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10 signs you are not ready to buy a property (and rent instead)

How sure are you that this is the right time for you to settle down in your very own home?

 

10 signs you are not ready to buy a property (and rent instead) | MyPropertyPH

 

Buying a home is one of the things that most people grow up hoping to do one day. Who wouldn’t want to have a property as an asset in their name, and more to that, why wouldn’t you want to gift yourself and your loved ones a well-deserved home where you can put down roots and raise a family?

On the other hand, home ownership is a tremendous responsibility and should not be taken lightly. The processes before, during, and after buying are all intimidating and rightfully so, since this is a big decision that will change your life physically, mentally, emotionally, and financially. So before you start looking for a new property to buy, make sure you are not experiencing any of these 10 tell-tale signs.

1. You have not done enough research yet
Buying a home is not as simple as pointing blindly at a property and paying for it; you cannot go into it without arming yourself with the right information. A lot of thought needs to go into the decision, like choosing the right neighborhood, picking the right bank orgovernment institution for a housing loan, and zoning in on the best developer. Before anything else, you might want to consult with a licensed real estate broker, who can give you sound advice on the market. You can also consult an online real estate website to get an idea of what your options are.

2. Your down payment is not ready
The down payment is the first financial move you have to make to buy a new home. If you have to resort to feeling between the couch cushions or breaking into your daughter’s piggy bank to put together the money for it, your finances are not at a place where home-buying is a sound financial decision. Not yet, anyway.

3. You owe a lot of people a lot of money
If at this point you are still trying to keep up with your piling car loan payments, credit card statements, and utility bills, what do you think will happen once the mortgage kicks in? In fact, it is going to be tough to get a housing loan with your questionable financial situation in the first place, so be sure to take control of your debt first.

4. You will not have enough cash left over after the payments
Once you have the down payment ready and your housing loan has been approved, where are you getting the money for the rest of your payments? Keep in mind that home-buying requires a lot of other fees and taxes, like the transfer tax, documentary stamp tax, notarial fees, and real property tax. And then there are the moving fees, association dues, and utilities. And beyond that, how about your groceries, your kids’ tuition fees, your daily costs at work, and you emergency fund?

5. You cannot sit still for long
You are either constantly traveling, your job takes you from one office to another, or you just find yourself getting tired of living in one place rather quickly. If any of these scenarios ring a bell, you will not like what home ownership has in store for you. To really see the value of your purchase, you need to stay put for a while. Sure, you can sell if you have no choice but to leave, but real estate takes a few years to appreciate. If you sell after only a short time of having your property, you would be lucky to break even on it.

6. You have a tendency to job-hop
Like constantly moving from one place to another, changing jobs as often as you change your socks means a lot of things, the most common reasons being you get bored easily or you are in an unstable industry. Either way you look at it, job-hopping might create the impression that you are not credit-worthy, and could hurt your chances of getting approved for a housing loan.

7. Your future remains uncertain
Still relying on a Magic 8-ball to tell you whether to go out or stay in for dinner? As mentioned earlier, whether or not you should buy a property now largely depends on the future. This means, if you do not have at least an idea of what your long-term goals are, you cannot buy a property right now. What if you purchase a studio-type condo, and then decide to get married and have kids only a few months later?

8. You cannot decide between a house or condo, a single-detached or townhouse, etc.
When it comes to choosing the right type of residence, there are a whole lot of options out there, and the task to choose can be overwhelming. For instance, condos are usually associated with career-oriented individuals who want and need to live within the fast-paced city, while houses are for people who are ready to settle down and have a family. Of course, there is no rule that binds you to a specific type of dwelling, but you do need to take your time to really think about the kind that fits your needs best.

9. You are under pressure
Did you get together with one of your friends who just bought a new home recently? If you are about the same age, you are probably thinking it is time for you to do the same thing. This would be a mistake, as putting pressure on yourself to buy a home now will lead you to make rash decisions that you are bound to regret later on. It may have been the right time for your friend, but that does not necessarily mean you are on the same boat. You may not have the same responsibilities, needs, and finances that he or she does, so there is nothing wrong with taking your time until you are fully ready.

10. You are not responsible (or financially comfortable) enough for home repair jobs
This is the great thing about renting: you get to sit back, relax, and enjoy our cold beverage as the landlord takes care of your rental’s leaky toilet. And in most cases, if it is an emergency, you can call on him even at 2 a.m. to fix whatever’s broken. Once you buy a home, however, the party’s over. You need to learn to do these simple repairs yourself. If you cannot, you will need to hire a guy to do it for you, and you do not need to be told that that costs money, too.

How to be a Real Estate Broker in the PH

The Professional Regulation Commission (PRC), announced on May 29, 2015, that 5,200 passed the Real Estate Broker Licensure Examination administered by the Board of Real Estate Service in Manila and provinces of Baguio, Cagayan de Oro, Cebu, Davao, Iloilo, Lucena and Tuguegarao out of the 10,370 who took the exam.

So, readers of Nolvonne, how do you get to be a licensed real estate broker in the Philippines?

In 2009, when the RESA Law (Real Estate Service Act of the Philippines) was passed by then President Gloria Macapagal-Arroyo, its main objective was to regulate and officially professionalize the real estate broker profession.

Just like other profession with licenses—such as medical doctors, nurses, engineers and the like, people tend to have a certain comfort level in transacting with professionals who holds a professional license.

The real estate industry is a promising line of work to be in, and many consider it to be a part-time job or a full time job. Now that the RESA Law exists, only licensed brokers are able to sell, buy and transact with clients.

Before taking the real estate brokers examination given by the PRC, one must meet the following minimum requirements:

  1. Possess a bachelor’s degree in any college or university accredited by the Commission on Higher Education (CHED)
  2. Must have earned 120 units of the required continuing professional education (CPE) at an accredited real estate service training provider
  3. Is of good moral character, must not have been convicted of any crime involving moral turpitude
  4. Completed application with the PRC, who in turn will assess and approve the said application. Upon approval, the Board of Real Estate Service of the PRC will issue the permit to the applicant, in order for him or her to take the exam.

The following documents are also to be submitted by the applicants to PRC for application to take the board exam:

  1. Original and photocopy of Birth Certificate or Certificate of Live Birth (NSO) and/or valid Philippine passport, or any other proof of citizenship,
  2. Original and photocopy of transcript of records and/or diploma with scanned picture,
  3. Original and photocopy of notarized certification by employer of his/her years of experience or pre-requisite Certificate of Registration (COR) and/or Professional Identification Card (PIC) or DTI license (for real estate consultants).
  4. Original and photocopy of NBI clearance,
  5. Original and photocopy of duly notarized accredited seminar and/or training certificate,
  6. Community tax certificate
  7. Four (4) colored passport size pictures with white background and complete nametag and other documents in accordance with the requirements set by the Commission.“

Upon submission, you will also need to pay the required PRC fees.

According to the Implementing Rules and Regulations of RESA (RA 9646 Rule III, Section 13), the Real Estate Broker’s exam will cover the following topics:

“1. Fundamentals of property ownership;

2. Code of ethics and responsibilities;

3. Legal requirements for real estate practice;

4. Real estate brokerage practice;

5. Subdivision development;

6. Condominium concept and other types of real estate holdings;

7. Real estate finance and economics;

8. Basic principles of ecology;

9. Urban and rural land use;

10. Planning, development and zoning;

11. Legal aspect of sale, mortgage and lease;

12. Documentation and registration;

13. Real property laws and taxation; and

14. Any other related subjects as may be determined by the Board.

To conform with technological and modern developments, the Board may re-cluster, rearrange, modify, add to or exclude any of the foregoing subjects and their syllabi with tables of specifications as may be necessary.”

Testing sites around the Philippines include Manila, Baguio, Cagayan de Oro, Cebu, Davao, IloIlo, Legazpi and Lucena.

How did Real Estate Begin?

The real estate industry has gone a long way since the early inhabitants of Earth decided that they needed a place to call their own.

In the darker days, the earliest earthlings would huddle in caves and forestry to build their homes there. Today, in the prime of the 21st century, the real estate industry does not only mean owning property—it also relates to leasing, developing, appraising and selling different commercial, industrial, agricultural and residential properties.

But how did the real estate industry come to be? Let Novlonne take you on a tour in history.

The earliest story that historians can recall about real estate acquisition, was in 334 BC, when Alexander the Great defeated the Persians and acquired their real estate by force. Alexander the Great is also considered the World’s First Investor.

In 10BB, William the Conqueror announced that he owns all of England as he defeated the Normans. In 1783, Napoleon Bonaparte, the first emperor of France and regarded as one of the great military leaders in history, began to claim real estate in the form of countries. In the early days, when the structure of the government were not yet organized, and when the world resolved to war to show power, the acquisition of estate was also less structured.

As the structure of the different arms of the government became well designed and organized, in 1803, the United States government buys a swamp in the state of Louisiana for only 0.001 cents per square feet, which was already a great amount in those days.

And finally, in 1855, as the real estate industry was growing and becoming more popular, Baird Warner was created and is recognized as the first ever real estate brokerage in the nation. The company, now called Baird & Warner, is still standing and operating in Chicago.

In 1867, countries began to purchase property from different countries and did not limit themselves to only owning properties in their home nation. The U.S. purchased a tundra from Russia in the Alaska Purchase.

However as the Great Depression came in 1929, the real estate market also suffered. The market started to recover in 1934, the National Housing Act creates the FHA (Federal Housing Association).

The industry was not only famous in the United States, licensed real estate brokers in the Philippines came together in 1979 to form the Real Estate Brokers Association of the Philippines. REBAP was created to meet the needs of investors, buys and sellers of real estate in the country. REBAP was officially registered with Securities and Exchange Commission on January 1979.

In the early 1990s, as the Internet was making a buzz in the then, “offline” country, property listings became available publicly on the internet. This sparked the start of technology making a difference the real estate industry.

As the economy and the industry continue to evolve, improve and innovate, Nolvonne does not forget where the industry has grown from. As we also carry the practice that they have started ever since.  

How Technology is Affecting the Real Estate Industry

Technology has shaped our world differently. The way technology has developed throughout the years has dramatically changed how the world functions. The world is truly at the end of our fingertips. Technology has taken over mostly all of the industries around us—may it be the medicine, finance, banking and of course, the real estate industry is no exception.

The rise of technology is beneficial both on the consumer producer side. The consumers and producers can now have access to different information that they need with only a few taps and clicks. Consumers can quickly research about new developers, projects and prospective investments. While the real estate brokers can easily be updated with the current trends and news about the economy and the industry with the help of only a few applications. The real estate brokers can transact with their clients whenever and wherever. This makes life and transactions easier for both the consumer and producer. The communication barriers are lessened which makes people closer together somehow. Deals are closing faster and smoother between the customers and brokers.

All these progress also helps businesses in their marketing strategies. It is smart for the companies to take advantage of the age of technology. Taking advantage of various platforms such as social media and websites can grow the network and strengthen the brand of a firm in the industry.

Technology has made things more efficient, accurate and less costly. We at Nolvonne welcome innovation and new practices. 

The PacMan Effect on the Philippine Economy

Manny “PacMan” Pacquiao has already carved his legacy in boxing history. We at Nolvonne and everyone else around the globe are aware of that.

But in the Philippines, Manny Pacquiao is much more than a professional athlete. He is a beacon of hope, perseverance and hard work. Nolvonne truly values these characteristics.  

The PacMan effect is known to appear whenever he raises his fists. Crime rates crawl back down to almost zero percent, the streets are deserted but the Philippine economy shifts.

Despite the fact that Pacquiao failed to defeat his opponent—Floyd Mayweather, Jr., he has still succeeded in tickling the local economy.

At least six weeks before the “Fight of the Century”, analysts have commented that the Philippine peso has appreciated against the US Dollar. The peso has gained strength in the final trading session four times versus the dollar and as well as four times against the pound.

The PacMan effect surpasses the emotions of viewers,  it also affects the promotion and sales of various products and services.

The Philippine Postal Corporation released half a million copies of commemorative Pacquiao stamps along with 30,000 copies of posters.

On the day of the fight—May 3, 2015 in Philippine Standard Time—major networks in the country broadcasted the fight along with the nation’s largest theatre chain—SM Cinema. The tickets were distributed by SM Lifestyle was sold out only a few hours after release. An estimate of 7 out of 10  people bought tickets for the viewing of the fight, which translates to higher sales. A ticket is estimated to cost around 800 pesos. SM Cinema and SM Lifestyle is one of companies under the SM Group of Companies—which also includes SMDC (SM Development Corporation)—one of Nolvonne’s trusted partners.

Local cable provider Skycable offered a pay-per-view rate of 2,500 pesos. Operator SM Prime Holdings reported 100,000 tickets sold in 200 out of its 300 operating cinemas. The country’s largest power distributor Meralco (Manila Electric) also benefited. The electricity usage surged to 10% during the Pacquiao fight.

Pacquiao drives the Philippine economy, whether he intends to or not—there is no question about that.

 

Why the Philippines?

The Republic of the Philippines, or known to many as the “Philippines” is located at the Southeast Asian region. She is comprised of 7,107 islands that are categorized under the three major islands namely: Luzon, Visayas and Mindanao.

We at Nolvonne included the Philippines as a part of our venture primarily because of its steady growth during the past years. The country is the second fastest-growing country in Asia and has been labelled as a “tiger economy”. The economy’s growth is seen between 6.5% to 7.5%. Currently, the Philippine real estate can be described as booming, vibrant and continuously growing. With the help of different industrial sectors such as the BPO industry and multinational companies with stations in the country, its economy has been going strongly as ever.

Due to this positive change, various projects are expected to rise in the country in the following years. Mixed-use projects and townships will continue to be developed, the BPO industry will continue to expand to different provinces in the country such as Cebu, Davao, IloIlo and Bacolod. Because of the influx of various multinational companies building satellite offices in the country, the office real estate sector will also continue to perform well. Manufacturers are also leaning towards the Philippines for labor work, which also gives the industrial real estate a boost. A huge number of tourists are also flowing into the country which helps the country’s tourism industry, resulting to more hotels and resorts projects unravelling in the horizon. And OFW (Overseas Filipino Workers) are actively investing in Philippine real estate.

But the country is not known just for its healthy economy or booming real estate industry. Nolvonne does not only consider the business side of things, we also consider the quality of life that you will be pursuing.

The Philippines has a very rich and diverse culture, being heavily influenced by the country’s previous colonizers—the Spaniards, the Americans and the Japanese. The Philippines as a whole is a very unique country, but as you look deeper into its provinces, you will see a much deeper culture that is unique to each province. Across the 7,107 islands, the country celebrates an estimated number of 73 festivals per year! From Luzon, to Visayas, to Mindanao, the country has endless things to offer.

The Philippines has ranked 5th among the Happiest Country in the World, based on a global survey done by the United Nations earlier this year. The Filipinos are known to always have a positive disposition in life, this being the reason as to why many Filipinos and non-Filipinos choose to retire in the country.

The Philippines is paired with pristine beaches and luscious rainforests plus modern facilities and expanding business districts, the Philippines is a perfect balance between business and pleasure.

We at Nolvonne can only say so much about this beautiful country. But it would be best if you can see her for yourself.

Nolvonne invites you to visit the Philippines, Nolvonne invites you to stay.