Real estate has now become very expensive; how do you find shelter for the future generation

Nation building via learning and being the best in business

Early on this post tried very hard and entered into housing development in order to provide affordable housing for the working class.   The housing loans were P180K at most but land was cheap:   2 numbers and construction cost was still 4 digits.

But now raw land is in high 4 to 5  (in some areas this is 7 numbers) numbers and construction cost is in mid 5 numbers.     You cant reach their affordability  level.  And the wages, productivity are not keeping up.  

Are we in the same status as other countries where affordability, even rent is beyond the rich of the middle class (even In Japan, US, Europe) that is why citizens sleep in cars or tent (homelessness is up)

What happens to our childrens housing?  What can be the solution?   Capsule shelters, tents?

Audacious move by Megawide for P10 b investment by Pag ibig in a construction outfit via preferred share

Nation building via learning and being the best in business

We know one of the top execs of Pag ibig, when we manifested our desire 1 year ago to go into 4ph project.     But we found out that it would take P300 m to finish a project before you ever get a take out  So its going to be capital intensive for a developer and most likely he would go into a liquidity hiccup.   No developmental loan.  

However this one bypasses the loan portion because the govt takes an equity, albeit riskier bet on the developer.   Probably this was done to save the 4ph project, a flagship project of PBBM to save the dwindling popularity of the President in the light of many challenges his administration is facing

Since we know the top guns fo the said govt institution we can probably explore the same possibility (follower) and or let PAG IBIG invest in our different ventures.

Evaluation of the newest housing project of the govt.

Looking forward to the future of business

It looked very attractive in the beginning what with the more than P250 billion that is available.  Couple this with the strength of the housing provident fund:    monthly contributions, loan collection

After interviewing a lot of people and reading their manuals, these are the conclusions

1.  The standards are for high rise condo:   40% open space (that means your maximum saleable area is only 40%!  There should be complete amenities

2.   There are price ceilings and margins therefore would be thin.

3.  While the EO 34 discourages developers only big time developers with tons of cash and credit line

      can execute these projects

4.   A lot of cash/equity has to be advanced prior to any release:   1.  Land must be acquired   2.  Full

      land dev.    3.   A tower must be completed, A-1 finish before any release.   For the project we                     envisioned more than P200 million is required.   We better stick to what we are doing where much

     lower cash is required

5.  The housing fund wants beneficiaries to have income.  But those submitted are just like any 4ps beneficiaries.  No job.  

While many investors would think that they can gain much from this program, (since the developers are excluded) it is the reverse.   The private sector would advance the development for this housing program.  While the greatest advantage for the consumers/beneficiaries is the 5% beneficiary. the budget by GAA for this is quite small and will not be enough for the number of units being built this year.   

So no go for us?

      

Its National Housing Month, can we participate as contractors?

Looking forward to the future of business

Its national housing month.  At 11 am today, we are supposed to have a meeting with a senior official of the National Financing Arm for housing who happens to be the relative our partner in construction.

A 4ph housing project in a queen city was suddenly brought before our lap after we met with the executive assistant of a queen city in the north last Wednesday.

Last last last week, we were referring the 4ph program of the said city to a supposed "big time contractor " of land dev company based in Alabang,  Their deal turned sour, and suddenly two projects :   a public market (their public market burned last August) and 4ph were looking for an investor /proponent     Their proponent for the public market passed away.

For their 4ph, the proponent could not push through with land acquisition. They were promised P70 m for the land acquistiion under SHFCI  (Its head F. laxa is an acquaintance)  The 4ph is  signal project of PBBM to address the 6million housing backlog, for which P250B of the Pag ibig program was allocated.

Federico Laxa - CEO SHFCI

We have several questions for the 4ph:

1.  Are we qualified for the program?

2.  Shall the take outs be from us?

3.  Can the funder provide a credit line of P1.5m x 2,000 beneficiary?

4.  Will the take outs be fast and efficient (it was not before)

Since the senior officer is from our place (he is a deputy CEO) maybe we can get favorble reply

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