New law to improve real estate services, industry professionalism

THE Real Estate Service Act of the Philippines (Resa) will improve professionalism in the real estate service industry in the country.

Emily Amie Cabillada of real estate service company F9 Property Development and Consultancy Inc. said accredited real estate service practitioners will be regarded as professionals like engineers, architects and nurses under the law.This, after Resa has moved the regulatory and supervisory authority of the real estate services in the country from the Department of Trade and Industry (DTI) to the Professional Regulation Commission (PRC).

As a result, DTI field offices will no longer accept applications and renewal of licenses of real estate consultants, appraisers, brokers and salespersons starting July 30. All records will be moved from the DTI to the PRC, which will create the Professional Regulatory Board of Real Estate Service.

President Arroyo signed Resa into law last June 29. The law took effect starting July 30.

Under the law, those with expired licenses or those who passed previous examinations but have not applied for a license as of July 29 will be required to take another licensure exam.

“New and tougher requirements have been adopted in the Resa. For example, a broker applicant must be a holder of a relevant bachelor’s degree from a state college or university and other educational institutions recognized by the Commission for Higher Education (Ched),” said Cabillada. She said the PRC will require applicants to be graduates with a bachelor’s degree in real estate service before they can take the licensure exam. The course, though, will still have to be developed by Ched.

For real estate salespersons, there will be no examinations but they will be required to complete at least two years of college education.

Cabillada said this is one way of upgrading the skills and knowledge of real estate service practitioners and informing the public that they will be dealing with professionals.

Resa also mandates all real estate service associations to be integrated into one national organization that will be recognized by the Professional Regulatory Board of Real Estate Service and approved by PRC as the only accredited and integrated professional organization of real estate service practitioners.

The law also provides a fine of not less than P100,000 or imprisonment of not less than two years or both against those who violate it.

DEVELOPER EYES WORKERS

By Nancy R. Cudis

A REAL estate developer maintains a positive outlook on the housing sector in Cebu amid the global economic slowdown.

Prohomes Development Inc. continues to focus on the local workforce, which it describes as a “resilient” market.



“We are (feeling) the pressure to produce more units to meet the demand,” said Prohomes founder, president and chief executive officer Beverly Dayanan.

Citing figures from the Home Development Mutual Fund (Pag-Ibig Fund), she said the country needs to produce an average of 200,000 housing units every year to meet the demand.

This year, Pag-Ibig Fund plans to release some P43.5 billion worth of funding to developers nationwide, said Victoria dela Peña, department manager of Pag-Ibig Fund Mandaue branch.

About P3.5 billion of the amount is expected to be released for housing development in Cebu.

Dayanan said Prohomes hopes to get P500 to P600 million of the Cebu share, especially when the company has already identified three projects for next year that will collectively produce about 1,000 housing units.

“These projects would translate to a billion (pesos) in sales collections. Our prospects are bright. Our thrust is to continue producing more housing units through Pag-Ibig Fund,” she said.

Prohomes is the sister company of Johndorf Ventures Corp. (JVC), a wholly owned Filipino company with 20 years of experience in building houses and communities.

Pag-IBIG lowers housing loan rates anew

Pag-IBIG lowers housing loan rates anew

April 03,2009

VICE President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees, today announced further adjustments to its end-user financing program, this time creating additional housing loan brackets with corresponding lower interest rates. The rate adjustments are aligned with the redefined housing packages set by the HUDCC.

The new Pag-IBIG housing loan interest rate structure retains the 6%-rate for loans up to P400,000, and 7% for loans over P400,000 up to P750,000.

Interest rates have been slashed from 10.5 percent to only 8.5% for loans over P750,000 up to P1 million, and to 9.5% for loans over P1 million to P1.25 million.

Meanwhile, interest for loans over P1.25 million to P2 million remains at 10.5%.

Along with the latest rate adjustment, the Pag-IBIG Board also approved the increase in maximum loanable amount to P3 million, at an interest rate of 11.5% per annum for loans starting at over P2 million.

De Castro said the latest amendments in the Pag-IBIG housing loan program are intended to make the program more affordable to members, especially workers in highly-urbanized areas whose housing needs often range from more than P750,000 up to 1 million. Likewise, with the Board’s approval of raising the loan ceiling to P3 million, Pag-IBIG will be able to meet the home financing needs of members belonging to the middle-income earners. “This should give Pag-IBIG members a wider range of choices in buying a house,” he said.

Over the last two years, the Fund has implemented significant improvements in its end-user financing program. In 2007, Pag-IBIG has reduced the interest rates for loans over P300,000 to P750,000 from 10.5% to 7%. Earlier this year, the socialized housing bracket was expanded to cover loans of up to P400,000.

With the new changes taking effect April 1, Pag-IBIG member-borrowers can look forward to more value for their money as well as savings especially at this time of economic difficulties. “The savings given the lower monthly amortizations should convince Pag-IBIG members that buying their own home is a more practical alternative to renting,” De Castro added.

Members who avail of a P1 million housing loan stand to save 15.94% per month with amortizations of only P7,689.13 (covering principal and interest) over a 30 year period, compared to P9,147.39 under the old rate of 10.5%.

Year-on-year figures show the Pag-IBIG Fund is able to maintain the growth in its housing loan takeout. From P4.59 billion, the Fund recorded a P5.83 billion total takeout from January to February of the current year, representing a 27% increase.

“The demand for housing, especially from the low and middle-income earners, continues to be strong despite the global financial crisis,” he said.

Following these amendments in the Pag-IBIG housing loan program, the Fund expects to maintain a steady growth in loans granted to members and attain its target of P43 billion takeout for 2009. “This will further sustain the housing sector by providing financing to home buyers at very attractive, affordable rates,” De Castro said. (end)