Every first time real estate buyer has a lot of questions. And here at Property Pilipinas, we try to answer them one by one.
Part 1 discussed the definitions of the items in the Sample Computation. In Part 2, we learned how to compute for the net downpayment that has less the discount and the reservation fee. Here in Part 3, we will now take a closer look at the remaining balance and how we can pay it.
Every first time real estate buyer has a lot of questions. And here at Property Pilipinas, we try to answer them one by one.
In the first part, I explained what some of the terms on the sample computation really mean. For part two, we will discuss the sample computation on the mathematical point of view. I know that for most people, Math suckz. But I'll try to make the explanation as 'human' as possible so that you will all be able to understand how it is computed.
First, let's review what we have discussed so far... The moment that you decide on what property you would like to own, the real estate agent would provide you a computation similar to the sample computations given in their flyers. The computation would list the first three important things: the Lot area/sq.m, the price/sq.m. and the total contract price. (These three would also appear in any succeeding contracts/forms that you would sign with your real estate company, unless the form is for some other purpose.)
After the first three numbers in the sample computation, you will then see the payment terms that you can choose from. This includes details of how much you should pay for your initial downpayment, the reservation fee, any additional discounts, and the remaining balance that indicates how much you would have to pay within several number of years.
To make sure that you are not being scammed, you need to learn how to make the computations yourself, and to confront your real estate agent or the company he/she works for, if you see any discrepancies with your computations. Do not hesitate to ask since you are investing your hard earned money to it. But please don't be confrontational. Sometimes, the real estate agents themselves do not know why a certain fee is added, so try to understand if they would not be able to give you any clear explanations.
Let's use the data on the computation below:
The property above has a TCP of 230, 400.00. For this option, you are trying to get the net downpayment. To get it, you use the formula below:
NET DOWNPAYMENT = Downpayment - Reservation Fee - Discount Outright
The first thing you'll notice is the downpayment rate. In this case, it's 15%. As I said previously, the rates differ with the company and property. So 15% here isn't fixed to all properties.
To get the downpayment, the formula below is used:
DOWNPAYMENT = Total Contract Price x Downpayment Rate
therefore:
DP = 230, 400.00 x 15%
DP = 34,560.00
Next on the list is the Reservation Fee. Like with the rates, reservation fees differ with each company or property even if the value is "fixed" (does not change with the change in TCP, etc.).
After the Reservation Fee comes the Discount Outright. This is the discount that you can get if you pay the downpayment within a certain amount of time. Usually, this is given if payment is made within a week of signing the contract. If you are unable to make such payment, you miss the opportunity to enjoy this discount. It doesn't look much (as in the example, its only 7%), but it could turn out to be a big savings for you.
The discount outright is computed as below:
DISCOUNT OUTRIGHT = Downpayment x Discount Rate
therefore:
DO = 34,560.00 x 7%
DO = 2,419.20
Now that we have all three data, we can now compute for the Net Downpayment. Again, the formula is:
NET DOWNPAYMENT = Downpayment - Reservation Fee - Discount Outright
therefore:
ND = 34,560.00 - 5,000.00 - 2,419.20
ND = 27, 140.80
The Net Downpayment would now be the downpayment that you should be paying within the set number of days.
Now that you know how much downpayment you would be paying, let's now take a look on how you would be paying the remaining balance...
To be continued in Part 3...
For any comments, suggestions, or inquiry, please go to the "Contact Us" page.
Every first time real estate buyer has a lot of questions. And here at Property Pilipinas, we try to answer them one by one.
Sometimes, when you get a flyer from a real estate agent, you'll notice a small piece of paper labeled as "Sample Computation". So what exactly do the numbers in the Sample Computation mean? Let's take a closer look. Below is the copy of the old sample computation for La Breza Tower.
DISCLAIMER: Rates and discounts varies from the type of property that you are after and the developers behind them. The numbers below does not indicate the fixed universal rate that is followed by all real estate companies. You will find that while some companies follow the sample computation stated here, others would omit or add several items that cannot be found in others. It is best that you ask your real estate agents about the details of your payment and have them explain about anything that confuses you.
First would be the "Total Area in Sq.M.". Other computations, like those for residential lots, would have "Lot Area". This would indicate the sample lot area that would be used in the computation. This may or not be the smallest available lot or unit, so it's better if you just ask your agent/broker about.
TCP refers to the Total contract price. This is the exact amount that you would be paying to get the property. When you're interested in the property, you would need to pay the Reservation Fee. How long the reservation fee would be in effect also varies. Most of the time, this is valid for 30 days.
Now, if you pay the entire amount on the spot, or pay the down payment within a set period (usually 7 days), you will be entitled to a certain amount of discount. In the sample above, the discount you may get is 10% of the Total contract price.
DP represents the down payment. Like the discount, you calculate this by multiplying the rate against the total contract price.
You'll then notice the two Options: Option 1 and Option 2. These two represent the payment options that you can use in paying the total contract price. There are usually two options available, with different payment terms. But other companies or projects could give an additional third option or more. (See disclaimer above)
After paying the reservation and down payment, the property is "technically" yours. "Technically", because unless you have made full payment, the ownership of the property still remains with the real estate property. Of course, we would want to be able to make use of the property we bought as soon as possible, right? But that's not the only reason why you should pay the remaining balance soon...
Status: Developed, Ready for occupation/housing, Occupied by residents (Only few lots available)
Description: Located in the progressive district of Subic, Zambales, Club Morocco Beach Resort and Residential Estates is designed to give a feeling of being transported to that part of the Mediterranean steeped in Moorish, French, and Spanish influences. It exudes the culture and ambiance of the Kingdom of Morocco in North Africa. And, with the city's prime malls, business and entertainment centers just a few minutes' drive away, you will never have to lose the convenience urban centers can offer.
How to Get There: via private vehicle
Features & Amenities:
First Class Residential Areas:
• Villa Monaco
• Villa Ibiza
• Villa Venezia
Residential Highlights:
• Tree-lined streets and landscaping
• Perimeter walls
• Concrete curbs and gutters
• Drainage system, water and electrical system
• 24-Hour security
• Parks and open spaces
Grand Hotel and Beach Resort Club:
• Main Dining Hall
• Villas
• Hotel Rooms & Suites
• Gym & Fitness Center
• Tennis Courts
• Basketball Courts
• Billiards
• Bowling
• Swimming Pool
• Spa & Sauna
• Kiddie Playground
• Water Sports Facilities
Minimum Price per square meter: Php 3,800/sq.m.
Payment options: 5-10 Years to pay
Minimum Lot Area Available: 150 sq.m.
For any inquiries regarding this project, please leave your message at the Contact Us page.
For any comments, suggestions, or inquiry, please go to the "Contact Us" page.
It's Summer time already here in the Philippines and where else to better spend it but in a beach? And for those who don't have the luxury to travel over to Boracay, they often go to the next best thing: Subic!
Before being a popular summer hangout, Subic first became known for the U.S. Naval Base that was erected in 1885 and closed only in 1991. Even after the closing of the base, the American influence all over the area can still be seen and felt among tourists and locals alike.
Nowadays, people always look forward to spending a day or two in one of Subic's many beaches and resorts. There are also a lot of other attractions that visitors look forward to like theme parks and adventure activities.
Modes of transportation: private vehicle, bus, airplane, boat/ship
Travel time from Manila (by land transportation): Approximately 3 to 5 hours, depending on the destination.
~ @ ~ TRAVEL TIPS AND IDEAS! ~ @ ~
With so many beaches and resorts, you're probably confused which one to choose, right? Though its a lot tempting (and convenient in a way) to choose the popular resorts and beaches, these places are often crowded especially during summer. Try to hang around online communities and read up on some of the comments on travel blogs. Sometimes, people would leave recommendations to not-yet-discovered beaches and resorts in forums or blog comments. Doing a bit of research in the area wouldn't hurt as long as you'll end up enjoying yourself.
Strict traffic rules are implemented around the US Naval Base area which is part of your route to reach the beaches and resorts. Be extra careful when driving. Even if there are no policemen or law enforcers roaming around, if you cause any traffic violation, you'll be surprised to have one of them stopping you in the road ahead.
Kids (and kids at heart!) would have an unforgettable trip when they encounter the animals of both land and water. Come face to face with the tigers in Zoobic Safari and enjoy a spectacular show by the dolphins and false killer whales in Ocean Adventure.
Why not make your stay an educational one? Learn how to survive in the wild from the Aetas at Pamulaklakin Nature Park. Or why not drop by Maritime Museum or the Heroes' Trail and experience the rich history that surrounds Subic.
Before going back home, do not forget to drop by one of the fruit stalls and buy yourself several kilos of a wide variety of mangoes for sale! Zambales mangoes are known nationwide for their sweetness and relatively big size. You can even see several mango trees with their low-stooping branches planted around the main roads!
credits: image from Photobucket.com For any comments, suggestions, or inquiry, please go to the "Contact Us" page.
Location: Mother Ignacia, Quezon City Land Owner/Developer: Sta. Lucia Land, Inc.
Status: Constructed, Undergoing finishing
Description: La Breza Towers is strategically located along Mother Ignacia Avenue at the entertainment district of Tomas Morato, Quezon City, making establishments that suit your high-spirited lifestyle within your reach – from the finest dining places, entertainment spots, shopping malls and medical centers.
Should your mood crave for diverse encounters, La Breza Tower allows you to explore the exhilaration of city living with its accessibility to the business and leisure districts of Ortigas, Makati, and Fort Bonifacio.
(This project is currently endorsed by the highly acclaimed actor, John Lloyd Cruz.)
How to get there: Via bus, metered taxi or MRT (Blue Line)
Features and Amenities:
Residential Areas
Studio
1-Bedroom
3-Bedroom Penthouse
Condotel
Banquet and Function Rooms
Gym
Jacuzzi
Swimming pool and kiddie pool
24-Hour Security
Ample Parking Spaces
Minimum Price per unit: Php 2.4 M (w/o furnishings, Studio type)
Payment options: 5-10 Years to pay; Payable through bank loan or PAG-IBIG
Minimum Unit Available: Studio type (35.92 sqm.)
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For any inquiries regarding this project, please leave your message at the Contact Us page.
For any comments, suggestions, or inquiry, please go to the "Contact Us" page.
Quezon City is the largest and most populated city in Metro Manila. It was named after former Philippine president Manuel L. Quezon (Commonwealth Era, 1935 -1944). Before Manila became the capital of the Philippines, Quezon City was first recognized as the country's capital from 1946 until 1972. The city is mainly composed of several residential areas and subdivisions, but several notable establishments, including government offices, can be found there.
Modes of transportation: LRT2 (Purple Line), MRT (Blue Line), private vehicle, public jeepney, bus, metered taxi, tricycle*, pedicab**
Want to hit the bars? Go to Timog and Tomas Morato Avenue. These areas are filled with fine dining restaurants and various karaoke and bars. From comedy bars to gay bars, they have it there!
Satisfy your sweet tooth cravings! Visit the various cafes and coffee shops located all around Quezon City.
Spend your afternoons at the Quezon City Memorial Circle where you can enjoy a leisurely afternoon strolling or biking around the park. There is also a large play area and a mini amusement park that children can enjoy. Afterwards you can always head at the several snack bars and restaurants inside the park.
Another great park to visit is the La Mesa Ecopark located beside the La Mesa Watershed. It boasts a lot of attractions, including a boating area, paintball area, wall climbing area and swimming pool. They also have various packages that you can choose from to make your trip enjoyable.
SM City North EDSA [also known as SM West to the locals]
Landmark TriNoma
Plaza Fair
Other Business Establishments
TV and radio stations (NBN 4, RPN 9, IBC 13, Philippine Broadcasting Service, ABS-CBN Broadcast Center and GMA Network Center, ABC/TV5, UNTV, Net25, )
FOOTNOTE:
* Tricycle - a mode of transportation where a motorcycle is attached to a covered side car. Usually used for transport within smaller areas of a city like inside subdivisions.
** Pedicab - a mode of transportation that has a bicycle attached to a covered side car. Relatively slower than the tricycle, this is usually used for moving through shorter distances than a tricycle. Though there are some areas that prefer having pedicabs over tricycle because it is much quieter to travel in.
