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 What worked five years ago may already be outdated.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

In 2023, the government reported that the BIR offices in Pampanga filed criminal charges against both the SELLER and the BUYER of several parcels of land — for allegedly using a FAKE BIR Certificate Authorizing Registration (CAR). If proven, both parties may face: + up to 10 years imprisonment for tax-related offenses, and + up to 6 years for falsification of documents. What makes this case extra disturbing? Interesting facts: + The case was filed around 8 years after the tra

A client recently asked if I could prepare a market report comparing property prices in two neighboring towns in Bulacan—areas being reshaped by several major developments: + The Philippine Arena and the INC estate in Bocaue + The upcoming New Manila International Airport + The Northrail project, with a planned station in Bocaue The client’s actual concern was very practical. They own a former agricultural parcel—several hectares, idle for over a decade—located just a few hun

“Sino water provider dito?” When I was a young real estate broker, this question caught me off guard. A buyer would be inspecting a house—checking the layout, finishes, price—then suddenly ask: “Sino water provider dito?” I remember thinking it was a strange thing to worry about. Mind you, this was a village developed by one of the country’s biggest names. This isn’t the 90s anymore, right? No rationing. No drums of water. No midnight filling schedules. Or so I thought. A dec

Here’s a better alternative to Time Deposits. Most people park idle cash in Time Deposits (TDs)—and for good reason. Capital is protected, interest is predictable, and principal doesn’t go down. The downside? You’re locked in. Once you choose a tenor (3 months, 6 months, 1 year), withdrawing early usually means: - Loss of accrued interest - Plus a penalty (often a % of principal or a fixed amount) In many cases, you still need to formally pre-terminate at a branch, which adds

One of the most common questions landowners ask is this: “How do I actually protect my (un-gated) property?” ~Php70,000 per month. That’s the cost of a full-time, 24/7 security guard. A client was quoted this recently. A business partner got roughly the same number last year. You might reduce it slightly—no firearm, fewer rotations—but real security is expensive. In yesterday’s post, When Titles Aren’t Enough, someone raised the real issue: ownership on paper is useless if yo