REAL ESTATE

CURRICULUM

A. Japanese Economy

B. Philippine Economy

C. Cebu Economy

D. Buying a Home

E. An Invitation

F. It’s pretty safe

G. Taxes

H. Taxes and Fee for Property

I. Opening a Bank Account

J. Prospect

K. Contract

L. Buyers Brokerage Agreement

M. Buyer Consultation

N. Unsatisfied Agreement

O. Payment Scheme

A. Conversation

Japanese Economy

Liz: Hi Hibiki , how are you?

Hibiki: I'm doing good thank you for asking

Liz: Oh! I've watched the news last night and it talked about Japanese Economy, and

it say's that Japans population is shrinking is it true?

Hibiki: Yes it is! and that's the reason why Japanese is facing a bit of economic

problem.

Liz: Really?

Hibiki: Young people are getting smaller and aging society is increasing, and we're one

of the worlds lowest birth rate as of 2014

Liz: Is it really bad for Japans economy?

Hibiki: Yes! because of lower population rate, Japan's debt has swelled to more than

twice the size of the economic output, and because of this Japanese Economy

will slow down.

Liz: I'm sorry to hear that, but i think Japan can recover

Hibiki: I hope so, but i am not worried about my business, since i am in a real estate

business there will be a high demand especially for foreign people , and 2020's

Tokyo Olympic will be a big opportunities to expand my business

Liz : That's nice, but it will only be until 2020 right?

Hibiki: I don't think so, aging society is also a big market for real estate industry.

Liz: I wish you luck in your business and i can't wait to visit Japan in the future

Hibiki

Hibiki: Thank you Liz, please give me a call once you visit my country

Speak your Mind:

What can you say about Japan’s Economy? Is it improving or not?

What can you say about the aging society in Japan?

Is Japans Population a big factor for the Japanese Economy? Why?

Are you excited for the Tokyo Olympic? Why?

Do you agree Real estate Market will expand?

Why do you think Aging Society is a good market for real estate?

What can you do to help Japanese Economy?

Vocabulary:

Shrinks - Make smaller size or amount

Debt- the state of owing money, owed or due

Swelled - become larger

Output - the amount of something produced by a person or machine

High demand - a lot of people want to get it

Market - a group of people for the purchase

Aging society - group of old people

Birth rate - number of newly born babies

Increasing - to become larger or bigger in size

B. Conversation

Philippine Economy

Bob: Hi, Juan! I just came from Manila, and i am very impressed with the people and

its culture

Juan: really? Manila is a big city. do you agree?

Bob: I agree! Manila is a big city i can see that philippine economy is really improving, you

can see big buildings, wide street and big malls and many people. not only local but

foreigners too.

Juan: I ‘m happy to hear good feedback about my country

Bob: I believe with peoples happy perspective and hard work, your country will develop

and improved its economy

Juan: According to Asian Development Bank (ADB), strong growth is expected to continue

in the Philippines especially this year and on next year.

Bob: Just as i expected!

Juan: But the biggest challenge is to reduce poverty by generating more and better jobs

Bob: i like Philippines very much so i am expecting your country will continue to grow

Juan: I hope so too. Thank you Bob!

Speak your Mind:

Do you agree that philippine economy will improve in the future? why?

Do you like Philippines? why?

What do you think of the Filipino? are they good worker?

What do you like the most about Philippines

What you hate most about the Philippines?

What do you think Philippines should improve?

If given a chance would like to stay in the Philippines? why?

Vocabulary:

Impressed - feel admiration and respect

Improving - make or become better

Feedback - information about something

Perspective - a point of view

According - as stated by someone

Expected - believe that someone or something will arrive soon

Reduce - make smaller

Poverty - very poor

Generating - produce or to come about

C. Conversation

Cebu Economy

Rick: Hi Meg! long time no see. how are you?

Meg: I am doing good, when did you come home?

Rick: I just came home yesterday

Meg: Are you staying in Cebu for good?

Rick: I'm just here for a Christmas vacation. staying here for good would be very difficult

for me and my family

Meg: I understand what you mean, but don't worry Rick , sooner or later you will not work to

other country just to give your family a better life.

Rick: What do you mean Meg ?

Meg: Will according to the world economy Cebu would boom and would be the center for

foreign investment in the country.

Rick: Really?

Meg: Yes! right now Cebu is the most popular destination for foreign tourist. The biggest

mall in the Philippine and the 4th largest worldwide will be built in Cebu City too.

Rick: That's amazing!

Meg: It is! right now Cebu has many ongoing real estate construction such as hotels/resort,

condominiums and etc. Cebu is also the BPO hub. with the Cebuanos talent, skills and

hard-work. Cebu will grow and known to its economy and industry.

Rick: I am hoping that all the future predictions will come true.

Speak your Mind:

How do you see Cebu City 5 years from now?

Do you think Cebu will become a progressive city? Why?

As a foreigner, what are the things Cebu should do to improve?

If given a chance, would you like to live in Cebu City? Why?

What do you think of Cebuanos?

Vocabulary

Investment - Financing/ Process of investing money for profit or material result

Better life - Living a comfortable life

Boom - In business term a time which sales of a product or business activity increases very

rapidly

Destination - A place which someone or something is going or being sent

Ongoing - Continuing / still in progress

BPO (Business Process Outsourcing) - Call Center / Contact Center a

Hard-work - a great deal of effort in doing something

Progressive - Increasing/ Growing/ Developing

Improve - Make or become better

D. Conversation

Buying a Home

Realtor: Hi Mr. Johnson, nice to see you again, How may i help you?

Mr. Johnson: The reason why i am here is because i am planning to buy a house

Realtor: Good because you are in the right place, do you have anything in mind?

Mr. Johnson: Well, i don't know, What do you think are the things i need to consider when

buying a home?

Realtor: Well, it should start with the location and the type of property you wish to purchase.

Mr. Johnson: How about the contract? is it an important factor?

Realtor: Absolutely! The combination of good location, high-quality construction and

long-term commitment to service and maintenance and will provide you with

the ideal living experience.

Mr. Johnson: I should put that in mind, thank you very much!. I will give you a call by next

week.

Speak your Mind:

Do you own a house? If not do you have plans to buy one?

What type of house would you like? Describe?

How do you get a house in Japan? What are the processes?

Would you like to buy a house outside Japan? Like Philippines?

Do you consider the price in buying a house? Why?

Vocabulary:

Planning - Making plan

Location - A particular place or position / Spot

Consider - Think carefully about something before making a decision

Type - Kind

Property - A thing or belonging to someone

Wish - Desire / Want / Dream

Purchase - The action of buying something

Contract - A written or spoken agreement

Factor - Feature / Aspect

Combination - Combined / Joining

Construction - The building or something, typically a large structure

Commitment - Dedication / Loyalty

Maintenance - Preserving / Keeping

Ideal - Most suitable / Perfect

E. Conversation

An Invitation

Dave: Hi Susan! How are you?

Susan: Hi Dave, i am doing good! Thank you

Dave: That's nice, Oh! by the way i will have a house warming party tomorrow night and i

would like to invite you

Susan: Oh! thank you for the invitation! is it a new house?

Dave: Yes it is! it's a new condo unit near Ayala Mall.

Susan: WOW! congratulation Dave. I am planning to buy my new unit too.

What type of unit do you have?

Dave: I have a a two bedroom unit since i will stay there with my younger sister

Susan: Cool! is there a studio type? i want a studio type.

Dave: Yes there is! and you can actually check it if you have the time this week. because there

are still a lot of vacancies.

Susan: Oh! i love too. you pay for a reservation fee when before you purchase it?

Dave: Yes i paid 20 thousand reservation fee, and aside from that you also have to process

requirements to buy a unit.

Susan: Is furniture included?

Dave: No! last week i bought furniture, and good thing i bought it in a cheaper price, since i

bought it on sale

Susan: You're a lucky guy! Is this owned by a developer or an individual?

Dave: It's owned by Ayala Land, one of the famous real estate developer in Cebu. if your

interested i can give you there contact number so that you can give them a call and ask

them questions.

Susan: Sure! Thank you very much!

Dave: You are always welcome and please don't forget my house warming party tomorrow.

Susan: Sure thing Dave , Thank you!

Speak your Mind

Do Japanese people has house warming party? What do you usually do?

Do you like to buy a house or a condo unit?

Describe your house/ unit?

Are there a lot of real estate in Japan?

What do you think of the real estate industry?

Vocabulary

Invitation - A written or verbal request to go somewhere or to do something

House Warming - A party celebrating a move to a new home

Planning - The process of making plans for something

Studio - Means no bedroom , just a living room, kitchen and bathroom

Vacancies - Empty Space

Reservation - The action of reserving something

Requirements - A thing that is needed or wanted / Necessary

Cheaper - Low price

Developer - A person or thing that develops something

F. Conversation

It’s pretty safe

Josh: How do you like your new unit?

Ashley: I love it! It’s downtown, so it’s very convenient.

Josh: Downtown? Is there much noise?

Ashley: Oh no, there isn’t any. I live on the fifth floor

Josh: How man y restaurant are there near your place?

Ashley: A lot, in fact, there’s an excellent Japanese place just around the corner

Josh: Is it near a church or a school?

Ashley: Not really it will take 20 - 30 minutes drive going to the church or school

Josh: What about the parking?

Ashley: Well, there aren’t many parking garages. But i usually find a place on the street

Josh: Are you paying for the parking fee?

Ashley: I am paying 3 cents for every hour

Josh: Not that expensive, Ashley are you still expecting any development in this area?

Ashley: Well, to tell you honestly Josh , i can’t ask for anything else, and i think since it’s in

downtown it’s develop already, but i’ve heard by next month they’re are building a

shopping mall 2 blocks away from my apartment

Josh: That’s awesome! is there much crime?

Ashley: No, it’s pretty safe, Hold on. That’s my car alarm! Ill call you back later.

Speak your Mind :

Describe whats a convenient house for you?

What is the important thing you want to consider in getting a house?

Do you want to own a house in a downtown or in an urban area? Why?

Is safety an important factor in buying a house? Why or why not?

Vocabulary:

Safe - Protected from danger / Secure

Downtown - City

Urban - Town

Garages - A building or shed for vehicles / Carport

Expecting - Something is likely to happen/ Anticipate

Development - The process of developing / Growth

Blocks - The area bounded by four streets in a town or suburb

Crime - Illegal / Wrong doings

Convenient - Suitable / Appropriate

G. Convenient

Taxes

Jan: Aren’t you done with your taxes yet?

Todd: No, not yet.

Jan: Can I help?

Todd: That would be great. I think I’m almost done, but it’d be great if you could look it over.

This is the first year I haven’t been exempt or filed a tax return.

Jan: No problem. What are brothers for? Okay, you’ve entered your earnings, including your

salary and dividends. You have no dependents...

Todd: I just hope I picked the right number of withholdings. I’d like to get a tax refund, rather

than have to pay.

Jan: Well, you can take the standard deduction here, but I suggest itemizing your medical

expenses and your charitable contributions. It may make a big difference in the

calculations.

Todd: Thanks. I’ll crunch the numbers to find out. So what do I owe you for all of this help?

Jan: That depends on the size of your refund check!

Speak your Mind:

What comes to your mind when you hear the word tax?

Do you think paying tax is a good or bad thing?

What would happen to your country if everyone stopped paying tax?

Would you like to move to a country where there are no taxes?

When you buy a house in your country , what type of taxes are you paying?

Vocabulary:

Tax - A Compulsory contribution to state revenue

Look it over - Examine something carefully

Exempt - Free from obligation

Earning - Get money from work

Dividends - A sum of money paid regularly by company to its shareholders out of its profit

Dependents - A person who relies on another especially a family member

Withholdings - The amount of an employee’s pay withheld by the employer and sent directly to

the government as partial payment of income tax

Tax refund - Each year a taxpayer submit a tax return that calculates his or her federal income

taxes owed

Standard - Quality / Level

Deductions - Subtracting something / Removal

Itemizing - Specify / Enumerate

Expenses - The money spent on something / Charge

Charitable - Relating to the assistance of those in need

Contributions - Donation / Offering

Calculations - Computations / Total

H. Conversation

Taxes and Fee for Property

Joan: Thank You for coming over Craig, i greatly appreciated it

Craig: What seems to be the problem, why were you calling me in the middle of the night?

Joan: This is the thing Craig, I'm planning to buy a house in the Philippines and I’m very excited

just thinking about it

Craig: And??

Joan: Since you own a house in that country already . i want to ask you what are the

applicable taxes and fees when I purchase a property?

Craig: Well, as far as i can remember they were different taxes i paid when i bought a condo

unit

Joan: Really?

Craig: Yes! the first one i prepared is called "Income/ withholding Tax" in where as a general

rule, buyers is required to withhold 5% of the purchase price. The next one is "Value -

Added Tax" and if i am not mistaken the rate is 12% of purchase price, another one, is a

"Documentary Stamp Tax" and the rate is 1.5% of the purchase prize. The "Local

Transfer Tax" is imposed by the local government where the property is located the rate

is 50% of 1% of the purchase price and the last one is called a "Registration Fees" and it

depends on the total price of the property and the location of the property

Joan: I know you are the best person to talk about this matter Craig. I already written down all

the important details. Thank you very much for your help!

Craig: No problem, Good luck and invite me when you already have the property

Joan: Sure thing! you'll be the first man in the list

Speak your Mind:

Do you think purchasing a house in the Philippines is a difficult process? Why?

How about buying a house in your country? Is it difficult ?

If you want to buy a unit in another country are you going to ask same questions? Why?

What are the other questions you want to ask?

Vocabulary:

Applicable - Relevant/ Appropriate

Fees - A payment made / Payment

Required - Compulsory

Value Added Tax - A tax on the amount by which the value of an article has been increased at

each stage of its production or distribution

Documentary Stamp Tax - A tax on a documents, instruments, loan agreements and papers

evidencing the acceptance

Local Transfer Tax - Tax that may be imposed by states, counties, or municipalities on the

privilege of transferring real property within the jurisdiction

Registration - The action or process of registering or of being registered

I. Conversation

Opening a Bank Account

Bank Clerk: Good morning, can I help you? Foreigner: Yes, Good morning! I would like to know, how could a foreigner like me open a bank account in Philippines? Bank Clerk: OK sir, all you need to have is a passport, Alien certificate of registration (ACR I-card), Photocopy of your ID, two (2)1x1 photos and a minimum amount needed to open a bank account. Do you have those sir? Foreigner: Yes, I have those with me. Bank Clerk: OK sir. Would you like checking account or savings account? Foreigner: What is the difference? Bank Clerk: You can open a checking account, it should be used to write checks and perform routine banking activities with a minimum amount of $600 while savings account should be used to store money you wish to save with a minimum of $2,500 Foreigner: I will go for savings account Bank Teller: I would like you to fill in this form sir and have your signature in it.

Foreigner: OK Bank Teller: How much would you like to deposit sir? Foreigner: $500 Bank Teller: Thank You. Sir please comes back after 3 days for the passbook and ATM card Foreigner: OK Bank Teller: Do you have any question sir? Foreigner: No. Thank you Bank teller: Thank You for coming Foreigner: My pleasure

Speak Your mind:

Have you tried to open a bank account in another country? If so, can you tell about it?

Do you have a bank account? Is it checking account or savings account?

What are the requirements when you open a bank account in your country? Is it the

same in another country?

How much is the minimum amount in opening a new account?

Are foreigners in your country can open a bank account?

Vocabulary:

Checking account – a deposit account that should be used to write checks and perform routine

banking activities like money can be withdrawn using checks, automated cash machines and

electronic debits.

Savings account – A deposit account that generally for money that you don't intend to use for

daily expenses

ACR I-Card- Alien Certificate of Registration Identity Card. all foreign nationals who are visa

holders of Temporary Visitor’s Visa or Tourist Visa who have stayed for more than fifty-nine (59)

days in the Philippines.

Minimum – the lowest amount allowable

Routine – the usual activity or procedure

J. Conversation:

Prospect

Jazz: Hi my name is Jazz, I am a wholesale investor and I noticed that you are an investor as

well. Is that correct?

Diana: Yes i am! and my name is Diana

Jazz: Awesome! nice to meet you!

Diana: Nice to meet you too. Are you in the market for additional investment property?

Jazz: Yes I am !

Diana: Really! great.

Jazz: What does your ideal property look like?

Diana: For me the most convenient place is in the City and it should be a condo unit or a

condo-tel.

Jazz: I agree! it’s cheaper, its convenient and i think it's less maintenance, as long a it's

accessible.

Diana: I am planning to invest a new unit.

Jazz: How many bedroom and baths

Diana: Just 1 bedroom unit and i want to invest just within the City

Jazz: And are you a cash buyer or do you buy with bank money?

Diana: It all depends on the price but usually I use bank in almost my investment transaction i

make

Jazz: Once i find a property that’s suits your liking i will contact you.

Diana: Thank you very much Jazz!

Speak your Mind:

What is your ideal home? Is it int the city or in the country side?

Do you use bank or cash every time you make a transaction?

When we talk about real estate in Japan, what type of payment scheme are you using?

Tell me the real estate business in Japan? Is it increasing or decreasing?

Vocabulary:

Wholesale - Selling products in a large quantities

Quantities - The amount or number of a material

Investor - A person who invest money to gain profit

Ideal - Most suitable

Convenient - Suits a person's needs

Cheaper - Low in price

Maintenance - Keeping/ Conservation

Accessible - Able to reached or entered

Within - Same location or situation

Cash Buyer - A person who is able to buy something, especially a property, without needing to

take out a mortgage or loan to do so.

Bank Money - Demand Deposits, Bank money or scriptural money are funds held in demand

deposit accounts in commercial banks.

Profit - a financial gain

K. Conversation

Contract

Kris: Hi Wendel!

Wendel: Hi Kris, you're looking pretty today.

Kris: Thank you! By the way, are you familiar with real estate contract?

Wendel: I know some information but not much

Kris: I actually bought a new condo unit and i don’t know if what type of contract this is.

Wendel: Oh! this is called Unilateral contract

Kris: What are the types of contract does Real Estate has?

Wendel: Real estate has 4 type os contract and those are:

1.) Unilateral - which only has one party involved

2.) Bilateral - which has two or more parties are involved and each makes promises to

the other party

3.) Expressed - A type of contract that state the term s of their contract verbally or in

writing

4.) Implied - A contract which arises due to the actions, relationship or intentions of the

parties

Kris: I see , wow! I’m impressed. you definitely know a lot about real estate Wendel.

Wendel: That's what i do for a living Kris.

Speak your Mind

What comes to mind when you heard the word “Contract “?

Do you think contract is important? Why?

What type of contracts do you have right now?

What type of contract do you have?

Vocabulary

Familiar - Well known from long or close association

Contract - A written or spoken agreement

Impressed - Make someone feel admiration or respect

Living - An income sufficient to live on or the means of earning it

Sufficient - Enough / Adequate

Admiration - Respect and warm approval

L. Conversation

Buyers Brokerage Agreement

Mae: This form here Mr. Sato is our "Employment Agreement" it shows details of our working

together. it dated today and end of this year, don't worry we can always extend the

date.

Mr. Sato. Thank you Mae! this is what i need to make sure all the transaction i made are valid

Mae: I understand, As your agent that has been stated in the agreement, i will use my

Knowledge and tools to find you a house that meets your needs, and i will guide you

through the offer process and lastly, i will be representing your interest throughout this

process and negotiating on your behalf.

Mr. Sato : OK , and how am i going to pay you?

Mae: I am paid 10 % of the sales price one you've secured a home.

Mr. Sato: Not bad, This entire agreement can we terminate it if in case we can't understand

each other in the future?

Mae: Yes we can! This agreement may be terminated by either of us with mutual consent in

writing

Mr. Sato: Good! can i read this first before i sign?

Mae: Of course! you can . if you do have any other questions please give me a call, and we will

see each other tomorrow at 5 PM for the conformity.

Mr. Sato. Thank you . i will surely do that.

Speak your Mind:

Have you ever talk to a broker? How was it?

Do you want to be a broker?

Do you think a brokers job is very difficult?

Are there a lot of brokers in Japan?

Vocabulary:

Details - Describe item by item

Extend - Expand/ lengthen

Transaction - An instance of buying or selling something

Valid - Legally or officially acceptable

Representing - Appointed to act or speak for (someone)

Negotiating - Try to reach an agreement

Secured - Make safe

Terminated - Bring to an end

Mutual - Held in common by two or more parties

Consent- Permission for something to happen

Conformity - Compliance with standards rules or laws

M. Conversation

Buyer Consultation

Agent: First of all, Mr. and Mrs. Buyer, thank you so much for agreeing to meet me here in

my office. You will find that this will end up saving us lots of time and frustration in

the future!

Mr. Jenkins: I'm excited to talk about this with you. thank you for inviting us

Agent: OK! My goal for this meeting is one of three results:

1. After we go over the benefits of working with me and why my clients choose me again

and again, you will choose to hire me… and that would be GREAT!

2. You may decide after hearing the benefits of working with me that you would rather

not, and I’m OK with that too.

3. Or finally, #3, I may choose not to represent you in the purchase of your next home.

Mr. Jenkins: What do you mean you wont represent me?

Agent: It means if at any time during this meeting, in getting to know each other and

discovering your wants and needs, I see that i will not be able to provide that type of

service or meet your goals. I'd rather turn you away now than disappointing you later.

Does that make sense?

Mr. Jenkins: I see.. I perfectly understand what you mean . i think this is a good way as well

so that i can trust you as an agent

Speak your Mind:

Why is it important to consult and expert?

Do you trust a broker or an agent? Why?

Is trust important? Why?

Have you tried having a consultation before in any product your currently using?

Vocabulary

Agreeing - Have the same opinion about something.

Frustration - Feeling of being upset or annoyed

Opinion - A view or judgment formed about something

Annoyed - Slightly angry

Judgment - Ability to make decisions or conclusion

N. Conversation

Unsatisfied Agreement

Kaye: I do receive the contract from my new apartment. how would i know if its valid?

Maria: It's a valid contract when it's agreed by all partied and meets all the standards of

contract law

Kaye: How about if it is Void?

Maria: When the contract does not meet the criteria for contract law because it may contain

illegal intent an unenforceable. A void contract is never valid from the beginning and

cannot be enforced by either party.

Kaye: I see. But is there avoidable contract?

Maria: A contract which may appear legal but fails to meet some legal requirement. As a result,

one or more parties have the right to rescind the agreement within a certain period of

time.

Kaye: I never knew that a contract is voidable. thank you for the information Maria

Maria: No problem, just give me a beep when you need to ask questions

Speak your Mind

Why is it there are unsuccessful agreement?

What do you think are the reasons why people void there business contract?

What do you think is the best way to maintain a good relationship to our clients?

What should we do for us not to have a void or voidable contract?

Vocabulary

Valid - Reasonable / Legally

Standards - A level or quality

Void - Not valid or legally binding

Intent - Intention / Purpose

Unenforceable Contract - Is valid but which the court will not enforce

Enforced - Compulsory

Either - Used to indicate similarity or link with a statement just made

Avoidable - Able to be avoided or prevented

Legal - Based on the Law

Requirements - A thing that is needed or wanted

Rescind - Cancel/ Revoke

Beep - Call or Call my attention

O. Conversation

Payment Scheme

Agent: Good morning maam. Im John your real estate agent

Buyer: Good morning John.

Agent: How are you today?

Buyer: Im fine.

Agent: Would you like to have a drink?

Buyer: No, Thank you

Agent: I'm here today to discuss with you the payment scheme of the property that you have

Chosen.

Buyer: OK

Agent: We do have 4 options of payment scheme. First is the Spot Cash.

Buyer: What do you mean by spot Cash?

Agent: Spot Cash means if you pay the whole amount of the Condominium unit or a house.

For condominium you will get 9% discount and for the house you will get 7% discount.

Buyer: What if I don't have cash?

Agent: You can try the second option,the differed cash term.In this term you have to have

20% spot down payment. The balance payment payable in 18 months(no name check) and

Balance Payable in twenty-three months(with name check). It also allows for shorter time

period for the documents to be processed.

Buyer: Can you show me another option?

Agent: Yes maam. For in- house financing, 20% downpayment. Balance can be paid in ten (10)

years at 18% fixed interest rate .

Buyer: What do you mean by in-house financing?

Agent: In house financing is a type of financing in which a firm extends customer’s a loan to

complete the transaction

Buyer: But the interest rate is 18% right?

Agent: Yes maam. For the last option, It is a Special Bank Financing, 10-20% downpayment

and 80% balance loanable from the bank at prevailing interest rate.

Buyer: What is special Bank Financing?

Agent: Special bank Financing is where the bank offer a loan to the buyer with lower

interest

rate.

Buyer: I see

Agent: We also have a Downpayment (DP) Requirements. 10-20% spot full payment,5%

discount on payment towers and 20% discount on downpayment for land and houses.

10% payable in six months and 20% payable in Eight (8) months for condominiums;

twelve(12) months for land and houses. Here is the example computation:

Sample Computation

SAMPLE COMPUTATION ONLY FOR Aimee greenhill and Tower Co.

Payterm: 20% in 12 months; 80% bank financing

Sarah MODEL

Lot Area in sqm – 110

Total amount with VAT – 2.866M

Other Charges (approx. 5% of the selling price) – 143,300

20% DP Monthly amortization – 48,071.66 (Payable in 12 months 0%)

80% balance (Loanable amount) – 2,407,440

80% balance 5 years @ 7.5% / year – 48,240

80% balance 10 years @ 9.5% / year – 31,152

80% balance 15 years @ 11.0% / year – 27,363

* Reservation P25,000.00 (Non-refundable)

* Down payment is 20% in 12 months 0% interest

* 80% balance, payable through bank financing

* Interest rates may change

* Discounts available depending on the month and mode of payment

Buyer: What does other fees include?

Agent: Other charges typically 4.5%. It includes Real estate property tax on land, Real estate

property tax on building,registration fees, documentary stamps, transfer tax, fire

insurance and credit life Insurance.

Buyer: I see

Agent: So, do you have already an idea on what option your going to choose?

Buyer: Yes, but can you recommend which is best for me?

Agent: Will if I were to choose i would prefer in-house financing. The processing is fast and

easy.

Buyer: You are right. Can you give me time to think about it and give you a call?

Agent. Yes sure, my pleasure maam

Buyer: Thank you so much maam for your time. Have a good day!

Speak your mind

Which payment option would you like to choose and why?

Do real estate agencies in your country offer in- house financing?

If you were an Agent, would recommend what’s best for the buyer?

Do you know the payment scheme in buying a property in your country?

Which would you prefer, long term payment or short term payment?

Vocabulary

Scheme – a plan or arrangement

Spot Cash –It is an complete payment for the entire contract price of the property you are buying. The

entire contract amount must be paid within the agreed number of days (usually 30 days) from

the date of reservation.

Deffered Cash Term- It as an installment payment without the discount and without interest.

also allows for shorter time period for the documents to be processed.

In- House Financing - Type of financing in which a firm extends customer’s a loan to complete the

transaction