Manila, Philippines is the Place

Forget Singapore, forget Hong Kong. Manila is the best place to be an expat – and 12 expats will tell you why.

We’ve all heard that Manila has increasingly become a center of economic growth and foreign investments, and with great foreign investments come a great number of friendly neighborhood expats. In 2010, the NSO stated that almost 200,000 foreigners were living in the Philippines. Now I don’t know what the current number is, but based on observing the pedestrians of Makati for the past year, I would boldly say that 2 out of 20 pedestrians are probably not Filipino.

A lot of people might ask – why is Manila the best place to be an expat? There are so many opportunities for expats in the urban jungles of Singapore and Hong Kong. Well, we talked to some expats from the Netherlands, from America and even all the way from Colombia who all settled down in the Philippines once they saw the great opportunities here. After reading what they say below, you might be asking yourself – why not Manila?

Jacqueline Van den Ende, Managing Director of Lamudi Philippines

Van den Ende, from the Netherlands, arrived in the Philippines in 2013 as the managing director of Rocket Internet’s Lamudi, their online real estate marketplace. Since she’s arrived, she can’t imagine being anywhere else. She often travels around the Philippines and goes surfing for weekend escapes, but loves living in the cosmopolitan city of Manila.

“Manila is a great destination for expatriate employees,” she said. “Cost of living here is not very expensive unlike Hongkong and Singapore, though the city provides a quality of life that’s comparable to Bangkok or Jakarta.”

Van den Ende believes that one of the best attributes of Manila is its openness to different cultures as well. “It will be easy for expats from all types of backgrounds to settle in Metro Manila. Filipinos are world renowned for their hospitality and their friendliness is definitely unlike anything I’ve ever experienced.”

Mauro Cocchieri, Managing Director of foodpanda Philippines

Cocchieri comes from Italy, a country known for its great cuisine and accommodating people.He worked at Lazada before becoming the managing director of foodpanda, an online food delivery platform.

Despite his country’s solid culinary reputation, he claims that the Philippines has amazing food and amazing company which goes hand in hand. “The people are very accommodating and they go out of their way to help you. The food, hands down, is one of the best I’ve had.”

Cocchieri, however, cannot help but crave for some homegrown Italian food from time to time. When asked if he often orders through foodpanda he said, “Of course! With my busy schedule, it always pays to have an alternative.”

David Margendorff, Co-Founder & Chairman, PawnHero Philippines

Our third European on the list, Margendorff hails from Germany.

He praises Filipinos for their fun culture and hospitality, but emphasizes that Filipinos are some of the most ambitious and talented professionals he’s ever met. Margendorff is starting PawnHero this year, and he’s chosen Manila as the first city to launch it in. He is currently working with a local team.

PawnHero will be the first online pawnshop in Southeast Asia. Margendorff promises to give Filipinos a cheaper alternative to existing pawnshops which charge extremely high interest rates. “We want to solve the problem of expensive credit for consumers who might not be able to afford it,” he says.

Margendorff has lived in 7 countries for the past 6 years, but he eventually chose to settle in the Philippines. He plans to stay here long-term, mainly because he can see how much impact he can create through PawnHero.

Jimmy Cassells, CEO of Spiralytics

Cassells is from the United States. He’s been in the Philippines since 2005, and he is one of the minds behind the quick growth and expansion of online fashion marketplace Zalora. 2 years ago, he started his own company called Spiralytics, which provides a range of services in digital marketing to some of the biggest brands in the Philippines.

“I love the Philippines!” Cassells begins, “People are so warm, embracing, endearing, and the culture here is wonderful. At work, the team becomes good friends with each other. Everyone definitely feels like they’re part of the ‘barkada.’”

Cassells also exclaims that the tech community here in Manila is exploding with brilliant startup minds. He continues by saying that not all startups are destined for success, but when startups fail, there is still a very low cost of failure when you start in the Philippines. He states, “Failure in the US often means millions of dollars. Here, you can cut that by a factor of 10.”

He also loves the nightlife, the weather, and the beautiful beaches and unlimited dive spots of the Philippines. His favorites include the Tubbataha marine sanctuary, Malapascua for thresher sharks, and Coron for the sunken Japanese WWII warships.

When asked if there was anything else, he said, “Yes! Four months of Christmas which leads up to one of the most amazing fireworks displays in the world. It’s more fun in the Philippines!”

Ezra Ferraz, Chief Content Officer at Zipmatch.com

Of Filipino heritage, Ferraz taught writing for three years at the University of Southern California and grew up in the US. He moved to the Philippines not very long ago, and writes for Rappler. He currently works at Zipmatch, another online real estate marketplace. He’s interviewed almost every Filipino entrepreneur you can think of, including Erwan Heussaff, and he believes that the Philippines is definitely a great place to pursue business.

Ferraz explains that the entrepreneurial sector in the Philippines is still a small community. “It’s much easier to meet the entrepreneurs changing X industry or Y space because there are relatively few of them, compared to what you might find in another city of similar size.”

“You are never really more than one or two degrees away from someone you’d like to meet,” he adds, “And due to the overwhelmingly friendly culture of the Philippines, other entrepreneurs generally welcome you with open arms.”

Farouk Meralli, CEO of mClinica

Farouk Meralli is a 28-year-old Harvard School of Public Health graduate who worked in strategy and management for major pharmaceutical companies Roche, Johnson & Johnson and Pfizer before finally becoming an entrepreneur. He founded mClinica, the largest pharmacy network in the country with a growing network of over 1,400 pharmacies and access to over 20 million customers.

He chose the Philippines as their launch market for mClinica because it provides an interesting test environment for creating truly global products. “The Philippines represents a fascinating intersection between the East and the West. Due to its cultural and political history, one can identify behavioural norms and practices that fit both Eastern and Western paradigm,” he said.

After launching in the Philippines, mClinica is expanding to several emerging markets after leveraging on their experiences in the country. Meralli insists that while he is based in their Singapore headquarters and travelled in many Asian markets, the Philippines is undoubtedly his favorite. To him, it represents the best of both worlds.

Robin Leonard, CEO and Co-Founder of AllFamous Digital

Five years ago, Robin Leonard moved from New Zealand to the Philippines to start working at IBM before finally starting his own company, AllFamous Digital.

Leonard told us that coming here alone was no problem and not difficult. “Within weeks I had a big group of Filipino and foreigner friends and colleagues that were very welcoming. Culture at work is very family oriented.”

Working culture in the Philippines is not what Leonard is used to back home – and he means this positively.

“Getting people onboard requires one on one lobbying, not big meetings. Laughter is commonplace and gangs or “barkadas” form between staff, often resulting in life-long friendships, which is a good thing. As a foreigner you need to accept that you will sing karaoke, and over time you will learn to give it your all when Hotel California plays.”

According to Leonard, the Philippines also serves as a great place to work because business is done in English. However, he admits that he’s earned a couple of ‘brownie points’ with Filipinos by learning a few keywords in Tagalog.

“It often creates a giggle or surprise if you drop a Tagalog word here and there,” he adds.

Leonard leaves us with a couple of wise words for future expats who want to start their business here: “Crack the big city lifestyle of Manila and you’ll find that it is a gold mine of opportunity, especially for the “expatrepreneur.”

Joost Boer, VP of Operations at Gourmet Society Philippines

Joost Boer comes from the Netherlands, a country known for its liberal capital Amsterdam, but also widely renowned for its cold, rainy weather throughout the year. After arriving in the Philippines, where there is year-round sunshine, warm people, and a stunning array of islands according to Boer, it’s no wonder that he immediately considered establishing himself here long-term.

“You’ll find no country in Southeast Asia where the culture is so welcoming towards foreigners and where the level of English is this well-developed. From a more business-centric perspective, this has a profound impact on the ease of communication with your co-workers as well as on conducting business development,” he adds.

He continues by praising the business outlook and directional perspective of the Philippines. “Here, you’ll find yourself on an upward curve, and the overall levels of optimism are high. This is a far-cry from life in Europe, where the outlook on life over the years has more and more slanted towards pessimism.

Boer concluded by saying that he strongly recommends his fellow foreigners to consider making the move to the Philippines as well.

Daniel Torres, Managing Director of Easy Taxi Philippines

Daniel Torres comes from the exciting Latin American city of Bogota in Colombia. He’s been here in the Philippines for a little over a year and he says that Filipinos have been very welcoming since his first day.

“I’ve been amazed and pleasantly surprised by the warmth and helpfulness of Filipinos. Metro Manila has so much to offer in terms of food, cultural diversity and affordable yet high quality living. You’ll always find something new, which makes it a fun city to explore and rediscover.”

Torres also adds that there are a lot of nearby getaways like Puerto Galera, Tagaytay and Sagada, which easily gives people the opportunity to take a break from the fast paced metropolitan.

As the managing director of Rocket Internet’s Easy Taxi Philippines, Torres is happy to contribute to make a better Manila, by improving its transportation system, reducing traffic, and make it safer for everyone.

Henry Keppler, Managing Director of Kaymu Philippines

Henry Keppler is also from Germany, and he just arrived in Manila a week ago. Although he’s been here very briefly, he already feels that Manila has huge potential for fast growth. Kaymu, launching soon, is another Rocket Internet venture.

Keppler felt the trademark Filipino hospitality. “I immediately felt connected to locals. Their genuine openness and interest in what I do and why I’m here pleasantly surprised me. Compared to other Asian countries, they are very open!”

Launching new ventures may be difficult to do in a new country, especially when it is critical to have low resistance from potential customers. Keppler feels that Filipinos are willing to try out new products, and he is definitely excited to learn more about the city and its different characteristics.

Dip Ghuman, CEO of Near

Dip Ghuman worked at Google and Lonely Planet before joining the entrepreneur world. He believes the Philippines market is a sleeper – slowly building steam, quietly, ready to pounce on an unsuspecting world economy.

“With the world so focused on Silicon Valley, China, Japan, Europe, etc – no one is looking at the Philippines. Here’s why they should,” he begins.

According to Ghuman, one of the first things that caught his attention about the Filipino market was that 60% of the population in the Philippines is younger than 20 and that was coupled with GDP growth of 6%+ YoY. Because of these facts, he views the Philippines as a representation of the next financial boom in Asia.

“There is a growing Westernized middle class who speaks perfect English, and this makes the country an ideal springboard to launch your business in Asia. Barring corruption, the Philippines has a small window of opportunity to return the country to its pre-World War 2 status as the ‘Pearl of the Orient,’” Ghuman adds.

Ghuman says that he’s started two businesses within two years, the latter of which is launching in March 2015 in Manila. “I got on that plane a year and a half ago to start my California wine business, but now I’m focusing on a new hyperlocal mobile messaging app, Near.”

Ghuman concludes, “Manila is the social media and selfie capital of the world – there is nowhere better for me to be than right here, right now.”

Bryce Maddock, CEO of TaskUs

Bryce Maddock arrived in Manila in 2009 from the United States. He had just started TaskUs and was determined to connect rapidly growing American startups with incredible talent at prices that would enable them to scale. He found what he was looking for in the Philippines.

“When we just started TaskUs, I wouldn’t have been able to find the Philippines on a map if you asked me. We went on a search for affordable talent to support our friends’ startups. We hired people in 16 different countries, but were consistently impressed by the results and work that Filipinos were delivering. We were so impressed, that we opened our first office here, in Bacoor, Cavite and have not looked back since.”

Today, Maddock has 1,600 employees and counting. TaskUs is the secret behind the rapidly growing customer support and back office operations for startups like Tinder and HotelTonight.

“Almost all of today’s most successful startups depend on the talent that exists in the Philippines. Simply put, it’s the people. The people of the Philippines are some of the kindest and most talented people on the planet. Historically, the country exported its people as OFWs. But today a homecoming is happening,” says Maddock. “The next decade is going to be very exciting as talent repatriates and reinvests in the country.”

It’s time for the balikbayan to come back for good.

One of the Philippines’ biggest exports is its own people. Everyone was leaving to work abroad because they believed there was no opportunity for them here. All that amazing talent went into making prosperous countries even more prosperous.

Today, we should acknowledge that that is no longer true. The best opportunities for business are here in the Philippines. Foreigners are flocking here to start their businesses in the perfect Asian beta market. They happily leave their first world countries for what the Philippines has to offer.

We, as Filipinos, should all find it in ourselves to see the beauty of our country the way they do; to finally discover the diamonds that have been waiting to be found for decades.

SOURCE: https://www.kalibrr.com/advice/2015/02/why-manila-is-the-best-place-to-be-an-expat/

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Learning Lessons in Home Ownership

When most Filipinos envision a successful future, their dreams almost always tend to include a home.

The exact house may differ from person to person – the business process outsourcing (BPO) worker might want a condominium in Bonifacio Global City, while the father of 4 might want a 5-bedroom house in a southern subdivision – but the goal remains the same: We all want a place to call our own.

It is a bit ironic that we all aspire to own a home, but very few of us – myself included until only very recently (and I’m still learning more and more every day) – know what it takes to get one. In other words, we do not necessarily have a frame of reference for understanding how to go from not owning a home to being a proud home owner.

On the outside looking in, homeownership appears the privilege of a select few – the mayayaman (rich), as some might dismissively say. Yet owning a home is well-within every Filipino’s reach, especially as there are increasingly more resources to help us get there, such as the government’s Pag-IBIG fund.

To prove that homeownership is attainable to all Filipinos, my company, ZipMatch, started a feature series entitled #HowIGotMyHome. In each installment, we will interview a different Filipino – everyone from a security guard in Pasig to a copywriter in Makati – on how they were able to get their dream home.

In our first installment, we interviewed Carla Manantan, who used to teach in Korea. Here are 4 key takeaways from her interview, so you, too, can begin the tough but ultimately fulfilling journey toward home ownership:

It takes personal sacrifice to own a home. Manantan taught English in Korea for 4 years, an ocean away from her friends, her mother and two brothers, and everything she had known up to that point. Picture this: She was alone in another country where the culture was foreign and the primary language was not English. She enjoyed learning about Korean culture but living in the country represented a huge personal sacrifice. Still it was a job she stuck with because it gave her the greatest chance of eventually owning a home.

It takes financial sacrifice to own a home. As a Filipino living in Korea, it would have been easy for Manantan to fall into the trap of treating it as a vacation. She could have splurged on weekend jaunts around the country and nightly dinners at the most exotic restaurants. Instead, Manantan buckled down on all her expenses, including food, entertainment, and leisure, knowing she was in Korea for a purpose: to save up for a home. This approach had the ancillary benefit of forcing Manantan to find ways of enjoying Korea that other expatriates tended to overlook.

It takes financial smarts to own a home. When Manantan moved back to the Philippines, she realized something that many tenants in the country don’t: The money that she was spending on rent could also pay for monthly installments on a home of her own. So rather than having nothing to show for at the end of a lease, she could actually have a brand new piece of property titled under her name. Yes, she would have to pay for a reservation fee and a deposit for a new home, but after doing a simple cost-benefit analysis, she determined that buying a house was the most financially sound route to go. With that in mind, she paid her reservation fee with full confidence.

It takes the right attitude to own a home. Manantan’s journey, which began in Korea and ended with owning a home in Bonifacio Global City, looks easy in hindsight. But the path was long and very much a challenging one – it was only her attitude that saw her through. Whenever she was missing her family in Korea or skipping out on seeing that movie or eating at that restaurant, Manantan made it a point to mentally focus on other homeowners that she knew. “Kung kaya nila, kaya ko rin (If they can do it, so can I)," Manantan told us, exemplifying the quality that appears to have aided her the most in her hunt for a home – determination.
Source: rappler.com/business/features

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Wants to know how much can you avail as PAG IBIG housing loan?

Wants to know how much can you avail as PAG IBIG housing loan? There is a corresponding amount equivalent to your monthly contributions. For more details please watch the video.

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Know if you are ready to become homeowner

Juday House I do

Every time you watch a movie, you’re probably subjected to a million ads for new condo developments all over the metro (and the country) before the trailers even start. It seems like there’s a development for every sector, from yuppies looking for condos in the city center to retirees looking for a quiet place to relax.

But how do you know if you’re financially ready to buy a house? You should look beyond your bank account and the price of the house. Here are the six things you need to consider before you even start meeting with real estate agents and dreaming about your new condo lifestyle (note: this article does not take into consideration pre-selling units):

1. You know you want to commit.

Owning and living in a home is a long-term commitment. If your income or lifestyle isn’t stable enough to ensure that you’ll be living in the home you picked for the next 3 – 5 years, you’re not ready to buy a home. The Wall Street Journal says that “in most cases, you should consider buying a home only when you plan to stay somewhere for several years.” Not only are there considerable expenses involved with moving into a home, but with moving out as well, so if you’re not going to stay there for a long time, it’s not financially smart to buy a house.

2. You’ve already saved up a down payment.

Because banks here in the Philippines usually give an 80% margin of finance when they give you a loan, you need to have at least 20% saved up for your down payment. If you have more, even better — a larger down payment means you’ll have to take out a smaller mortgage, and you’ll pay less in interest in the long run. Before you talk to lenders or banks, you should already have an idea of how big a down payment you can make.

3. You know how much you can spend on a new home in your budget.

Don’t look at properties before you look at your budget. Instead, look at your budget first to find out how much house you can afford. Most lenders suggest home expenses should be a maximum of 28% of your gross monthly income. So if you make P50,000 gross a month, your budget for monthly mortgage payments for your new house shouldn’t go over P14,000. Got other high costs, like college tuition payments for your kids or an auto loan? Then you should lower the amount. Use the number you come up with as a guide to find out how much house you can truly afford.

4. Your consumer debt is under control.

Still struggling with credit card payments or other consumer debt? You’re not ready to buy a new house. You don’t have to have zero consumer debt to be able to afford a mortgage — but you have to have a plan for paying off those debts, so you’re not just adding to your problems by taking on new debt. (If you need help dealing with credit card debt, check out these strategies.) Dealing with your debt responsibly also has the added benefit of improving your credit rating. A good credit score will allow you to get the best home loan rates.

5. You know your home loan options.

Generally, you’re better off getting a loan with a financial institution than relying on in-house financing, because in-house financing usually has higher rates. Once you know how much you can afford and how long you want your term to be, you can use our home loan comparison tool to quickly compare different banks’ housing loans, find out how much the monthly repayments will be, and choose the loan that best suits your budget.

6. You’re ready for ALL the costs of homeownership.

The expenses of home ownership don’t end with paying the mortgage. You’ll have to consider the costs of moving fees, furnishing, parking spaces, association dues if you’re living in a condo or planned community, home repairs, and others. Remember, you’re in this for the long term, so your finances should be as well.

So are you ready to be a homeowner?

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Buyers of condominium and real estate projects get protection from new HLURB rules

THE PHILIPPINES’ housing board has released a new set of rules to protect buyers of condominium and real estate projects by imposing steeper penalties on erring brokers and agents.

Under Resolution 922 of the Housing and Land Use Regulatory Board (HLURB), all dealers, brokers, salespersons and businesses must first register with the agency before carrying out any sales transactions with the public.

They will be made to file a bond with the land use agency: for sales agents, P1,000; for brokers, P5,000; and for firms, P20,000.

Real estate brokers, who negotiate deals between property buyers and sellers, must first pass a licensure exam as required by law before facilitating the transaction.

Those found selling properties without the HLURB’s accreditation will be fined P10,000 and slapped with criminal charges while those engaging in property sales with expired registration will be fined P5,000. They can also be barred from securing a license to operate for future transactions.

A separate HLURB order also beefs up protection against false advertising by treating every feature included in promotional materials as “sales warranties” that can be held against the sellers.

“Any announcement or advertisement about a project, or about its operations or activities, must reflect the real facts and must be presented in a manner that will not tend to mislead or deceive the public,” the HLURB said through Resolution 921 signed Dec. 2, 2014. “All representations in an advertisement shall form part of the sales warranties enforceable against the owner or developer, jointly and severally.”

Developers must first secure the approval of the HLURB before publishing any ads for their projects. They also cannot advertise the project without securing a license to sell from the agency.

As in the resolution, all statements made regarding the payment and financing scheme, design and standards, amenities, facilities and other privileges “connected with the sale of the lots, including any building or improvement or any units thereof” will be treated as promises which the seller and builder must completely fulfill.
Source: Business World

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Opps...Switch from Yahoo! Mail to GMail?

Why to switch from Yahoo! Mail to GMail?

GMail edges out Yahoo! Mail because of its speed and spam blocking. Yahoo! has too much spam, including IM span. Also POP access and disposable addresses require paid account. Here are some reasons why you need to switch from Yahoo to Gmail;

• Faster access to mails and general speed in sending & receiving mails. Powerful search function for e-mail similar to Google. Filtering out e-mails with .exe attachments possible.
• Better spam blocking and less spam. Yahoo has too much spam including IM spam. Yahoo! also sucks to differentiate b/w legitimate and spam mails.
• Automatic forwarding for GMail.
• Supported E-mail client access for GMail:POP3, IMAP, SSL/TLS supported, SMTP restricted. Yahoo supports only POP3 that too for certain regions. (This feature is to be noted as it's useful in the article)
• Gmail localization for 52 languages, Yahoo 27 languages
• GMail has text ads only in viewing mail box, not in messages. Yahoo has ads in interface and mails.
• Domain name customization possible in GMail using Google Apps
• Custom From address can be set up in GMail
• Address modifiers available in GMail (userid followed by + followed by tag)
• IE, Firefox, Chrome, Opera only compatible with new version of Yahoo Mail.
• Account expiration on inactivity 9 months in Gmail that too at Google's discretion vs 4 months for Yahoo Mail.
• Other special features in GMail: Messages grouped into conversations, Basic HTML view gives faster access for slower net connections, Labels are used in GMail instead of folders in Yahoo.

Source: Techsupport.com

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The 7 Top Home-Buying Mistakes You Should Avoid

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

Home Buying Mistakes - Filprimehomes

1. Don’t … buy a house if you’re planning to move again soon.

If you’re a renter, it can be frustrating to write that rent check every month and have no home equity to show for it at the end of the year. But if you aren’t certain that you’re going to stay put for a few years, it’s probably not the right time to buy—equity or no equity. “Some people tend to buy a house knowing that they’re going to be relocating after a few years,” says LearnVest Planning Services certified financial planner Ellen Derrick. “Don’t buy property and automatically assume that you’ll be able to rent it out or sell it when you move.”

What to do: If you aren’t in an area with a strong rental market that would allow you to cover the mortgage on your home if you move elsewhere, then stick with a rental for now.

2. Don’t … bust your budget.

Shopping for houses can make you a little giddy. Look at this one! And this one! For a little bit more, you could get granite countertops, plus an office nook! You’re dealing with such large numbers when you’re browsing real estate that it might not seem like such a huge deal to stretch another $10,000 or $15,000 to get the home you really love. But that’s not a game you want to play. “People look at the top end of their affordable monthly payment, and they don’t really think about what happens if their income goes down or they have to change jobs,” says Derrick. (If you’re wondering what percent of your budget should go toward housing, check out the 50/20/30 Rule.)

What to do: Get preapproved for a mortgage. Not only will this prove that you’re serious to your realtor and to home sellers, but it will also give you an idea of your upper limit. “Remember that the lender is there to make you a loan, and the more money you borrow, the better it is for them,” Derrick says. “They want you to max out. I would take the pre-approval number and cut about 20% off.”

3. Don’t … forget about added costs.

Buying a home isn’t just a matter of replacing a rental payment with a mortgage payment. There are also maintenance costs, utilities (which will likely cost more) and property taxes. “People tend to forget about both property taxes and insurance when they’re thinking about how much house they can afford,” Derrick says. “The actual monthly payment could end up being well out of your price range when you figure those things in.”


What to do: Ask the homeowners about their average utility costs and property taxes, get a homeowner’s insurance quote and budget about one percent of the home’s purchase price for annual maintenance. Then run the numbers to see if you can afford the home. (And don’t forget about closing costs.

4. Don’t … put down a nominal down payment.

Even with lenders tightening requirements to qualify for a mortgage, it’s still possible to buy a house with as little as 3% down. That’s not necessarily a bad thing, but it does mean that you’ll have very little equity in your home when you first move into it. So if something comes up, and you have to sell, you’ll end up owing more than you can get out of the sale once you factor in closing costs. It puts you in a precarious position. Even if that doesn’t happen, you’ll have to pay private mortgage insurance (PMI) every month until your equity in the home exceeds the 20% mark—and that could take years. (If you can’t put 20% down, your loan is technically considered risky—PMI is insurance that protects the bank if you default on your mortgage.)

What to do: Consider whether it’s prudent to buy a home now if you’re nowhere near having a 20% down payment. Yes, interest rates are low, but if you have to borrow thousands more because you don’t really have a great nest egg, it may be a wash in the end. You could avoid years of PMI, and owe a lower monthly nut, if you spend a year or two saving aggressively toward a down payment.

5. Don’t … neglect to get everything in writing.

You wouldn’t be the first home buyer to assume that the kitchen appliances come with the deal—only to discover an appliance-free kitchen on the final walk-through. “I’ve heard of buyers going ten rounds because the seller took the drapes down, and the buyer expected them to be left,” Derrick says. “I’ve seen all kinds of deals blow up over stuff like that.” Common points of contention: window treatments, hot tubs, light fixtures, shower and bath fixtures, ceiling fans and big appliances, such as washers and dryers. Replacing something you thought was staying could cost hundreds, so it’s not a small thing.


What to do: Go through your contract with a fine-toothed comb. If the item that you expected to be there isn’t, ask about it—and get it added in writing.

6. Don’t … skip the inspection.

Even if the home looks like it’s in winning shape, it would be foolish to skip a thorough once-over by a professional. “People tend to think that the inspection and the appraisal are the same thing,” Derrick says. “They’re not.” An inspector is there to spot the things you don’t know to look for, like if the chimney is in great shape or whether those little cracks in the foundation are a big deal. He’ll look for signs of water damage and check the insulation in the attic. If there are conditions that will need repair, you may be able to negotiate with the seller to drop the price. In other words, the inspection is worth every penny.

What to do: Get recommendations from your realtor or friends who’ve bought in the area, and have a professional inspection done before you close on the house.

7. Don’t … think a brand-new home entitles you to brand-new everything.

“A lot of people buy this nice house, and then look at the ratty car sitting in the driveway and think, ‘We better buy a new car,’” Derrick says. Or you suddenly have a formal living room but no formal living room furniture—so you buy some! It’s a mistake to feel like you suddenly have to upgrade all of your stuff to match the shiny new home. “You don’t want to get yourself into a pile of credit card debt just so you can keep up with the house,” Derrick says.

What to do: Live in your house for a while, so you can figure out what you really need. Then save up for it!
More info: http://www.forbes.com/sites/learnvest/2013/03/06/the-7-top-home-buying-mistakes-you-should-avoid/2/

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How to Save on House Related Expenses

According to that report of Philippine Financial Literacy Advocacy Report 2013 by Sun Life Philippines, Filipinos spend around 37% of their income on food, which is the largest portion of the pie. Below is an info graphic that shows more details.

Apart from food, housing takes the secondary spot in consuming the average pinoy’s income of P 20,000. Here are some tips on how to save on house related expenses

1. Set Your Own Personal Budget

These clever tips help keep your cash where it belongs -- in your pocket! First things first: Learn how to set your own personal budget with our easy-to-use worksheet.

2. Adjust Your Water Heater

Lower your water heater's thermostat to 120 degrees to restrict heat loss. The exception: dishwashers. Check if yours has a "booster heater" for sanitizing 140-degree rinsing.

3. Maximize Air Flow

When it's hot outside, position a fan to blow air out a window. But if you're lucky enough to have a strong wind, set the fan to blow in the same direction to maximize air flow. Close nearby windows to keep exhausted air from flowing back in and open those on the other side of the house (ideally in cool, shaded areas). In a multilevel home, place the fan in a top-floor window and open windows on lower floors, where air is cooler. For windows that catch direct sun, use blackout blinds or heavy drapes to minimize solar heat gain.

4. Reuse Rainwater

Reuse rainwater with these barrels made from trash cans. Placed underneath your home's downspout, a rain barrel can help conserve water (and money) by capturing rain runoff from the roof. You can then use that water for the garden. You'll find a variety of barrels available online: Look for ones that have a spigot for a house attachment. Or make your own from large plastic trash containers. You can purchase a pump to help deliver the water through your hose, or a tap to fill your watering can.

5. Go Low-Flow

To reduce hot-water consumption (and energy needs), federal legislation mandated improved showerhead efficiency for models made after 1994. Replace older models with ones that spray no more than 2.5 gallons per minute.

6. Purify the Air with Houseplants

An alternative to spending hundreds of dollars on an air purifier: Houseplants, which have long been hailed for their ability, remove toxins from the home.

7. Run Appliances at Night

Run appliances such as clothes dryers and dishwashers at night to avoid peak energy rates and the humid heat they generate. Excess humidity is more than uncomfortable -- it can also be expensive, since air conditioners use extra energy to process the moisture.

8. Unplug Your Electronics

Unplug small appliances whenever you can. Computers, cell phone chargers, and other electronics often continue to use power -- and radiate heat -- even when turned off. To simplify, plug items into a power strip that you can use as a master switch.

Hope this will help in your effort to cut on unnecessary house expenses.

For more info:

http://fitzvillafuerte.com/infographic-the-spending-habits-of-filipinos.html

http://www.marthastewart.com/275315/top-50-money-saving-tips/@center/277003/home-smarts#233989

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7 Smart Steps Every New Homeowner Should Take

Turning the key in a lock that no landlord has access to, reading in a hammock in your own backyard and painting your dining room bright red - what could be more exciting than making the leap from renter to first-time homeowner? Getting swept up in all the excitement is a wonderful feeling, but some first-time homeowners lose their heads and make mistakes that can jeopardize everything they've worked so hard to earn.

TUTORIAL: How To Buy Your First Home

Don't be one of those people; take a few moments to ponder these seven practical concerns that will help ensure that your first home becomes the place of luxury and financial freedom you've anticipated.

7 Smart Steps Every New Homeowner Should Take

1. Don't Overspend on Furniture and Remodeling
You've just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners - not only are their savings depleted, their monthly expenses are often higher as well, thanks to the new expenses that come with home ownership, such as water and trash bills, and extra insurance.

Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don't go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren't worth jeopardizing your new status as a homeowner. Give yourself time to adjust to the expenses of home ownership and rebuild your savings - the cabinets will still be waiting for you when you can more comfortably afford them.

2. Don't Ignore Important Maintenance Items
One of the new expenses that accompanies home ownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn't neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.

3. Hire Qualified Contractors
Don't try to save money by making improvements and repairs yourself that you aren't qualified to make. This may seem to contradict the first point slightly, but it really doesn't. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything else you value highly. There's nothing wrong with painting the walls yourself, but if there's no wiring for an electric opener in your garage, don't cut a hole in the wall and start playing with copper. Hiring professionals to do work you don't know how to do is the best way to keep your home in top condition and avoid injuring - or even killing - yourself.

4. Get Help with Your Tax Return
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you're already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Home ownership significantly changes most people's tax situations and the deductions they are eligible to claim. Just getting your taxes professionally done for one year can give you a template to use in future years if you want to continue doing your taxes yourself.

5. Keep Receipts for Home Improvements
When you sell your home, you can use these costs to increase your home's basis, which can help you to maximize your tax-free earnings on the sale of your home. In 2008, you could have earned up to $250,000 tax free from the sale of your home if it was your primary residence and you had lived there for at least two of five years before you sold it. This assumes that you owned the home alone - if you owned it jointly with a spouse, you could each have gotten the $250,000 exemption.

Let's say you purchased your home for $150,000 and were able to sell it for $450,000. You've also made $20,000 in home improvements over the years you've lived in the home. If you haven't saved your receipts, your basis in the home, or the amount you originally paid for your investment, is $150,000. You take your $250,000 exemption on the proceeds and are left with $50,000 of taxable income on the sale of your home. However, if you saved all $20,000 of your receipts, your basis would be $170,000 and you would only pay taxes on $30,000. That's a huge savings: in this case, it would be $5,000 if your marginal tax rate is 25%.

6. Don't Confuse a Repair with an Improvement
Unfortunately, not all home expenses are treated equally for the purpose of determining your home's basis. The IRS considers repairs to be part and parcel of home ownership -something that preserves the home's original value, but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn't care - you did get a discount on the purchase price because of those unmade repairs, after all. It's only improvements, like replacing the roof or adding central air conditioning, which will help decrease your future tax bill when you sell your home.

For gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant. And on a non-tax-related note, don't trick yourself into thinking it's OK to spend money on something because it's a necessary "repair" when in truth it's really a fun improvement. That isn't good for your finances.

7. Get Properly Insured
Your mortgage lender requires you not only to purchase homeowners insurance, but also to purchase enough to fully replace the property in the event of a total loss. But that's not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it's a girlfriend or a child, you'll need life insurance with that person named as a beneficiary so he or she won't lose the house if you die unexpectedly. Similarly, you'll want to have disability-income insurance to replace your income if you become so disabled that you can't work.

Also, once you own a home, you have more to lose in the event of a lawsuit, so you'll want to make sure you have excellent car insurance coverage. If you are self-employed as a sole proprietor, you may want to consider forming a corporation for greater legal protection of your assets. You may also want to purchase an umbrella policy that picks up where your other policies leave off. If you are found at fault in a car accident with a judgment of $1 million against you and your car insurance only covers the first $250,000, an umbrella policy can pick up the rest of the slack. These policies are usually issued in the millions.

Bottom Line
With the great freedom of owning your own home comes great responsibilities. You must manage your finances well enough to keep the home and maintain the home's condition well enough to protect your investment and keep your family safe. Don't let the excitement of being a new homeowner lead you to bad decisions or oversights that jeopardize your financial or physical security.

For More Info:http://www.investopedia.com/articles/mortgages-real-estate/09/new-homeowner-tips.asp

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SEC approves Profriends P 7.44 B IPO

THE Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of developer Property of Friends Group Inc. (Pro-Friends), which will be held by the middle of the month.

According to the registration statement of Pro-Friends, formerly known as Amicus Holdings Inc., it plans to raise some P7.44 billion from the offering of up to 385.75 million unissued common shares at P20 apiece.

BDO Capital and Investment Corp. and First Metro Investment Corp. were picked as joint issue managers and bookrunners.

Pro-Friends’s offer will commence on December 17 and will end on January 9.

The company said that about P2.48 billion will be infused to its financing unit Williamton Holdings Inc. for the expansion of its receivables. Williamton will be later on be renamed as Pro-Friends Financing Corp.

About P1.24 billion will be used to purchase more land in already identified areas. As of June, the company is set to purchase some 104.48 hectares of property in Cavite province, 101.22 hectares of land in Cagayan de Oro and 26.97 hectares in Iloilo.

These properties will yield the company some 13,045 units of various types, but mainly for the low-income buyers.

The rest of the proceeds of about P600 million will go to general corporate purposes.

“Pro-Friends shall further undertake the development of a private road network link to Daang Hari in Bacoor, Cavite, making Lancaster New City easily accessible as well to and from other parts of Metro Manila and Laguna,” it said.

The company said that it will strengthen and expand its regional presence in the Visayas and Mindanao, while going further into budget houses that cost as low as P300,000 per unit.

Pro-Friends in 2012 acquired Firm Builders Realty Development Corp., a socialized housing developer that completed a total of 26 projects in key cities outside of Metro Manila, some of the units of which only had floor areas of 24 to 42 square meters.

Earlier this year, it incorporated Micara Land Inc. as it forays deeper into the low-cost housing segment that costs between P650,000 to P1.2 million. Micara is set to launch its first project by the end of the year.

Source: Business Mirror

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Tips on Home Renovation

What is House Renovation?

Quicktips in Renovating a House

House renovation refers to altering or making changes to the existing building or structure in order to improve its appearance or to suit certain requirements of the homeowner. House renovation may includes minor improvement works such as painting or tiling works and major works such as house extension.

Renovation may also include house restoration which is the process of bringing back the old house back to its useable state. This will include stripping down the existing house of its old or damage parts and replacing it with new ones.

Cost of House Renovation

The cost of house renovation will depend largely on the scope and details of works to be done. Cost estimation using the area method is hard to employ in house renovation estimate. The house contractor must determined first the requirements of the owner, draw a plan and subdivide the scope into manageable details in order to come up with an accurate cost estimate or proposal.
The house contractors must also include in his computation the cost of restoration of possible damages to the exiting structure as well as the protection to be provided to the existing building while the renovation is on-going.

Featured House

Choosing the right house renovation contractors / builders

In choosing a house renovation contractors, the homeowner must keep in mind that the location of the contractors will play a major role in the success of the project. House renovation, generally, is usually of small scope. As such, paying a huge mobilization fee for a far-away construction company may not be practical. Homeowners can also easily check the previously completed construction projects of a house builders nearby. The contractors will also be readily available for repairs and corrections during the warranty period of the project.

Contractors who provide a more detailed estimate must also be given prior considerations. This will mean that the construction company is more knowledgeable and experienced for the subject project. A detailed estimate will also prevent misunderstanding between the homeowner and construction company during the construction phase.

Permits needed

Depending on the scale and type of renovation, a building permit may be required by local authorities. Small scale renovation such as painting or tile-setting will not be required to secure a building permit. However, when a house renovation includes structural and electrical works, then a building permit is definitely required. When the property is inside a subdivision premises, a construction permit from a developer or homeowners association is usually required before the renovation can be started. The subdivision administrators will in-turn determine whether the renovation works will need a building permit from the municipal authorities or not.

Furthermore, additional electrical loads in house renovation will also force the construction contractors to increase the feeder wire coming from the Meralco line. Meralco on the other hand will require an electrical permit form the local authorities which in-turn will require a certificate of occupancy before approving the electrical permit. Certificate of Occupancy certifies that a house renovation complies with the local codes and regulations. In simple terms, it will mean that the home builders follow the approved plans included in the building permit. If during the construction stage, the homeowner have decided not to follow the plans and build a different structure, then he may have problems securing a certificate of occupancy and will not be able to upgrade the electrical connections to suit his requirements.

Guidelines for House Renovation

The process of renovation can be mind bending. Starts with design/ planning, looking for contractors, and hiring the best contractor to do the job.  You also need to look for a temporary residence while renovation in your home is ongoing. Staying at your home during renovation might not be good to your health specially your children.

It is good to keep in mind that there are instances where renovation is more expensive than new construction because of the demolition work involved as well as the retouching of existing structure/finishes. It is best to engage the service of engineers during planning stage to ensure that you come up with a beautiful yet practical and economical design.

It is also advisable to schedule the renovation works during dry seasons. This will maximize the productivity of workers and will prevent unnecessary damages to your home due to water leaks.

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To Buy a House and Lot or to Rent a House?

Buying versus renting property: which is right for you?

Did you know that only about 40 per cent of Filipinos own their own home? This figure, from consumer banking firm Citibank, is one of the lowest in the Asia-Pacific region.

But with the price of rent increasing, buying property outright may make better financial sense. So how do you decide whether buying or renting is right for you?

Consider all the costs

Some say rent money is wasted money. Renters pay a large bill every month and, unlike with investing in property, you never recuperate any of the costs. But owning property comes with several additional fees and taxes that you need to take into account when deciding whether to buy – think closing costs, repairs, regular maintenance and interest on your mortgage.

In the Philippines, documentary stamps tax of 1.5 per cent is levied on the sales price or market value, whichever is higher. Buyers must also pay a transfer tax of between 0.5-0.75 per cent. Remember to take these into account when calculating how much your new home will cost you in the long run.

If your only concern is your budget, then there is a great measure for checking whether buying or renting makes more financial sense. Calculating the price-to-rent ratio is pretty simple:

Step 1: find two similar properties, one available to buy and one to rent.
Step 2: divide the price of the property for sale by the annual rent for the second property. This is the P/R ratio.
A P/R ratio above 20 means the cost of buying the property will likely exceed the costs of renting, according to the New York Times.

Think about your lifestyle

However, at the end of the day there is more to this decision that just money! Even if you can afford to buy property outright, you might still decide renting works better for you. One key factor is the flexibility that goes with renting. Renters can often afford to live in urban areas close to work and other amenities, while buyers are sometimes forced to choose a home further afield. And if you don’t like an area, it is also much easier to leave.

Here are a few questions to ask yourself before you buy:

Do I prefer the flexibility of renting or the stability of being a homeowner?
Do I like living in the inner city or am I most at home in the suburbs?
Is this home a good fit for the lifestyle I want?
Will I be able to relocate easily if work requires it?
Am I willing to look after all maintenance and repairs myself?

Source: Lamudi.com

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A little Cautious Way of Dealing with Real Estate Agents

Sometimes real estate agents tend to trick buyers and these are becoming rampant with each passing day. However, if a buyer remains a little cautious, then searching for a property, even with a dealers’ assistance becomes easier. The post explains few ways of dealing with dealers’ tricks.

home, house, house with money

Buying a property often involves dealing with an agent. While, we do derive extensive information from them about buying and selling properties, we must understand that they are not a buyers’ friend. This is said because, often times buyers end up completely trusting these real estate agents, thus getting trapped in their tricks. Before you think of hiring a real estate agent, glance through the following paragraphs:

- Understand that real estate agents are not a buyers’ friends; they are mere businesspersons who work for the seller, get them the best possible deal and in return the buyer pays them.

- There are very few real estate agents who work on salary

- Most real estate agents earn through commission. If an agent is unable to close a transaction, he or she does not get paid.

However, having said all these, we must understand often we are tricked by agents; especially first time home buyers who have resorted to a real estate agent. So, it is advisable that you do not get tempted about explaining everything to the agent. Such information might be used against you, thus leading you to finally compromising on your chosen residential property. The agent will get an idea and will know how far he can push you if he is already aware that you have already missed out on three/four properties before you approached this particular one. But do not be afraid of getting your points across with the dealer. Some tips of dealing with dealers’ tricks are explained below:

You Need to Approach an Agent

Do not expect that an agent will send you properties if they are available. It is better that you remain a little proactive in the house hunting process and remain involved with the agent throughout the process. Go and check out properties with the agent if possible. You will not only get to see various types of properties all by yourself, but will get to learn a lot through this process.

Bank Valuation does not benefit the Buyer

Often a buyer is fooled by the fact that bank valuation benefits the buyer; understand that a bank valuation is for the lender and not for the buyer.

Agents get paid only after the Transaction is over

Well, this is one of the most important aspects while it comes to dealing with a real estate agent. Since they are paid only after the transaction is over, they will always be keen on helping a serious buyer. So make sure that you project yourself as a serious buyer and monetary transactions are not a constraint.

Ignore any kind of incentives or discounts offered by the Agent

This is one of the major tricks played by real estate agents. They use incentives and discounts to lure their customers. If someone pays your moving costs or your stamp duty, then it is included in the price and you will have to repay it above and over the next 25 years’ of your mortgage.

Confirm every Conversation that you have with your agent

While verbal communication is important, make sure that you confirm every conversation that you have with your agent. Ask for an agreement if possible. Alternately, do not forget to keep a track of the appointments engaged in, any kind of offers made or any bids that were rejected along with terms and conditions. If you do so, it will give the agents an impression that not only you have genuine interest in the buy/sell process but your are aware about the basic process involved in property dealing.

Never opt for your Finances from the Agents’ Services

Dealing with finance is an integral part of the entire buy-sell-rent process; always opt for a reliable adviser. You may get the quote from the agent, but do not forget to discuss finances with your mortgage advisor.

Cross-check everything that an Agent Tells you

Never trust an agent blindly; always cross check everything that an agent tells you regarding a property or a location. Visit locations in person so that you get a fair enough idea about location as well the property.

While, agents do tend to trick buyers, hiring them also has an advantage as house-hunting becomes a little easier. If you are pro-active and take the above-mentioned precautions while dealing with an agent – searching for a property through agents can yield good results.

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