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condo market value

junrescuer · 15 · 2950

junrescuer

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on: Jun 25, 2014, 05:46 PM
Hello. I jst got my cct. I paid 3M tapos naka lagay sa assesment 558,170 lng market value.
Di ko po maintindihan pede po pa explain ng mga expert?


DonT

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Reply #1 on: Jun 26, 2014, 08:20 AM
Do you want the market value to be higher?

Properties are sold at prices normally at a premium over the Zonal Value / Market Value.

Sometimes it is good, since you pay less taxes. But when its time to sell it, its good if it is higher of course.

The problem with most Real Estate Sellers, they are able to sell their units at unbelievably high prices...Because there are people who pay for them. If buyers are more informed, they will be able to make better choices, and not fall prey to opportunists.


Beannie

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Reply #2 on: Jun 26, 2014, 10:12 AM
who decides a condo's value?


bauer

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Reply #3 on: Jun 26, 2014, 12:36 PM
who decides a condo's value?

^ The market

Economic 101 --- Prices is dictated by Supply and Demand. 
                           The higher the Supply, the price will be push lower.  The higher the Demand, the price will push upward.
                           Applicable in all goods and services.


bauer

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Reply #4 on: Jun 26, 2014, 12:49 PM
Hello. I jst got my cct. I paid 3M tapos naka lagay sa assesment 558,170 lng market value.
Di ko po maintindihan pede po pa explain ng mga expert?

In our real estate industry, we have 3 different ways of determining the property's value,  The first 2 involves our government, the first one is the assessed value of the city or municipality where the property belongs.  The city or municipality uses the assessed value to determine the real property tax that you need to pay for it every year.  The city or municipal council may set the assessed value or rate of real property tax to be concurred by the mayor.

The second government agency that determines the property's value is the BIR.  The BIR has several ways to determine the property's value (third party appraisal, assessed value by city or municipality, latest recorded buy & sell transaction within the area).  Among the 3 ways, the BIR will choose the highest valuation and then impose the capital gains tax on the property.

Finally, we have the market's valuation.  the price is determine by supply and demand.


DonT

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Reply #5 on: Jun 26, 2014, 02:29 PM
Entities who wants the price to be higher - City Govt and BIR for higher Fees, Agents for Higher Commission and Seller for higher returns on his investment.

Entities who wants the price to be lower - Buyer.

So how does the Buyer know how much to pay....


Beannie

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Reply #6 on: Jun 26, 2014, 04:16 PM
In our real estate industry, we have 3 different ways of determining the property's value,  The first 2 involves our government, the first one is the assessed value of the city or municipality where the property belongs.  The city or municipality uses the assessed value to determine the real property tax that you need to pay for it every year.  The city or municipal council may set the assessed value or rate of real property tax to be concurred by the mayor.

The second government agency that determines the property's value is the BIR.  The BIR has several ways to determine the property's value (third party appraisal, assessed value by city or municipality, latest recorded buy & sell transaction within the area).  Among the 3 ways, the BIR will choose the highest valuation and then impose the capital gains tax on the property.

Finally, we have the market's valuation.  the price is determine by supply and demand.

Hmmm.. Since BIR would normally want to give a high price valuation for a property so that they can impose higher taxes, could that mean na nagdepreciate tlga ang market value ng condo ni TS by the time na nakuha nya ung CCT nya? Would that scenario be possible for a newly turned over pre-sold condo unit?
Lol.. napaisip ako bigla kse our unit's tentative turnover sched is this year. But in our case nag appreciate ung value nya. So I am dreading the taxes we have to pay for it. okay din pala sana kung mababa ung market value kse smaller ung tax na babayaran mo if you plan to live in it, kaso nakakalungkot naman un if you plan to sell the unit..
« Last Edit: Jun 26, 2014, 04:17 PM by Beannie »


DonT

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Reply #7 on: Jun 26, 2014, 05:14 PM
Some years ago, i read that the Condo value should be able to be rented out at 1% of its price... Is this still true?

For example, a 2M Condo should be able to be rented out at 20K per month..otherwise, its too expensive..


INDO

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Reply #8 on: Jun 26, 2014, 08:24 PM
Hello. I jst got my cct. I paid 3M tapos naka lagay sa assesment 558,170 lng market value.
Di ko po maintindihan pede po pa explain ng mga expert?

Buti ka pa nakuha mo na CCT mo, ako almost 2 years na under process pa rin daw sa BIR :(


Beannie

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Reply #9 on: Jun 27, 2014, 09:09 AM
Hello. I jst got my cct. I paid 3M tapos naka lagay sa assesment 558,170 lng market value.
Di ko po maintindihan pede po pa explain ng mga expert?

sir tanong ko lang po, new po ba ung unit nyo? or previously owned? Ang alam ko kse usually pag new unit, ung market demand ung mag gagovern na presyo sa market value. So dapat ung scenario pag binili nyo sya na preselling mas mura ang market value pa nya compared sa turnover market value nya. So dapat indi mas mababa ung gagamitin ni BIR. Pag naman ready for occupancy ung nabili nyong unit na first owned pa rin, eh ung prevailing market value ung gagamitin ni BIR. IMO mangyayari lang ung ganon kung ung isang condo has already reached the point in its lifespan na nagsimula na magdecline ung value nya. Ganon daw po ata sa condo, habang bago pa lng starting from construction to a certain time after its turnover paakyat yung value nya, then it would reach the point na since luma na sya and not as modern as the new ones anymore, the value movement would be downward na.
Kaya ko po tinatanong kung previously owned na kse baka naluma na ng husto ung unit nyo since the time na nabili nyo sya til the time na nakuha nyo ung CCT nyo. In that light din pala, gano katagal po before nakuha nyo ung cct from the time na you have fully paid your condo?


bauer

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Reply #10 on: Jun 27, 2014, 10:33 AM
Entities who wants the price to be higher - City Govt and BIR for higher Fees, 
 

In the case of BIR, it's true, the higher the market value --- the higher the tax assessment.

But in the case of local government (city or municipality) --- the market value is actually very low.  it is so low that it is unbelievable if you will compare it with market prices.  Since the assessed market value is very low, the owner of the property pays a low realty tax every year.  market value in the tax declaration are not usually use in determining real market value BUT it is use as reference to determine the realty tax to be paid.


bauer

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Reply #11 on: Jun 27, 2014, 10:36 AM
So how does the Buyer know how much to pay....

The buyer may hire a third party appraiser.  If the third party appraiser is an expert, the appraiser has a collection of data of market transactions within the vicinity of the property plus it is compared to the filings for capital gains taxes paid with the BIR within the area in focus.  Another option is to check the real property ads in newspapers and online selling sites but the prices reflects the SUPPLY side only, the DEMAND side was not reflected accurately.


bauer

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Reply #12 on: Jun 27, 2014, 10:38 AM
Buti ka pa nakuha mo na CCT mo, ako almost 2 years na under process pa rin daw sa BIR :(

This kind of excuse is untrue.  Why?  BIR imposes a heavy penalty if the buyer is late on reporting a property sale.  The buyer is only given 30 days to settle the tax, after that period, a big penalty is impose every month of delay.


bauer

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Reply #13 on: Jun 27, 2014, 10:41 AM
Some years ago, i read that the Condo value should be able to be rented out at 1% of its price... Is this still true?

For example, a 2M Condo should be able to be rented out at 20K per month..otherwise, its too expensive..

^This is a rule of thumb for real estate investors (not owners).  If you can't rent it out at 1% of the condo unit's cost, then you over paid for the property because some investors acceptable rate of return on their capital is 12% per year subject to further dilution due to maintenance expenses of the property.


DonT

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Reply #14 on: Jun 27, 2014, 10:56 AM
^thats good to hear na valid pa yan...kasi most of the buyers of condo properties are after the return on their investment di ba. I think very few do not really care if the rental of their prospective unit is below most people would expect as an investment.



 


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