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Lee

[Split Topic] Buying a Condo

96 posts in this topic

But seriously, I really can't understand how people can buy a condo in the PH at all.

 

For some of those of us married to a Flipina and who can afford it, it is an easy choice, instead of spending our money on rent, we build equity in a place for our wives to be able to call home now and should they wish to move back to the Philippines when we are gone, my wife does, it also gives us a place to stay and leave some of our personal items for vacations, so as to not have to carry them back and forth.

 

We own ours since 2007, so going on 10 years now, what I saved in rents and convenience has more than paid for the units and I had been offered double what we paid for them, will that be the case 10 years down the road if someone buys now, it is anyone's guess but in 2007, I was on this very forum basically being told the same thing you are trying to tell others, do you have a crystal ball, I don't, but so far in my 68 years of life, I have never lost money in real estate and in fact have made a lot of money owning rather than renting and many of those who were nay sayers are still renting, IMO basically flushing their money down the toilet all these years.

 

Conversely to ownership is what a person could do with the money to earn more money but in my case I have always lost my shirt in the market and always made money in real estate, so in my case it was a no-brainer for us, ymmv. 

 

Also for those of you who may not know, I have found that most Filipina feel much happier when they know they will have a place to live forever should they wish to, stability is important part of their life and from what I have seen, it makes for a much better marriage too, happy wife happy life.

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overpriced? You haven't visited HK, TW or SK. Our new condos are such nobody before 80 or earn 6 digits salary in dollars could afford, and they don't have small units like 60 or 80sqm (= the larger ones here). 30 million pesos for a 30 years old, structurally unsafe with leaking and gray surface due to lack of cleaning, is, in fact very common.

You could go on with all the complaints, but I doubt there are many more viable ones in East and SE asia in terms of initial cost, maintenance, tax and location.

Well, I'm very familiar with any major city in SE Asia and actually at least once a month in one you mentioned.

 

First, the subject was buying a condo in The Philippines. Comparing it with City States like Hong Kong, Singapore or Macau etc. is comparing apples with pears. If one hasn't the financial back round to afford live there, then he's simply at the wrong place.

 

A 30 million peso condo in HK (like anywhere else) leaks after 30 years if not properly maintained, the condo here leaks already before moving in.

 

Second, value for money regarding investment. While you still get at least your money back for your leaking condo in HK because demand is still far above supply.

 

Check out prices here for pre - owned units, in most cases you lose a significant amount if you can sell it at all. Simply because demand is still lower than supply. Except you bought one of the gems (corner units, view, upper floors et.), there could be some potential if you find a cash buyer. Otherwise it will be difficult to find a mortgage from any Bank, because all developer are owned by Banks (directly or indirectly). If the potential (local) buyer applies for a mortgage, they will quickly pitch him on a new project or offer a unit out of there own stock from liquidations.

 

Affordable initial costs, maintenance are worth nothing if you buy in a bubble. If its all about living as cheap as possible, then better lease something. Except, the Peso loses another 15-20%+ to the major currencies.

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For some of those of us married to a Flipina and who can afford it, it is an easy choice, instead of spending our money on rent, we build equity in a place for our wives to be able to call home now and should they wish to move back to the Philippines when we are gone, my wife does, it also gives us a place to stay and leave some of our personal items for vacations, so as to not have to carry them back and forth.

 

We own ours since 2007, so going on 10 years now, what I saved in rents and convenience has more than paid for the units and I had been offered double what we paid for them, will that be the case 10 years down the road if someone buys now, it is anyone's guess but in 2007, I was on this very forum basically being told the same thing you are trying to tell others, do you have a crystal ball, I don't, but so far in my 68 years of life, I have never lost money in real estate and in fact have made a lot of money owning rather than renting and many of those who were nay sayers are still renting, IMO basically flushing their money down the toilet all these years.

 

Conversely to ownership is what a person could do with the money to earn more money but in my case I have always lost my shirt in the market and always made money in real estate, so in my case it was a no-brainer for us, ymmv. 

 

Also for those of you who may not know, I have found that most Filipina feel much happier when they know they will have a place to live forever should they wish to, stability is important part of their life and from what I have seen, it makes for a much better marriage too, happy wife happy life.

Hold on, having bought 10 years ago is a complete different story. Though the motives are the same. You obviously had the right nose when and where to buy or sell, as I had. No crystal ball, but common sense. I could smell the bubble bursting in the US and Spain and got out well in time.

Back then, many of my friends in Spain indeed though the hype would go on forever. Well, quite some of them now own places who are actually impossible to sell if they won't lose up to 70-80% of there initial investment.

 

Would you buy now in this bubble, at this price level? But not only the price, the quality was better 10 years ago as well. Now anybody is jumping on the train and fast, that makes quality suffer. Quality of the structure but location as well, they are building on locations who are rather suitable for a marina than a residential development.

 

And as you quoted me, why buying a CONDO at all. Get a nice piece of land and build your dream. No drunken Koreans around, not to mention people who only know to close a door with a bang.

I have to admit, building a house requires being present. But as the initial post suggested, obviously it doesn't make any difference of buying a condo.

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Would you buy now in this bubble, at this price level?

Yes, for the same reasons we bought before, owning instead of renting, and should I lose money should I decide to sell, then it would once again be for owning instead of renting, so I would consider it the cost of convenience.

 

One thing I have learned in life is that everything will sell if the price is right, thus if prices do not go up, then listing a unit for sale below what others are selling for and of course having a good unit to sell, makes it easier to sell. When we bought our condo units, I purposely picked two because I wanted to 2/2 and I wanted 2 exit/entry doors and there were no 2/2's and no units with 2 doors, so I made one, then I also made sure it was not near the garbage chutes, that it was at the end of the hallway where there would be few people passing, that it had no windows in the hallway for security  and less noise, so I could keep the windows open if we wanted to, I picked units that were facing water so we had a good view and a nice breeze and no one will build in front of us, I picked units not hit by direct sun for more than a couple hours a day, in other words I put some thought into what we bought instead of just buying anything, thus when and if it comes time to sell, then someone would have a reason to buy our units over others, thus if and when we would want to buy another condo unit, then I would do the same. Condo units may be a dime a dozen but not all would have all the thought we put into ours.   

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People have been calling for a 50% price cut on condos for years here. They probably will double in price, from that prediction, then drop 50%!

 

3rd world it all is a risk, condos are not automatically better or worse then any other decision. Every scenario has a potential screwing attatched to it.

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Would you buy now in this bubble, at this price level?

 

 

Absolutely. I bought a unit in the pre-sell phase in 2016, still under construction. Cebu is in the early stages of an economic boom, prices are going nowhere but up. If one wants a condo, the time to buy is soon. In just a few years you'll be paying a lot more.

 

 

But not only the price, the quality was better 10 years ago as well.

 

 

Your opinion. Can you provide hard, verifiable evidence for your claim - or is it just a "feeling"?

 

 

Now anybody is jumping on the train and fast, that makes quality suffer.

 

 

Use common sense and choose an experienced, proven developer. Extensive research prior to purchase works wonders.

 

 

Quality of the structure but location as well, they are building on locations who are rather suitable for a marina than a residential development.

 

 

Sounds like opinion again. Houses can be located in lousy areas also. I've seen expensive single family homes built in subdivisions - problems included foundations shifting, flooding, roads crumbling, etcetera etcetera.

 

 

And as you quoted me, why buying a CONDO at all.

 

 

Different strokes for different folks. What's best for you might not be best for me, and vice versa. Condos are a superb choice for expats who have no intention of living in the Philippines year around, which would include myself.

 

You can't leave a house in the Philippines unattended for significant periods of time, so if you're not there year around, you're going to need a caretaker. That will involve a substantial extra monthly expense, because they don't work for free. Finding a competent, trustworthy one that's going to do the necessary work in a timely manner, as well as not steal from you and not use your place for a booze/drug party venue, and not allow his family and friends to stay there without your knowledge, etcetera - is far easier said than done.

 

With a condo, you just turn off the power and water, then lock it and leave it. No caretaker required.

 

 

Get a nice piece of land and build your dream.

 

 

Foreigners can't own land in the Philippines. The title is usually in the name of a wife or significant other - if and when the relationship goes sour, which is often, you might lose everything. So your dream house has a good chance of becoming a nightmare. Whereas foreigners can own condos entirely and exclusively in their own name, nobody else needed.

 

You don't like condos? Good, don't buy one. They're not the best choice for everybody, but they are the best choice for many, including myself.

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Another thing I have found about buying down the road, besides them costing more per sq meter, is that they keep getting smaller. Builders want to keep the prices down to where more people can afford to buy, thus they make the units smaller and smaller, as time goes on, pretty soon units will be the size of a closet, many are already the size of a small pension house room, 

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Another thing I have found about buying down the road, besides them costing more per sq meter, is that they keep getting smaller. Builders want to keep the prices down to where more people can afford to buy, thus they make the units smaller and smaller, as time goes on, pretty soon units will be the size of a closet, many are already the size of a small pension house room, 

 

I've seen studios as small as 14 square meters (sqm) in Cebu, but the average is usually somewhere around 20 sqm.

 

Big condos will always be available, but in a few more years the prices will probably be a bit too steep for a lot of typical retired middle class expat buyers.

 

I bought a 30 sqm, 1 BR budget condo during the pre-sell phase. I've seen prices on units in a lot of buildings go up by half or even more after the pre-sell phase, plus I got a choice corner unit near the top of the high-rise by purchasing early.

 

I'm never in the Philippines for more than a couple months or so a year, if that much, so I saw no reason to buy a bigger one. To each his own on size, there's no right or wrong.

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Anybody wanting to buy a condo better not wait much longer - prices are rising fast:

 

 

The recently approved vertical socialized housing as well as the increase in price and loan ceiling for economy housing may further drive the boom in the residential sector, which saw a 148-percent growth in the number of condominium units sold in the last four years.

 

In terms of residential stock, the market now has approximately 22,284 condominium units while it only had about 9,026 in 2013. Furthermore, an average of 5,000 units will be delivered in the next couple of years.

 

On take up, the average is 5,000 units per year, which is to say that the projected increase may be comfortably absorbed by the market. Stable increase in prices also showed the sector’s soundness.

 

The average selling price in 2013 was around P84,000 per sq. m.; P90,000 per sq. m. in 2014; and in 2015, at P95,000 per sq. m. At present, the estimated average selling price is at P99,000 per sq. m., a growth of 18 percent from the 2013 level.

 

 

 

 

 

.

Edited by Kabisay-an gid

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I did previously mention the affordability issue with City condos, but was told I was talking rubbish.

 

Fair enough. Opinions are simply opinions. But I honestly don't see a bubble, what I see is a rising market due to supply and demand.

 

Those people waiting for a collapse in condo prices - Good luck with that. I heard the same thing 10 years ago in Bangkok. It still hasn't happened there either.

 

Having a condo works for me. I was offered a 20% profit on my unit at handover, but who really knows what a unit is worth until you test the market. Location is vital, as Cities get more and more unfriendly as far as traffic goes.

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