Homesteading

Now this is something that blew up my mind and open a new leg of project for this 29penn home construction. An off-grid living? Maybe we would consider this project at the back of our mind as we go along in making the optimum use of this property. This is truly an inspiration.
Source: http://www.simplesolarhomesteading.com

12% VAT on Real Properties

We just got an info over the internet about the VAT exemption on house and lots and other dwellings. We have to clear this out with the construction of the dwelling though.

VAT-exempt transactions:

(P) Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business, or real property utilized for low-cost and socialized housing as defined by Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992, and other related laws, residential lot valued at One million five hundred thousand pesos (P1,500,000) and below, house and lot, and other residential dwellings valued at Two million five hundred thousand pesos (P2,500,000) and below. Sources:
http://www.lawphil.net/statutes/repacts/ra2005/ra_9337_2005.html
http://www.punongbayan-araullo.com/pnawebsite/pnahome.nsf/section_docs/VO767V_24-11-05

Prefab options

Okay, we got the latest update from response shelter and with the present budget for this 29penn dwelling project it looks impossible to go for their ali-kit building system. The unofficial quote we got shows that for a 50 sqm. unit it would roughly be Php673k excluding shipping, installation and even the structure itself. So that price covers for:
Electrical - 20,271 Plumbing and sanitation - 63,098 House finishing - 517,959. VAT of 12% - 72,159

I was told by the contractor that the structure might just be about another 500k with shipping of about 21k and installation of 16k for a 4-day work (4k/day). I was impressed for the cost savings on labor but surprised on the structure cost and finishing which would be over to 1M. Just way-out of my plan.....

That said, I turned to their next offer of a rapid system which could be extended up to 2-storey only. This may be a more practical approach because of the high cost of the ali-kit which is optimized for a 6-storey building.

Search for Financing

An important factor to turn a real property into a steady income generating source is to get an excellent financing for the property. We searched different major banks for their housing loan programs and most would offer interest rates for 11-12% p.a. fix for a period of 15-20 years. 1. Banco De Oro offers the most competitive rates with fast processing of 10 days. Call 631-8000 or 1-800-10-6318000 (Domestic Toll-Free) http://www.bdo.com.ph/Personal/Loans/BDOHomeLoan.asp Budget and project your expenses, knowing your rate and payments will stay the same. You have an option to fix interest rates up to 20 years based on prevailing home loan rate. Fixed Rates (as of August 11, 2010): 7.88% fixed for 1-3 years 9.75% fixed for 4-5 years 10.50% fixed for 6-10 years 11.00% fixed for 11-15 years 11.50% fixed for 16-20 years Yearly repricing after the fixing period Appraisal Fee P3,500 Appraisal Fee outside Meto Manila P4,000 Processing Fee P3,000.00 Mortgage Redemption Insurance P4,430.00 for every million, assuming standard rating Fire Insurance Depends on the appraised value of the Improvement Mortgage Registration Expense (based on loan amount) Depends on the loan amount
2. RCBC Savings Bank also offers special housing loan packages for first time and existing homeowners through the Home Starter and Home Budgeter Loans. HOME STARTER LOAN The Home Starter Loan is created for First Time Homeowners with an innovative repayment feature. It comes with a grace period on amortization payments of up to 12 months to allow new homeowners to introduce home improvements before regular loan amortizations commence. HOME BUDGETER LOAN The Home Budgeter Loan is ideal for existing homeowners who want to lighten their debt burden by borrowing against the value of their home to pay-off and/or consolidate financial obligations and consumption-related expenses, e.g. tuition, travel, hospitalization, etc. APPLICATION REQUIREMENTS Employed Accomplished Application Form Certificate of Employment and Compensation ID cards TIN Residence Certificate Photocopies: TCT, Tax Declaration, Tax Receipt, Tax Clearance Location plan/vicinity map of property Building Plans/Bill of Materials (for construction) Statement of Account (for take-out of existing housing loan)  For more details, please call: DIRECT HOUSING LOANS DEPARTMENT 637-3152; 634-9503; 633-9505 DEVELOPER GENERATED HOUSING LOANS DEPARTMENT 633-9487; 637-7140; 637-7287 3. Security Bank For any inquiries: Please call (02)888-7138/ (02)867-6788 or email inquiry@securitybank.com 4. Allied BAnk You can also call: Mr. Robert Aragon Assistant Vice President Consumer Loans Department Email: rtaragon@alliedbank.com.ph Tel nos. 816-3311 local 3039, 3075, 3087 Or you can visit us at: 5th Floor Consumer Loans Department Allied Bank Center 6754 Ayala Avenue, Makati City 5. HSBC 6.99% for the first year Call us Metro Manila 02-85800 or 976-8000 Provincial1-800-1-888-8555 Abroad +632-8580000 Current promo of waived mortgage fees for every million: of about Php33,846   6. UCPB
	Lee De Claro, yldeclaro@ucpb.com
	Tel No: (632) 878-5030

Advertised in Buy and Sell Ph. for Php3290/sqm

29 penn was submitted for free ad in www.buyandsellph.com on September 16, 2010.

Land development and other costs

Some other costs which may be incurred in developing 29 penn to a rental property or a house and lot package are:
1. for a stand alone prefab house such as a container house then hook up to utilities, drainage, septic tank etc. about Php100,000
2. for the concrete fence of 1.5m high with steel bar gate - Php200,000 ... this is quite an expensive quote that I got from a contractor
3. for driveway concreting of the 155 sqm. lot - Php150,000

Start with an Ali-kit building system

One way to transform 29 Penn is to consider Response shelter`s offer for a starter building unit called Ali-kit building system. It is claimed that up to a 6-storey building can be built using its prefab modular system in the Philippines. A quotation for a 50 sqm. unit is underway.
Featured in Baguio Swedish Modular Homes.
More options here : http://www.response.ph/