Fresh Outlook on Philippine Real Estate for 2009 (part 2)

There have been some woes and slow growth recently in the real estate sector as the industry was affected with the current global financial crisis which was have written on the previous post back in February 2009. There have been major changes among the Business Process Outsourcing Companies (BPOs).

The task taken by government in keeping our country afloat has been monumental. During the recent speech by Gov. Amando Tetangco of Bangko Sentral ng Pilipinas (BSP) last April 14, 2009 on the occasion of Australian-New Zealand Chamber of Commerce Annual General Membership held at Hotel Intercontinental Manila, Makati City mentioned that "no economy is immune from the effects of this crisis, but those which have built up buffers are more likely to fare better than others".

According to the 4th Quarter of 2008 Reports of Colliers International Philippines, in the past months shows that rising vacancy and inventories of office, commercial and residential especially on commercial business districts of Makati have reached around 2.6 percent. Movements of tenants elsewhere around or nearby these areas are on the rise. These actions should complement their needs, requirements, specifications in order to lower the costs of a companies' operational expenses compared to a high-rise buildings which are only suited for office settings due to their expected expansion and growth. Factors to be considered are power consumption, telecommunication equipment setup, shifting operations and others affected the buildings' suitability for these BPO companies. Moving to a more viable and amiable locations such as Clark Freeport (Pampanga), City of Sta. Rosa (Laguna), Quezon City, Cebu City and other nearby areas would benefits these other site from the rapid growth of the contact center industry.

A few weeks ago, Secretary Ralph Recto of the National Economic Development Agency has reported that the Philippines is in a collision course of near recession with growth of 0.4% on the first quarter of this year. With government expectation of a growth rate of 4.4% for the first quarter it turned out the slowly as the world recession is rearing its ugly head again. The government is taking steps on bending and curbing the mass lay-offs from happening by providing alternatives such as other jobs and livelihood for the poor such as Comprehensive Livelihood and Emergency Employment Program.

On foreign ownership of land in the Philippines, many suggested that government should open up shores of this country to foreigners in order to invest more creating more Foreign Direct Investments(FDIs). However, research done by the IBON Foundation reported that revising our laws as spearheaded by House Speaker Prospero Nograles would make the real estate prices skyrocket with the notion that the masses and middle class Filipinos will no longer be given the opportunity to buy or acquire property if this happens. The real estate industry needs regulation on acquisition if they are about to change the law limiting to 10% of the lands as disclosed by an anonymous real estate leader if the government and people are open to it.

On the brighter side, Banks are now offering low rates are getting lower now at 7.5 percent since January 2009. Home Mutual Development also known as PAG-IBIG has already lowered its interest from 7.5 percent to 11.5 percent. The lowest that a home lending government agency can offer. With these developments, refinancing of previous real estate bank loans can be done if a home buyer has a current loan mortgages in order to reduce and readjust the monthly amortization.

Despite the good news, the banking industry has become hesitant with the growing number of non-performing assets (bad assets) due to default or foreclosures by a borrower on properties and others. However for a real estate investor and speculator, this is a sign of a gold mine of new opportunities in a current global financial turmoil with growing number of these properties are located in highly populated and commercialized areas within the metropolis. Best time to buy is on a down market. Right now developers are encouraging potential buyers and investors to buy properties offering them more affordable longer and attractive payment schemes with lower interest rates at fixed terms from banks and other lending institution which is enticing indeed.


Copyright 2008-2009 - PinoyMoneyVantage

Long Absence - Erratic Schedule

Sorry being away for that long extended time. I am so busy with work and recent activities involving extra-curricular activities, work and organizational meets. Right now it is summer time and we will have lots of activities on my planned outdoor activities this April and May 2009. For my viewers, Thank you for waiting patiently for me.

I still have upcoming blogs to catch with especially in regards to financial, economic and environmental and even a bit of the showbiz limelight for you folks to see. Also, I will be changing my templates with a much newer one. I still love that old template with planet earth on it because I am a staunch supporter of Earth Hour at 60 minutes.

Have a happy summer, folks!

Copyright 2008-2009 - PinoyMoneyVantage

The Secret: the knowledge is now revealed and passed on to you!

Recently got hold of a DVD from a friend. I went curious with the DVD he had given and went on watching it the other day on my free time. Well, I got amazed with those simple thought can turn everything into reality. Yes, this is true with the positive visualization of the outcome of the event you want to achieve can possibly come true as what athletes are doing before competing but still the best part of all this is the action that should be taken in order for the dream to actually take place. Rhonda Byrne's book have taken a storm.

The Law of Attraction in the universe.

In the DVD or the book, you can read or watch the interviews from different people who have shared their secret to success from Jack Canfield of Chicken Soup for the Soul book series,



Simple thoughts of positive thinking will attract positive outcome on what you want in your life.

Still try to remember that:

A THOUGHT / DREAM / INSPIRATION (5%) + ACTION (95%) = SUCCESS / REALITY (It may not be the perfect outcome but it will close to what you dream of or better than you have in your mind)!

I have also added "The Secret to you...a Gift from the Secret Scrolls" courtesy of www.thesecret.tv. In this is way you can view this over and over and get yourself inspired in building those thoughts and dreams in your life you want to achieve and strive hard to have.






Copyright 2008-2009 - PinoyMoneyVantage

Welcoming 2009!

Pardon me if have been busy for the past few months, I have been doing some homeworks with the Registered Financial Planner (RFP - Philippines) Program I have joined summer last year. Plus my regular job on the healthcare which requires a lot of my time on being promoted as an assistant section head. I have been unable to focus on Real Estate business for quite sometime and also helping the company my mom created back in 2004 with my younger sister taking the helm as my mother's assistant on her business affairs.

31st December 2008 - I was already saying goodbye to the old year and greeting the people at work "Happy New Year" as we were anticipating tomorrow for a NEW HOPE for everyone. I went to work in the morning and the company was on skeletal duty with some of the administration staff on holiday leave as what President Arroyo have declared a few days before Christmas. It is a long two week vacation for the office staff but not for us because our job involves in critical care in healthcare sector.

Got back from home at 3 pm after accompanying a friend from errand of buying some groceries intended for the night's coming party. He was happy enough to look and expect a bountiful 2009. It is true that most of us are expecting a new hope for change in 2009, that we increase our salaries and fringe benefits, job security, time and freedom with friends and families and a lot more. As the Social Weather Survey said on the Philippine Star published a few days ago that 92% of Filipinos are still hopeful for 2009.

1st January 2009 - At night to the early morning, I was really expecting a big bang of different fireworks on display in the air in our neighborhood. But somehow, I only heard less crackles and heavy explosions outside plus not much exhibition of fireworks in our subdivision. I came to wonder if us Filipinos are still on a belt tightening mode or just plain became eco-wise or friendly people in a way to save mother earth. Although, I admit I did play with firecrackers when I was little till I was a teener, My outlook on use of these have change through the years when I said to myself that why waste on burning your money on firecracker instead of buying essentials needed by the household like food, appliances etc or put it temporarily in a piggy bank and acquire new investments you want to setup.

I am hopeful too that we can weather the global financial crisis and that the economic buffers that government had done in the past few months would eventually last that long and would like to outlive the global economic crisis. I am hopeful that President Barack Obama would make a stand in providing economic stimulus to the number economy of the world in the United States of America.

Just watchout: will post more event and their details financial planning and services I can find for January 2009.

HAPPY NEW YEAR 2009!

Copyright 2008-2009 - PinoyMoneyVantage

The American Financial Meltdown, What's next? - Part 1

In the past few weeks I am glued on reading some newspapers, watching Bloomberg, CNN, BBC on television and was pondering what will happens to us next. People here are bit panicky and paranoid regarding the plight of major financial institutions like Lehman Brothers and insurance giant American Insurance Group, Inc. (AIG) and other corporate big names that are now experiencing dismal array from the credit crunch. But before this companies would be bailed out by the U.S. government, mortgage companies such as Fannie Mae and Freddie Mac are making the news on the black parade of Wall Street for the past few weeks as these companies were indebted from their previous with with subprime crisis in real estate brought about by the credit crunch but the hardest hit companies was the CitiGroup of companies (Citibank, Citi Financial etc). Just to give you a brief overview on the firms in the current U.S. financial crisis (see List of companies).


U.S. Treasury Secretary Henry Paulson was at the stand the other time and talking to media and pleading to the public to calm down and was telling about the federal government's rescue plan for these ailing companies in order to save the U.S. economy which is going down to recession . Many people think that the Great Depression of 21st century is here and only happens once in a century. President George W. Bush made his statements on television the urgent need of the government to take action on the financial crisis a few days ago and on the intended bail out which will be under fire with the bipartisan parties of Republicans and the Democrats on a negotiation table wherein the Democrats rejected the proposed bail out on which they say it is a short term plan and the U.S. government will incur more risks of economic hardships. The US$700 Billion allotted by the Feds as credit to these companies are not enough and sure the U.S. taxpayers will bear the brunt but still the will make profit of 8% but these are risk strategies in making profits in the long run. Still the negotiation is still underway to save the ailing U.S. economy and also the world who rely mostly on the U.S. markets.

There is notion that "when America sneezes, the world suffers flu". Philippines is an exporting country its main market is United States and second is the European union. Now as people are belt tightening in America and elsewhere, it seems we are going for a roller coaster ride for the duration end of 2008 to the early 2009. No one can predict on what will happen to us but I have high hopes that we can surely recover from the illness of the financial crisis in New York.

I was able to watch Tina Palma's show on ANC, TALKBACK the other day wherein her guests are experts from the business, investments and finance sector such as Deputy governor Diwa Guinigundo of Bangko Sentral ng Pilipinas and others assured that most of the investment put by government owned corporations and companies (GOCCs) are not invested in the assets of such companies like Lehman Brothers and other financial institutions in the New York. Unlike some reports of a major Philippine banks with assets in Lehman Brothers are sufferring from loss of their deposits because of their investment with the said company. That bank however said that it is only a fraction or a small percentage and not all are invested in the Lehman Brothers.

Right now the issue and circumstances are still unraveling and we have to keep our senses vigilant at this rough times. Hope that everything would be good up ahead.

Copyright 2008-2009 - PinoyMoneyVantage

No Arms, No Legs, No Worries

During one of the seminars I have attended recently, Mr. Dindo Raymundo was our motivational speaker at that time. He was able to share one of the life changing moments that had inspired on his recent travel to Australia. A life changing moment with this person of extra-ordinary abilities who is physically disabled but conquered the whole world with his wisdom through his evangelical thoughts and his speaking engagement that touched a lot of people's lives in the presence. His name is Nick Vijucic.

Nick Vijucic was well aware of his handicap but he was determined to show to people that he is just a normal human.

I was viewing his resume and found he is an extra-ordinary person with lots of trades wherein he is a real estate investor, stock investor and a businessman other than being an evangelist at the same time.

I have put the three part series from www.richgrad.com on Mr. Vijucic's seminar. I hope you get inspired with this man's word not only with his experience but for his spiritual sense in spreading God's words around the world.

You can visit his site at www.lifewithoutlimbs.org.

Copyright 2008-2009 - PinoyMoneyVantage

My Sights on JG Summit Holdings

I have my sights on this great company which Mr. John Gokongwei founded back in the early 1990s. Was reading a back issue of BizNewAsia Magazine published last May this year which regards as "Gokongwei Gambit". John Gokongwei's intent on acquiring the 40% shares of Petron made me interested in the oil and mining sector of the stock market. Oil is still profitable even if it has weakened for the past few days in the world market.

Saudi Aramco, a conglomerate of Saudi Royals and American companies decided to pull out the plug and sell the 40% share to interested entities through bidding of Petron. JG Summit is interested in this with their experience in the petrochemical production and business through JG Petrochemicals, Inc., A JG Summit Holdings subsidiary while London-based Ashmore Group has acquired 50% shares when Saudi Aramco finally sold it shares of Petron to this group. However, this government owned company with more than 40% control of the company also would like to sell it shares with the remaining 10% bloc to the other local small investor or other companies with interest in Petron to Ashmore or any other local investors. It was reported that some of the remaining shareholders have sold their shares to Ashmore at P 6.53 per share which is lower than expected in a already loosing companies which has a deficit of billions of pesos. See Ashmore's company profile (Ashmore).

At this moment, Petron is still under negotiations with JG Summit Holdings and will get most of those local small investors of JG Summit Holdings excited about if the acquisitions push through with the plans. You can view the articles on the business section of the Philippine Star (July 23, 2008).

Copyright 2008-2009 - PinoyMoneyVantage

The Power Broker in Me: Putting back Real Estate back on Top

I had my few months hiatus of not being a real estate broker. It was a soul searching time for me as I finished the 2 month Registered Financial Planners Course given by Registered Financial Planning Institute - Philippines two months ago and still kept practicing.

Those months were a fulfilling moment for me in updating with new trends in medical and scientific research, learning new trades, knowing more on different types of investments and meeting new people as potential clients. Even if we are experience the downtrend in the stock market as in we are in a windfall of world recession as the U.S. is still coping up with its own problems which affected the world and us feeling the brunt of higher oil prices with inflation rate staggering at 11.4% from last month. It does hurt the pockets of consumers of all walks of life.

To admit the truth, the real estate industry felt the pinch with America as its rich market before for Filipino-Americans in selling properties have made an abrupt stop and so most major Philippine developers put their sights on other places where Filipinos thrive. They have had a second look on the European and Middle Eastern Market segment targeting Overseas Filipino Workers there and also the local Philippine market. Feeling worrisome on the downtrend in sales that I need to find alternatives of producing money other than relying from my fixed-income job which is not enough to sustain my lifestyle.

Real Estate has become a bread and butter for some older folks in the trade. I on the other hand, have a career and real estate is a part-time work for me. In two years time, I might go full-time and quit the healthcare job once I have established myself in taking over the family business.

I find it amazing as I become equipped with the words from these motivational speakers who are at the same time fellow real estate brokers from different chapters of REBAP and made millions in just a few months through real estate selling. I find it inspirational to see and hear them talk and believe in their principles even met the oldest real estate professional who is already in her late 60s who happens to have lots millions on different transaction and deals from her small beginnings in the 80s and in the present times. The topics on the seminar are relatively needed for the participants to apply these experiences in real life especially in the sales and marketing aspect in being a real estate brokers. The speakers also added new tools in creatively selling properties through the use of word of mouth, the internet and advertisements.

Another inspirational lecture given by Mr. Ricardo "Dindo" Raymundo, team manager of Alaska Aces Basketball Team. He given us some thoughts on his experiencing from managing the best basketball team through his corporate knowledge and business wisdom which kept this team the among the top teams in Philipppine Basketball Association (PBA). He also shown us a video clip of Nick Vujicic - No Arms, no legs, no worries.


Copyright 2008-2009 - PinoyMoneyVantage

Budgeting Your Money: Most common mistakes people make

It's payday time. A lot of young professionals (yuppies) are on their trail to the nearest ATMs and they would sure look forward in a night out dinner with friends or do the usual night hops to bars and places of entertainment like a movies, shopping and others. After spending some on non-essential things they become guilty of losing their money in the end with debt from credit card companies and other IOUs with friends, relatives, your local loansharks even the legitimate lending companies around.

That's spells trouble alot for those who spend too much for nothing however only a few people know where they keep track of their weekly and monthly expenses in a regular basis which basically important in managing your finances in order not to overspend.

1. "I do not know where my money went" (Never Keep track of your spendings)
Solution: Track your spending and begin with a budget

A lot of people fear money management. This problem would definitely make a poor decision making and stop you from searching for that problem. It is better to face that fear and debt in order to get back to on track. It is better to track your budget by keeping your receipts and later track on your spendings and categorize in groups like for groceries, utilities, mortgage and emergency money and non-essentials.

Better to sit down, tally and categorize those expenses you incurred, a best example is to see your last month's worth of receipts including those that do not need receipt like buying some candy in a nearby sari-sari store counts as well. Keeping track of small and major expenses is highly recommended by putting it in a notebook.

Once you find extra cash, you can now save a portion and use the others for paying debts.

2. "I am maxed out with my Credit Card" (Credit Card debts rising).
Solution: Face on your creditors and negotiate

This fantastic plastic money is here to stay. We are faced with too much product advertisement of credit cards, with sales people littering around malls giving leaflets of credit card application and of course the cold calls they make during the early afternoons to mid-morning via their call center representatives. Some of our local big banks are offering credit card for free unless you are an account holder of their institution and having been banking with them for more than six months to a year. Back in my college days, lots of teenager can apply for a credit card through this major credit card firm and were in debt already in their young life.

Don't put yourself on situation that you hadn't paid up your credit card debt. Failing to pay your bills and ducking away from creditor's call can destroy your credit standing. Better to be straightforward than hiding yourself from them.

Contact your credit card companies - it is better to negotiate with your creditors tell them forward that you are unable to pay outright with money. Learn to haggle and tell them your lowest rates that can match with another credit card company. They sometimes accept a percentage of a full amount or help you set up a reasonable repayment.

Other things to remember on lessening your credit card debt:

3.) Do not take cash advances

Cash Advances - Instant cash indeed, they have the potency to make you get it but think a lot of time before receiving that money. Advances have sky-hight interest rates and service fees. In other word it is a expensive way to get cash. Better to slash those household expenses in order to prevent that short-term cash crisis.

4.) Don't miss payment dues

Credit Card companies pay a hefty fine on late payments, it is better to try paying online banking if you are beating the deadline. In short, being late on payments would definitely affect your credit score.

5.) Don't carry too much plastic on your wallet (too many credit cards would blow a hole in your pockets).

Having lots of credit cards is an easy way of piling those credit card debts. An instance, for example is a man who carry multiple credit cards wherein he pays the credit card A with credit card B. Better to control yourself on not misusing this tool.

It is better to limit your credit cards to two cards for easier money management. The first card is used for short-term purchases that you can pay-off in a month while the second card for major purchases.

6.) Don't make the minimum payments

This will stretch out your payments, with interest on hand, this will increase your overall cost on your purchase.

People think that "Credit Card is free money" but it is NOT. They do not know the concept of the credit card system, wherein you make a major purchase on that particular item through this credit card company and later pay it on before the due date or in a given time frame.

Save Smart, Spend Smart.

Copyright 2008-2009 - PinoyMoneyVantage

Philippine Stock Exchange: Less than half of 1% Pinoys invest in the stock market

When I was downloading the Red Herring from Sultan Mining IPO a month ago and came across this article from the Philippine Stock Exchange website.

Going back in early 2000, I was a 19 year old college student. I became fascinated with stock market. I played and joined with www.virtualstockexchange.com wherein high school students in the U.S. do mock trading with nothing. The concept of the website was to teach the young students on the concept of the stock market, investments and business and at the same time prepare to be in the corporate world as passive investors which would be beneficial for them in their future endeavours.

I have also read this article on Phillippine Star the other day and seen some it online through ABS-CBN News Online regarding this (See Article).

See PSE Article released on June 16, 2008.

One of the author of well-known Philippine finance blog also made comments on the PSE article. He recommends that there should education through roadshows and also setting up a basic talks in schools and fairs and I agree to that in teaching the young. In the US, some high school student already have the knowledge in trading stocks through mentoring from their teachers, corporate sponsors and other people involved in stock market.

Therefore, we need to educate the Pinoys with this. I guess, in order to let the people know the stock market is by launching a financial education among the youth. The young people are the best targets for this. Teaching them young would encourage to be more responsible and financially educated.


Copyright 2008-2009 - PinoyMoneyVantage

Why Kill the Electric Car?

As oil's skyrocketing price of US $150 per dollar with expectation of US$ 200 dollars per dollar in a few months to come. This trend sure hurts the end user / consumers pockets as inflation rate rose a notch higher from the previous months as cost for production of basic commodities are again at all time high. In my mind, these questions struck me. So you are spending a lot of money on gas and have started thinking of ways to reduce your gas bills? Or, you want to save the environment for our future generations from harmful carbon dioxide emissions?

Recently I was able to watch this video documentary made two years ago by Sony Pictures about the lessons learned on the lost of this great technology made, developed and mass produced by General Motors's - The Electric Car or EV1 model in 1996.

Going back to memory lane, I was fascinated with this technology back in the mid to late 1990s when Discovery Channel was still showing the "Beyond 2000" TV program plus its advertisement on the electric car that recharges its batteries using solar power recharging station or even in the luxury of their own home using 110 voltage of electricity.

It is tragic to see the loss of this technology when General Motors, Inc. (GM) pulled the plug on its EV1 project and scrapped out the remaining fleet to the leasee of these cars. The Honda and Toyota followed suit when they scrapped their SUV, pick up trucks and station wagon with EV1 technology for their gas powered , internal combustion engine cars.

It is amazing on seeing a few Filipinos innovators come up with the idea of reviving this lost technology. I got a glimpse of Gerry Caroro's GCar ( www.gcarmotors.com). You can view and test ride the car at Quezon Memorial Circle in Quezon City for P 30.00 per lap. I wish they could mass produce more of these cars but would generally wait for test result and road worthiness of these cars into the public roads for the future use of the general public.

Last year, Makati City government, GRIPP (Green Renewable Independent Power Producer), and Greenpeace launched its first electric jeepney for use as public transport. They are in for one year of test piloting their assigned routes. The e-jeepneys became successful have started operating last July 1, 2008. The e-jeepneys are locally manufactured by Motor Vehicle Parts Manufacturers Association of the Philippines - MVPMAP.

The e-jeepneys are operational and are plying the Makati routes as follows:

Route:

• Salcedo Village – from Dela Costa St. turn right to Makati Ave., right to Paseo De Roxas, right to Villar St., left to Leviste St, left to Rufino St., right to Ayala Ave. and right to Dela Costa St.

• Legazpi Village – from Salcedo St. turn right to VA Rufino St., left to Adelantado St., left to Gamboa St., left to Salcedo St., left to Benavidez St., left to Paseo De Roxas Ave., right to Legazpi St., left to Dela Rosa St., and left to Salcedo St. (Source: www.makati.gov.ph)
  

In other parts of the country, a Dumaguete-based startup company called Insular Technologies (www.insulartechnologies.com) assembled its own version of electric vehicle with the help of Greenpeace International. The company was co-founded by Rene Tuballa. It first debut during the founding anniversary of Siliman University on August 27, 2007.

We need these zero emission, no pollution technology in this hard times as fuel prices are getting higher everyday, we need to save mother earth which we are slowly killing through global warming. How I wish that the innovations made by our Filipino scientists would not turn into obscurity as a museum pieces because we need these alternative technology now.

Copyright 2008-2009 - PinoyMoneyVantage

MONEYVANTAGE: Bank Deposits and Personal Savings Accounts

What is the purpose of bank deposit savings? A lot of people ask questions on why save your money on a savings account?

Savings accounts are accounts maintained by retail financial institution that pay interest but can not be used directly as money (by, for example, writing cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return (see Wikipedia). A savings account can be in passbook or in Automated Teller Machines (ATMs).

A lot of people underestimate the use of savings account in bank although it only earns about one percent (1%) prevailing rates in the Philippines. Still a savings account is useful in many financial aspects. Saving money may be placed in short term or long term goals still the purpose he/she must undertake in securing his/her future. An example of the uses of this investment tool are raising for a down payment in order to purchase a property (condominium or a house & lot) or an automobile, setting up capital for a future business venture, or can be used as emergency fund, used for transferring fund via mobile banking locally or abroad or a keeping your personal secret stash.

Opening a bank savings account is easy, the purpose of opening a savings account for a smart financial investor is to "contain or temporarily store" some of your money in a bank and at the same time it can be used as a financial statement in acquiring bank loans (housing, automobile and personal loans), buy some other financial investments offered by this financial institution that produce higher yields. An example of this is buying a retail treasury bond in government controlled banks like Development Bank of the Philippines and Land Bank of the Philippines wherein it requires an initial deposit of PhP 5,000 on your savings account before buying Retail Treasury Bonds worth PhP 100,000.

For a clearer view, let set an example:

Ramon is a 9 to 5 office worker, he receives a an average of PhP 14,000.00 a month. He is a novice investor and have average knowledge in investments thanks to his peers encouragement in reading financial planning books and attended some free financial literacy seminars. He saves a portion of his salary because his goal is for him to set aside money for emergency fund that is good for six months in case he lost his job (or get sick), set aside a downpayment for his equities on his planned purchase of a PAG-IBIG accredited development (house and lot package) in Cavite and at the same time save for an initial capital for a small time enterprise or business in the sides in by next year.

He maintains five savings account which he manages from different banks, he puts up his goals into action.

BANK
ABC Bank: saves money for Contingency or Emergency fund
XYZ Bank: saves money for a purchase of higher yielding investments (ex. stocks, mutual funds, Value Unit Linked Insurance, etc.)
LEVI Bank: saves money for initial capital of his small business.
EFG Bank: saves money down payment in acquiring a buying a house and lot with an Pag-Ibig accredited property developer in Cavite.
BBB Bank (ATM provided by his employer): Salary and personal expense fund.

When time and money matures they can eventually use the saved money in their specific goals or reinvest it with higher yielding vehicles like equities, mutual funds, money market bond funds, UITFs etc.



Copyright 2008-2009 - PinoyMoneyVantage

Food Security in our Midst!

The Philippine government is beefing up its resources on importing rice in Thailand. It already had talks with the foreign minister of Thailand last month and agreed with the our government's dealing.

Are we hungry now? As of most of the SWS surveys it says YES. They say majority of the urban poor are getting hungrier much less to the countryside are experiencing the same.

I had deep thoughts on this regarding the need for food as we are now experiencing rice shortage with people looking for a much cheaper variant of rice coming from National Food Authority (NFA). Mindanao is experiencing much worst than their Metro Manila counterparts because rice prices of other variants rice to P 50.00 per kilo. Rice hoarding is now rampant in this parts of the Philippine. A lot of people are now experiencing hunger even we tighten our belts to save but somehow inflation is keeping up on us wherein it already peaked at 9.6% as I read yesterday's broadsheet with the tumbling value of Philippine peso to dollar at US$ 1.00 to PhP 44.00 on the foreign exchange rate. Some of the financial and international affairs expert see that inflation can go to double digit in a few months time not only here but around the world.


In the light of the looming rice crisis that the Philippines and other countries experiencing right now. Local provincial government of Oriental Mindoro had taken step in encouraging agriculture to be taken by jobless out of school youth. This program not only provides jobs but also the knowledge and skills for these young folks to take up farming which is essentially important nowadays making Oriental Mindoro the rice capital of region 4. In the first place, our country was based in agriculture but in the past couple of decades it came to a point that industrial and advance technological age is keeping up with our country and less people are taking agriculture as business and settled for a much newer career outside of farming in the rural to the urban cities.

Copyright 2008-2009 - PinoyMoneyVantage

Fueling Change, Saving on Gas: What my thoughts are.

Timeline of Oil Dependence from 1940s to the Present Times

Graph Courtesy of Fuel Focus Natural Resources Canada

Oil has become a major commodity in the world market today. It finally breach to US $135 per barrel on crude oil. In fact, we are really suffering from a chronic pain of disbelief as inflation reach its all time high of 6.2% last April of this year. Bangko Sentral ng Pilipinas is geared in cutting down the interest rates in order to lessen the inflation increase of all commodities.

What is happening around the world, people of all walks of life are affected with this. Protests in Indonesia have erupted when the Indonesian government have cut its subsidies on oil products, Egyptians in Cairo and other cities have decided to leave their cars and depend on public transportation system available. Meanwhile, Spanish fishermen leave their fishing boats for protest against the increasing crude oil price. This is what is happening worldwide when I turned on the TV watching CNN's Fueling Change segment a few hours ago. Americans living in major U.S. cities decided to scrap their gas guzzling SUV for a smaller yet less gas consuming compact cars.

Reading the a broadsheet the other week, President Bush met with Saudi King Abdullah in order to increase the oil production but Mr. Bush's appeal was turned down by the Saudis because they are maximizing it already (see article). The demand is too high so the prices are soaring already.

The other day, I was watching the Correspondents on ABS-CBN late night, seeing the alternative fuel of some priest inventor was scrapped because limited support was given by our national government on this people. Alternative fuel is the solution here and so does becoming eco-friendly fuel products must be propagated.

Right now, I am no longer using my car often. Everything is already planned out before going out in using an automobile. I turned again to the public utility vehicles as my mode of transport. With the soaring fuel cost of P 50.00 or more per liter who would not think again about this. I wouldn't like to see myself waste my money on fuel that is no longer affordable having felt the pinch already.

I've been amused with this article from CNN Money (cnnmoney.com) on the 6 gas saving myths I have read on their weblink through yahoo the other week. You may click this link - six gas saving myths on CNN Money.

Also I have added links on history of oil discovery and dependence from Kipnotes.com which is definitely interesting and for additional knowledge for everyone.

Copyright 2008-2009 - PinoyMoneyVantage

The San Miguel Brewery IPO Report: My first stock investment

I recently went to San Miguel Brewery, Inc. offices last May 5, 2008. I chanced upon the advertisement on SMB IPO last April 24, 2008 at the Philippine Star. I opened on the possibility investing in paper assets while dreaming of buying some real estate in the future. It was an event I was waiting for in buying some 1000 shares of a long-time profitable food and beverage company with a proven track record that has been in the country for more than a hundred years of existence. Testing the waters, I opened an account with this company and at the same looking in trading stocks so I invested PhP 8,000.00 worth of shares (1000 shares = PhP 1.00) on this as a Local Small Investor (LSI).

I can see how profitable San Miguel beer to the local masses with production of millions in the open market and even internationally recognized as a strong seller with other well known brand names from Europe like Heineken, Carlsberg, Mexico's Corona, America's Miller and others.

I was amazed on how it jump on its initial offer of PhP 8.00 per share to PhP 8.50 will additional pesos on my paper assets of owning an a 1000 shares of San Miguel Brewery on its debut yesterday morning (May 12, 2008) at the Philippine Stock Exchange trading day. The increase was 6.25% as what was reported in the news last night beyond what I have expected from earlier reports in a famous broadsheet on the forecast that it will lose its value regarding previous IPOs. It gave me a jitter as my kept my fingers crossed from days of waiting since signing up last 5th May 2008. It did not lose ground on its first day but somehow found out on visiting the PSE's ticker tape that San Miguel Brewery with San Miguel Corporation A and B incurred some losses. I lost 10 centavos on the value of what I gain yesterday but it is a close call than losing more a PhP 1.00 value of my shares with this company.

I am glad that I was able to test the water of stock trading and will be able to understand and be vigilant in investing in hard-earned cash. Will be watching closely on SMB performance in few days or so.

About San Miguel click this link.

Copyright 2008-2009 - PinoyMoneyVantage

Economic Slow Down in America How it Affected the Philippines and the World

It was a sad thought that the economic slowdown and recession in the United States not only affected our local real estate developers but the independent real estate firms selling to the once rich market of people with higher credit score and higher net disposable income. So everyone in America especially the baby boomers (those who were born in the 1940's or after World War II) who are about to retire by now or in a few years time and even the middle class Americans.

Once and for all, I have to shift our firm's attention to other markets in the world where there are lots of Filipinos working overseas. A good example of market is the European and Middle East wherein there are great concentration of Pinoys migrant workers in those areas. This was admitted by Rex Mendoza, Ayala Land, Inc vice president for sales and marketing (see article, Manila Times). Right now most of those real estate developers are also tapping the Asia-Pacific market another place to look and scour at is the first world countries like Singapore, Hong Kong, New Zealand and Australia wherein there are also a great number of Filipino immigrants there who may want to invest here in the Philippines.

It is definitely a fact that the Philippines and other asian countries as well especially with China rely with the U.S. market with their massive export capability of goods and the European Union is second. Last year, some of the China made goods were removed from the shelves due to complaints from customers and findings from government agencies regarding their safety. It was found that most of their products do not comply to international standards and health hazard for children. Lots of these products especially toys were pooled out of the U.S. market early last year.

The Business Process Outsourcing (BPOs) related with call center and medical transcription companies are feeling the pinch of subprime mortgage crisis (see article, Times UK) in America, as most of these companies heavily rely in U.S. dollars and also the U.S. markets. U.S. $ dollars have been for the past few months is breaking even against the dollar. However, it is now risen its value after loosing its value from P40.00 to US$ 1.00 but as of this writing the pesos is against the dollar at P 41.00 to US$ 1.00. Multinational BPOs from U.S. who have moved their operations here in the Philippines and India are loosing ground due to the loss of customers and closure of some U.S. based companies due to recession meaning alot of people are being laid off from work in the America.

Last week, I was watching CNN when I stumbled upon Union Bank of Switzerland having problems. I was totally shocked on seeing Union Bank of Switzerland, one of the best and biggest banks in Europe (see article, BBC CO UK) lose US$ 34.8 Billion due to the subprime mortgage and credit crunch. UBS is experiencing dire straits after heavily investing in U.S. real estate properties which have rapidly declined in value for the past few months since last year. It was tragic. Lots of investors have lost confidence on the annual stockholders meeting last week in Zurich (see UBS has doubled its subprime writedowns).



Copyright 2008-2009 - PinoyMoneyVantage

On Scam and Con Artist in our society

In being a Real Estate Broker there are times when I do find scamming artist prowling some of those small time business talks and free seminars happening within the metro. Such an example of this when I attended the Free Entrepreneurship seminar conducted by a group of Chinese-Filipino businessmen in Binondo, Manila.

I get annoyed with these types of people and most of these guys are con-artist in a sort of way of enticing some hapless person to see and later buy that piece of real estate in Bataan. Example of this is that they are selling pieces of properties in hectare within Morong, Bataan. I know this place because some of Morong's portions are under the Subic Bay Metropolitan Authority's property and under the Bases Conversion and Development Authority and also some of them are under the jurisdiction of Department of Natural Resources as well because Subic is a virgin rain forest of the country and the others were already acquired with Ayala Land Inc with joint venture agreement with Subic Development Company (SUDECO). Other than that, some of those properties are still under the name of the Republic of the Philippines.

There is also an instance on of the books I read, "Real Estate Lesson by Eduard L. Tan" wherein a group of syndicates with connection with higher officials in the government are able to get a piece of property inside the La Mesa Dam, Watershed and Eco Conservation Park. It was sad that they have already titled it under their names and are willing to contest in the courts. Also remembered an article from Philippine Daily Inquirer (see Link).

Right now, there are many financial scam plaguing our people, the most recent I have seen, read and heard in the media this early 2008 was the Royal Manchester Five or RM5 for short. The company was up running for the past 7 years. Cyrus Hao and Renato San Juan are now at large and have already have gone out of the country hiding from the prying eyes and hand of the law. Doubling your money in 5 or 6 years is reasonable, given the less than 15% average compounding rate required to do so. But if someone promises to double your money in one and a half years, which is what 4% a month or 48% a year does, it's obviously a scam. That's probably a
pyramid or Ponzi scheme.

Other high profile cases that have recently flaunted the media and people are FrancSwiss, Multitel and many others that have vicitimized the hard-working people, the middle class and even the few of affluent people in our society even the personalities which have kept themselves silent from these issues from the media.

There are also other informative to watch out for regarding con artist and scams, I read the issue of the January and February 2008 issue of MoneySense which is undoubtfully useful even the back issue of FHM (2006) was also a useful on small time crooks and syndicate prowling the street for unsuspecting victims.

Don't be fooled with these types of people. They will rip your hard-earned cash so don't put yourself into misery.

The Think Rich Pinoy Experience

I recently have attended the February 17, 2008 Think Rich Pinoy Seminar at PhilAm Life Building in Ma. Orosa Street, Ermita, Manila. It was an event I cannot forget that changed my life. Wealth building through real estate by flipping foreclosed properties is one shot deal that can generate income for you and your loved ones. There are pros and cons in real estate but this one could get you rich in no time at all.

Dr. Gamboa and others like him have dream of making one million rich Filipinos by 2010. It maybe impossible but with proper attitude and mentoring anyone can be a millionaire by that time. "We do not have to go abroad and keep our country's economy afloat with our skilled OFWs leaving our shores and working hard to both ends meet, we can make entreprenuers of our OFWs as what Dr. Gamboa", said in his statement.

Financial education through real estate and other income generating schemes can arm every Filipinos with the knowledge of wealth building and at the same create passive income for their benefit. The investments made will work for them in no time.

One of the most notable real investor in this type of business was Robert Kiyosaki, author of the Rich Dad, Poor Dad and co-author of other Rich Dad series of books who inspired Dr. Gamboa into this type of business and serves as his inspiration in creating a book called "Think Rich Pinoy". Think Rich Pinoy is an adapted version of the Rich Dad, Poor Dad for Filipinos to understand. The principle of flipping property and its concept are still the same but simplified.

I have read the book since last year and at the same time bought one of his book follow up, Grow Rich Pinoy, which emphasizes on flipping properties with little or no money at all plus with the help of course of rehabbers, lenders and other private investors by using Other People's Money (OPM) concept.


I have met other people who are still in the rat race who want to be investors and entrepreneurs and owning their own business. Dr. Gamboa emphasizes the empowerment of every Filipinos to financial freedom. It was a good thing that I met Dr. Larry Gamboa, Ph.D. himself on the flesh and maybe in the future would be a future franchisee of Think Rich Pinoy.

Copyright 2008-2009 - PinoyMoneyVantage

Adventures in Caliraya - a team building experience

31st March, it was 3 A.M. I got up after sleeping for about a few hours and my body is still needs to recuperate from yesterday's work. At 4 AM, I am still in Pampanga and have to travel again with Tessa and Laila to get to Bonifacio Global City in Taguig to meet up with the rest of the crew who are joining with the rest people from Angeles City who are about to embark on a Team Building Training for Top Brokers. I got apprehended of the thoughts of having a good time, meeting new people from different places and at the same time having a fun pleasurable time with outdoor activities in Lake Caliraya.

At 5 A.M., as we approach the Metro. Traffic was heavy on North Luzon Expressway from the Balintawak exit to EDSA Cloverleaf because it was a rush of vehicles off to work on a very hectic Monday converging to Metro Manila from the nearby provinces. I was thrilled on seeing the bright lights off Metro Manila because I am always busy in the province and the thought of visiting Laguna and seeing a more provincial type of scenery which I haven't seen for a long time. Laguna has more green fields and agriculture compared to Pampanga it hasn't lost its nostalgia and also its historical value for me. It will be a long drive to Laguna but it will be fun anyways.

The team building seminar is sponsored by Community Innovation, Inc. (an Ayala Land, Inc. company) and the good thing about it is FREE including the bus going to and from plus the food, hotel accommodation at Caliraya Recreation Center. It was nice to have a company through Ate Tessa who happens to be our business partner, my mom's acquaintance and our top salesperson and Laila, who happens to be a site officer of Marquee Place Angeles City, Community Innovations project in Angeles City. Laila will accompany us on our first tour to Caliraya and with rest of the sales force coming from Metro Manila and other places.

We arrived at Bonifacio High Streets at 6 A.M., it was a site to behold being inside the Bonifacio Global City for third time I was awed on how fast developments were. A site to behold as most of the people of all walks of life converge in this future city inside the former military base which was converted into a mixed used development. It was lush, with bright lights on the streets. Skyscrapers are already on the rise as I behold on the site of Serendra (the hottest selling property in the list of Ayala Land developments in Metro Manila). I see it differently in my view of making oppurtunities in selling residential condominium properties inside Bonifacio Global City.

As we left the metropolis to Laguna, I see lots of road construction along the South Luzon Expressway and slow traffic in some section of the way with lots of detours, counterflows and barriers around. It was a long wait until we reached the city of Calamba, Laguna which is a definitely a historic place to visit for those who are venturing down south. The travel was leisurely as we went across town that I haven't seen along time from City of Calamba, to the towns of Pila, Los Banos, Sta. Cruz and later to Pagsanjan wherein it to took us about an hour and half to reach the sleepy and quiet town of Lumban.

Lumban is 30 kilometers south of Metro Manila. It is quite an astonishing place to visit, lots of agricultural fields, mountain trails, less people and great view of the nearby Sierra Madre Mountains. On top of those uphill road, you can already view the low-lying areas and nearby towns in Laguna. It reminds me alot of Bataan and Subic Freeport, Zambales minus the buildings and ships and less vehicles.

We arrived at about 9:30 AM, Bus 1 was already there together with participant from the Southern area who have rendezvous at Shell SLEX in Sta. Rosa, Laguna. They did have 30 minute head start on their to Caliraya Recreation Center. As we arrived on the area, we have to cross the lake on a ferry and then travel by a jeep to the hilltop where the ALI trainors and marshals are waiting for us. It was great and pleasurable travel in going to Caliraya with an awesome view of the lake, the mountains and its amenity areas.

As we were waiting for our cue, our names were roll called and have assigned us to four groups composed of 12 to 13 members. Our first taste of the action was to meet, the trainor on the gazebo. Downhill slope was dangerous as we raced first. The gravity of earth is pulling us downward as I breeze on down to meet our trainers who were waiting for us on our first activities. Too bad, we were second place and had not received the price money per group.

Mr. Rex Mendoza, VP for Sales and Marketing for Ayala Land, Inc. (former President of AIG- PhilAm Group) was there on that event and gave us an short inspirational talk especially in the sales record the 5 year old Community Innovations, which is the youngest member of Ayala Land Inc. subsidiaries, achieved with total of 1.8 Billion pesos sales for 2008. CII and ALI were grateful with our efforts in marketing their projects and have they thanked us for being their outstanding sales force of achieving higher growth with their company. Together with Mr. Robert Lao of, Head of Sales of Community Innovations, Inc. (An Ayala Land Company) presented the awards on the Brokers' Night.

It was great that our company and my mom's name was given an award as the Top Individual Broker and Best in Project Selling category in one project for achieving record breaking sales at Marquee Place in Angeles City alone. I do like to thank Miss Tessa for her efforts in helping our small company achieve this feat and beating the other teams in achieving that high sales in one project alone.

1st April, it was time to pack as I felt lonely as I leave this darn place full of memories which gave an inspiration of meeting sales people like me from different places and different backgrounds and also the young like-minded people like Architect Rico Yangco, Ely Belgica, Kuya Hubert Claveria, Mr. Alex Gaston and the others I have met all along the way.

Visit Lake Caliraya Resort and Recreation Center at www.caliraya.net.

Copyright 2008-2009 - PinoyMoneyVantage

Becoming a Real Estate Sales Professional

I could never imagine myself being in the real estate business. I did have a fruitful career in the healthcare industry but somehow the lure of fame and fortune have taken me to this new profession. I have been in the industry for three years now. Started out as a secretary and a assistant to my mom who is also a newbie or a greenhorn in the real estate even if she was a licensed real estate broker since 1984.

The real estate industry became an interest to me in 2005. I first attended a sales training seminar for real estate agents with Communities Philippines, A Vista Land Co. (formerly Crown Communities, Inc.) selling their projects outside of Metro Manila. It did become a challenge for me to be in this profession in being a proactive and outgoing person. It changed me into overcoming fear and shyness by arming me with self-confidence in dealing with different people as a real estate sales professional plus the thought of earning a high commission brought me to property sector after resigning from my dead-end job which only offer a above 100,000 annual income.

My mom was medical representative with an multinational nutritional and pharmaceutical company before her retirement in 2003 when I was a about to graduate in college. Her career has spanned for more than 30 years in the selling and marketing which in turn earn lots of money with that company and at the same time earning money through the high sales she garnered in the past. She was a seasoned salesperson but still she is still adjusting as a real estate sales professional after her retirement in being a medical representative, she was totally back to zero in the property sector and being a real estate broker is not the same work as the previous job, but still the principle of selling to would-be client is the same especially in establishing rapport and building relationship with them.

I learned the ropes from her on the sales experiences and wisdom she gained plus the experience of having a actual site manning or mall booth manning which is hard work even you are passing time, we usually work in duo. I even had some little scruffles with some clients or would be clients who are just not interested and are wasting my precious time. I learned those types of people from Michael Pink's book named "SELLING AMONG WOLVES WITHOUT JOINING THE PACK" wherein he differentiated those types into four groups.

According to Discoro "Jun" Garing's book The Filipino Art of Breakthrough Selling, that out of the 100 prospects / customers you encountered there is only 20 prospect who are really interested in buying a product, 4 of them are qualified to buy but there is only 1 true buyer (so the ratio is 100:20:4:1). The ratio I have mentioned is a salesperson batting average in making a home run to closed deal. The numbers speaks well and also in my experience as a real estate agent turned and licensed real estate broker. In the marketing arena, you should be armed with the knowledge, expertise plus the appetite to associate with other people is needed in order to close that deal. Plus be tech savvy in marketing the project wherein the internet has become among the best medium of getting the attention of local and overseas clients.


Copyright 2008-2009 - PinoyMoneyVantage