REAL ESTATE STORY
Mr. Sales is a businessman engaged in the advertising business. In the late 90s, he had a tie-up with a foreign partner and formed a legitimate advertising partnership. For their partnership, Mr. Sales purchased an office condominium in a prime office building somewhere in Metro Manila. A bank financed the purchase; the partnership would pay a monthly amortization. The purchase was exclusively for the partnership. Mr. Sales also maintained another office space in another place the he was rented.
In the late 90s there were many crises the country faced, so after a few years of operation the foreign partner withdrew and left the country. Mr. Sales was left to pay for the amortization of the office unit. He defaulted so many times on his obligation that the load had to be restructured a number of times. Fortunately, Mr. Sales was able to lease his unit to a Korean firm for Php200,000 a month. The lease expired on 2002, and Mr. Sales was given a restructured load, only for one year. If he defaults again, the property will be foreclosed.
REAL ESTATE TIP
Be more conservative in your approach to buying a property. Anything can happen in the economic condition that you may not be able to control. Unfortunately, Mr. Sales is in the business of image making, so he has really no choice but to purchase the best unit he can find.
