Monthly Archives: June 2010

Real estate buyers, investors cautioned

Real estate buyers, investors cautioned
Updated January 29, 2010 12:00 AM
(The Philippine Star)

MANILA, Philippines – As the Philippine real estate market starts to perk up after the global slump, property buyers and investors are urged to take precautions against being misled or duped into investing in land parcels which may not even exist.

Dr. Jaime Cura, chief executive officer of CREBA Land Services & Title Warranty Corp. (CREBALAND), said that many land titles proliferating in the market are infested with material technical flaws which usually cannot be detected by those without technical savvy.

These flaws, Cura said, would not only adversely affect the value of the property, but may also pose serious implications as far as ownership is concerned.

In several cases that CREBALAND has examined, Cura said, these technical flaws turned out to be indications of title fraud or fakery.

One serious flaw is that the titled parcel, when accurately mapped, turns out to be located in an inalienable zone. Cura said that the Supreme Court has invariably ruled such titles to be void ab initio.

Some titled parcels happen to be situated in ravines or floating at sea, contrary to representations of the seller or mortgagor; while some parcels could not even be mapped or located, Cura said.

Still other parcels, which are supposed to be bounded by highways and thus would have higher market values, turn out to be situated far from the road networks; while other titles supposed to be covering large tracts of raw land turn out to be straddling fully developed subdivisions already covered by another title, Cura added.

Precisely to help protect unwary buyers and investors, CREBALAND has recently deployed in the internet the country’s first, fully-automated GIS parcellary mapping service, at www.mapsys.ph.

MapSys will be officially launched during the membership meeting of the Chamber of Real Estate and Builders’ Associations (CREBA) on 28 January 2010, 12:00 noon at the Bahia Ballroom of the Hotel Intercontinental, Makati.

As an alternative to the ordinary lot plan and vicinity map used in land transactions, Mapsys.Ph provides accurate parcel maps aesthetically laid-out and packed with multi-layers of spatial information, including a report on the technical accuracy of the parcel.

Thus, with just this single document, a potential buyer or investor
could already make a well-informed initial assessment of the offered property.

A multi-million peso investment by the leaders of the Philippine real estate industry, MapSys.Ph not only resolves the most common problem of banks, appraisers, brokers, potential buyers and investors in locating a property offered for sale or as collateral, but also accurately detects technical errors in titles or survey plans.

“The stability of economic enterprises hinges on the integrity of land transactions that fuel the engine of economic development and growth. MapSys.Ph is one of the ways by which we help ensure that integrity,” Cura said.

The Pros And Cons of Rent To Own Homes

Acquiring something may not be as simple as one-two-three. Making judgements is never as easy as selecting between blue and red. There will always be the grey spots and the core points to consider. Think if you might be trying to purchase a car. You would likely consider your features like the brand, the color, the speed, the added features among other things. You also have to think about your own budget. Imagine if you are buying a house. Consequently the things to think about might even double. This time your finances might have double importance. The quality of the house and its resale value would be another. These are just some of the things that may come up to your worries. This is why to certain buyers, rent to own homes are the best options.

Rent to own homes are usually properties which are for sale but you need not pay for that outright. This is good for possible buyers who need to try out the property first as they may still have the option to back out should they think they do not like the home anymore. That is only among the several benefits of rent to own homes. Another is if the customer doesn’t have adequate funds for the moment but might like to get a hold of the actual property.  This way the buyer can have time to make up his finances over a period of time indicated in the buyer-seller contract.

The downside to that is if the new buyer decides not to buy the actual property then he loses the regular rent that served as his credit. If the new buyer continues to buy the residence but pays late for the monthly amount, most often, he may have higher rates of interest from then on. If he has actually past dues, couple of times within a year, chances are his option to buy the residence is completely void. These are the common terms and conditions of a rent to own homes settlement.

With regards to the maintenance of the property, any repairs which has to be done by the owner if this is a purely rented house, will be shouldered by the renter since they are regarded as upcoming proprietors already. Maybe a positive note to this would be the care and care given to the home by the determined tenants that really plan to have the house soon. Most of these renters would take care of their house and their community much better since they see themselves living there for quite a while compared to those who would be leaving in a year’s time.

Along with that, should the residence is considered “bought” already but is still on rent to own conditions, consequently the seller can never charm any prospective buyers anymore who might be willing to buy the home outright – a scenario which might be good for the vendor especially if he only wants to turn his property to cash. Or maybe, if the vendor has one more mortgage going, selling these rent to own homes as soon as possible would be good for him.

What to look for when renting a flat

Looking for a flat to rent can be a tiring affair, especially if it’s the first time . Regardless of what you are looking for in a flat, choosing the perfect accommodation can be very time consuming. The good news is there are a number of choices available to you.  It’s important to note that choosing the right resource can be the difference between a long and tiring search or quickly finding the rental flat you seek.

Decide your budget

Knowing what you can afford to pay per month on a flat is key and will help you in selecting the right flat for you.  Generally it amounts to 30 percent of your take-home monthly income.  You should consider your outgoings such as bills, cost of your food, ad-hoc entertainment and any other expenses as they will need to be deducted from your income per month.

Visiting the area

The first step is to decide the area you’d like to live.  It’s a good idea to visit this area and get a feel for what it would be like to live there.

Make a check list

Next create a check list which contains what your flat must have e.g. a furnished or unfurnished flat, house conversion flat or purpose built apartment and what you’d like it to have ideally.  This will make the decision making process much easier as you can eradicate anything that isn’t part of your checklist.

Find a good letting agent

It’s exhausting to trawl through classified adverts in magazines and newspapers so the least tiring way is to contact a specialist in the flat rental market who will find you properties to suit your specific needs.  If you have prepared a checklist your conversation will be short and lead to viewings tailored to your preferences.  

If you stick to the tips above you will save a lot of time and hassle looking for your new apartment.