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Corporate Housing

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Corporate Housing

  1. 1. Providing employee housing benefit via employer / corporation
  2. 2.  If the aspiring homeowner could obtain institutional support for home acquisition, then his family would be in a better position to own their own home. • The best source for that institutional support would be his employer corporation. • And that employer corporation would – under existing laws and tax regulations – enjoy the deductibles that individual taxpayers cannot.
  3. 3.  Substitutes Corporate Credit for the individual credit each employee needs to muster in order to own a home. Lending corporate credit to employees under a 20-year Rent-to-Own plan would not impact the corporation’s core funds nor the core business in any detrimental way. • • • Individual Credit – a tedious and retail process in terms of evaluation, rating, granting, collection monitoring and enforcement Corporate Credit – when applied to housing, is simpler, safer, faster and does away with the dis-economies of managing retail credits  Taps the Capital Market/Corporate Bond Market for easier, lower cost, faster, more stable, globally-aligned fund sources, truly market-based and not subject to the whims of policymakers but participants are limited to a select corporate few  Combines construction finance (high cost, short term) and mortgage finance (long term, fixed or variable rate) into a unified financial system that is simpler and more cost-effective while Housing Finance, at the moment is dependent on Pag-ibig Fund and bank funds for construction and mortgage finance
  4. 4. We package the bond Subscription escrowed backed-up by the housing and released Corporation issues a Bond project, add in the in tranches from for Corp. Housing guarantees, and float the construction to turnover Bond of housing units Outsourced professional Employees move in under Corporation carries asset management for fund on books, enjoys the tax 20-yr Rent-to-Own. servicing, collection of Monthly payments deductibles for 20 years, rent-to-own payments, matched against Bond then transfers to and property servicing Employees at one peso management
  5. 5. The corporation gets to deduct from its tax returns: • Interest costs • Depreciation • CUSA Fees • Repairs and Maintenance • Taxes • Insurance without actually having spent a single peso in construction. The Corporate Housing System can be the most valuable employee benefit that an employer / corporation can provide.
  6. 6. Located in a prime location in Ortigas Center Number of units - 1,961 Average floor area – 30 sq.m. Units per floor - 53 Number of floors - 37 Rent-to-Own Price per employee @ P3,510,000 Term of Payment @ 20 years Average Rental per employee @ P35,732 per month Total Rent-to-Own Price / Corporate Bond Issue @P6,883,110,000
  7. 7. Located in a prime location in Ortigas Center Number of units - 1,961 Average floor area – 30 sq.m. Units per floor - 53 Number of floors - 37 Rent-to-Own Price per employee @ P3,510,000 Term of Payment @ 20 years Average Rental per employee @ P35,732 per month Total Rent-to-Own Price / Corporate Bond Issue @P6,883,110,000

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