Profession
Realtors
New In Real Estate Technology : Build-To-Own (BTO)
New In Real Estate Technology : Build-To-Own (BTO) |
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| Written by Reginald Arizabal Tagavilla | |
| Friday, 19 May 2006 | |
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WHAT IS BUILD TO OWN? BUILD TO OWN is a construction industry initiated development led by G&W Architects, that build your homes at DIRECT COST by eliminating middleman developer’s non-project related add-on costs, while at the same time giving homeowners UNPRECEDENTED PROTECTION through the involvement of a trustee bank… THE NEW BUILD METHOD: Homeowners directly engage the services of a construction industry professional team who build their homes at DIRECT COST. THE OLD BUY METHOD: Homeowners buy from a middleman developer, who engages the same group of construction industry professionals to build and resell it back to the buyers with 40% higher price. Ensuring the BEST QUALITY and the FASTEST DELIVERY.
THE NEW BUILD METHOD: Professionals are bound by both the code of ethics and the legal responsibilities for the quality and safety of the building, his objective is to build a structure that he can take pride in while earning a reasonable compensation on the form of a standard fee. THE OLD BUY METHOD: The middleman developer’s corporation has only one objective, which is to earn as much money as possible for themselves and their stockholders. 3. PROTECTION AGAINS DIVERSION OF FUNDS THE NEW BUILD METHOD: Each unit owner employs a depository and disbursement bank with strict instructions that all funds will go directly to the project alone. THE OLD BUY METHOD: All payments are paid to the pocket of the middleman developer, with no accountability of where the money goes. Most often, it is used to pay previous debts, to fund another unfinished projects or worse, for personal extravagances that cause project failure.
THE NEW BUILD METHOD: The whole project is free of any debt and nothing is mortgaged. All assets acquired and on sire remain as the unit owner’s property throughout the construction period. THE OLD BUY METHOD: The project funds are raised through loans, using the land as mortgage. Unit buyers will get their units only if and when the middleman developer achieves their target profits, and pay all debts.
THE NEW BUILD METHOD: Payment deposited by the unit owner to the depository and disbursement bank will earn high yielding interest for the homeowner before the construction starts. THE OLD BUY METHOD: Without any construction expenditure for the first 3 years of pre-selling, the middleman developer collects payments from the units and takes all interest generated from those funds.
THE NEW BUILD METHOD: The 2 year delivery time frame allows the homeowner to immediately rent out or use their home, saving 3 years worth of rent paid to live elsewhere. THE OLD BUY METHOD: The homebuyers unit will be delivered 5-7 years from the date of purchase because of the 3 year delayed contract. Homebuyers will lose 3 years worth of rental income from the unit or incur rental expenditure to live elsewhere.
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| Last Updated ( Sunday, 04 June 2006 ) |
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