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Investments | Real Estate

edited March 2019 in Banking and Finance
Good day!

I am a property consultant for a certain Fort Bonifacio project. I'd like to know what you guys think about investing your money in real estate. What can make someone like me convince a person like you! And perhaps, if you have any questions, or would like to know more about our projects, I could also entertain your questions on-line or in person. Thanks!

Thanks!
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Comments

  • moonshinemoonshine PEx Veteran ⭐⭐
    What's estate planning anyway?
    my insurance agent told me it's a good idea to get insurance for my parents as protection against estate taxes in the event that something happens to them. medyo may edad na kasi ang parents ko.

    is there a way out of estate taxes? 20 percent daw ng value ng property ang rate ng tax?

    what other options are there so that one person's properties aren't taxed that heavily upon his death...such that the heirs will be hard pressed to pay for the taxes?

    hope someone can help me out.
  • HulkHulk PEx Veteran ⭐⭐
    Estate planning is done specifically to eliminate or reduce transfer taxes upon the death of a family member.

    Estate tax is one form of transfer tax. The estate tax is levied on the value property of the deceased as it is transferred to its new owners/heirs. The computation of estate taxes is slightly complicated to fully explain in this thread but it is quite expensive.

    An alternative to estate tax is donor's tax. Here, the person donates his property to his heir. Again this could be quite expensive as only a limited number of deductions is allowed in this type of arrangement. If you're getting married in the near future, this might be a good option since dowries are considered as exemptions to this tax.

    Another option is sale. A person on contemplation of death, sells his properties to his heirs at a low sales price. The amount is then subject to sales tax. This could be potentially cheaper since you can basically arrange the sales price which is the basis of the tax. However the law states that the basis of the tax should be the fair market value of the property, so if you get caught and assessed selling below fmv, then it could also get expensive.

    For the really rich folks, they set up companies that would include substantially all their properties. They do this because the transfer taxes for shares of stock is way, way much lower than any of the other taxes. For a listed stock, I think the tax is only 1/2 of 1% of the total price.

    What your friend is telling you is that in the event of your parents death, you could get money from the insurance to pay off your estate taxes. I could not comment on the advisability of this option though, since insurance for old people could really be expensive.

    Well I hope the lawyers in this forum could shed clearer light on the subject matter, kasi di naman ako lawyer eh.


    :frank:
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    To Hulk:

    :handsdown:
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Originally posted by moonshine
    is there a way out of estate taxes?

    There is no (legal) way out of estate taxes, but there are legal ways to minimize them, as Hulk as pointed out. If you think these amounts are significant, it might be worth hiring a lawyer or tax adviser to assist you.
  • moonshinemoonshine PEx Veteran ⭐⭐
    thank you so much, Hulk :):):) thanks for giving us some options to work with. i am planning to set up a meeting with a lawyer to ask about these.
  • moonshinemoonshine PEx Veteran ⭐⭐
    question: about what you said, hulk: re. forming a company that includes one's properties. is this like a holding corporation? i hope that some lawyers in pex could also poke their head in this thread to answer in more detail. :) thanks again, hulk!
  • HulkHulk PEx Veteran ⭐⭐
    Originally posted by moonshine
    question: about what you said, hulk: re. forming a company that includes one's properties. is this like a holding corporation? i hope that some lawyers in pex could also poke their head in this thread to answer in more detail. :) thanks again, hulk!

    It doesn't have to be a holding company, just a regular company would do. You could just about register a company for whatever purpose. The owner then contributes his property to the company as his capital contribution. He can then later on sell shares of this company to his heirs.

    The tax for shares is:
    Listed companies - 1/2 of 1% of the total aamount
    Unlisted companies - 10% of capital gains for 1st P100,000 and 20% of capital gains in excess of P 100,000


    :frank:
  • nakita kong maraming naghahanap ng matitirahan sa makati. mukhang malaki ang market ng mga apartment/condo rental dun. kung gusto kong pasukin ito, ano ang dapat isa-isip? Mayroon ba ditong ganito na ang pinagkakakitaan? Share naman. Ano ang paperwork involved?

    Paki-evaluate na rin ang plano ko:

    Suppose may nakita akong studio unit worth P750k (ung tipong sa cityland). Balak kong bilhin yun para ipa-rent. Balak kong mag raise ng P150k (20%) at the rest financed ng bangko. Lalagyan ko ng kama at kainan para masabing semi-furnished at ipa-parent ko ng 7500 a month. Kung ang monthly amortization sa bank e mga 6K and change, I'm expecting mga 1k a month in profit. Is this a financially-sound plan? Ano ang masasabi niyo?
  • Originally posted by boogerflicker
    Suppose may nakita akong studio unit worth P750k (ung tipong sa cityland).
    Meron pa bang ganong presyong studio unit sa Cityland?
  • may nakita ako sa buy and sell. pero kung hindi man ganun, theoretical lang naman e.
  • real estate investing is a good thing. now even becasue the economy is down, the market prices are lower compared to its peak in the year of 1997. if you want to buy, it's best to buy it at the pre-selling stage. this meaning that the building has not been finished being built yet. most of the time, the price of the property or unit goes up when construction is complete. makati prices are the highest simply because it's the main city of the country.

    think of the long run. not all real estate investments are the best. if you do own a property, you have to pay taxes with the city hall every year. also if it's a condo of some sort, monthly dues are paid to the condo (eg. cityland). monthly dues though are either carried with the owner or the renter, it really does depend on the agreement that is made. depending on where the condo property is, price does vary. price per square meter is more expensive than in other areas (eg. cityland is cheaper than an apartment in salcedo).
  • salamat trizfores! ano sa tingin niyo sa The Columns? Medyo matumal daw lately dahil hindi ma-move yung units facing the cemetery pero may itatayo namang call center facility sa tapat... imagine the number of employees na gustong malapit sa pinagtatrabahuhan nila...
  • graveyard shift talaga hehehe :)
  • Ok..Lets say I invest 7/8 mill to build a 3 story apartment block..lets say 20 apartments 30/40 min drive from manila...What would be the approx value when it was complete?
    If I were to sell the lease to individual units ,would I make more?
  • depends on the area dude. is it still in metro manila? Ano mga katabing establishments?
  • ...Metro manila.. Paranaque..Perhaps even Cavite..
  • Originally posted by boogerflicker
    salamat trizfores! ano sa tingin niyo sa The Columns? Medyo matumal daw lately dahil hindi ma-move yung units facing the cemetery pero may itatayo namang call center facility sa tapat... imagine the number of employees na gustong malapit sa pinagtatrabahuhan nila...



    hi. i personally invested in columns. wish i did it sooner when i had the chance. the price went up i think by 5-7% with each tower that was sold. tower 1 used to be 13k a month. tower 2 15k and now tower 3 is 17k. columns talaga personally for me is a good investment. ayala did not go wrong with it. it's got nice amenities that a lot of condos don't offer like a game room and a gym. in terms of the the business area, it's the best. call centers, corporate companies, you name it. it's all there. literally a walk away which makes it convinient.
  • i think southern luzon is the best particularly laguna, cavite, batangas. the region has the fastest economic growth in the whole country. talo pa manila/ ncr. marami pang recreational opportunities like the mountains and beaches nearby. marami na ring schools from manila ang nagkaka branch in the area. same with the shopping malls. if i had the money, i wouldn't buy a condo in the city for investment. our country being situated in the earthquake zone. instead, i would buy a house and lot in those 3 provinces mentioned. :)
  • sure, investing in those areas are ok. but a lot of people want fast returns at times. nothing is faster than city investments. true our country is along the pacific ring of fire, and yet that doesn't stop us from building tall buildings such as ayala tower 1, rcbc plaza, etc. imagine, if one bought a condo in rockwell na 3 bedrooms, that would cost at least 30m pesos. it's selling because the market is low. the city is congested, and yet people want to live in the city. no way to go but up. :)
  • Hulk wrote:
    An alternative to estate tax is donor's tax. Here, the person donates his property to his heir. Again this could be quite expensive as only a limited number of deductions is allowed in this type of arrangement. If you're getting married in the near future, this might be a good option since dowries are considered as exemptions to this tax.

    My father died last month so I've been trying to read up on estate planning so my mom and I can make preparations for when our time comes. Hence, reviving this thread. Immediately looked up the tax law upon reading this, turns out the exemption for dowries is only up to the first P10,000. Now, does that figure refer to the tax or to the value of the property?

    This isn't an estate planning question but an estate tax question. How does one compute the value of a 1993 model vehicle and a 2003 model vehicle that's still under mortgage?
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