Lately, I've been seeing videos promoting pre-selling properties because of the attractive discounts and flexible payment terms. The usual pitch is simple: pay the down payment over several years, then just finance the balance through a bank. But here's the question nobody asks: can you actually qualify for the bank loan when turnover comes? As a general rule, banks prefer that your total monthly debt obligations—including your housing loan—do not exceed about 40% of your gro

The Philippines may not have a formal caste system, but class distinctions are often built directly into our homes. Consider household staff uniforms. Some employers prefer them because they create a clear visual distinction between the family and the help. To be fair, some household workers also appreciate receiving uniforms because it saves them from having to buy or decide what to wear. So perhaps uniforms are not the strongest example. Here is a more revealing question: W

Once upon a time, a buyer purchased a pre-selling lot from a developer. Years later, the property was finally turned over. Before building anything, the buyer hired a geodetic engineer to verify the boundaries and actual land area. The survey results came back. The lot was several square meters smaller than what the buyer had paid for. The end. JPRE: Yes, this happens. Never assume that the area written in the contract or title perfectly matches what is actually on the ground

Just throwing out an idea… I was once told that during the Asian Financial Crisis, some office landlords offered extremely long rent-free periods—possibly as much as one year—just to get their vacant units leased. At first, that sounds desperate. But when you think about it, it may actually solve one of the biggest problems in the office-leasing market. Many office units are delivered as bare shells. The tenant still has to design and construct the interiors, install the fan-

Is it still smart to lodge a property in a corporation? It depends. This strategy can be powerful—but only if executed properly. Done wrong, it creates more tax and compliance problems than it solves. 👍 Pros 1. Avoids “estate gridlock” When a property is held in a corporation, ownership is through shares—not the title. So when a shareholder dies, what gets transferred are the shares. This avoids a common PH problem: + Property passes to multiple heirs + Co-ownership balloons

When I first got life insurance, I had absolutely no idea how much coverage I actually needed. A quick search online gives broad rules of thumb. Many advisers suggest coverage of around: + 30× income for ages 18–40 + 20× income for ages 41–50 + 15× income for ages 51–60 + 10× income for ages 61–65 These guidelines are helpful, but they focus mainly on income replacement. In real estate, there’s another way to think about life insurance. At the very minimum, your life insuranc

Client: Juan, how do bank-financed purchases work? Do I have to pay the seller 20% upfront? What if something goes wrong—do I get my money back? JPRE: For bank-financed purchases, the buyer pays the equity portion, usually around 20% of the purchase price, while the bank finances the remaining 80%. The bank does not release the 80% immediately. Instead, it issues a Letter of Guarantee—essentially a promise to pay the seller once the title is transferred to the buyer's (your)

What is a “hurdle rate,” and what does it have to do with real estate investments? A hurdle rate is the minimum return an investor requires before deciding to pursue an investment. If the expected gain/return is below that threshold, the investor simply turns down the investment. In real estate, investors often compare their hurdle rate against a property’s rental yield—the annual rent divided by the purchase price. If the yield meets or exceeds the hurdle rate, the property

If you ask most lawyers whether they’re knowledgeable in real estate transactions, they’ll likely say yes. But in practice, not all lawyers operate at the same depth. Real estate is one of the most regulation-heavy areas of law in the Philippines. Tax rules evolve. BIR issuances change. Court rulings reinterpret old principles. What worked five years ago may already be outdated. That’s why I prefer lawyers who specialize in real estate — not those who just “handle” it occasio

Client: Juan, how do you price a land lease? JPRE: What exactly is being leased? Client: It’s a portion of land inside a larger commercial compound we developed in XXX. There’s already an existing commercial building in the compound, but this specific tenant wants to lease an undeveloped section and construct their own structure. How should we price it? JPRE: There isn’t a single, market-standard formula for pricing land leases like this. Unlike condos or office spaces, where