So, the full effect of train law in real estate is finally here. It actually took effect last Jan 1, 2018 but dinahandahan ito with regards to Real Estate Transactions and VAT. And finally, 3 years after its implementation, beginning Jan 1, 2021 ay full effect nito.
The Tax Reform for Acceleration and Inclusion (TRAIN) Act is the initial package of the Comprehensive Tax Reform Program (CTRP) aimed to generate revenue to achieve the 2020 and 2040 vision of the Duterte administration, namely, to eradicate extreme poverty, to create inclusive institutions that will offer equal opportunities to all, and to achieve higher income country status.
1. Simula January 1, 2021, residential lots will no longer be qualified for VAT exemption. Before train, vat exception was set at Php1,919,500. Lahat na ng pagbebenta nang lupa ay may buwis na. This means that all lots for sale, no matter the price will have an additional 12% VAT.
2. Lahat na pinapaupahan na residential unit na may monthly rental lampas P15,000 ay kasali na rin. Example, ung residential units that was leased last year for 20k will now have an additional 12% tax or 2,400, making it 22,400.
3. For residential dwellings like house and lots and condominiums, the VAT exception of properties less than Php 3,199,200 is now lowered to Php2,000,000. Ibig sabihin if may nagustuhan ka na condo last year with a price of 2.5m but pinili mong maghintay dahil naubos ung pero mo ka ka add to cart sa 11/11 at 12/12 sale ng Lazada at Shoppee, beginning Jan 1, ang new price nito ay 2.8m na or an increase of 300k dahil sa train law.
But we will not stop there. Dahil I will give you 9 diskarte tips para maka move on kana sa effect ng train law.
Diskarte tip #1. Magbayad ng mas malaking downpayment.
Diskarte tip #2. Maghanap ng accredited banks na nag o-ofer ng pinakamamabang interest rate especially if you are looking for longer loan terms.
Diskarte tip #3. Huwag mahiya at always mag tanong if there are promos and discounts from developers.
Diskarte tip #4. Check the layout of the house and pag may hindi nagustuhan, you ask if the developer is flexible for modification at no additional cost.
Diskarte tip #5. Make sure you invest from a reputable developer.
Diskarte tip #6. Buy newly launched preselling projects.
Diskarte tip #7. Check for your own financial capacity.
Diskarte tip #8. If nag alangan ka sa current financial standing mo, either you save up or you increase your income stream.
Diskarte tip #9. If you are investing for rental purposes, choose projects in a prime location that are ready when your unit is turned over.
So, there you have it. And I hope you learn something new. Once again this is George Ryan Sarmago, a PRC accredited and DHSUD registered salesperson, thank you for watching, stay safe, stay at home and peace.