Ayala Land launches home financing plan for middle class

Property giant Ayala Land Inc. (ALI) will launch later this month a home financing program that will allow the public to buy homes offered by its subsidiaries Community Innovations and Avida at fixed interest rates for a 20-to 25-year payment period.

Rex Mendoza, senior vice president for ALI’s Corporate Sales and Marketing Services Group, said the program dubbed Homestarter Finance makes owning a home easy with interest rates fixed at five to less than 10 percent. The facility, he said, would be available exclusively to buyers of Community Innovations and Avida Land.

Among Community Innovations’ projects include Two Serendra, a low-density residential development that features clusters of low-to mid-rise condominium buildings and The Columns (a three-tower, 30-storey enclave located at the corner of Ayala Ave. and Sen. Gil Puyat Ave.).

On the other hand, Avida Land’s housing projects are located in Antipolo, Batangas, Quezon, Naga and San Fernando.

Three of the country’s biggest banks — Metropolitan Bank and Trust Co. (through its subsidiary Philippine Savings Bank), Banco de Oro, and Security Bank Corp. — are offering housing loans for 25 years fixed at 11 percent.

The property sector has been on a recovery mode for the past four years on the rising volume of property sales and rising land prices.

Homestarter Finance is an offshoot of the Homestarter Bond that was launched by the company last year to spur sales.

The Homestarter Bond allows prospective investors to save up for homes offered by ALI and its subsidiaries. The bonds, issued in tranches over 36 months, carry a guaranteed interest on principal amount at the rate of five percent per annum.

It is an investment tool that fasttracks prospective investors’ ownership of a prestigious and affordable property from the Ayala Group. For as low as P5,000 up to P25,000 a month for only three years, the Homestarter Bond will grow enough for a downpayment on a condominium unit or a home.

The program also provides a bonus credit of 10 percent on the total principal invested. This 10 percent bonus is added on to a client’s downpayment of the ALI property.

It is mainly targetted to benefit the middle income market, particularly those who avail of traditional bank products such as savings account or time deposit. Studies indicate that while many prospective buyers have the capacity to cover monthly payments for home loans, many find difficulty in raising the initial downpayment.

ALI, which builds upscale malls, high-rice offices and residential developments, continues to pursue growth opportunities including new products and projects in new geographic areas and markets.

Among ALI’s new projects that are expected to significantly augment its recurring revenue stream are the 200,000 square meter North Triangle Commercial Center which is slated for completion by mid-2007; the expansion of Market! Market!; the Anvaya Cove in Morong Bataan, a residential and beach resort community; and new residential subdivisions to cater to the middle-income market.

The company has also begun development of its first real estate venture in Sta. Cruz, Manila in partnership with the Manila Jockey Club Inc.