Author: AB Agosto

A Juris Doctor and a Professor of Business & Economics at the University of San Carlos. Teaching finance, real estate management, and economics. He conducted lectures on valuation, environmetal planning and real estate in various places and occasions.

Notes on Real Property Taxation and Government Appraisal

On Capital Gains Tax, Documentary Stamp Tax, Estate Tax, Donor’s Tax, and how these taxes relate to land valuation

Capital gains tax is the ordinary tax if one is engaged in real estate, particularly in the transfer of title. In a nutshell, it is under the National Internal Revenue Code Provisions, Section 39, which deals with the Capital Gains from the Sale of Real Property. It states that notwithstanding, a final tax of six percent (6%) based on the gross selling price or current fair market value as determined under Section 6(E) of the Civil Code, whichever is higher, is at this moment imposed upon capital gains. This tax is presumed to be realized from the sale, exchange, or other disposition of real property in the Philippines, classified as capital assets, including pacto de retro sales and other forms of conditional sales, by individuals, including estates and trusts.

Continue reading “Notes on Real Property Taxation and Government Appraisal”

On the 4th State of the Nation Address

By: Augusto B. Agosto

State of the Nation Address or SONA is an annual event wherein the achievements, policies, and programs of the president are discussed. The last SONA is no different from the past. The President highlighted the campaign program on illegal drugs, and corruption and proposed a resolution by reinstating the death penalty.

President Duterte also highlighted the Manila Bay Rehabilitation, the creation of the Department of Water Resources, the tax reform package, the National Land Use Act, and the West Philippine Sea Dispute. Continue reading “On the 4th State of the Nation Address”

Where is the Philippines in the real estate cycle?

One of the concise definitions of the real estate cycle is offered by The Royal Institution of Chartered Surveyors in its 1994 publication on Understanding the Property Cycle: ‘‘Property cycles are recurrent but irregular fluctuations in the rate of all-property total return, which are also apparent in many other indicators of property activity, but with varying leads and lags against the all-property cycle.’’(Pyhrr, Roulac and Born, 2010). Continue reading “Where is the Philippines in the real estate cycle?”

Contemplating on “Thinking like an economist”

Think-Like-and-Economist-2After my travel abroad, I have to get back on track in academic life. I have to catch up with the course I am handling, especially Microeconomics.

Discussing with the students the idea of “thinking like an economist” is, in principle, a good one. Mankiw, the author of the reference book, opens their eyes and helps them to think of the world, in terms of scarcity, trade-offs, opportunity cost, and efficiency. Simplifying things, and even economic visualization, of complex issues, helps them to understand the role of the economist in society. Continue reading “Contemplating on “Thinking like an economist””

On Cordova “boom”

28503981_10204588831556297_1687168735_oCordova is a third class quiet and serene municipality. One can aptly notice the coastal ambiance of this place. They are known for bakasi, kinhason and saang.

Recently, Cordova has been in the headlines of local newspapers.  Some were quick in urging the investors in buying properties in anticipation of the Cordova-Cebu Bridge (as if the investors are just looking at the medium term in terms of land banking). Continue reading “On Cordova “boom””

Importance of macroeconomic analysis in real estate practice

When examining the real estate market, it is essential to have an understanding of the macroeconomic trends. The real estate industry is not self-contained. As a result, it is crucial for a real estate practitioner to understand the industry’s role, be aware of current affairs, and understand how macroeconomic factors influence the real estate market, including the overall supply and demand for properties as well as consumer expectations. Continue reading “Importance of macroeconomic analysis in real estate practice”