How much income do you really need to buy that property and bank finance 80% of the purchase price? Banks quietly follow a simple rule: Your monthly amortization shouldn’t exceed 40% of your gross household income. So the question becomes—given a certain condo price, how big should your income be for a bank to say yes? Here’s the Excel formula that does the math: =PMT(7.5%/12, 180, -0.8*C2) / 0.40 What each part means: 0.8 × Price → Banks typically lend 80% of the property va

Broker: “Juan, quick one. I was checking something on ChatGPT. My lessor-client wants to lease out his unit, but then he wouldn't be able to get a Certificate of Non-Tenancy. And that would mean the future sale will be VAT-able…but then ChatGPT said this: ✅ 1. VAT on Rent Depends on the Lessor — Not the Condo Corp. VAT is based on the lessor’s tax status (seller/landlord), NOT the condo corporation. VAT applies when the lessor: A. Is VAT-registered, OR B. Earns > P3,000,000/y

Do you really still need witnesses for a Deed of Absolute Sale? Short answer: No… but also yes. Maybe. You’ve probably seen those two blank witness lines at the end of contracts—right before the Acknowledgment Page where the notary signs. Naturally, the question pops up: “For a Deed of Absolute Sale, is it still needed?” Technically, no. Under the law, once a contract is notarized, it becomes a public document. And a public document does not require instrumental witnesses—unl

I Lost My Title! What Now? Think of it this way: if you lose your credit card, you don’t wait for someone to go on a shopping spree under your name. You immediately call the bank and have it blocked. Losing your land title works the same way—except the “bank” you call is the Registry of Deeds. The moment you're certain the title is gone, you prepare an Affidavit of Loss and have it annotated on the RD’s copy of the title. That small annotation becomes a big red flag for anyon

One thing that always confused me in Hollywood shows: the second mortgage. Characters casually say, “We’ll take out a second mortgage!” as if it’s a normal errand. Meanwhile, in the Philippines, that concept barely exists. So how can the same house be collateral twice? And in a default, who gets paid first? My brother in the US finally broke it down for me. When you buy a house in the States, you almost always take out a loan — that’s your first mortgage. As you chip away at

When it comes to Manager’s Checks, everybody knows the drill: you call the issuing branch, ask if they really issued the MC, and once they confirm, you feel safe knowing the funds have already been pulled from the buyer’s account and parked with the bank. But then a little thought crawled into Mr. Paranoid's head: “Wait… what if a devious buyer cancels the MC?” For example: They hand the seller the MC on a Friday afternoon. Seller is flying out for the weekend. Won’t deposit

Client: What do you think about Bulacan? JPRE: I’m still a bit cautious about Bulacan. When you drive around, much of it still feels rural — and in some pockets, rough around the edges. What’s fueling optimism is the upcoming airport and its proximity to NCR. If things go well, it could evolve into something like Clark City in Pampanga — a large-scale urban development with government backing. But in the near term, upside looks limited. The area isn’t anchored by a strong bra

Once upon a time, a couple sold their condo through a bank-financed deal. The sellers were a Filipina and her foreign husband. When the transaction finally closed, the mortgagee bank released the proceeds: a Manager’s Check payable to “Spouses A & B.” That’s when trouble began. The wife went to deposit the check into their joint “and/or” savings account—only to be told: “Ma’am, we need both your signatures at the back before we can accept this.” Her husband had just flown abr

When the real estate market turns sluggish, a familiar idea resurfaces — the rent-to-own (RTO) scheme. On paper, it sounds like a win-win: “Why rent when you can own?” But behind the marketing pitch lies one of the most misunderstood setups in property transactions. Most people think of RTOs as a simple bridge between renting and buying. In truth, they’re two contracts stitched together — a lease and an option (or obligation) to buy. The first gives you the right to occupy th

A company was selling an office unit for P33.6 million. The documents didn’t say whether the amount was VAT-inclusive or exclusive. The property’s zonal value is P31 million. So here’s the question: 💡 What is the correct output VAT payable to the BIR? Options: A P3.60 million B P3.72 million C P4.03 million ****** Before diving into the VAT computation, it helps to know where the answer comes from. In February 2007, the Bureau of Internal Revenue issued Revenue Regulation No