FAQ

Kiener Hills Management and Revenues

  1. If I buy a Cebu condo from Kiener Hills, how do I achieve the 6% guaranteed return in SDR’s Cebu guaranteed income generating property program?
  2. How about if I choose SDR’s 60% Serviced Apartment Management Deal? How does that work?
  3. When will I receive my rental returns and statement?
  4. Who makes sure my apartment is maintained? Who pays for any repairs?

Purchasing a Kiener Hills Apartment

  1. Once I have fully paid for my new Cebu apartment, how long before I receive the Deed of Absolute Sale (DOAS) and my Condominium Certificate of Title (CCT) from the Registry of Deeds?
  2. I have fully paid for my apartment. How long before I receive rental income? When will I receive rental returns if I opted for the in-house finance?
  3. When can I expect delivery of my new apartment? What is the contractual arrangement?
  4. What if SDR is late in delivering my new or existing unit, what is the amount of the penalty?
  5. What are the features of an SDR apartment?
  6. How can I be assured of security for my apartment payments?

Kiener Hills Condominiums Location

  1. How far are the apartments from the Mactan-Cebu International Airport?
  2. How far are apartments from restaurants, beaches, golf courses, tennis courts, malls, supermarkets, etc.?
  3. What other facilities are near the apartments?
  4. How far is MEPZ Speci oral Economic Zone?

Answers to FAQs

 

Q. If I buy a Cebu condo from Kiener Hills, how do I achieve the *6% guaranteed return In SDR’s Cebu guaranteed income generating property program.

A. If you have purchased in Buildings B or E and wish to have guaranteed return option, you simply choose the “Guaranteed 6% Return Management Option,” when purchasing your unit, which provides you a guaranteed gross return of 6% per year (guaranteed for 5 years) of your purchase price. Thus, if you purchase your Cebu apartment for US$62,985, you will receive US$314.25 per month paid quarterly in arrears.

Note:

  1. Average return per apartment is before applicable taxes and borrowing cost.
  2. Yield % (i.e. average return per Apartment/Investment) is based upon investment price.
  3. Cost of condo corp. fees, a/c maintenance, Internet, cable TV, and telephone basic rental charges (total less than Php 5,000 per month as of April 2015) are payable by the apartment owner.
  4. Cost of replacement or repairs of equipment or upgrade of apartment is deducted from the owner’s account.
  5. Rental terms are subject to standard SDR Terms and Conditions.
  6. Guarantee is only applicable for units fitted out to SDR standards in buildings B & E
  7. 6% only applies to units purchased from SDR over the value of US$40,000 with SDR’s standard furniture package.
  8. SDR reserves the right to approve or deny any deal.

This plan is perfect for conservative investors who want a safe and secure return on their Cebu real estate investment.

 

Q. How about if I choose SDR’s 60% Serviced Apartment Management Deal? How does that work?

A. If the net apartment income for an apartment is, for example, US$699 for the month, you shall receive a 60% share of this revenue or US$420 for that particular month. Take note that the average annual yield is at 10.08% for this option (Based over a 5 year period).

This option is very attractive considering that SDR Serviced Apartments has one of the highest occupancy levels in Cebu with SDR’s year-round occupancy averaging 80%+ since our inception over 6 years ago. The only costs owners pay are the monthly condo fees, cable TV, phone (basic charge only), and Internet fees (total about Php 5,000 per month).

For current SDR rental rates, please visit SDR Mactan Apartments Inc.’s website.

Note:

  1. Net room revenue is after GST, travel agent, and credit card commissions.
  2. The above figures are for illustration purposes only.
  3. The 60% return is determined by reference to net room revenue only.
  4. Average return per apartment is before applicable taxes and borrowing cost.
  5. Yield % (i.e. average return per Apartment/Investment) is based upon investment price of US$59,900.
  6. Cost of condo corp. fees, a/c maintenance, Internet, cable TV, and telephone basic charges (totaling around Php 5,000 per month as of April  2015) are payable by the owner.
  7. Cost of replacement or repairs of equipment or upgrade of apartment is deducted from the owner’s account.
  8. Rental terms subject to standard SDR Terms and Conditions.

 

Q. When will I receive my rental returns and statement?

A. You will receive payment from SDR on a quarterly basis (in arrears) along with a statement via e-mail (sent in March, June, September, and December) within 21 days of the quarter-month’s end. For example, your September Quarterly statement will be e-mailed to you by October 21st. Payment will be transferred to your nominated bank account on the same date.

 

Q. Who makes sure my apartment is maintained? Who pays for any repairs?

A. One of the great aspects of a professionally managed property is that you, as the investor, can relax knowing that your assets are always being kept in optimum conditions. Any cost for repairs or improvements will be billed by SDR to the investor’s Personal Account (PA), and all original receipts will be kept for 12 months for the owner’s records.

 

Q. Once I have fully paid for my new Cebu apartment, how long before I receive the Deed of Absolute Sale (DOAS) and my Condominium Certificate of Title (CCT) from the Registry of Deeds?

A. After full payment is received for your apartment, you will be immediately issued with a Deed of Absolute Sale (DOAS). This legal document completes the seller’s responsibilities as the apartment is now irrevocably yours. You or your attorney can now use this legal document to process your Condominium Certificate of Title (CCT) with the Registry of Deeds. The CCT is issued within 120 days of filing with the local Registry of Deeds.

 

Q. I have fully paid for my apartment. How long before I receive rental income? When will I receive rental returns if I opted for the in-house finance?

A. Once your SDR apartment is fully paid, it will take us (90) ninety days to improve and furnish your new unit to the SDR specifications. Upon completion, it is immediately placed into the SDR Rental Management Program. Your rental returns begin to accrue from the first day of the following month.

For the 6% Guaranteed Rental Option, your guaranteed returns will be calculated from the moment your unit has been improved — which is (90) ninety days from your payment of the improvement contract.

Thus, if you made your Improvement Contract Payment on September 1, your first rental income will be calculated from December 1.

If you purchased your Cebu apartment via in-house financing, you will begin to receive rental returns once you have paid your total repayments. The rental payment will be calculated from the first day of the following month. Thus, if you reached 100% of the total repayments on July 7, the Rental Agreement will begin on August 1.

 

Q. When can I expect delivery of my new or existing apartment? What is the contractual arrangement?

A. For cash purchases, the Cebu apartment will be fully furnished and ready for occupancy or inclusion into the SDR Rental Program within (90) ninety days after providing final proof of payment for your Improvement Contract from your bank.

If you are purchasing an existing unit, the rental agreement will take effect immediately your apartment has been paid in full.

The contracts are:

  1. Sale and Purchase Agreement
  2. Improvement Agreement
  3. SDR Rental Management Agreement

If you purchased a studio for cash, your total purchase price would be US$62,895 less 10% discount for cash payment. Your net price would be US$56,605 less US$7,000 for the improvement contract. Therefore the cost of the property is US$49,605. Once this is paid, you will immediately be issued with a Deed of Absolute Sale (DOAS), and the unit is now irrevocably yours.

In addition, you have to pay US$7,000 under the Improvement Contract. Once the funds are received, we will begin the improvement of your new unit and the furnishing. Apartment improvements are to be completed within (90) days from the date of payment, after such time the apartment is ready for occupancy or rental.

If we are late in delivering your Cebu apartment’s improvement work, you will still be provided with rental income. This will be calculated pro-rata based on the 6% per annum return, until the unit is handed over. e.g. If we are one month late, you would receive .5% of the purchase price back.

If you purchase a Cebu apartment from us utilizing the in-house financing terms, your apartment will be ready for occupancy or inclusion into the SDR rental operation once you have fully paid for the apartment. At that point, you will begin receiving 60% of all room net income or the guaranteed 6% per annum return.

 

Q. If SDR is late in delivering my unit, what is the amount of the penalty?

A. If we say you will have your unit by December 1 and you have made all agreed payments, we will pay your monthly rental return (pro-rata) if we cannot deliver the unit on time. The pro-rated returns is based on the 6% per year return, which is based on the unit’s purchase price. At SDR, we deliver returns not excuses, so you are never penalized, only rewarded with what we promise.

To illustrate: For every month of late delivery, SDR will pay you US$283 per month (less monthly mandatory charges, see Terms and Conditions) until your apartment is delivered.

 

Q. What are the features of an SDR apartment?

A. Since each SDR apartment is essentially an investment vehicle in a prime location, we build each one for maximum income generation. Each apartment is efficient, durable, and easily maintained. Our insight comes from two years of delivering superior results to our current investors.

  • Flooring

    SDR has a policy of NOT using laminates for doors or wood veneer for flooring. You will only have solid doors and imported tiles throughout the entire living and bathroom ground floor areas; these tiles will outlast any imitations and do not need replacing until many years down the road. Wood lamination installed on concrete at the ground floor is prone to lifting (due to water spillage, heat sources, etc.). Unless it is installed on the upper first floor and treated, wood lamination is subject to problems with ants and termites. We will gladly show you examples of our high-quality flooring onsite.

  • Furniture

    SDR also ensures that all coffee tables and side tables are made of solid wood. Each piece is lacquered and not simply painted. This ensures long life and protects the paint from cracking, scratching, or being marked. Our bedside tables and queen size beds have integrated drawers, which add extra touch of class and practicality.

    SDR provides a solid custom-made 195 cm (internal usage area) sofa that doubles as a comfortable single bed.

    SDR apartments also feature built-in custom-made wardrobes that are solid, robust, and built to handle lots of heavy luggage or hanging clothes. There is a built-in luggage and shoe rack. Interior and exterior of SDR closets are painted and lacquered to ensure uniformity and completeness of finish.

  • Communication and Ancillary Equipment

    All SDR apartments are high-speed Cable Internet-ready so our guests or owners can simply plug and play. Provisions are also made for telecommunications and cable TV.

  • White Goods and Appliances

    All SDR apartments feature full-sized refrigerators as experience tells us that mini bars are simply NOT what our long-staying guests want.

    Our hot water services (HWS) are all storage type systems and long lasting, and NOT the cheap and unreliable electric “instant” ones many developers use. We don’t skimp on air-conditioners either. Our rooms feature two of the world’s leaders in air-conditioning units—National Panasonic and Carrier—with the “inverter” power-saving models. While quality costs substantially more than inferior brands, the upside is fewer complaints due to noise or breakdowns. SDR’s choice in air-conditioners, refrigerators etc. means less maintenance and more investor returns.

  • Curtains

    All SDR apartments also boast quality curtains. This provides occupants a peaceful sleep no matter what time of day or night.

  • Surface Finishing

    All SDR apartments use real cabinet doors and a combination of paint and tiles depending on the surface. SDR does not use fancy wood veneer sticky-back laminates to line cheap bathroom doors, kitchen walls, etc.

    Experience showed us that whilst sticky fake veneers (used to cover cheap doors, line cheap wooden cupboards and inferior surfaces by shrewd penny-pinching developers) may look good initially, they are simply an ugly and expensive burden on investors once they bubble and need replacing. Worse still are those fake veneer-floorings. Tropical weather brings ants, termites, and water seepage; such floors will delaminate and deteriorate under these conditions. SDR will NOT use these cheap alternatives. Instead, we opt for quality tiles on all ground floor surfaces, thus creating a long-term quality solution and more returns to SDR investors.

 

Q. How can I be assured of security for my apartment payments?

A. Unless requested by the buyer, SDR does not accept cash payments for any cash purchases into any SDR corporate operating account. Your payments go directly to the trust account of SDR’s attorney in Cebu. Once you have completed your payments, you will receive a Deed of Absolute Sale (DOAS). Your new Cebu apartment is now officially yours and be titled to your name via the Registry of Deeds.

If you purchase via the in-house financing option, SDR will receive your repayments directly into our corporate bank account or our nominated account.

 

Q. How far are the apartments from the Mactan-Cebu International Airport?

A. Frequent travelers will struggle for a better location with the airport less than 3 minutes away by car from SDR apartments. No traffic issues!

 

Q. How far are apartments from restaurants, beaches, golf courses, tennis courts, malls, supermarkets, etc.?

A. Marina Mall—which has a vast selection of quality dining options, a supermarket, banks, Starbucks, and cafes—is only 2 minutes away by car and a leisurely five-minute walk from SDR apartments.

The world-famous beaches and dive sites of Mactan Island are just 10 minutes away from SDR apartments. Mactan Coral Golf Club is just 5 minutes by car, while tennis and badminton courts are also just 5 minutes away.

 

Q. What other facilities are near the apartments?

A. The Cebu Yacht Club is 2 minutes by car. The Cebu Yacht Club has a number of dining options and a well stocked bar. Overlooking the beautiful ocean, yachts and mountains of Cebu. The yacht club is a great place to unwind. A great place to view Cebu’s famous sunsets. The Yacht club will feature a number of exciting new restaurants to complement the existing establishment over the next few months.

 

Q. How far is MEPZ Special Economic Zone?

A. The thriving MEPZ special economic zone is only 2 minutes away by car, thus making SDR apartments a perfect location for a multitude of expatriate executives of these companies and their visiting guests.

If you want to check the availability of certain apartments, view our Available Units page. Rates and payment options are found in our Price and Payment Options page. Also check out our Floor Plans, Photos, and Videos. Our apartment’s detailed specifications are here.

To know more about this Cebu real estate property, e-mail manager@sdrapartments.com or you may also call us at these numbers: +63-32-238 3929 (landline), +63-917-30-8181-7 (mobile), or +852-8125-7277 (mobile).

FAQ was last modified: March 20th, 2017 by Kiener Hills