Benefits of In-House Financing

In-house financing is a loan directly from the developer or the subdivision. Most home buyers in the Philippines choose in-house financing over bank loans because processing the former is easier and faster than the latter.

For one thing, no background checks of the applicant are made and the developers who offer the in-house financing program do not usually require the applicant to submit proof of income. The approval of the loan is made once the buyer is able to pay the reservation, submit the required documents, and fill out the forms. The interest rates of in-house financing for the duration of the loan is also fixed, meaning that the amount the buyer has to pay is not affected by any political or economic developments, which makes bank interest rates rise up or fall down.

Bank loans have lower interest rates and greater flexibility (9% per year for a 1-3 year loan, 12% for a 15 year loan), but many buyers get turned off by the stringent requirements and the length of time it takes for the loan to get approved. One of the requirements for a bank loan is a proof of income - a reason why freelancers or workers in the informal sector need to formalize their businesses before they can get a loan. Some applicants who earn by commission also do not qualify for a loan because they don’t have a fixed salary. While there are banks who are more flexible about these nuances and only need proof of consistent income, these are few and far in between.

Most developers and subdivisions here in Cagayan de Oro have services like this.

REIT to be Introduced in 2009

Despite the current global financial crisis, the Philippine government is still planning to push through with introducing Real Estate Investment Trust (REITs) into the local equities market. REITs are legal entities whose functions are to allow small and large investors to participate in owning income-producing real estate properties and other similar assets. REIT shares are traded like stocks, which means they are affecting by the ups and downs of the local and global stock market.

President of the Philippine Stock Exchange Francis Lim told the press at the REIT Forum in Makati that regardless of the external shocks going on right now, our market has to keep on moving. The government and the private sector must keep on creating an environment where investments can flourish, and this includes implementing measures to insulate the local stock market from external shocks and making it easier for investments to push through. [Read more]

The Courtyards at Pueblo de Oro

Pueblo de Oro is developing a townhouse project located at the junction of Macapagal Drive and the SM Bypass Road, The Courtyards at Pueblo de Oro consists of two hectares of highly exclusive and fully built-up high-end townhouses. It is positioned for the overseas market with package prices running in the PhP 2-3 million range. As a horizontal condominium development, a limited number of lots are available. It is very accessible to SM, Xavier University High School and Grade School, and the future church. There are an estimated 104 total units. [Read more]