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?
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