Ayala HomeStarter Bonds

[badkuk]

hope i'm posting this on the right forum...


The news articles are sparse on details. The only thing i'm clear about is that upon maturity, the bond can be used as a downpayment for some of their residential projects.

What is the annual rate, if any?

Just exactly what is the advantage of investing in this compared to other bonds/investments?


Is it just a matter of being able to reserve the residential unit, or is there some sort of discount?


Is it transferrable? How is it traded?

tia

[uls]

http://www.businessmirror.com.ph/hom...4-million.html

The property developer first introduced the Homestarter Bond in February 2006, which enabled customers to build up funds for down payment covering homes offered by the company and its subsidiaries.

ALI issued Homestarter Bonds for customers interested to invest P5,000 to P25,000 a month for three years.

The funds built under the program will earn a noncompounding interest of 5 percent a year, payable at the end of three years.

And since the bond is mainly aimed at prompting customers to save up for their ALI dream house, the company will provide a bonus credit of 10 percent of the total principal invested.

This bonus credit will be added on to the client’s down payment.

At the end of the three-year period, clients can choose among the residential and condominium projects of ALI and its subsidiaries.

[tidus1203]

Disadvantage is mababa ang yield compared to other commercial bonds (SM, PLDT, San Miguel etc.). If you intend to buy an Ayala property and saving up for it it might be ok since mas convinient pero as an investment vehicle there are better options with similar risks but higher returns.

[badkuk]

ouch. 5%? me withholding tax pa kaya to?