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Commonly Used Terms TCP LA DP RS CS TCP Mo. Amort. RFO Non RFO Spotdp Spotcon RA Docs MCC

- Total Contract Price = house price+lot price+mcc+vat - Loanable Amount =80% of the TCP payable after DP - Down Payment= 20% of TCP payable in 12 months - Reservation sales= when buyer pays the resevation fee - Contracted Sales= upon payment of 15% of the - Monthly Amortization= breakdown of L.A. to be paid with interest after full downpayment - Ready for Occupancy - Not Ready for Occupancy - Spot down payment - Spot contracting - Reservation Agreement - Documents - Miscellaneous Fee


 Sales process  Buyer pre-qualification  Making an offer

1.Tripping 2.Financing and Computation  Marketing Briefing 1. Reservation procedures 2.Submission of documents 3.Filling up of forms


1. Get buyer’s profile a. age/ term b. civil status c. classification (SE,LE or OFW) 2. Get total income 3. Get Disposable income 4. Pre-qualify for bank and in-house financing=Monthly amortization should be equal or lower to the disposable income


Formula-current age+1 Example : LE Age 47+1=48 Max term 15 Max age 60 Term 60-48=12 The maximum loan term for the client is 12 years.


2. Age- Applicable loan term Bank Financing employment status

max term

maturity age

LE

20

60

SE

15

60

OFW

10

50

LE

10

60

SE

10

60

professional

10

60

non-professional

5

60

entertainer

5

30-40

able seaman

5

50

officer-seaman

10

50

domestic helpers

5

50

In-house Financing

OFW


1. Income Fixed (100%) - Basic Income, Cost of Living Allowance, P. E. R. A./ACA, Seniority Pay, Hazard Pay, FOT (seaman), Vacation Leave w/ Pay (seaman) Variable (0%) - Food & Transportation allowance, per dime, commission, profit sharing, housing allowance Annual (10%) - Annual bonus, 13th month pay, Christmas Bonus, Leave pay, Semiannual/quarterly bonus


3. Family size (Net Disposable Income Table)

Famil y Size

Income Range (in thousand pesos) 1015

2029

3039

4049

5069

7089

90119

120up

Single/2 24% 35% 35% 35% 40% 43% 46% 50% 20% 31% 32% 33% 37% 40% 43% 47% 3

4 5 6 & up

17% 26% 29% 31% 34% 37% 40% 44% NA

20% 25% 28% 31% 34% 37% 41%

NA

13% 19% 25% 28% 31% 34% 38%

Only applies to in-house financing


Fixed Factor for Bank Financing @ 14% TERM

Interest-14%

TERM

Interest-14%

5

0.023268251

9

0.016333701

6

0.020605739

10

0.015526644

7

0.018740012

15

0.013317414

8

0.017371501

20

0.012435208


Fixed Factor for Bank Financing 12 % TERM

Interest-12%

TERM

Interest-12%

5

0.022244448

9

0.015184233

6

0.019550193

10

0.014047095

7

0.017652733

15

0.012001681

8

0.016252841

20

0.011010861


Fixed Factor for In-house Financing TERM

Interest-19%

TERM

Interest-19%

1

0.092156578

6

0.023376723

2

0.050408617

7

0.021608019

3

0.03665602

8

0.020333865

4

0.029900118

9

0.019387083

5

0.025940551

10

0.018667236


Get disposable income Bank financing (20 years) Total income multiply by 30% 102,500.00 x 30% = 30,750 Monthly amortization= loan x Fixed Factor 2,016,000.00 x .012435208 = 25,069.38 *Disposable income is greater than MA, therefore buyer is qualified for bank financing Get disposable income In house financing (10 years) Total income multiply by 43% based on NDI 102,500.00 x 43% = 44,075.00 Monthly amortization= loan x Fixed Factor 2,016,000.00 x 0.018667236 = 37,633.00 *Disposable income is greater than MA, therefore buyer is qualified for inhouse financing


Financing Schemes Short Term Payment Financing: 1. 2.

Spot cash – TCP is payable within the same month at 0% interest Deferred Cash – TCP is payable in 24 mos. At 0% interest

Long Term Financing 1. In-house Financing – 80% or 70% of TCP is payable in 5 to 10 yrs with fixed interest rate of 19% respectively 2. Bank Financing – 80% or 70% is payable in 5 to 20 yrs with indicative interest rate of 12% or 14 % & subject to annual re pricing


Spot cash Computation: Discount Computation:

Multiplied by

Total Contract Price (TCP) Miscellaneous Fees 1.1 (if Net TCP>1M) Buyer’s Cash Promo (if there is any) Reservation Fee Discount Rate

Equals

Discount

Less Divided by Less

Balance Computation: Less Less Equals

Total Contract Price (TCP) Reservation Fee Buyer’s Cash Promo (if there is any) Discount* Balance (Amount due)


Spot cash Computation: Ex. TCP= 2,520,000 LA= 2,016,000 DP = 504,000 MCC= 85,000 NTCP= TCP-MCC Vat= if NTCP > 1M To get discount 2,520,000 (TCP) Less 85,000 (MCC) 2,435,000 (VAT) Divide 1.1 2,213,636.36 Less 20,000.00 (RF) 2,193,636.36 Multiply 12% (discount rate) 263,236.36 discount To get amount due 2,520,000 (TCP) 263,236.63 (discount) Less 20,000.00 (RF) 2,236.763.64 amount due


Computation for Deferred Cash A. No Down payment Mo. Amort.=TCP-Buyer’s Promo- Res Fee 24 months B. With Down payment Mo. Amort= Loan 18 months


STANDARD REQUIREMENTS Photocopy of Marriage Certificate / Birth Certificate 2 pcs. 2x2 pictures (applicant / spouse / co borrower) Community Tax Certificate Proof of Billing Address Postdated checks (for equity and amortization)


TRIPPING The tripping is the client’s confirmation of the exact location of the property. NOTE: This should only be done after the proper product presentation has already been made. •Always remember to bring an updated map and price list. •Make reservations at least two days before the actual date. •Make sure that the vehicle to be used is clean. •Be punctual. Do not make the client wait. •Be alert the whole time. Do not sleep while in the vehicle. •Point out the landmarks along the way. Emphasize the ongoing and future developments and local government plans (if any) in the area.


Developer’s Documents Major Documents (Proof of Income) Certificate of Employment & Compensation Income Tax Return, Mayor’s Permit & Registration Pay-slips, Proof of Remittance & Passbook (6mos.) Minor Documents: Identification Card, Passport, License Birth Certificate/Marriage Contract/Death Certificate Community Tax Certificate (current year) Proof of Billing I. D. Picture (2 pcs.)


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