Latest Bank Loan Rates

Posted on October 7, 2011
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Below are the latest interest rates for bank loans in the Philippines.

BDO Housing Loan Rates

5.55% fixed for 1 year
7.00% fixed for 2 to 4 years
7.88% fixed for 5 years
9.00% fixed for 6-9 years
9.50% fixed for 10 years
10.25% fixed for 11 to 15 years
10.50% fixed for 16 to 20 years

BPI Housing Loan Rates

5.50% fixed for 1 year
7.25% fixed for 2 years
7.50% fixed for 3 years
8.75% fixed for 5 years
10.50% fixed for 10 years
11.00% fixed for 15 years

ChinaBank Housing Loan Rates

5.75% fixed for 1 year
8.25% fixed for 2 to 3 years
8.75% fixed for 4 to 5 years
9.75% fixed for 6 to 10 years
10.50% fixed for 11 to 15 years
11.00% fixed for 16 to 20 years

HSBC Housing Loan Rates

5.45% fixed for 1 year
7.69% fixed for 2 years
8.29% fixed for 3 years
8.75% fixed for 5 years

MetroBank Housing Loan Rates

5.50% fixed for 1 year
7.25% fixed for 2 years
7.50% fixed for 3 years
8.00% fixed for 4 years
8.50% fixed for 5 years
9.75% fixed for 6 to 10 years

PNB Housing Loan Rates

6.00% fixed for 1 year
7.50% fixed for 2 years
8.00% fixed for 3 years
8.75% fixed for 4 years
9.00% fixed for 5 years
10.00% fixed for 10 years
10.25% fixed for 15 years
10.50% fixed for 20 years

Security Bank Housing Loan Rates

8.75% fixed for 1 year
9.50% fixed for 2 to 3 years
10.00% fixed for 4 to 5 years

UCPB Housing Loan Rates

5.50% fixed for 1 year
7.25% fixed for 2 to 3 years
8.50% fixed for 5 years

Note that these rates can change at any given time.

How To Detect A Fake Transfer Certificate of Title

Posted on January 1, 2011
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When buying pre-owned real estate property, be sure to double-check the Transfer Certificate of Title (TCT). Here are some things that you should check when you’re given a copy of the TCT:

1. On the upper right hand side of the title is the page number.  This number is the page in the registry’s books where the title is located. The last two digits of this page number should match the last two digits of the Transfer Certificate of Title number. For example, if the title shows a page number of 317 and the TCT no. is 14908, it’s a fake!

2. On the upper-left hand of the title, the month and year when the form was revised will be shown. For example, it could say “Judicial Form No. 109 (Revised January 2009)”. After you locate this information, check when the title was entered into the books of the registry. The title could say something like “Entered at City of Muntinlupa Philippines, on the 15th day of March in the year two thousand and five at 11:28 a.m.” Notice the discrepancy? The form was revised in 2009, but the title was entered in 2005! The entry date should come in the same year or after the form was revised. It’s a fake!

3. TCTs are printed using paper produced by the Central Bank of the Philippines. The paper should have fibers at the least. If not, it could be fake.

4. Each TCT must have a serial number located on the upper left hand of the title. Without a serial number, the title is a fake!

5. More recent TCTs have security features including a regular 2-D bar code and a 3-D barcode. If a title was entered in 2010, check for the presence of the bar codes. The 2-D barcode serial number should match the serial number shown on the upper left hand side of the title.

6. And finally, after you’ve verified the above information, go to the registry of deeds that is reflected in the title. Get a certified copy of the title to make sure that it does exist. More importantly, do compare the title you got from the seller and the title you got from the registry of deeds. If they are not a match, the seller might be taking you for a fool.

7. Verify the technical description of the property in the title against the physical location of the real estate property you are buying. Make sure you are really buying the correct property.

8. Check the section on encumbrances of the title you got from the registry of deeds. Ensure that it is indeed free and clear to save yourself from future legal problems.

9. There are more items to verify depending on the title. This includes: checking if the person who signed the title is indeed the signing authority at the time the title was issued; checking if the serial number of the TCT falls under the range of serial numbers assigned to the particular registry of deeds.

Remember, be ever vigilant and reduce your chance of getting duped!

Real Estate Investor Tip: Pay Your Property Taxes Early To Get Discounts

Posted on December 2, 2010
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Did you know that when you pay your property taxes in advance, you can avail of discounts? Ask the people at the assessor’s office of the city where your property is located. Chances are, you get a discount for early payment of taxes. This may or may not apply to your city, but it does apply to some cities in Metro Manila.

For example, in the City of Taguig, if you pay your real estate taxes for the whole 2011, before the due date, you could get a 20% discount. The discount applies to both the Basic Tax and to the Special Education Fund (SEF) tax. The due date for next year’s real estate taxes is on December 31, 2010. If you do not have the entire amount now, you can also opt to pay your taxes on an installment basis, interest free but without discounts. Installments for each quarter are due as follows:

Quarter Due Date
1st Quarter March 31
2nd Quarter June 30
3rd Quarter September 30
4th Quarter December 31

Pay your property taxes on or before the due date to avoid interest charges. Pay them early to get discounts. As a real estate investor, every peso counts!

How To Evaluate the Location of A Property

Posted on November 27, 2010
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As a real estate investor, one should seek to buy real estate property that is in a good location. But how do you evaluate the location of a property that you are about to invest in?

Well, the best way to go about determining if a property is in an ideal location is to answer the following questions:

  1. Is their a high incidence of crime in the neighborhood?
  2. Are the surrounding streets clean and free of garbage?
  3. Are the properties in neighborhood well-maintained?
  4. Has the area been flooded before and if so, how high did the floods reach?
  5. Is the area in an earthquake-free zone ?
  6. Is the area in the path to progress?
  7. Are there newly constructed houses or buildings in the area?
  8. How close is the area to shopping centers, schools, hospitals, churches, and the business districts?
  9. Is there sufficient traffic flow for a commercial property investment?
  10. Are the rental rates in the neighborhood for similarly sized properties high or low, and is there room for increasing rates?
  11. Are there sufficient tenants occupying the rental properties in the location?
  12. Is the location easily accessible via public and private transportation?

So how do you go about getting the answers to these questions? There are several things a real estate investor should do to get such answers:

  1. Take a look at maps of the location to determine proximity to shopping centers, schools, hospitals, churches, and business districts.
  2. Research on the internet about the location to determine if it is in a  flood are or an earthquake zone.
  3. Research if there are incidents of crime in the area as reported by the media.
  4. Drive around the area to see the general state of the roads and streets and surrounding properties, and to check if the area is in the path to progress.
  5. Walk about the area and talk to the owners and tenants living in the neighborhood. (This is the most important!)

The next time you evaluate a real estate property for investment, take these tips in mind.

Location, location, location!

Posted on November 26, 2010
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If you’ve read up about real estate, then you’ve certainly heard someone say this before – “Location, location, location!”

The first cardinal rule of buying real estate is to choose the right location. This rings especially true if you are a real estate investor. If the neighborhood is deteriorating, the value of your property will decline. You will also likely get low rental rates, bad tenants, and poor resale value. Even if you buy the best property in a bad location, your property’s values will just be dragged down when the neighborhood goes to hell.

On the other hand, if your property is in a neighborhood that is improving, the value of your property will appreciate over the long term. You are more likely to get tenants who pay on time and who can afford higher rental rates. And the resale value of your property will likely be higher than your purchase price.

In short, a bad location for your property will get you:

  • low rental rates
  • bad tenants
  • low resale value
  • headaches galore

In short, a good location for your property will get you:

  • high rental rates
  • good tenants
  • good resale value
  • peace of mind

So before you buy that property, think “location, location, location!”

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