affordable condominium investment

GENERALORIENTATION

By: Richard BaculiReal Estate ConsultantFILIPINO Homes InternationalRE Lic# 2008-1348(N)Mobile: +63 919 868 2573

Flow of Discussion:

Types of Market Existence of Demand Supplying the Demand Hybrid Investment

TYPES of MARKET

Let’s start with this:

SUPPLY and DEMAND

LGF YOUR CLIENT

YOUR CLIENT

RENTAL MARKET

EXISTENCE of DEMAND

Is there really a DEMAND for Condominiums?

There is an existing DEMAND due to the following factors:

OFW Remittances Booming Tourism BPO Industry Growing Population

OFWRemittances

US$16.43B

in 2008

13.7% increase from 2007

OFW Dollar remittance

US$17. 35B

in 2009

another increase - 2008

OFW Dollar remittance

Booming Tourism

Expats andExecutives

ForeignSpouses

ForeignRetirees

RegularTourists

TOURISM

ASIA

RUSSIA

EUROPE

AUSRALIA

MIDDLE EAST

INDIATo the PACIFIC and the U.S.A.

INDONESIA

JAPAN

SO. KOREA

CHINA

MORE DIRECT FLIGHTS OPENED

BPOIndustry

CEBU CITY= Top BPO preferred destination

= Attract more labor force

More than20,000 jobsat present

= Unmet Demand

OWNERSHIP

RENTALS

Growing Population

FO

RC

ES

causin

g th

e BO

OM

Cebu Province 2,439,065

Lapu-lapu City 292,530

Mandaue City

318,575

Cebu City

798,809

Cebu City Mandaue City

Lapu-lapu City Cebu Province

Population of CEBU

3,848,979

CEBU CITY= Almost 1Million

Residents

= Residential Spaceis becoming rare

CONDO ADVANTAGE

= Affordable, Convenient, Practical, Strategic

HYBRID INVESTMENT

TWO MAJOR INVESTMENT OBJECTIVES

INCOME

G R O W T H

Relatively Long-term (Appreciation)

Short-term (On-going need for Cash Inflow)

PASSIV

E INCOME

LGF = Hybrid Asset

Earn = RENTALS = Property Value

Appreciation

SUPPLYING the DEMAND

After the long wait…

Here it is now…

Better location…

Newer design…

Brings to you…

2

Lobby and Reception AreaLobby and Reception Area

Two elevator unitsTwo elevator unitsIndoor parking areaIndoor parking area

Roof deckRoof deckFire alarm and sprinkler Fire alarm and sprinkler

systemsystem CCTV system CCTV system

Convenience shopConvenience shopLaundry serviceLaundry service& internet café& internet café

+ + Shuttle ServiceShuttle Service

Amenities :Amenities :

Unit Area: 22 sq.m./236 sq.ft.Unit Area: 22 sq.m./236 sq.ft.

Finished walls and floorsFinished walls and floorsTiled toilet and bath with bathroom Tiled toilet and bath with bathroom

fixturesfixturesSeparate toilet and bathSeparate toilet and bathPrivate balconyPrivate balcony

Unit Specifications :Unit Specifications :

OTHER CONDO LGF

Density Highly dense Comfortable

Taxation High tax Lower tax

Management PPC-ISO Company (PIMS)

Location Less strategic Very strategic (target market)

Cost of Living

Less affordable Affordable

Others Shuttle service

FrequentlyAskedQuestions

• If I invest in your condo, will there be a group who will take care of my unit and its rentals?

Frequently Asked Questions

Yes, there will be. You can enroll your unit into the program of the Property Management Group. It is called PIMS:

Property

Investment

Management

Services

CONDOTEL PIMS

Sharing 60/40 scheme(Company / Investor)

20/80 (inclusive of dues, maintenance and marketing fees)

LoanabilityLess likely to be loanable

Highly loanable

Liquidity Difficult to dispose Easy to dispose

UsageA few days only and may not be the unit chosen

Depends on the investor

Period of assignment

5-10 yrs At least 1yr (renewable)

Frequently Asked Questions

• What are included in the Total Selling Price?

• The TSP includes the E-VAT, government taxes, miscellaneous fees, documentary stamps, and other processing fees.

• How much is the Reservation Fee?

Frequently Asked Questions

P20K only

Frequently Asked Questions

• When is the target turnover or delivery?

• The target schedule of delivery will be at the end of 2012

• What are the payment schemes?

Frequently Asked Questions

SPOT CASH TSP

Discount on TSP• 7 days = 12% discount• 30 days (1 payment) = 10%

disc• 60 days (2 payments) = 8%

disc• 90 days (3 payments) = 6%

disc

• What are the payment schemes?

Frequently Asked Questions

SPOT DP

• 50% DP (50% BAL for FINANCING.)= 10% discount on DP

• 40% DP (60% BAL for FINANCING)

= 8% discount on DP

• 30% DP (70% BAL for FINANCING)= 7% discount on DP

• What are the payment schemes?

Frequently Asked Questions

SPOT DP

• 20% DP (10% spread over 24 mos. &

70% BAL for FINANCING)

= 4% discount on DP

• 10% DP (20% spread over 24 mos. &

70% BAL for FINANCING) = 3% discount on DP

• What are the payment schemes?

Frequently Asked Questions

DEFERRED CASH

• 100% spread equally over 30 mos. @ 0% interest

= 3% discount on TSP

• What are the payment schemes?

Frequently Asked Questions

PRIORITIZED BUYERS EQUITY

• 10% DP 30days after Reservation

• 10% DP Spread over 24mos. w/o interest

• 10% DP Lump sum on 25th month

• 70% Balance for financing

(spread over 3 mos. @ 0% int)

• What are the payment schemes?

Frequently Asked Questions

EASY DP EQUITY

• 20% DP spread equally over 24 mos. @ 0% interest

• 10% DP Lump sum on 25th month

• 70% Balance for financing (spread over 3 mos. @ 0% int)

END of PRESENTATION

THANK YOUVERY MUCH