Manila Bulletin
June 30, 2010
When Americans got a scare from the subprime mortgage crisis, they stopped buying houses. But Filipinos, who have been sidestepping one crisis after another in the last two decades, have hardly missed a beat when it comes to fulfilling their dream to own a home.
Home-buying trends show that housing sales have risen steadily in the face of several crises since the 1990s. Industry experts say demand is still high because of the huge housing backlog and the value Filipinos put in carving out space for themselves. This is also evident in the robust growth in bank lending to the real estate sector, both for personal and commercial construction of houses.
“In general, when you talk about Filipinos, there’s really a big, big desire to own a house,” said Antonio C. Moncupa, president of EastWest Banking Corp. “That’s what distinguishes us from the rest of Asia and other markets.”
This means there are a lot of emotions involved when it comes to the home buying decision of an average Filipino couple. Attention to quality and the “look and feel” of a home is important, said Arch.
Roger Villarosa, because buying a home is like getting married. “Buying a house is one of the major investments you’ll ever make in your lifetime. So make sure you like the house you’re buying,” he added.
Filipinos’ love affair with homes has much to do with close family ties and the tendency to be homebodies.
“We put more value in our own space. We want our houses to be nice and big because we want our children to live with us, and we love inviting other people to visit,” said Mr. Villarosa. “This is not as true in other cultures as in ours.”
This is why space availability is a top-of-mind consideration for Filipino homebuyers. West Parc Condominiums, a 15-story project in Filinvest Alabang that Mr. Villarosa helped design, has ample space that matches every lifestyle – from newlyweds and growing families to yuppies and retired couples who want to enjoy their golden years together in a smaller, more manageable household.
Adjacent units can also be combined for people who prefer a more spacious home.
Mr. Villarosa, who has designed a wide range of homes, said the Filipino real estate market has a wide variety of segments. These range from those who are looking for 30-sqm homes to huge, very expansive, and luxurious ones.
“For Filinvest, I designed a variety of units that sold very quickly because of their good location at the right price,” he said. These are the main considerations buyers usually look for when buying a home.
And rightly so, experts say choosing the right location matters because it has implications on two significant areas: quality of life and the resale value of the home.
In fact, location is the main draw to The Entrata and Studio Two, which are just among the many vertical projects of the Filinvest Group.
Occupying an entire block, Entrata enjoys a prime location: flanked by Festival Supermall and South Station, it’s also right smack of Filicity’s center of commerce and leisure which enjoys one of the highest property appreciations.
The first of its kind in the South, Entrata integrates a business hotel, a commercial/retail center and a Small Office-Home Office (SOHO) concept in one development.
Meanwhile, Studio Two is a 14-story residential condominium strategically located in Northgate Cyberzone, right in the heart of Filinvest Corporate City. The property is approximately a half-hour drive from the Makati Central Business District.
Buying tips
Homebuyers need not feel overwhelmed by the things they need to watch out for. Here are some tips to do it right:
1. Make sure you are buying from a reputable developer. Remember the real estate bubble of the late 1990s, when a lot of developers failed to deliver on their promises? The most important lesson from that bubble is: stick with the developer you can trust. “There is a huge difference between, say, a name like Filinvest and Tacurong Development Corp.,” Mr. Moncupa quips. (Tacurong is a fictional name). As one of the country’s largest and most diverse developers, Filinvest has developed more than 2,000 hectares of land to fulfill the dreams of 100,000 families nationwide.
2. Canvass mortgage loan terms. “On anything that’s a major purchase, it is still best to make sure the mortgage loan term is workable on the long-term,” he said. For some, monthly amortization will be the center of concern, for some interest rates. Generally, the lower the monthly mortgage payments, the higher the interest rates.
3. Take time to assess what you want versus what you can afford. “Life is all about estimating reality. Those who can estimate nearest to reality will be happier. Be sure you understand your true situation and that your income is consistent with your dreams,” Mr. Moncupa advised. What happens when you don’t? You may suffer from foreclosure. You should also balance between affordability and marketability of your house, so that if things get difficult financially, you can sell it at a higher price.
4. Pay close attention to lighting and ventilation. The standard size for windows is 1.2 x 1.2 meters. Ample-sized windows allow for good lighting and ventilation. “Good ventilation will help you reduce air-conditioning and lighting costs in the long-term,” said Mr. Villarosa.
5. As much as possible, go for long-term, fixed home-lending rates. Mr. Moncupa said mortgage rates among banks now don’t vary much, and if these rates will go up in the future, they will not be far from the eight percent to nine percent rate banks currently charge.
However, to be sure sudden market volatility caused by unforeseen financial upheavals doesn’t hit you, go for long-term fixed rates. Home loans are good debt; they give you a good place to stay, as well as equity in an asset that you can sell in the future.
Here’s the best tip of all: whatever you do, think carefully and objectively. Take your time.
Manila Bulletin
June 30, 2010
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