LAMUDI Partners With Davao City Investment Promotion Center

Davao City partners with top real estate marketplace Lamudi to promote real estate trends and best practices to homegrown brokers

In a bid to further strengthen its real estate industry, the local government of Davao City, through the Davao City Investment Promotion Center (DCIPC), has recently partnered with top real estate website Lamudi to train Davao’s homegrown real estate brokers and to gear them up for the digitization of real estate marketing.

As going online and the effective use of technology are considered some of the best practices in real estate selling today, Lamudi will spearhead a thought-leadership session for Davao-based real estate brokers, which will detail efficient ways to reach more property-seekers via digital marketing.

Dubbed “Real Estate Is at Its Peak,” the brokers activation and seminar will happen on August 10 at the Marco Polo Hotel and will start at 8:30 am. Lamudi speakers will fly to Davao to train and impart their expertise to Davao brokers, headed by Bhavna Suresh Chathambeth, Managing Director of the Lamudi Group.

“Davao City has been in the spotlight as one of the prime centers for investment and tourism in the country today. Tourists and investors visiting Davao City are seeking for areas where they can reside during their stay in the city. With Lamudi opening its doors in Davao City, opportunities for both brokers and buying market are made easier,” said Lemuel Ortonio, Officer-in-Charge of the DCIPC.

“Now that majority of businesses are going online, DCIPC lauds Lamudi’s initiative to create a linkage between Davao City brokers and online property-seekers and shift the city’s real estate landscape in a digital platform,” Ortonio added.

“Assisting Davao real estate in going full blast online is a proud feat for Lamudi. We are making history by gradually shifting the industry from its traditional practices toward easier, faster and more convenient real time transactions,” shared Ms. Suresh.

“Doing this hand in hand with the Davao government signals that the Davao property sector is certainly looking at very bright prospects in the years ahead,” Ms. Suresh explained.

Davao Real Estate

Lamudi analyzed its onsite search data in 2016 and found that the page-views for Davao City properties averaged 48,000 per month, while the monthly average for the first six months of 2017, however, increased to 53,000. In addition, the global real estate website predicts search traffic for Davao City properties to grow 2.41 percent per month over the next 12 months.

Both local and international investors remain bullish on the high potential of Davao and Mindanao. A number of real estate developers and workspace solutions providers, who have set up offices in Davao, attested that they are receiving high renewal rates of investors particularly in office space. They also continue to welcome new investors who believe in the fast-rising economy of Davao.

Lars Wittig, Country Manager of Regus Philippines, said in a news briefing that in June 2017 alone, Regus’ Davao City branch signed up seven new clients and 48 workstations. Because of this, Davao is considered one of Regus key offices in the country as it records an 82 percent occupancy rate.

Data from the Philippine Statistical Authority (PSA) also showed that the Davao Region’s economy grew 9.4 percent in 2016, from 8.2 percent in 2015. According to Ms. Suresh, this impressive GDP growth and Davao Region’s huge potential will play a vital role in the region’s already flourishing real estate industry.

Comparison Of Housing Loans Offered By Commerical Banks

Real estate marketplace MyProperty.ph compares housing loan interest rates of top-of-mind banks in the country.

To further assist fellow Filipinos in their investment planning, real estate portal MyProperty.ph creates a list of prevailing interest rates for housing loans this 2017 of various commercial banks in the country.

As investing in a home is one of the biggest purchase decisions one can make in a lifetime, it is imperative to study first and foremost the ins and outs of your current financial standing. Once you know the budget that you can allot for your future property you can then choose from the wide array of properties available in the market and distinguish the right financing scheme that suits you best.

The key to planning ahead is to be armed with the right information. Apart from finding out the lowest interest rates, it is likewise essential to dissect and differentiate the components of the home loan program offered. For instance, HSBC offers a very low interest rate compared to other commercial banks in the Philippines. Unfortunately, the minimum loan amount to be able to avail the program must be Php2 million. Therefore, if you are eyeing a property that costs less than this, HSBC’s offering will not be applicable to you.

Fixing Rate

In addition to interest rates, it is equally important to note the loan tenor of the fixed rate that you are agreeing to. All interest rates given in the table provided below falls under the one-year re-pricing period, this means that interest rates are subject to change per year. Although price change does not necessarily mean that rates will go up, it is still crucial to know and expect that your amortization fees will vary each year depending on the current interest rates.

Banks also offer a fixed interest rate for a longer span, the longer the tenor, the higher the interest. For example, BDO offers a fixed 6.5 percent interest rate for a length of two to three years and 6.88 percent fixed interest rate for a four to five years duration.

Margin of Finance

Most banks can lend up to 80 percent of the property’s selling price, while the remaining 20 percent will then be paid as equity or down-payment directly to the developer or the seller. Among all banks listed in MyProperty’s comparison, only Union Bank can lend up to a maximum of 90 percent of the property’s selling price. This is good news to some homebuyers who do not have enough cash to cover a 20 percent down-payment.

Loan Tenor

Unlike the government shelter agency Pag-IBIG Fund who offers loan tenors of up to 30 years, banks’ normal maximum loan tenor is only 20 years. Some extended their offering up to 25 years, while only EastWest Bank follows the model of the government bureau for offering 30 years tenure. Although paying in longer duration means your total payment will be higher, this helps lower monthly mortgage payments, which might be more manageable to some borrowers.

Fees and Charges

Miscellaneous charges vary from the requirements of each bank, but homebuyers must expect and be ready to spare some cash to cover these fees. Some of the common additional expenses included when applying for a housing loan are appraisal fee, registration, documentary stamp (Php1 for every Php200 of the loan amount), and notarial fee.

Mortgage Redemption Insurance

When applying for a housing loan, the bank or lender will normally ask the borrower to get a mortgage redemption insurance or MRI, which is a form of life insurance that pays off a part or the whole of the insured’s outstanding mortgage balance in case of his or her death or total disability. MRI guarantees the bank that it will be paid back the amount it has lent, and also protects the borrower’s surviving family, as it will help settle the outstanding housing loan amounts. In the absence of an MRI, the bank or lender may sequester the house from the surviving family. The MRI is usually incorporated to the housing loan in lump-sum payment (one-time premium paid annually).

Bank Fixed Interest Rate Margin of Finance Minimum Loan Amount Tenor Fixing Rate
HSBC Housing Loan 4.99% 80% Php2 million Up to 20 years For 1 year re-pricing
Security Bank Home Loan 5.25% 80% Php1 million Up to 20 years For 1 year re-pricing
BPI Housing Loan 5.50% 80% Php400,000 Up to 25 years For 1 year re-pricing
BDO Housing Loan 5.50 80% Php500,000 Up to 20 years For 1 year re-pricing
PNB Sure Home Housing Loan

 

5.75% 80% Php200,000 (depends on the property and area) Up to 20 years For 1 year re-pricing
Maybank Home Loan 6.00% 80% Php800,000 Up to 20 years For 1year re-pricing
EastWest Bank Home Loan 6.00% 80% Php500,000 Up to 30 years For 1year re-pricing
Union Bank Housing Loan 6.00% 90% Php500,000 Up to 20 years For 1year re-pricing
Metrobank Housing Loan 6.50% 80% Php500,000 Up to 25 years For 1year re-pricing
ChinaTrust Housing Loan Fixed Rate 6.75% 80% Php500,000 Up to 20 years For 1year re-pricing
China Bank Home Plus Loan 7.50% 80% Php500,000 Up to 25 years (depends on the property type) For 1year re-pricing
RCBC Savings Bank Housing Loan 7.70 80% Php300,000 Up to 20 years For 1year re-pricing