Announcing the launch of our properties directory. Where you can post all your houses for sale or any real estate that you would like to sell. The site has been getting an increase in visitors lately and thought about sharing some exposure to other people in the real estate industry.

Post a property NOW!

If you’re a real estate agent, you can benefit by getting exposure when you add your properties. All individuals that wish to sell their properties are also welcome. It’s free and we don’t make money out of it. Just a way of giving back to the community.

If you intend to buy houses for sale Philippines, you might want to get a loan to buy a house. Either for investment portfolio or for your family. Here are some of the main pointers about getting a housing loan in the Philippines.

I intend to share my answers and some actionable items, as inspired by the book “The 4-Hour Work Week” by Tim Ferris, one of the books that inspired me to take a leap of faith (more about this in a future post). Tim’s book has a number of “Questions and Actions” at the end of each chapter.
Beginning with this post, I intend to feature questions from readers from time to time as a way of helping real estate investors in the Philippines.
Of course I will not disclose our reader’s name and e-mail address to protect her privacy and her questions are as follows:
“Hi Jay. I am currently looking for properties and try real estate. (I was an attendee from the Nov. 21, 2009 TRP seminar.) However, most banks have limits like income if you are an employee you must have 25k + salary. I only have 12K. Or must have a steady business. Or must be 2 years or more in a company. How can I start early with all these limitations? How can I apply for a loan and thus finance my first deal? Thank you very much…” – Miss MJ
Thank you for the excellent question Miss MJ. Let me try to answer your questions to the best of my knowledge and also share some of my thoughts as follows.
Your capacity to pay
Assuming that Php12,000 is your take home pay, let us first try to determine what is the maximum loan amount you can get based on your capacity to pay. I believe most banks and lending institutions look at a person’s net disposable income or NDI to determine a persons capacity to pay and the corresponding maximum housing loan they can get.
The rule of thumb is the monthly amortization should be no higher than 40% of the NDI. In your case, If you have no existing obligations like loans, etc, and assuming Php12,000 is already yourtake home pay after taxes and monthly contributions like SSS, etc., then 40% of your monthly salary of Php12, 000/mo would be the maximum monthlyamortization that can be allowed for you, which is Php4,800.
Foreclosed properties you can afford
Using the payment terms from Unionbank as an example, Php4,800 would be more than enough as the monthly amortization for a foreclosed property priced at Php350,000 with a downpayment of 10% or 35K, and the balance financed with an interest of 15% per annum for 15 years. With these terms, the resulting monthlyamortization would be Php4,408.69, well within your maximum of Php4,800/month.
Obviously, there are other banks and lending institutions that offer lower interest rates and longer terms so you can definitely still get your first deal through bank financing. That is assuming you can come up with the minimum downpayment required.
How can I come up with the downpayment?
Yes, you will still need to save for the downpayment. I suggest that you start managing your money NOW! I believe learning how to manage money is a prerequisite to starting to invest in foreclosed properties. I would like to reiterate my belief that anyone who wants to get out of the rat race really needs to learn how to manage money and finances and this remains true whether you intend to invest in foreclosed properties or other investments.
Moving forward, let’s assume you manage to consistently save 15% of your salary each month or Php1,800, you will be able to save enough for the downpayment in less than 20 months. If you think 20 months is long, remember the requirement you mentioned that you must be working for a company 2 years or more in order for you to be able to qualify for ahousing loan?
Don’t bite off more than you can chew!
You might be asking why you should limit yourself to foreclosed properties worth Php350,000 and below? Well, I believe there is wisdom in starting small so that in case you do make mistakes (we all do!), you also make small mistakes and failures from which you can easily recover.
You still learn from the entire process but you start gaining knowledge and experience that would help you to get ready to take on bigger deals and bigger success.
What about Other People’s Money or OPM?
I know the subject of OPM is always in the mind in beginning real estate investors but I believe that if you are just starting with your real estate investing career, you should not even consider using other people’s money unless you are already able to prove your worth in managing your own.

How the heck would you be able to make good use of other people’s money if you cannot even manage your own?!
Your own money might be small but it should be good enough for one to start. As mentioned in Luke 16:10(NIV), “Whoever can be trusted with very little can also be trusted with much…”.  Makes sense right?!
Investing in foreclosed properties is a numbers game
Obviously, it may take some time for a lot of people to save enough money to start investing. I know I did as it took me 3 years before I was able to buy my first property. But that should never stop anyone from consistently analyzing properties to find deals worth pursuing.
You do not need any money to analyze deals as you are investing your time. So go ahead, start analyzing deals NOW, even if you still have no money to invest. Save money while  consistently analyzing properties and make the most of your precious time!
The more foreclosed properties you analyze, the sooner you will begin to see those deals worth pursuing. I’ve read a number of books about real estate investing that mention that on the average, you may have to analyze a hundred properties to end up buying one and I for one believe that these numbers are accurate. The key is to keep on analyzing as muchforeclosed properties as you can.
Don’t listen to the little voice in your head that may say “These numbers just won’t work… foreclosed properties are too expensive… I will never find one that is worth investing in… ” after looking at just a few listings or just a few properties. Remember, that’s the voice of the loser inside of you.
Just keep it up and you will eventually begin to see those great deals that you were unable to see before. When that time comes, I have a feeling you will already have the money to invest.
Happy investing

There will be a lot of new houses for sale in the Philippines, especially residential houses care of Robinson’s Land Corp. To know more about this latest development, read the full story below.

MANILA, Philippines - Robinsons Land Corp., one of the country’s premier real-estate developers, brings another irresistible proposition to families and forward-looking individuals in the market for a new address.

Added to its excellent portfolio of residential developments (Otis 888 Residences and Adriatico Residences in Manila, Gateway Garden Heights and Gateway Garden Ridge in Mandaluyong, and Woodsville Viverde Mansions in Parañaque, to name a few) is The Magnolia Residences.

Soon to rise in the heart of New Manila in Quezon City, this four-tower residential high-rise will be part of the acclaimed developer’s exciting master-planned Magnolia Town Square. The square will have a commercial component, specifically a specialty mall, that promises to not only address the lifestyle needs and interests of residents, but also reconfigure and re-energize the quaint pocket of the city.

“The Magnolia Residences will definitely have a modern look and feel,” says Robinsons Land senior vice president for sales and marketing Raoul E. Littaua, adding, “but without the coldness that one usually associates with modern architecture. Instead, it will exude warmth, it will be inviting, and the look and feel of the residential towers will be reflected in commercial component of this mixed-use development.”

To give future residents an immersive experience of living in this lovely new development of Robinsons Land, the company has signed Joy Adriano of Arkispecs to create a one-bedroom model unit that is now on view at the grand showroom of Robinsons Land’s various residential properties. The showroom is located at the ground level near the East Wing of Robinsons Galleria, Ortigas Center.

Do experience a new and exquisite way of living in this part of the metro by visiting Robinsons Land’s grand showroom at Robinsons Galleria. For more information, call (02) 397-1888, (02) 397-0101, or 0922-8380888, or visit www.robinsons properties.com.ph.