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Contents12 Navigating the

World of Philippine Real Estate

14 �e New Micro Star Inn

20 What Bubble?

21 Mark’s Expat Corner

22 Close to Everything, Far from Ordinary!

24 HARP

Advertising

All About Real Estate

Navigating the world of Philippine Real Estate can be a daunting journey. In this issue we provide some information that may be of great help to you.Everyone seems to be really optimistic about the Philippine real estate market for 2015. Market experts both local and abroad are very bullish in their expectations for this year. By now, there is no doubt that Filipinos have accepted the new community paradigm as the basis of a new lifestyle and standard of living worth the investment of their hard-earned money. �us, thousands upon thousands of overseas Filipino workers and business process outsourcing workers are buying into communities where residences, o�ce buildings and facilities, retail outlets and even schools are designed side by side and in harmony with each other to facilitate access by the residents and workers to these basic necessities.

Please call Ryan at 0947-891-5494 for information on advertising in QUEST Magazine. For Angeles City contact Arnel at 0921-987-1454. Email ryan@questmagazines.com.

World of Philippine

ew Micro Star

ark’s Expat CornerAll About Real Estate

QUEST

August 2015Volume 2 Number 8

Travel and Leisure Magazine

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See the boat at Watercraft Marina, SBMA

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If you are one of the many expats who fall in love with the Philippines and plan to live here for an extended time, it’s a good idea to take an informed look at buying your own piece of paradise.

�e Philippine real estate market is current-ly going through boom times. We’re talking about double digit growth rates. While the country did su�er from the 1997 Asian �nan-cial crisis, it has dramatically rebounded from the lows of that crash and with key structural reforms in the local banking industry, the Phil-ippines is less sus-ceptible now to such a crash.

Interestingly, one of the few real es-tate markets that survived the global credit crunch and real estate and �-nancial meltdown of 2008-2009 was the Philippines.

If you have de-cided to buy but don’t want to pay through the nose for premium Phil-ippine real estate, the good news is that there are certain tips and tactics you that will save you money.

First and foremost you should always deal di-rectly with the property owners. A key driver of the cost of a particular piece of Philippine real estate is the number of agents and brokers involved. Some of these “brokers” are not actu-ally licensed real estate agents but middlemen who introduce buyers and owners and receive a fee or percentage of the sale.

�is can dramatically drive up the cost of the property. Always �nd out who the real owners are and deal with them directly.

Many Americans and Europeans are surprised when they cannot simply buy a house and lot

in the Philippines and have a clear property ti-tle in their names like they do in their home countries. Unlike countries where there is a de�nite title transfer process there is no formal title searches or title insurance and the buyer should carefully check the ownership of the land. Land records are inaccurate and there is a proliferation of fake and double or overlapping titles.

Another tip is to pay attention to the real estate developer’s reputation. If you are looking at prices during a market upturn, developer iden-

tity pretty much doesn’t matter. Your property will increase in price regardless of who developed your particular condo-minium, project or subdivision.

However, devel-oper identity does matter when there is a market down-turn. Lesser known developers get hit harder than estab-lished real estate development com-

panies like Ayala Land Incorporated or SM Development Corporation. Over time there is a likelihood of some market downturns and having a highly respected developer can help insulate you from potential �nancial losses.

Anybody can invest in a real estate market that is already hot. Usually when a big developer like Ayala decides to develop a particular area, the golden opportunity for getting a bargain on nearby real estate has passed. If you do invest in those areas, for example, Makati or Global City the potential that the property will appreciate signi�cantly is quite low.

�e better alternative is buying real estate in up and coming areas. In the Metro Manila area, many key developments are beginning to take place along the south Luzon expressway cor-

Luxury Condos at A�ordable Prices at Wild Orchid Beach Resort, Baloy Beach, Barretto

Navigating the World ofPhilippine Real Estate

ridor. By paying careful attention to low cost land areas that border this corridor, you can make quite a bit of money in real estate spec-ulation.

We’ve looked at some tips and tactics, now let’s look at what kinds of propertyis available to the expat buyer.

Under Philippine law, foreigners cannot own land, but can own condominium units or apartments in high-rise buildings. With the countless high-rise condos going up all over Manila it’s easy to �nd one in the area you like. All the major developers o�er the same basic buying options - usually a low down payment in the Php20,000 to Php50,000 range and no interest payments for three years. �e thing to be aware of is that you may not take posses-sion during this period. It’s only after you have ei-ther paid o� the balance either by cash or a home-owner’s loan that you are given the keys.

In 2011, I bought a new 48 square meter condo in an excellent loca-tion from one of the major developers for just over Php 5 million.

My down payment was only Php25,000 with monthly interest free payments of Php35,000. I did not need to move in immediately so I paid the monthly payments for two years and then obtained a loan from a major local bank. Upon approval of the loan the developers turned over the condo to me.

�ere is a monthly association fee of Php 48 per square meter which is about average. �is covers maintenance on all the common areas including the �ve swimming pools!

�e condo purchase does not include a parking space which can run upwards of Php500,000. I chose to rent a space for Php9,000 per month.

Current market price for my condo is 6.5 mil-lion pesos.

One popular option for many expats is leasing houses and land on a long term basis. For in-stance, in the Subic Bay Freeport Zone houses foreigners may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years renewable once for an addi-tional 25 years and enjoy a lifestyle that rivals what they would have in their home countries. Prices range from Php 2 million and up.

If you divide that sum over 50 years you’ll see it very reasonable on a monthly basis. Keep in mind there is a low monthly association fee but it covers such things as trash collection and se-curity.

Perhaps the best way for an expat to control real property in the Philippines is to form a

Philippine cor-poration.Under Philippine law, a corporation is considered Filipi-no-owned if 60% of its stocks are owned by Filipino citizens.

So, the 40% may be owned by the alien. In fact, one foreigner may even become the sole holder of the bank account of

that corporation, of course, provided that he has proper Philippine Visa status and other pertinent documents.

�rough this system, the foreigner is allowed full control over the assets including the ac-counts and real properties of the corporation

Another way is if you are married to a Filipi-no citizen you can own land together as con-jugal property. �ere are many risks involved with this way such as with a dissolution of the marriage the Filipino citizen gains full control of the property. If the foreigner dies his heirs cannot inherit it from him unless they are Phil-ippine citizens.

If you are thinking of investing in real estate in the Philippines, you have your work cut out for you. �ere are no organizations that specif-ically deal with real estate for expats but mem-bers of expat group can steer you to reputable real estate agents.

Micro Star Inn is a stylish, sophisticated lit-tle hotel imbued with originality and the cre-ative spirit of the community. Located at the corner of 18St. and Fontaine St., East Bajac Bajc, Olongapo City, �e Mi-cro Star Inn is so close to everything - beach-es, shopping, restaurants. �e hotel was established in 2010 under the name of Essensa inn. In 2014, new manage-ment took over and renamed it Micro Star Inn.A personable sta� and crew welcomes you in the spacious lobby, and provides you with services that you expect in a �ne hotel.Choose from four di�erent unit types start-ing with the standard deluxe room, superior rooms, twin sharing rooms.

For guests who prefer to prepare some of their own meals or just keep snacks handy, one of the seven apartelle units complete with a well appointed kitchen will give you that home away from home feeling.All rooms are equipped with TV cables, air conditioner, hot and cold shower, and tele-phones. Furnishings included a contemporary, writ-ing desk; a large �at-screen TV; a soft wool-en rug; and a comfortable king or queen bed topped with �u�y white linens.�e chic bathroom has a white-tiled walk-in shower and bath tub, a counter sink, a large wall mirror and soft white towels.�e Micro Star Inn has a great place to hold your events - a rooftop penthouse.

�e newly-opened Micro Star Inn provides outstanding lodging facilities and services to their guests.

�e luxurious rooms of the Micro Star Inn have all the amenities to make you feel at home.

�e Micro Star Inn‘s well trained, motivated and enthusiastic sta� ensure top quality service.

Contact the Micro Star Inn at (047 222 3852 / 0921 238 2670essensainn2015@yahoo.com

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What Bubble? Analysts See Sunny Real Estate Industry

Despite fears of a growing real estate bubble, some analysts believe that the Philippine economy can rest easy for now. If anything, the property sector can look forward to more expansion, es-pecially in cities.

“�ere is no truth to the rumor that there is going to be a real estate bubble,” said Board of Real Estate Service Chairman Eduardo Ong in this year’s Asia Real Estate Summit.

“We are in the midst of an urban revolution,” explained Jeremy Kelly, director for global research of real estate services �rm Jones Lang LaSalle (JLL).

Philippines has most resilient economy – study

JLL’s Global300 index reports that countries in the list account for roughly 40% of the world’s GDP. Interestingly, over half of the total commercial real estate investment in the list landed in it’s top 30 cities. �at’s good news for Metro Manila — which joined JLL’s Top30 list in 2014, with Madrid falling out. �e �rm says that such is symptomatic of a “steady shift in the balance of real estate activity towards the Asia Paci�c region.”

Kelly noted that in 2010, Metro Manila ranked 28th in the world in terms of City GDP.

He predicted the it would rise to the 25th spot in 2020, and the 18th spot in 2030.

“Real estate will play a key role of [Metro] Manila’s success and will be a driver of its success,” he saiid.

He pointed out that said that the Metro Manila market has one of the highest rates of absorption among its Asian peers, and is one of the most a�ordable in the world. Nevertheless, Kelly’s praise came with a caveat: He stressed the need for the city to adopt its own foreign policy.

City Trends

Kelly has also noted trends urban growth. “Cities that are successful are specialists in certain areas,” he said. �e analyst believes that the potential of Metro Manila lies in its information technology (IT) sector. “Its economy is far more geared towards IT than its regional peers.”

In a Tech-Rich Cities index, Kelly said that Metro Manila ranked 10th in the world from the �rst quarter of 2014 to the �rst quarter of 2015, above other cities such as San Diego, Osaka, Munich, and Beijing.

Likewise, he has also noted the increasing role of the city mayor in his locale’s development. Although urban planning poses immense bene�ts to a city, Kelly says that it can also go too far. He said that cities should also allow room for organic growth, lest they lose their character and identity. “Over-planned cities lack a soul.”

21August 2015

Where to begin – �rst o� Zeppe-lin Suites’ location is superb. Be-ing on Zeppelin Street you’re not on a main road but you are just a couple blocks from connect-ing to one by jumping on Mal-abanias. Everything is a couple minutes away. �is will be an ex-cellent place to live comfortably and quietly.

Without any other tall buildings around you get an unobstructed

view of the surrounding areas from Zeppelin Suites and the fact that you’re next to a 9-hole golf course doesn’t hurt.

�e property is set to be mixed-use so there will be some commercial spaces on the bottom �oor with a co�ee shop, convenience store, or sports bar.

Each Zeppelin Suites unit comes with quality �xtures and �ttings, granite count-er tops, ceramic tiles, airconditioning, ceiling fan, quality cabinets and electric glass cook top with range hood. �ey have furniture packages available to �t your budget.

Zeppelin Suites have in-house interior designers that are willing to work with you to personalize the design of your condominium unit.

�e company was formed in the 2012 for the purpose of building condomini-

Close to Everything, Far from Ordinary!

ums. �e company president was formerly one of the major shareholders of Orchid Group that built the Orchid Inn and Wild Orchid Resort, the two major shareholders in the company are also in the Bourbon Street Condominiums next to the Wild Orchid Resort.

If you’re looking to buy or invest, Zeppelin Suites is the place. �e price point is outstanding, with �exible payment terms in-house. Condominium Certi�cate Title (CCT) available.

0998 224 3692 / 0916 449 1253 / 045 304 3016Sales@zeppelinsuites.com | www.zeppelinsuites.com

We, who are engaged in the hotel and restau-rant industry in the province of Pampanga, fully conscious of our responsibilities in the economic and social progress of our country, and the important roles we play in the pro-motion and development of tourism in the Philippines and in Pampanga in particular, in cooperation with other instrumentalities in-volved in the industry; We, are the Hotels And Restaurants Association of Pampanga, Inc.

Our Objective

To promote unity and mutual cooperation among those involved in the hotel and restau-rant industry in the province of Pampanga, in order to protect their common interests and welfare;

To act as liaison between the members and government institutions or o�cers and assist in the enactment and enforcement of nation-al and local ordinances or laws a�ecting the industry;

To uphold the highest standard of profession, integrity and e�ciency in the conduct of its business;

To encourage and maintain a feeling of good-will, camaraderie and friendly competition among members;

To prevent unethical practices and resist activ-ities inimical to the right conduct of business required of honorable and fair competition among members;

To participate in community a�airs pertaining to the tourism industry and to act as spokes-person for the members, taking active part in community and civic activities;

To promote harmonious relationship with tourism-allied industries and suppliers in or-der to achieve and meet the highest standard of service and quality of products for the as-sociation;

To work with associations engaged in the tour-ism industry in other localities for closer rap-

port, cooperation and fellowship.

List of O�cers:

MA. MIRASOL SIMONPresidentMaharajah Hotel

MATT DE CASTROVice-President for HotelsHotel La Casa

JOHN TODOROVICVice-President for RestaurantsKokomo’s Hotel & Restaurant

MARY JANE OLIDANCorporate SecretaryPhillies Sports Grill & Bar

ELWIN MORALTreasurerEuropcar

PRECIOUS CUNANANDirector for Airport OperationsWidus Hotel & Casino

VILMA BRAZASDirector for MembershipPerimeter Hotel

JUNE ICBANDirector for Trainings & SeminarsMr. Wang Restaurant

DOMINIC ROLDADirector for Public RelationsTune Hotel

MITCH OTSURUEx-O�cio President 2014Yufuin Japanese Restaurant

JIM DALEAdvisorHotel La Casa

DIR. RONALDO TIOTUICORegional DirectorCentral Luzon

www.goharp.org/

Marlim Mansions Hotel, Arayat Street, Balibago, Angeles, Pam-panga, (045) 892 5089

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