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Category: Real Estate in the Philippines

Various topics on real estate, brokerage and the laws and regulations

  • Navigating Real Estate Transactions: Unveiling the Significance of Powers of Attorney

    “When a sale of a parcel of land or any interest therein is through an agent, the authority of the latter shall be in writing, otherwise the sale shall be void.”

    – Mr. Justice Jose C. Mendoza, G.R. No. 214057, October 19, 2015

    By Realttorney®

    Buying and selling land in the Philippines is quite complex due to the numerous laws and regulations that are put in place to protect the interests of all parties to the transaction. This is especially true when one or both of the parties are entering into the transaction represented by another person.

    The legal concept of Powers of Attorney (POA) holds significant importance in real estate transactions. A Power of Attorney is a legal instrument that grants authority to an individual (the attorney-in-fact or agent) to act on behalf of another person (the principal) in various capacities, including but not limited to selling, purchasing, transferring, or conveying real estate properties.

    The Significance of Powers of Attorney in Real Estate Transactions

    1. Facilitation of Transactions: One of the primary reasons why Powers of Attorney are crucial in real estate transactions is their ability to streamline the process. In situations where the principal cannot personally attend to the transaction due to reasons such as illness, physical absence, or other commitments, a properly executed POA enables the appointed agent to act on their behalf, ensuring continuity in the transaction.

    2. Flexibility and Convenience: POAs offer flexibility and convenience, particularly in cases involving overseas Filipino workers (OFWs) or individuals residing abroad. These individuals may need to engage in real estate transactions in the Philippines but may not always be physically present to oversee the process. By granting a trusted agent the authority through a POA, they can effectively manage the transaction without the need for the principal’s physical presence. But take note that the operative word is “trusted”.

    3. Expertise and Representation: Real estate transactions often involve complex legal procedures, documentation, and negotiations. Entrusting these tasks to a knowledgeable attorney-in-fact who understands the intricacies of the process can mitigate risks and ensure compliance with legal requirements. Additionally, agents with specific expertise in real estate law can negotiate favorable terms and protect the principal’s interests throughout the transaction.

    However, more often, attorneys-in-fact appointed to transact real estate on behalf of their principal lack the necessary legal knowledge or information to mitigate risks and ensure compliance with all legal requirements. In such a case, consulting a real estate lawyer should be paramount and of high importance to navigate the maze of legal gobbledygook.

    4. Continuity and Avoidance of Delays: In situations where unforeseen circumstances arise, such as sudden illness or travel restrictions, having a POA in place ensures continuity in the transaction. Without a POA, delays and complications may arise, potentially jeopardizing the deal and causing financial losses for the parties involved.

    5. Mitigation of Fraud and Mismanagement: Properly executed POAs require stringent authentication and documentation, reducing the risk of fraud or mismanagement by unauthorized individuals. When do you need an Apostille certificate or a Certificate of Authentication from the Philippine Consulate?

    Moreover, the principal should clearly define the scope of authority granted to the agent and implement safeguards to protect the principal’s interests. A blanket authority should not be given to the attorney-in-fact, as a general rule. POAs serve as a vital legal tool in safeguarding against potential abuses or unauthorized transactions.

    The Importance of Understanding Powers of Attorney

    Given the significant role that Powers of Attorney play in real estate transactions, it is imperative for individuals involved in property dealings in the Philippines to have a comprehensive understanding of this legal concept. Here’s why:

    1. Legal Compliance: Failure to adhere to the legal requirements and formalities associated with Powers of Attorney can render the document invalid or unenforceable, leading to legal disputes and complications in real estate transactions. Understanding the essential elements and formalities required for a valid POA ensures compliance with Philippine laws and regulations.

    2. Protection of Rights and Interests: Knowledge of Powers of Attorney empowers individuals to make informed decisions regarding the appointment of agents and the scope of authority granted to them. By understanding the implications of granting a POA, individuals can take proactive measures to protect their rights and interests in real estate transactions.

    3. Risk Management: Inadequate understanding of Powers of Attorney can expose individuals to various risks, including fraud, unauthorized transactions, and breaches of trust. By educating themselves on the legal implications of POAs, individuals can implement risk mitigation strategies and safeguard against potential pitfalls in property dealings.

    4. Effective Communication: Clear communication between principals and agents is essential for the successful execution of Powers of Attorney. Understanding the terms, limitations, and responsibilities outlined in the POA enables both parties to establish mutual expectations and ensure alignment throughout the transaction process.

    Conclusion

    To conclude, Powers of Attorney play a pivotal role in facilitating and safeguarding real estate transactions in the Philippines. By granting authority to trusted agents, individuals can navigate the complexities of property dealings with ease and confidence.

    However, it is equally important for individuals to comprehend the legal implications of Powers of Attorney to protect their rights, mitigate risks, and ensure compliance with Philippine laws and regulations. Through knowledge and understanding, individuals can harness the full potential of Powers of Attorney as a valuable legal instrument in real estate transactions.

    You can take advantage of free resources like this article to arm yourselves with pertinent knowledge and information. But, if the transaction is far complex than originally presented to you, then seeking legal advice from trusted professionals is an investment worth taking.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Do You Want Foreign Ownership of Land in the Philippines?

    “Buy land. They are not making it anymore.”

    – Mark Twain, American Writer and Humorist
    Photo by Pixabay on Pexels.com

    By Realttorney®

    Congress is abuzz. It seems that charter change is on its legislative agenda this year and it looks like it is gaining traction. We have reached a point where the President of the Republic just gave instructions to a co-equal branch of government – the Senate of the Philippines – to take the lead in studying the proposed amendments to the economic provision of the 1987 Constitution.

    Since I am a real estate guy, this article will focus on the hot-button topic of allowing foreign ownership of land by foreigners. I will lay out two points that RESPs should consider before joining the debate on whether it is a wise idea to allow foreigners to own lands in the Philippines.

    Every licensed real estate broker and accredited real estate salesperson knows that the Philippine Constitution currently restricts foreign ownership of land. Hence, any policy change would require constitutional amendments. Allowing foreigners to own land in the Philippines has both advantages and disadvantages, and the discussion around this topic involves economic, social, and legal considerations.

    Point Number One. Allowing foreign ownership of land in the Philippines will attract more foreign direct investment.

    This is not necessarily true. The inability to own land is not the main driver of why Foreign Direct Investment (FDI) in the Philippines has not been as robust compared to other members of the Association of Southeast Asian Nations (ASEAN) in the last three (3) decades.

    The main reason why the Philippines wants to attract more foreign direct investment is because it leads to increased economic activity, job creation, and infrastructure development. But, the Philippines was not an ideal investment destination from 1986 onwards.

    In my opinion and based on the last three decades since 1986, the main reasons for not choosing the Philippines as an investment destination are (1) high cost of power; (2) high labor cost; (3) red tape; (4) corruption; and (5) unfriendly business environment.

    The Philippines has the second-highest cost of electricity in the ASEAN Region. Japan is number one. But, when you think that power is about 40 to 60 percent of the cost of production of a manufacturing company, foreign investors will shun away from the Philippines.

    We have been suffering from high power costs because of the Power Purchase Agreements (PPAs) that the government entered into during the Ramos administration to provide the solution to the power crisis in the mid-1990s. Those PPAs (with a 25-year term) are thankfully about to end if not already expired.

    In conjunction with the ramping up of various renewable energy sources in the country, Filipinos may enjoy the benefits of lower power costs in the next 3 to 5 years. So, there is hope to attract foreign investors in the near to long term.

    During the late 1990s up to the late 2000s, the cost of labor in the country was relatively high compared to China and Vietnam. Hence, it makes sense for foreign investors to invest in countries where labor is cheap despite its perceived low quality compared to Filipino laborers during those times.

    Let’s discuss red tape, corruption, and unfriendly business environment together because they are interrelated. In the early 2000s, foreign investors would complain that it was just too tedious to set up a business in the Philippines. There was too much regulation and too many people who had to sign permits and everything.

    Foreign businesses that wanted to set up shop in the country were faced with an uninspired bureaucracy. This was either because of a lack of effort or just a means to make it harder for businesses to deal with them.

    And when foreign business would want to make the process easier or faster a form of consideration became necessary. This rent-seeking system was tolerated for a long time. This was argued by Calixto Chikiamco, President of the Foundation for Economic Freedom.

    In fairness, our government has passed the Anti-Red Tape Act of 2007 (Rep. Act No. 9485) and the Ease of Doing Business Act (Rep. Act No. 11032) in response to clamor from foreign business chambers to help attract foreign investments to the Philippines. Arguably, these have helped improve the perception that the Philippines is a better place to invest in.

    However, it does not cure what had happened in the past 3 decades prior. But it begs the question, will allowing foreign ownership of land in the Philippines improve our standing as a foreign investment destination? Probably not.

    As of 2022, the Philippines attracted the least amount of FDI among ASEAN’s six largest economies, at US$9.2 billion. Singapore was the highest FDI recipient at US$141 billion, followed by Indonesia at US$22 billion, then Vietnam at US$18 billion.

    Point Number Two. Allowing foreigners to own land can boost the real estate market, leading to increased property demand and potentially higher property values.

    Based on historical trends, the other countries that have allowed foreign ownership of real estate have thrived economically. Yet it is not necessarily true that foreign investment in the real estate sector will automatically lead to increased property demand and higher property values.

    There is a myriad of factors that collectively shape the real estate market and the demand for real estate development projects. In my opinion, here are several key factors that impact real estate demand: (1) GDP growth and employment rates; (2) interest rates; (3) demographics – population growth and age distribution; (4) infrastructure development; (5) market sentiments – both consumer and investor confidence; (5) geopolitical risks; and (6) government regulations – housing policies and land use policies.

    Discussing each of them will make this article longer than it already is. So that will be a topic for another article in the future. Now what about the issue of higher property values? Will allowing foreigners to own land in the Philippines lead to higher land values?

    In my opinion, the answer is a resounding No.

    In case you missed it, the TRAIN Law (Rep. Act No. 10963) amended Section 6(E) of Rep. Act No 8424 which mandates the Commission on Internal Revenue (CIR) to determine the fair market value of real properties located in each zone or area, subject to automatic adjustment once every three (3) years.

    This is the main reason why property valuation has been increasing in the past 5 years and, in my opinion, opening up the ownership of land to foreign investors will have little effect in increasing the property values in the country.

    But what about the argument that “allowing foreign ownership may lead to land speculation and price inflation, making it more challenging for local residents to afford properties.” I think this argument has no leg to stand on.

    Why? Land banking is a practice where real estate investors (or real estate developers) aggregate or consolidate the purchase of parcels of land that they do not need at the present time but may do so at some future time to take advantage of the price arbitrage.

    Can you imagine foreign investors sinking their money into the Philippine market by land banking? I don’t see it. Yet any land speculation will be done by local investors who will be in the best position to take advantage of the price difference when they sell the parcels of land to foreign real estate investors.

    It is the local real estate investors who will cause the prices of real estate to rise not the foreign investors. The best way foreign capital will enter the Philippine real estate sector is by partnering with major or publicly listed real estate developers. An example of this is the partnership of Nomura Real Estate Development Co., Ltd. with Federal Land.

    So now what?

    The proposal for allowing foreign ownership of land has two options. First, switching the current 60:40 ownership ratio in favor of foreigners and setting that as the limit. Second, allowing 100% foreign ownership of land to foreigners – whether juridical or natural persons. And the type of foreign investment we need at this time and in the future should determine what option is best.

    I would argue that the type of foreign investment needed in the Philippines should be in the manufacturing sector and tourism development. And, if our legislators are hell-bent on changing the economic provisions of our Constitution then Congress should immediately enact the National Land Use Act as a complimentary piece of legislation.

    The Philippines has a low manufacturing base. Our economy has been driven by personal consumption and government spending in the last 2 decades. That is the reason why our GDP can never reach double-digit growth.

    Can we manufacture electric jeepneys to support our transport sector? Can we process and manufacture EV batteries for electric vehicles? We should emphasize that the Philippines’ nickel production level is second only to those of Indonesia, and the latter has plans to produce 30 million battery cells, which can be used to manufacture approximately 180,000 electric cars.

    We hope that this will be considered by the current Administration.

    Allowing foreign ownership of land (via any of the 2 options mentioned above) may encourage foreigners to invest in tourism-related ventures, contributing to the development of the tourism sector. Massive capital is needed to develop integrated tourism sites. Foreign capital may be the best way to ramp up tourism development in all areas of the Philippines.

    Finally, why do I advocate the immediate passage of the National Land Use Act in conjunction with allowing foreign ownership of land in the Philippines? Here are several reasons.

    1. The Act will ensure the proper use of land for the protection and rehabilitation of life-support systems, food security, safe settlements, and more efficient infrastructure systems.
    2. The Act is designed to ensure just, holistic, and ethical planning consistent with the principle of sustainable development.
    3. The proper implementation of the National Land Use Act could minimize, if not totally avoid, the harmful consequences of natural calamities, and mitigate or alleviate the effects of climate change on the lives and properties of Filipinos.

    When a National Land Use Act (NLUA) is enacted, foreign investors will be able to know where to invest and how to deploy their resources in what industry gives them the highest return on their capital. The NLUA gives foreign investors a set of rules where they will have to operate.

    In conclusion, the decision to allow foreigners to own land in the Philippines involves a careful balancing act between economic benefits and potential drawbacks. Policymakers must carefully consider the long-term implications, consult with experts, and implement safeguards to ensure that any changes align with the country’s overall development goals.

    What is your position on this issue? I would like to read them in the comments section. Have a great weekend.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Impact of Credit Rating Downgrade on a Country’s Economy and Real Estate Industry

    “If you’re not going to put money in real estate, where else?”

    – Tamir Sapir, Business mogul

    By Realttorney®

    Photo by Markus Spiske on Pexels.com

    According to the World Risk Index 2022, the Philippines is the most disaster-prone country in the world with an index score of 46.86 due to high risk, exposure, and vulnerability. The vulnerability is caused by the number of tropical cyclones that visit the country annually, the location of the country in the Pacific Ring of Fire and typhoon belt, and finally, poverty and underdevelopment.

    Meanwhile, the Global Risks Report 2023 disclosed that the top risks faced by the Philippines in the next two years are natural disasters and extreme weather events. In connection with this, a World Bank economist stated that climate change effects, like rising temperatures and sea levels, intensified droughts, and stronger typhoons can slash the GDP of any country by 13.6% in 2024.

    “In the absence of government interventions, these disasters inflict the greatest suffering on the poorest”, the economist said. Now, rising debt cost is one facet of the overall damage that climate change is already causing. This in turn can impact the credit ratings of a country like the Philippines, through a credit downgrade by international credit rating agencies.

    When a country’s credit rating is downgraded by credit rating agencies such as Fitch Ratings, Moody’s, or Standard & Poor’s, it signifies that the perceived creditworthiness of that country has diminished. This downgrade can have a cascading effect on various sectors of the economy, including the real estate industry. Understanding these implications is crucial for real estate professionals, investors, and policymakers.

    What is the economic impact of a credit downgrade?

    Increase in Borrowing Costs: A downgrade typically leads to higher interest rates on government bonds and other debt instruments. We saw this during the time of the Marcos Sr. administration. This increase in borrowing costs can ripple through the economy, making financing more expensive for businesses (big corporations and MSMEs) and individuals alike.

    Capital Outflows: Investors (especially foreign) may view the downgraded country as riskier, leading to capital outflows as they seek safer investment opportunities elsewhere. This can result in a depreciation of the country’s currency and further exacerbate inflationary pressures.

    Reduced Foreign Direct Investment: Downgrades can deter foreign direct investment (FDI) as investors become wary of the heightened risks associated with the country. This can constrain economic growth and lead to a slowdown in various sectors, including real estate.

    What is its impact on the real estate industry?

    Decline in Demand for Real Estate: As borrowing costs rise and economic uncertainties mount, demand for real estate often declines. The decline in the demand for real estate may affect the residential, office, and commercial segments, as well as the industrial segment, especially if the interest expense (borrowing costs) are sustained for two years or more.

    High interest rates greatly affect the willingness of a person to purchase a house and lot, a condominium unit, or a farm lot. This is so when the purchase will be made through a mortgage. Of course, cash is king. A cash purchase often leads to a great discount on the asking price for the real property.

    Liquidity Constraints: Tighter credit conditions can make it difficult for developers and property owners to refinance existing debt or secure new financing. This can result in liquidity constraints and, in severe cases, lead to defaults and foreclosures.

    As it is, real estate is an illiquid asset. Combining this with a tight credit market, property owners encounter extreme challenges during this inopportune time.

    Stalled Development Projects: Reduced access to financing and higher borrowing costs can stall new development projects. We all saw this from 2020 to 2022, as a result of the Covid 19 pandemic. Major real estate developers in the Philippines have been scrambling to restart projects that were forced into hibernation during COVID-19.

    Moreover, planned developments that lay in wait on the drawing boards were dusted off in 2023. Why? Because demand is, of course, expected to firm up, too. The 2023 Colliers Global Investor Outlook for the Philippines forecasts a rise in both value and volumes of real estate properties, with annual growth rates of 0.7 percent and 2 percent, respectively, versus 2022.

    Financing constraints can have a long-term impact on the supply of real estate inventory, potentially leading to imbalances in certain segments of the market. Unfortunately, I do not know of a metric that measures exactly the number of real estate units already built and the number of real estate units that will be built in the next 1 to 3 years.

    Shift in Investor Sentiment: Downgrades can alter investor sentiment towards the real estate sector. Institutional investors, such as real estate investment trusts (REITs) and private equity firms, may re-evaluate their asset allocation strategies, potentially reducing exposure to the downgraded country.

    To be clear, when looking at the impact of interest rates on an investment such as a REIT, the relationship of rate to price can be seen as similar to a bond’s relationship with interest rates. When interest rates decline, the price of a bond goes up because its coupon rate becomes more desirable. When interest rates increase, the price of bonds decreases.

    Similarly, when interest rates decrease, REITs’ high yields become more attractive, and their prices go up. When interest rates increase, the yield on a REIT becomes less attractive and that pushes its price down.

    Policy Responses: In response to a credit rating downgrade, governments may implement austerity measures, fiscal consolidation, or monetary tightening to restore confidence. While these measures are intended to stabilize the economy, they can also dampen consumer sentiment and investment activity in the real estate sector.

    Another significant factor that might affect the demand and costs for real estate is legislation. There are a few ways the government might temporarily increase demand for real estate: tax credits, deductions, and subsidies. You can spot possibly erroneous patterns and changes in supply and demand by being aware of the existing government incentives.

    For example, maybe it is time to revisit the bill filed by Sen. Sonny Angara in 2014, known as the Home Mortgage Relief Act, which will give tax incentives to Filipinos who are qualified as first-time homebuyers.

    For context, the Philippines has experienced credit rating upgrades and downgrades from 1986 up to 2001. The country’s creditworthiness has a direct bearing on its ability to attract foreign investment and maintain stable economic growth.

    In the context of the real estate industry, a downgrade could potentially slow down the growth trajectory observed in the last 2 years, affecting property values, investment activity, and development projects, in general.

    In summary, a country’s credit rating downgrade can have far-reaching implications for its economy and, by extension, the real estate industry. While the precise impact may vary depending on a range of factors, including the country’s underlying economic fundamentals and policy responses, it is crucial for real estate professionals to monitor these developments closely. Mitigating risks, diversifying portfolios, and maintaining a long-term perspective are key strategies to navigate the complexities arising from credit rating downgrades.

    How will you use this information to serve your clients? Let us start a conversation about this.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Unlocking Success: Why Registering with the BIR is Non-Negotiable for New Real Estate Salespersons

    “The Practitioner shall secure all necessary licenses, permits and authority as may be required by law, ordinance or rules and regulations.”

    – Section 1 (b), Article III, PRBRES Resolution No. 39, Series of 2019

    By Realttorney®

    On the third week of January 2024, I will once again be part of a Real Estate Brokerage Seminar for Entry-Level Salespersons, sponsored by PREVAIL, Inc. We are always looking forward to such an event since it signifies that a lot of illegal practitioners (colorum) desire to become legitimate real estate service practitioners (RESPs).

    Photo by Sora Shimazaki on Pexels.com

    Now, if you are still not registered with the BIR then you must do so to be compliant with the National Internal Revenue Code of 1998, as amended. We also should follow the laws of the Philippines as mandated by the Code of Ethics and Responsibilities promulgated in PRBRES Resolution No. 39, Series of 2019. Hence, BIR registration is a must for all newly accredited real estate salespersons.

    I will quickly outline below, the steps to register with BIR as a self-employed individual (professional):

    STEP 1: Secure and fill up BIR Form 1901 – Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts.

    STEP 2: Submit the same with the following documentary requirements to the RDO having jurisdiction over the place where you hold office – it could be a home office or a commercial office space.

    Documentary Requirements:

    1. Birth certificate (Original and photocopy);
    2. Marriage certificate (Original and photocopy); and
    3. Birth certificate of children (Original and photocopy);

    Other documents for submission, if requested:

    1. Mayor’s Permit (Original and photocopy);
    2. Contract of Lease (if renting);
    3. Title/Tax Declaration & SPA/Affidavit of Consent if the location is not owned by the applicant (if not renting); and
    4. Sketch of location.

    STEP 3: Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks of the concerned RDO.

    STEP 4: Pay Documentary Stamp Tax (DST) [loose DST / BIR Form 2000 for DST on Contract of Lease, etc.). Present proofs of payment upon submission of the documentary requirements.

    STEP 5: Submit requirements for Authority to Print (ATP) and registration of books of accounts.

    Documentary Requirements:

    1. Accomplished BIR Form 1906;
    2. Job order from the printer;
    3. Final and clear sample of receipt and invoices (machine printed);
    4. Photocopy of Taxpayer Identification Number Card; and
    5. Photocopy of BIR Form 0605 (payment of registration fee).

    Book of Accounts:

    1. Cash Receipts;
    2. Cash Disbursement;
    3. Ledger;
    4. Journal;
    5. Subsidiary Sales Journal; and
    6. Subsidiary Purchase Journal [the last 2 are additional books for VAT Taxpayer].

    STEP 6: Attend the taxpayer’s initial briefing to be conducted by the RDO concerned for new registrants to apprise them of their rights and duties/responsibilities as taxpayers.

    STEP 7: Wait for the RDO to issue the Certificate of Registration (BIR Form 2303) together with the “Ask for Receipt” notice, Authority to Print, and Books of Accounts.

    A more comprehensive discussion of the steps enumerated above including the related revenue issuances promulgated by the BIR and codal references in the National Internal Revenue Code can be found on the BIR website (www.bir.gov.ph).

    A final reminder to all new salespersons and brokers reading this article. The tax code states that “all individuals engaged in trade or business shall accomplish and file the application on or before the commencement of business operation or from the day the first (1st) transaction occurred or within thirty (30) days from the application with the LGU for issuance of Mayor’s Permit/Professional Tax Receipt (PTR), whichever comes earlier.”

    I encourage newly accredited salespersons and newly licensed real estate brokers to register with the BIR as soon as possible. To reiterate, the Code of Ethics and Responsibility mandates all RESPs to register with the BIR. Finally, in 2005, Atty. Alexander L. Lacson published his book “12 Little Things Every Filipino Can Do To Help Our Country.”

    “PAY YOUR TAXES” is the 10th Little Thing he listed. I quote some portions of what he wrote in pages 75 – 80, which resonates the same message today as if it was written 19 years ago:

    “Of the many duties of a citizen under our Constitution, paying taxes is one of the most crucial. Because taxes are the lifeblood of our government, of our nation.

    “It is what we use to buy the basic textbooks for our millions of children in the country, or to build additional classrooms in public schools nationwide…

    “Taxes are what we use to buy the most basic of medicines, often generic and cheap, that our Department of Health officials distribute to 34 million Filipinos nationwide who live below the poverty line.

    “It is what we use to pay all our government employees nationwide – our soldiers, our policemen, our public school teachers, among many others.

    x     x     x

    “Viewed in this light, the taxes that you and I pay are actually not lost or wasted completely. A substantial portion of the taxes we pay is still put to good use. Because there are many public servants – not only a few or some – who still do their jobs properly. There are many of them, these honest and faithful ones, but maybe many of them are just in the rank and file, like you and me.

    “But they are there. Among the silent many who hold the center and keep our government from falling apart. They are the ones who keep our public institutions intact through storms and scandals, notwithstanding the misguided ambitions and corruption of some of their leaders.

    “It is for this reason that we should continue paying our taxes. The good ones in the government are still good reasons for us to continue paying our taxes properly. The challenge for us is just how to increase the number of these good ones in government.

    x     x     x

    “In 2003, P83 Billion was collected from individual income taxes. But 91% of this amount came from salaried workers from the government and private sector, people who have no choice since their income taxes are withheld mandatorily. Only P7 Billion of P83 Billion (or 9%) came from businessmen and professionals like doctors, lawyers, accountants, architects, and dentists, among others.

    x     x     x

    “Can you imagine if our businessmen and professionals pay more income taxes? Or if our government is able to collect 21% this year instead of the 14.1% last year because we all decided to pay 50% more taxes this year? This means that our government will have more funds to perform its duties and obligations to the public.

    x     x     x

    “But we have to pay our taxes properly. Because we all live in the same country. Because this government, whether we like it or not, is our government. Its cost is a burden we must all share. The task of building this nation is a task that we all must share. We all must contribute to building this kind of nation we dream of for ourselves. Each one of us has a role in it. Each one of us has a responsibility to it.”

    We sincerely hope that all newly accredited real estate salespersons will register themselves at the RDO nearest their place of residence. This is one of the keys to a successful career in the real estate service sector. There are no ifs or buts about this.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Maragondon, Cavite: Unveiling the Hidden Gem for Real Estate Investment and Nature Exploration

    Image Source: https://en.wikipedia.org/wiki/File:Ph_locator_cavite_maragondon.svg

    By Realttorney®

    Maragondon is part of the third Growth Area, under the Cavite Provincial Development and Physical Framework Plan 2021 – 2030, known as Metro Tagaytay or the Tourism Haven and Food Basket of the Province. This third Growth Area is composed of Indang, Amadeo, Alfonso, and four other municipalities and one city, which will be featured in subsequent articles in the future.

    This is the fourth part of the series where we explore each LGU belonging to the Metro Tagaytay area. We share our experiences as we travel and visit the Metro Tagaytay area in the past to inform you of the interesting facts, business opportunities, and the state of the real estate in each LGU.

    Maragondon is a 3rd class municipality located in the western side of the province of Cavite, Philippines. While it may not be as renowned as other tourist destinations in the country, Maragondon offers a rich tapestry of history, culture, and natural beauty that makes it a compelling place to explore. Here are some fascinating facts about Maragondon:

    Historical Significance: Maragondon is steeped in history, particularly its role during the Philippine Revolution against Spanish colonization. The town is the site where Andres Bonifacio, was tried and subsequently executed.

    After being wounded and captured by the forces of President Emilio Aguinaldo in Indang, Bonifacio’s wounds were treated in the municipal hall of Indang. Bonifacio along with his brother Procopio, was then brought to Maragondon to be court-martialed in May 1897.

    The Court Martial was headed by Brigadier General Mariano Noriel. Andres Bonifacio was found guilty of treason and sentenced to death. Wrong or right, the Bonifacio Trial House stands as a solemn reminder of this pivotal moment in Philippine history.

    Natural Wonders: Maragondon is not just a historical site. It also boasts natural attractions that captivate visitors. The municipality is home to Mounts Palay-Palay–Mataas-na-Gulod Protected Landscape which includes Mount Pico de Loro, a popular hiking destination that offers panoramic views of the surrounding landscapes. Mount Buntis and Mount Nagpatong are historical hiking trails, the latter is the location of the Bonifacio brothers’ execution site.

    Maragondon is the only Municipality of Cavite boasting of appealing mountain ranges and a short coastline that is part of Manila Bay. And, to prove it is a coastal town, Carabao Island (Fort Frank) and Limbones Island are part of the municipality of Maragondon as well as Patungan Beach – a weekend beach destination of local residents and backpackers from outside Cavite.

    Moreover, the municipality of Maragondon manages the Carabao Island Fish Sanctuary, one of Cavite’s three existing fish sanctuaries. It is an expansive 56 hectares of reef and sanctuary at Brgy. Sta. Mercedes. On the other hand, the other two sanctuaries include Ternate’s Bulaklakin Reef and Naic Fish Sanctuary.

    What connects the mountain ranges of Maragondon to Manila Bay? It is the Maragondon River, which has an approximate length of 35.6 kilometers and an average width of 10 meters. According to its website, the Maragondon River is one of the six major river basins of Cavite. It is one of the largest with a total area of 357 square kilometers with an irrigable area of around five percent.

    The Maragondon River provides opportunities for water-based activities like boating and fishing. However, fishing in the Maragondon River is limited in scope, as the fishery resources of the municipality have not been fully developed.

    Finally, a well-known tourist destination in Maragondon is the Pantihan or Balayungan Falls which is described as a light-volume waterfall that drops over a small river gorge. This is a waterway that is one of the tributaries of the Maragondon River. It is an unspoiled area due to its remoteness but worth seeing, nonetheless.

    Image source: https://shoestringdiary.wordpress.com/2018/02/06/maragondon-and-ternate-a-one-day-getaway/

    Cultural Heritage: According to Wikipedia, the name Maragondon is a Spanish approximation of the Tagalog word maragundong or madagundong, which means “having a rumbling or thunderous sound”. This refers to the noise coming from the Kay Albaran River in the village of Capantayan. This was initially the place on which the town was to be built. However, due to the floods caused by the frequent overflowing of the river, the town was later relocated to its present site.

    Maragondon is a place where the past whispers through its centuries-old church and ancestral homes, and the present thrives amidst lush landscapes and stunning coastal views. One religious site is the Our Lady of the Assumption Parish Church, a centuries-old structure that serves as a spiritual haven for the townspeople.

    One historic event that occurred in Cavite but is not known by millions of Filipinos was the establishment of the Iglesia Filipina Catolica (Philippine Catholic Church) in Maragondon in early 1900, about two years ahead of the Philippine Independent of Aglipayan Church. The IFC was the first Philippine independent church to be established by Riego de Dios, a general of the Philippine Revolution when the then Archbishop of Manila failed to heed the public clamor for the removal of an anti-Filipino priest assigned in Maragondon.

    Moreover, Maragondon celebrates its cultural heritage through various festivals and traditions. One such event is the “Kawayan Festival,” which showcases the town’s agricultural and bamboo products, especially bamboo textiles, and promotes agri-tourism, as well.

    Ideal Real Estate Projects and Investments in Maragondon

    Given its unique blend of historical significance, natural beauty, and cultural richness, Maragondon presents several opportunities for real estate development and investment. Here are some ideal projects and investments that could thrive in this municipality:

    Heritage Tourism Resorts: Given Maragondon’s historical landmarks, there is potential for developing heritage tourism resorts that offer accommodations and guided tours to sites like the Bonifacio Trial House, which could begin at the Bonifacio Shrine in Indang, Cavite, and end at the Bonifacio Execution Site in Mout. Nagpatong. This type of development would cater to both local and international tourists interested in Philippine history.

    Agricultural Estates: Maragondon’s fertile lands make it an ideal location for agricultural estates focused on bamboo, sugar cane, corn, cassava, upland red rice, and other high-value crops. Investors could develop integrated farming communities that combine residential housing with agricultural production, creating a sustainable and self-sufficient environment.

    Eco-Tourism Lodges or Agri-Tourism Establishes: With its natural attractions such as Mount Buntis and Maragondon River, there is an opportunity to develop eco-tourism lodges and adventure resorts that cater to outdoor enthusiasts. These establishments could offer a range of activities, including hiking, camping, boating, and fishing, while promoting environmental conservation. One of the quaint yet excellent resorts in Maragondon, Cavite is the Riverfront Garden Resort.

    Residential Subdivisions: As Maragondon continues to grow and develop, there will be a demand for residential subdivisions that provide modern amenities and facilities. Investors could capitalize on this by developing well-planned residential communities that offer a high quality of life for residents.

    Commercial Centers: With the influx of tourists and the growth of the local population, there will be a need for commercial centers that provide essential goods and services. Investors could consider developing shopping malls, restaurants, and other commercial establishments that cater to the needs and preferences of the community.

    In conclusion, Maragondon, Cavite, offers a wealth of opportunities for real estate development and investment, thanks to its historical significance, natural beauty, and cultural heritage. By leveraging these unique attributes, investors can create projects that not only generate substantial returns but also contribute to the sustainable development and prosperity of the municipality.

    Do you have a specific real estate project in mind for Maragondon, Cavite but not really sure if it is appropriate? Let me know how we can help you sort things out. This real estate development maybe your main project for 2024.

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    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.