Star Properties, Inc., a member of the Star Group of companies, shall be holding a public auction of bank acquired assets entitled “The Star Auction 2009!” on November 21, 2009. Registration starts at 8:00AM and auction proper begins at 9:00AM. The public auction of Real and Other Properties Owned or Acquired or ROPOA’s will be held at Max’s Jupiter in Makati City, Philippines. According to the ad, the full list of bank acquired assets will be released on Wednesday,October 21, 2009. You guessed it, I am featuring the complete list which I got on the said date.
Instant knockout option is available
Similar to the Instant Knockout Option which we commonly see in public auctions conducted by Property Forum Philippines, the Knock Out Deal option allows interested parties to reserve a property before the auction by simply adding Php1.00 on top of the list price of a property. Nice!
Payment options for the properties for public auction
Aside from outright cash purchases, the bank acquired assets can also be purchased for only 10% down payment with the balance payable up to a maximum of 5 years, at 15% fixed interest rate. From a real estate investor’s point of view, I really don’t find the maximum payment term attractive because it is almost next to impossible to purchase a property and produce a positive cashflow, or at the very least become a self liquidating asset where the monthly rent can cover the monthly amortization with the available payment term.
To illustrate, let’s say a property with a minimum bid price of Php1M can fetch a rent of Php10,000/mo., what would be the net cashflow using the available payment terms for this auction? The down payment would 10% of Php1M which is Php100,000 with a balance of Php900,000. If the balance is to be paid in 5 years at an annual interest rate of 15%, the resulting monthly amortization would be Php21, 410.93. This results in a monthly cashflow of -11,410.93 (10,000 less 21,410.93 = -11,410.93). No real estate investor in the right frame of mind would invest in such a property.
I guess the only way for an investor to come out with a positive cashflow would be to seek other means of financing at more favorable terms. But then again, that’s just my opinion as an investor. Home buyers and those looking at buying their first homes and are not really interested in the cashflow a property may generate just might find bargains on this list. Just don’t bother reading my post on treating your first home as a real estate investment as it may change your minds.
Location, Location Location…
The complete list of foreclosed properties up for public auction includes a combination of residential, mixed-use, commercial, agricultural, and industrial lots and lots with improvements from the following locations:
Greater Metro Manila Area (GMMA)
- Caloocan
- Las Pinas
- Makati
- Mandaluyong
- Manila
- Marikina
- Muntinlupa
- Paranaque
- Pasay
- Pasig
- Pateros
- Quezon City
- Rizal
- San Juan
- Taguig
- Valenzuela
Luzon
- Albay
- Baguio
- Bataan
- Bulacan
- Cavite
- Isabela
- Laguna
- La Union
- Nueva Ecija
- Nueva Vizcaya
- Pampanga
- Pangasinan
- Quezon Province
- Quirino
- Tarlac
How to join the auction
To participate, show money of 10,000 cash or manager’s check per property payable to Star Asset Management ROPOAS, Inc. is required. By far this is the smallest show money requirement I have seen in recent public auctions of bank ROPOA’s.
Interested? Don’t forget to read the fine print…
All properties for sale are on an “as-is, where-is” basis. Titles of properties are either under the seller’s name or under various stages of consolidation in the Seller’s name. Interested parties are therefore advised to check the title, and the physical and legal condition of the property prior to the scheduled date of auction. Property details, prices, and terms are subject to change without prior notice. The Seller reserves the right to pull-out any property anytime. Changes in prices are subject to the sole discretion of the seller.
…. and do your due diligence!
Click here to download the complete list of acquired assets for public auction in The Star Auction 2009 which happens on November 21, 2009 or just click on the image below.
Source: Philippine Star, October 21, 2009 issue, page B3
Happy Hunting!
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To our financial freedom!
Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: https://www.foreclosurephilippines.com
Social Network: http://foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor [at] gmail [dot] com
Text by Jay Castillo. Copyright © 2009 All rights reserved.
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hi jay kindly update me prime properties in zamboanga city, thanks
hi jay,
do have any idea why the lots in rodeo countryside estate and rodeo hills so cheap? gusto ko kasi to own a lot in tagaytay or at least near tagaytay. baka may nakabisita na dito sa site or may nakakaalam why… ano kaya catch non? thanks jay and more power!
sa pagkakaalam ko po, iniwanan na kasi ng developer yun kaya sya murang mura, di pa po ata gaanong develop.and its malayo sa tagaytay,papasok pa po sya. pero i think its a good investment naman..just make sure na merong light and water connection
Hi Elizabeth, thanks for taking time to answer Johhny’s questions. Kung hindi masyadong developed yung property, dapat talaga i-check kung may facilities na yung area for water and electricity. If none, medyo magastos ang magpainstall ng facilities like this and they will definitely take time.
Hi Johnny, I really have no idea kasi I don’t focus on that area. Pero I believe nasagot na yung questions mo ni Elizabeth below. Thanks din Johnny!
thanks elizabeth and jay…
tama nga po si elizabeth. i’ve been to the place last week and it really looks like it was abandoned. sabi nga nung mga farmers na nakausap ko di na daw natuloy ang development. wala electricity pero meron daw water and yung road cemented. i think the place is good for farming which i am looking. may mga ilan houses dun parang vacation house nila. yung isa may mga alagang kambing pa…
pero mas maganda condition nung rodeo hills than sa rodeo countryside. tingnin ko lang kasi mas madami nakatira dun and after sya ng royal tagaytay.
Hi Jhonny, since mas marami nang nakatira dun then I can assume may electrical facilities na rin dun so mas okay dapat sa rodeo hills.
very nice! I always wanted to find something like this .
Thank you!
You’re welcome Alexis!
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Hi Jay, I’m a regular reader of your blog, since i attended the Think rich pinoy seminar i became very interested in foreclose properties, there are properties in this auction that i am very interested in. can you teach me how to compute for my monthly amortization?
Hi Joan, thanks! I’ll be coming up with a post specifically on how to compute for monthly amortizations. Please watch for it. Thanks again!