Sunday, May 29, 2011

Part 2 Real Estate: Chateau Elysee

PROPERTIES NEAR SM BICUTAN

In real estate, it is all about location, ,location and location. I remember Ray Kroc, the founder of McDonalds restaurant. One time, Ray Kroc said to an MBA class , “My business is not hamburgers. My business is real estate. ”. Obviously Ray Kroc uses the hamburger business in order to get the best location of real property in the world. In every corner of the city, you would see the McDonalds restaurant. In every prime location of the world cities, McDonalds is there. Likewise when considering an investment, the location is of prime importance.

For comparison purposes, I have selected a few properties specifically condominiums near SM Bicutan where Azure Urban Resort is located. Also, I have selected 1 bedroom unit for all the rest of the condominiums selected near SM Bicutan. What I have noticed is that the big boys developer like Robinsons, SM Residences, and DMCI have their one foot in this area.
Chateau Elysee
General Info
          Built in an enchanting French Mediterranean design, Chateau Elysée sprawls on 4.8 hectares of prime land, with more than half of the property devoted to amenities and breathing space, and a clubhouse with complete facilities.Every living space at Chateau Elysée is masterfully designed - from the living room to the kitchen. Our One-, Two- and Three-Bedroom units evoke comfortable living and freedom of space. High ceilings create a sense of airy openness. Wide windows look out across pleasant bright expanses of gardens and courtyards. There are 6 clusters, each cluster has 4 buildings and each building has 6 to 7 floors.
SMDC Chateau Development SiteCluster Names are:
Cluster 1:Concorde
Cluster 2: Lafayette
Cluster 3: Eiffel
Cluster 4:Seine
Cluster 5: Vendome
Cluster 6: Ritz


Location
         Chateau Elysée in the heart of Bicutan, Parañaque City, just 20 minutes away from the Makati Business District, and 15 minutes away from the International Airport, with shopping, dining and entertainment destinations of SM Bicutan just 10 minutes away.

Price
      1 million to 1.5 million

Payment Terms
     Cash -  10 to 11 % discount
     Deferred Cash  payable in 6 months, 12 months, 18 months
     Spot Downpayment 
              20% spot DP  80% thru Bank/In-House Financing
              30% spot DP 70% thru Bank/In-HouseFinancing
              40% spot DP 60% thru Bank/In-House Financing
      Installment
               30% DP payable in 12 months 70% thru Bank/In-House Financing
               10% DP payable in 12 months  10% DP on 13th month  80% thru Bank/In-House
Amenities
SMDC Chateau Residences
• Clubhouse with Function Halls
• Fitness Gym
• Playground Area
• 25-meter Lap Swimming Pool
• Kiddie Pool
• Wading Pool
• Children's Play Area
• Basketball / Volleyball and Tennis Courts


Building Facilities and Services
• Chambermaid Services (Maintenance and Housekeeping)
• Shuttle Service To and From SM City Bicutan
• Spacious Courtyard with Children's Play Area
• 24-hour Security
• Automatic Fire Sprinkler System
• Centralized Overhead Water Tank for Sufficient Water Supply
• Provision for Garbage Disposal Area
• Stand-by Generator Set for Common Areas
• Natural Air Ventilation for Common Areas
• Sufficient Fire Exits
• Spacious Lobby and Corridors
• Back-up deep Well Water Facilities
•Convenience Store


Construction Progress
    It is ready for occupancy.

Developer
       SM Residences

Floor Area
         Typical 1BR has 24 sqm.

Typical Unit Finishes  SMDC CHATEAU UNIT
SMDC CHATEAU BEDROOM
SMDC CHATEAU UNIT
SMDC CHATEAU UNIT
Ceramic Floor Tiles 
• Painted Wall and Ceiling 
• Modular Kitchen Counter and base cabinet 
• Toilet and Bath with ceramic tiles 
• Automatic Fire Sprinkler System 
• Provision for telephone and internet facilities 
• Provision for cable tv facilities 
• Provision for water heater at master’s bedroom T&B 
• Individual Electric and Water Meter 
High ceiling units (3.0 meters)

Sources
Information and photos courtesy of below web portal:

Note: I am not affiliated nor connected to Chateau Elysee Residences.

The accuracy and correctness of the contents found on this site is not warranted either. OFW Investor will not be liable for any readers losses arising from following the recommendations or tips found on this site.Trademarks and copyrights found on this site are the property of their respective owners and OFW Investor holds no responsibility for any infringement on any of the above.

Saturday, May 28, 2011

Part 1 Real Estate: First Urban Resort in the Philippines

Recently, i just went on a presentation by the Centuy Properties on their new project Azure Urban Resort Residences at Shangri-la. I went together with my wife at the invitation of our ninang Cora. To begin with, the presentation was conducted on a per table basis. One sales director for every table. Mr Doj was the one who outlined the different aspects of the properties and answered every question we had.


GENERAL INFO
AbandonedImmediately when we arrive home, I opened the internet and then researched the same properties near the area, the price, the downpayment, location, amenities, and rental opportunity. Azure Urban Resort is the first urban resort in Metro Manila.The centerpiece of The Azure is the truly iconic and first-of-its-kind man-made beach cove complete with pristine white sand, undulating waves,multiple water slides and water cascades. It is like having a vacation right in front of your condo everyday.The Azure is expected to have 9 buildings within a spawling 6-hectare site that will set a new benchmark for 21st century tropical living. Each tower is set in a breathtaking tropical modern aesthetic that provides optimal natural ventilation, light and shade.

mammothsI asked Doj, the sales director of Century Properties on why the company is not taking it to the public similar to Ayala, Megawide, Vista Land and Filinvest. His short answer is "the owners of the company, the Antonio family wants to keep the business within their circle." I wonder how did the Company manage to erect and completed 60 buildings without using public funds. Financing? Most likely. Doj and Tina, the Senior Sales Director of the Company showed a video on the speech of it's Chairman, and I catches the following:

1. The population of our country is more than 90 million and half of them were below the age of 25. Wow, how young are we! I bet Japan would be willing to consult us on how to make a population be dominated by young fellows. These yuppies who worked in BPO, abroad or high paying job have disposal income enough for them to own a condo in Manila.

2. Most of the PagIbig members are not using their loan privileges. Pag-ibig has mountains of cash to lend. Recently, PagIbig has repatriated billions of pesos worth of investments overseas in our country. This is because the investments overseas did not meet their 8% returns criteria. The government is optimistic in the outlook of our economy and will invest it here. Currently, the interest on housing loans for Pag ibig is 7.5%. Not bad, comparing it against banks.
Nile+vista+real+estate
Our country is poised for growth and is set for greater heights. Considering the research made by the company, I am astounded by their deep knowledge in the demographics of our country and has really targeted the emerging middle income society. As Mr. Antonio said, the middle income society are the pillars of a successful nation. By the way, Mr. Jose E.B. Antonio is the ambassador of our country to China.

Azure Urban Resort is under the Century Properties Group. This Company has built numerous high-rise condominiums and buildings. To name a few , it includes the Canyon Ranch, Knightsbridge Residences, Gramercy Residences, Grand Soho Makati, West Ayala, etc.

Friday, May 27, 2011

7 Factors that Affect the Rise/Fall of a Stock Price?



1. Great Stock Market Stories
GossipDuring the bull market, everybody is great because everyone is making a lot of money. But when the bear market comes, that’s when the men separate among the boys.  Most people jump into the stock market when they hear stories from others that the stock market is high. It’s when the barbers, taxi drivers, your officemates are encouraged by somebody to invest in the stock market. They will say “Hey there are hotcakes in the stock market”.  People talk about stocks when they make money and when you make money it simply means that the stock market is at its high. It creates the bull market, the excitement and most people make money within the day, hours or even minutes. People become greed and the stocks soar.

2. Force Majeure or Acts of God
Cyclone+Day+-+Chennai+Marina+BeachJapan Tsunami/Earthquake. Japan stocks went down by as much as 14% in one day. And that 14% is worth a staggering $500 billion. It was wiped out from their economy. The effect is being felt in the Philippines also. I just bought Nickel Asia on the 1st week of March because it has growth potential. It's income is 400% bigger than the previous year. It launched its IPO only last year. Nickel prices are rising and the commodity is in demand all over the world. All of sudden, tsunami struck and one of the customers of Nickel Asia has temporarily shutdown its operations. This customer comprises 30% of Nickel Asia and also owns 2% of its shares. The impact on the profit is enormous. Nickel Asia revenues will slid down and they will scramble to find a new customer which is most probably in China, a growing country. Whew! It's share price is now going down as an effect of that events.

3. US Unemployment
Hoovervilles%3A+1932+Do-Nothing+EconomicsThe unemployed people in US is a good barometer whether the stocks will rise sooner or later. Unemployed people in US normally can claim food stubs from the US government. These food stubs are numbered and measured by the government. If the people claiming food stubs are down, it means some people got a job and that business is picking up. If the people claiming food stubs increases, it means a lot of people got terminated or fired because of poor economic conditions. During poor economic conditions, the revenues of the Companies normally goes down and in some instances they go bankrupt. Since our economy is partially dependent on the economic conditions of America, the stock prices goes down when US Economy is down. Why is this? The big investors goes out of the stock market in the US as well as in other parts of the world including Philippines and invest in other areas like bonds, interest rates, currency, futures, options, etc.

4. Interest Rates
Credit+CardsWhen the interest rate is high, the investor would normally pull out his investment in the stock and put it in the bank. Example, if the interest rate in the bank is 5% and returns on investment in your stock market is averaging 10%, you will let your money stay in the stock market. However, if the interest rate in the bank goes up to 8%, of course you will pull out your money in the stock market and put it in the bank because the difference in return is 2% only. Interest earned in banks are fixed while returns of investment in stock is volatile.

5. Political Unstability
Each+war+is+different%2C+each+war+is+the+sameWhen President Aquino took over as the main driver of our country, the investors suddenly flocked in our country. The stock market goes up breaking all previous high records. The investors are looking for a sense of control and certainty in a country before jumping in. For example, if I am a global investor and is looking for a country to invest, do you think I will consider investing in Libya, Iraq, Afghanistan and other war torn country? Of course not! My money will be in trouble especially if the head of the government is nothing but a crook.

 
6. Analysts Opinions
New+York+City+-+Lower+Manhattan+%22Wall+Street+Bull%22I  remember when Duestche Bank lowered its rating on SCC shares from BUY to HOLD, SCC shares goes down dramatically. Since Duestche Bank is managing the wealth of high net worh individuals and corporations around the world, these individuals suddenly dumped their shares of SCC. Since there are many sellers than buyers in SCC shares, its share price went down. Likewise with Citiseconline, when the recommendation changes from HOLD to BUY, the stock price normally goes up because there will be more buyers for that stock price than the sellers, thus the share price goes up.

7. Company Performance
June+2%2C+2006+Freebies+and+Free+Samples+Mail+Call
Prices are ultimately determined by the earnings of the Company. If the Company is earning very well, declares dividends every year, and has a lot of growth potential in the coming years, more likely than not, the price will go up.

Thursday, May 26, 2011

Part 2 Taxes and Fees in Stock!

Purchase tax
Considering+The+Tax+ShelterRecently I bought 800 SCC shares. I purchased it at P212 per share. The total amount of the purchase is (800x212) P169,600. In addition, I need to pay P500.32 for fees and taxes. Total cash outlay is now P170,100.32 (P169,600+500.32).



FEE
COMPUTATION
 AMOUNT 
Purchase Price
(800 x P212) x .25%
         P169,600.00
Commission
(800 x P212) x .25%
                   424.00
VAT
P424 x 12%
                     50.88
PSE Trans Fee
(800 x P212) x .005%
                      8.48
SCCP
(800 x P212) x .01%
                     16.96
       Total Fees/Taxes

                  500.32
Total Purchase Price

          P170,100.32



When you buy stocks .3% (500.32/169,600) of your money is wiped out and given to the stockbrokers and government right away. This .3% loss is absolute when buying stocks unless you bought stocks whose purchase price is below P8000.

Selling Tax
If the same 800 SC shares were sold at 212 share also, there is no gain or loss isn't it? Wrong. When you sell the stocks you bought, you are losing .8% (1348.32/169,600) of the selling price as fees and taxes. This .8% loss is absolute when selling stocks unless you sold stocks whose selling price is below P8000.


FEE
COMPUTATION
 AMOUNT 
Selling Price
(800 x P212) x .25%
          P169,600.00
Commission
(800 x P5.20) x .25%
                   424.00
VAT
P424 x 12%
                     50.88
PSE Trans Fee
(800 x P5.20) x .005%
                      8.48
SCCP
(800 x P5.20) x .01%
                     16.96
Sales Tax
800 x P5.20 x .005
                   848.00
       Total Fees/Taxes

               1,348.32
Total Selling Price

        P168,251.68



Total Taxes/Fees
Considering+The+Tax+ShelterIn the illustration above, when you buy a stock, you lose .3% and when you sell a stock you lose .8%. So, .3% + .8%=1.1% fees and taxes. Thus, the total taxes and fees you are giving away when you buy a stock and sell it is 1.1% of your money. Thus, when you buy a stock, the percentage which you must get must be more than 1.1%. In the illustration above, I bough SCC shares at 212 and sold it 212 also. By doing that, I lost 1.1% of my money. What shall we do now in order to gain that 1.1%? We need to let the share price of the company to appreciate and let your share of the dividends from the Company you bought be credited in your portolfio.

The 1.1% Margin
Whenever you are selling a stock, you must have at least 1.1% increase in share price to break even. So whenever your stock increase by 1.1%, dont be excited yet because you are just break even. A lot of stocks prices are increasing dramatically in one day. So, this 1.1% margin shouldn't be a concern at all especially if you know the stocks who will appreciate in share price. My stocks over the last six months have grown more than 10%, enough to cover all the expenses and taxes.

What is SCCP Fee
Brick+by+brickSCCP means Securities Clearing Corporation of the Philippines. It is a private institution organized primarily as a clearance and settlement agency for depository eligible trades executed in the PSE. SCCP received its permanent license to operate on January 17, 2002. It is responsible for establishing the liabilities between trading participants of the Exchange; synchronizing the settlement of funds and the transfer of securities; guaranteeing the settlement of trades in the event of trading participant default and administering the appropriate risk management functions in order to ensure settlement. SCCP assumes the role of guarantor for trading participant transactions in the Exchange along with the maintenance and administration of a trade guaranty fund called the Clearing and Trade Guarantee Fund. The Philippine Stock Exchange has 51% holdings in the SCCP while the remaining 49% is held by Philippine commercial banks.

Part 1 Taxes and Fees in Stock!

"The only permanent things in this world are death and taxes".

What are Taxes?
Tax came from the Latin word "taxo" meaning I estimate. It is compulsory. Failure to pay tax may result into penalty and in some cases, you may land in jail. Taxes are burden laid upon individuals or entities to support the government. It is an enforced contribution in the form of toll, customs, duty, excise, subsidy, aid, penalties, etc. It is payable through money or in kind.





Why Does the Government Need Taxes?
The government needs to pay the government employees. During my grade five and grade six years, I went to the public school. That was the time when Mt. Pinatubo erupted and we need to evacuate to other provinces. My family went to Nueva Ecija and stayed there for a few months until the rains of ashes, sand and rocks winds down. Eventually, we went back to our hometown and settled in higher areas. I spent my elementary days there for two years. Back then, I had this wonderful principal and a hosts of teachers who have been selflessly teaching us in Values, Ethics, Science, English, Math, and Hekasi. They even offer encouragement, motivation and guidance to every student that falters. In essence, they are my unsung heroes. Now, these teachers hired by the government to teach children on basic education are getting their salary from the government. They need those salaries because they also have families to feed. Without these teachers, how in the world can poor families afford to send their school to private school? I am a product of the public school and I am proud of it. These public schools are a necessity in our country and education system. If we need public schools, we need the great but humble teachers. These teachers need salaries for their family. If they need salaries, the government needs to pay them because they act as the employer of the teachers. Thus the government needs to raise tax in order to pay the teachers salary.

 
Government has 1.1 million employees
Now, imagine the 1.1 million government employees we have in our country. If for illustration purpose only, the average salary is 10,000 pesos a month, the government needs to pay 10 billion pesos per month for salaries alone! In one year, our government needs to pay 120 billion pesos for salaries. Actual spending of the government last 2009 is 414 billion pesos for personal services.


 
Government Expenditures
Salary is just a portion of the government expenses. Just like any company, the government has to pay electric bills, water, telephone, etc. Major expenses are automated elections, scholarships grants, fiancial support to PEZA, PNP arms upgrade, NFA rice subsidy, assistance to local government, interest payment on loans, etc. Also, it needs to finance projects like building roads, bridges, hospitals, schools, government buildings and structures. These projects are worth billions of pesos.  Last Year 2009, the government spends a staggering 1.422 trillion pesos.

Corruption
Guys, corruption is part of the expenses I think. Some people say 30% of the budget goes to the pocket of the politicians. The rest are spent on in good faith.

Government needs taxes to support its expenditures
Since the expenses incurred last Year 2009 is 1.422 trillion pesos, the government needs any monetary benefit it can get to meet those expenses. Unfortunately, most of the times the taxes collected are not enough to pay the expenses. They call it budget deficit. That is why in every transaction we make, there is tax. You buy at Jollibbe, you pay VAT. You buy a cigarette, the company already passed to you the sin tax. You go abroad, you need to pay travel tax. You buy stocks, you need to pay taxes. You sell stocks, you need to pay taxes.