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POM - Case Analysis No. 1
POM - Case Analysis No. 1
POM - Case Analysis No. 1
TIME CONTEXT
Mr. Santos
To look for a site suitable for his business and at the same time place for his new
residence
IV. OBJECTIVES
Musts :
To find a residential house within two and half weeks’ time.
To move out from the congested Manila into suburb area.
The cost of the property is within Php 8, 000,000
The property is not less than 500 sqm.
Travel time is within 1 hour.
Wants :
They wanted elevated place.
A single storey house and a warehouse type building.
Find a property in a less populated area.
A property is not located in “tumbok” lot.
V. AREAS OF CONSIDERATION
Alternative 1 Alternative 2 Alternative 3
Key Factors Weight Rating Score Rating Score Rating Score
1. Budget Constraint – total budget for real property acquisition for residence and
plant site is
4. Travel Time – not more than one hour away from school and office.
VI. ALTERNATIVE COURSE OF ACTION
Property A
Key factors:
1. Property is available immediately.
2. Properly is well maintained and relatively quiet.
3. Resale value of property is very good.
Property B
2. Location – no data as to elevation of the place but seemed to be in the same level.
Key factors:
1. Property is on mortgage and will be available at least less than two weeks to come up
with a clean title.
2. Property location in terms of nearness to school and office is good and a little less than
30 minutes and 20 minutes’ travel time.
3. Steady appreciation of the asset with available buyers at time of disposal.
Property C
Key Factors:
1. Title is clean and transfer can be executed with 2 and a half weeks.
2. Property is called rolling hills subdivision due to its many hills and valleys.
3. No significant increase in land value for the past years but due to SM Group
undertaking, land appreciation is expected in the future.
VII. RECOMMENDATION
1. The three properties acquisition cost are all within the budget but it is only Property
A that offers an assured higher selling price if in case Mr. Santos had a sudden
change of plans in the future.
2. Mrs. Santos is very specific of wanting a property that is elevated and among the
three properties, Property A is slightly more elevated and is not “Tumbok” while the
other two properties are either in “Tumbok” or in the same level of elevation.
3. All properties are within the desired lot size which is 500 sqm and al promised higher
appreciation value but property A is readily available once the sale transaction takes
place.
4. The three properties are all subject for possible poor traffic situation in the future
but currently, Property A is well maintained and relatively quite aside as of the
moment which is best recommended for Santos family who wants to move out from
the congested area of Manila.
VIII. CONCLUSION
When choosing a property, the most important is location, since locating can bring up
value of the home or property, and other thing is that location once decided, a property
cannot be changed. Also, the future lies behind that location is an important
consideration. A good neighborhood can be changed through years, and some
neighborhood has a waiting opportunity that could positively changed after a year.
Always remember that location is the greatest consideration in real estates. Location A
offers an increase in value of property due to its closeness in public amenities and
progressive villages.