parking Spaces

There’s a barangay resolution in Bgy. Mariana (where Lantana Lane is) that requires real estate developments to provide 2 parking slots for each dwelling unit plus 2 common parking slots per unit for the residents’ guests. These 2 additional parking slots, however, can be used by the homeowners if they have more than 2 cars. These 4 parking slots are, therefore, free unlike in another form of real estate development where a single car slot costs an average of half a million pesos.

If a resident has several guests, there’s an additional 10 parking slots outside the gated community.

Professional Property Management

Lantana Lane will be managed by a professional property management group. A full-time Property Manager will hold office on site together with a secretary and a maintenance/electrician staff who will be on-call.

It is Manosa Properties’ policy to maintain transparency by requiring the Property Manager to show all residents how their funds will be used. He is also mandated to ensure that each unit’s value appreciates.

Monthly Association Dues

Based on current estimates, monthly association dues will be between P8,000+ and P11,000+. Compare that in one of the upscale condominium projects in Bonifacio Global City where monthly dues can run to as high as P20,000. Note again that the monthly dues in Lantana Lane will be periodically deducted from the sinking fund coming from the contingency/protection budget that was incorporated in the unit’s Contract Price. The monthly dues already include a fund for the repainting of the units’ exterior after the first 3-5 years. Homeowners, therefore, shall no longer be assessed for the repainting cost.

Click here to see the breakdown of the estimated monthly dues in PDF format.

The Technical Team

Development Managers – Manosa Properties, Inc.
Architect & Engineers – Manosa & Co.
Land Owners – Marga Real Estate Corporation
General Contractor – Konstrak, Inc.
Marketing Managers – Manosa Properties, Inc.
Quantity Surveyors – Asian Technicon Managers & Consultants
Legal Consultants – Mendoza Law; Pacis Law; Verano Law; Gregorio Law
Feng Shui Consultant – Mario Uy

Only 3 units remain available at Lantana Lane

This is your last few remaining chances of owning not just a home but a piece of art created by world renowned National Artist – Architect Francisco “Bobby” Manosa.

The available units are G, L and N. Unit G has a garden with an area of 27.70 square meters. The units are priced as follows:

If you want to know more about this project, kindly get in touch with me using the Contact form above or you may contact me via 447.6328 or through 0929.609.7142.

For those who are seriously considering to invest in this project, I can furnish you a very detailed list of the units’ materials and construction specifications. I can provide said specifications during the viewing of the project.

Thank you so much.

Jun Sanchez
Licensed Real Estate Broker
PRC Registration Number 4562

P.S. Kindly click the following link to read my February 2010 blog about Lantana Lane.

Fianchetto Homes is a 10-unit townhouse project at #3 Road 17, Barangay Bahay Toro, Project 8.

It is accessible via Short Horn Street and is just a short walk from there. Click the following link to see the project’s satellite map (Fianchetto is in the middle of your screen with the + sign on it. To see the streets, move your mouse to “Map Type” above and choose “Google Hybrid” in the drop down menu).

Fianchetto Homes is a joint project between the lot owner and Fianchetto Realty Development Corporation, an all-Filipino development, management and marketing company that was founded in 1998 as CM Iligan Realty Development by Mr. Cesar M Iligan who has 40 years of realty experience behind him.

Being an avid chess patron and player, Mr. Iligan renamed the company to Fianchetto – a pattern of development in chess wherein the bishop is made to become more active and, hence, becomes a powerful offensive weapon.

The company was reorganized to its current set up in 2006 when chess Grand Master Eugene Torre and other investors joined the company.

The company is engaged solely in the development of townhouses. The following is the list of its sold out projects:

Belicia Francesca Homes, 13th Avenue, Cubao, Quezon City
One Premier Place, Panteleon St., Brgy. Hulo, Mandaluyong City
Villa Evangeline, 13the Avenue, Cubao, Quezon City
Campomanes University Place, San Miguel, Manila
University Place, Magiting St., corner Masinsinan St., Teacher’s Village, QC
Villa Leonita, Maningnging St., Teacher’s Village, Quezon City
Villa Annika, Maginhawa St., Teacher’s Village, Quezon City
14th Avenue Townsquare, 14th Avenue, Cubao, Quezon City
Villa Enrique, Lopez Rizal, Brgy Hi-way Hills, Mandaluyong City
Gateway 9, 9th Avenue, Cubao, Quezon City
Villa Helena, Matimpiin St., Teacher’s Village, Quezon City
Villa Helena, 9th Avenue, Cubao, Quezon City
Villa Felicidad, 14th Avenue, Cubao, Quezon City
Belicia Homes, Maimtiman St., Teacher’s Village, Quezon City
Belicia Homes, Marikina Heights, Marikina City
Belicia Homes, 4th Camarilla St., Murphy, Cubao, Quezon City
Belicia Homes, Pandacan, Manila
Belicia Homes, Masbate St., West Avenue, Cubao, Quezon City
Belicia Homes, 14 Ave., Cubao, Quezon City

Other ongoing projects
Campville Townsquare, A. Bonifacio St., AFPOVAI, Taguig City
9th Avenue Townsquare, 9th Avenue, Cubao, Quezon City

Fianchetto Homes’ Project Details
Total lot area of the project – 400 square meters (sqm)
Number of Units – 10
Width of driveway – 3 meters

Unit lot area – 29.90 sqm
Number of floors – 4
Total floor area (including non-living areas such as the carport, roof deck and the open court) – 119.60 sqm
Bedrooms – 3
Toilet and Bath – 2 plus 1 powder room on the second floor
Car Slot – 1
Units are made of reinforced “poured” concrete (see last picture)

Pricing and Sample Computations (see picture number 2 above)

Units 1, 2, 3, 5, 6 and 10 P3,800,000
Units 4, 7, 8 and 9 P3,500,000

Note:
1. Contract price does not include yet the 12% E-VAT

2. If you find the 6 monthly payments of the D/P onerous, talk to me and I will find a way to have the payment period stretched.

3. *Miscellaneous Fee represents various expenses for transferring the title to the buyer. Eg. registration fee, documentary stamp tax, transfer tax, etal. Other developers refer to this as Closing Fee or Other Charges.

4. **The terms and 10% interest rate per annum may vary depending on your financial standing and your capacity to pay

5. Service deposits for utilities (Meralco and water) shall be for the account of the buyer and will be approximately P30,000.

Important: Unlike a condominium, each townhouse unit has its own Transfer Certificate of Title which means the buyer owns not only the unit but also the lot on which his unit stands.

Unlike other developers who rely heavily on preselling their projects before starting construction, Fianchetto Homes started construction October of last year and it is only now that it is being actively marketed. The project is now 30 to 40 percent complete. The whole project is expected to be completed by October of this year.

Below are pictures of the project taken on June 22, 2011. No pictures of the interior were taken because of the frenzy of so many workers at the project site.

If you want to know more about this project, please get in touch with me using the Contact form above or you may contact me via 447.6328 or through 0929.609.7142.

Thank you so much

Jun Sanchez
Licensed Real Estate Broker
PRC Registration Number 4562

Georgia Club is a project of Brittany Corporation, a subsidiary of Vista Land of Senator Manny Villar.

[See here the map of Georgia Club]

I promised myself to go back to this place to take better pictures. Unfortunately, I haven’t gotten myself to doing so.

The rule of thumb when taking pictures of houses is there should be no people in the pictures. But what I am about to show is a picture show of model houses in Georgia Club with my family in varying playful poses.

I shouldn’t be showing this for privacy reasons, but what the heck! You can look but you can’t touch: ) And, maybe, what better way for you to connect with me than by letting you know the people who are most important to me – my Nanay, my son Julian, my daughter Ariel and my niece Katrina.

So, here are random images of Georgia Club where the houses are Southern American inspired.

[Show as slideshow]

12►

Visit their official website to know more about Georgia Club.

Thanks a lot.

I’m completing a directory of the many condominiums in Metro Manila like the Products and Services Directory that I currently have.

What made me decide to come up with this directory is their sheer number – condominiums are sprouting like mushrooms. With so many projects to choose from, I hope this online directory can somehow ease the decision making process of those on the lookout for a condominium, either to own or to rent, before they even go out to actually look for one. The directory will include a link to the satellite map of each condominium project so prospective buyers or renters can examine online the institutional, commercial, office establishments and other special points of interest within its vicinity.

There’s a long way to go before I can complete this directory, but so far, I have counted 189 “condominium brands.” I said brands because 1 condominium doesn’t necessarily mean 1 building. Many brands usually come in two or three towers, and still some come in clusters like the Azure Urban Resort Residences (next to SM Bicutan) that will have nine buildings, each at 20 stories tall.

[See the location of the soon-to-rise Azure. To see the street names, place your cursor on “Map Type” in the navigation bar above and click “Google Hybrid” in the drop-down list]

There are interesting facts I learned while making this directory.

Major players in condominium development

It appears that Megaworld Corporation is the most aggressive developer of condominiums. Among others, it owns Eastwood City along C-5 Road in Libis, Quezon City. It is host to at least 12 luxury residential condominium towers and at least 5 more and 1 hotel are coming up. Megaworld managed to squeeze these plus several commercial and office buildings in a 17-hectare property.

To get an idea how relatively small Eastwood City is, Trinoma Mall, including its open spaces, along EDSA, sits on a 20-hectare property, while SM north EDSA nearby, occupies an area of 16.5 hectares.

Megaworld is also an aggressive player in Bonifacio Global City and in Araneta Center Cubao.

Talking about aggressiveness, Mr. Lucio Tan’s Eton Properties Philippines, Inc., a mere 3-year old company, has started 30 major major projects. Its projects, though, are a mixture of vertical and horizontal developments for residential, commercial and office use.

Ayala Land, Inc. which controls Bonifacio Global City together with the Bases Conversion Development Authority and Evergreen Holdings, Inc. of the Campos Group (of Unilab fame), continues with its strategy of opting for quality over quantity. In my opinion, its Serendra project is the best in the area.

Condominium developers rarely give out the number of units in their projects

Whenever I visit the official website of a certain condominium development, the number of units are often not disclosed, even if just an approximation. Features, amenities and other details are readily made available, but most of the time, I would have to dig deeper, even going to other websites, to find out the number of units. I can only guess that this is meant to downplay the disadvantages of living in a condominium where each unit owner shares the building/s with hundreds, sometimes, thousands of other people.

The condominium boom appears to be demand-driven

Unlike the real estate boom in the early to mid 1990’s which was speculation-driven, the current real estate boom appears to be demand-drive. There appears to be real demand for condominiums… so far. Many are selling like hotcakes.

This has been made possible largely in part by the easy and flexible payment terms offered by many developers. It’s now common for developers to ask for 20 to 30% down payment payable in 2 years. Others even offer full payment payable in 4 years at zero interest.

These payment terms were unheard of in the 1990’s when full down payment was customary to be paid within 30 days upon reservation.

Is there a condominium bubble that’s waiting to burst?

With so many condominiums that have been built, are being built and about to be built in Metro Manila and with many new players joining the fray, I sometimes wonder when it will ever stop. It’s a universal law that whatever comes up will eventually come down.

I am a subscriber to the newsletter of a leading real estate developer. I remember last year when it called on other developers not to start new condominium development because of what it perceived to be an oversupply of condominiums. It even encouraged them not to finish projects that year in order that earlier condominium projects be sold out first. Obviously, no one listened.

Let’s just hope that these developers will be prudent enough to recognize when enough is enough.

Thank you so much

I concluded by saying that just because there are several serious downsides to owning a condominium doesn’t necessarily mean that you shouldn’t buy or live in one.

In my two maiden posts here and here, I said that there are three basic types of housing – the traditional single-detached house, attached housing like duplex, quadruplex or townhouses and the condominium unit.

In those posts, I mentioned that it is important for a prospective home buyer to assess the basic values or benefits – time, convenience, space, privacy, space and/or peace and quiet – that are most important to him when deciding on the type of house he wants… because there is no one type of housing that can provide all those values to him.

So, what are the values that a condominium can offer at an extent that the two other types of housing cannot?

Time and Convenience

Investing in a condominium may seem like buying into a money pit, but by taking advantage of the time you save and the conveniences you gain by living in a “carefully chosen” condominium, these can result to massive savings that can more than offset the cost and expenses of living in one.

This can be best explained by giving an actual example of people who have opted to live in a condominium.

I have a cousin whose family of three used to live in a single-detached house in BF Homes, Las Pinas City. My cousin is a stay-at-home mom while their little daughter attended pre-school that daily required the service of a school bus. Her husband, a lawyer, used to drive daily to work at the Philippine Overseas Employment Administration along EDSA corner Ortigas Ave. in Mandaluyong City. That was at least an hour drive, one way, on a good day.

Today, they live in Cityland Mega Plaza just behind Robinsons Galleria; only spitting distance from the husband’s office.

Their daughter, who’s now in grade school, is enrolled at St. Pedro Poveda. Being devout Roman Catholic, they attend regular mass at EDSA Shrine. Need I say more about the convenience of living just across Robinsons Galleria?

They have sold their car realizing that they have no more need for it; they have everything they need near where they live. Whenever they need to go far, they take advantage of the MRT.

They have done the math and are certain that whatever money that goes out of their pockets for choosing to live in a condominium will be more than offset by the considerable daily savings they gain by simply walking to the places that are most important to them.

Aside from the monetary benefits, consider also the improvement on the family’s lifestyle.

The husband walks home from the office every day at 12:00 noon to eat lunch with his wife. Cutting on the husband’s travel time by at least two hours daily means precious hours that can be spent either relaxing or spending more time with the family.

It is by carefully choosing the “location” of a condominium, its amenities, the conveniences nearby and factoring and considering if such elements will give you the savings and the lifestyle you want that living in a condominium is highly justified.

Like I said in the past, choosing the type of house you like is not simply a financial decision; it’s also a lifestyle decision.

Thank you so much.