Jump to content

Should I Keep, or Sell my Apartment?


Recommended Posts

rep1

some of you probably have been in a similar situation and I need opinions here.

Long story short I moved far away and not planning to come back unless there is a nuclear fallout (which is possible now). A friend has been living in my apartment for no charge but help dealing with all the annoying tax and so on, and a few years later I'll need to decide whether to sell it or keep it.

  1. Selling would bring immediate cash but zero gain. Upfront cost would be needed to fly back and forth for contract. Benefits is not having to worry about anything later.
  2. Putting it for rental would be an option, except I don't want to come back dealing with anything like furnishing, tax or fees. Can the apartment management / agency be entrusted to do those? But what about upfront cost? Also there would be very little income given the tax rate in my residence country, but might be able to sell at better price like 10 years later.

Option 2 might also be good for having a backup home in case things go terribly wrong in future.

But for option 2 the maintenance of apartment could be a problem? I had not seen any real renovations in Philippine apartments that would cost a lot of money, but how could they be expected to last like 50 years? In some of apartments built in 70s where I currently live, big renovations could cost as much as the apartment itself!

  • Thanks 1
Link to post
Share on other sites
Davaoeno
Posted (edited)

By apartment do you mean condo?  What city is it in? How old is it?  If you rent it out can your friend manage it? If you sell it do you trust your friend to sell it for you with a SPA?  ( you don't legally need to be here to sell anything).

Edited by Davaoeno
  • Like 1
  • Thanks 1
Link to post
Share on other sites
Chris24
Posted (edited)

Even if you did find a way to rent it under some sort of stable circumstance such as with a property management company, do you really want to have an investment in the Philippines when you don't plan to return?  Or income in pesos?  I've seen that sort of income that generally passes through some sets of hands and tends to dwindle in the process due to events or surprise expenses that come up.  

You indicate the the reason for possibly keeping it would be that it "might" bring a better price ten years from now.   Based on that I'd would definitely just liquidate it now and put the money to work in your own country where you have more certaintly and far fewer headaches/potential pitfalls.

Edited by Chris24
  • Like 3
  • Thanks 1
Link to post
Share on other sites
rep1

Thanks. It's the tiny Solinea condo I posted before I left Cebu and it was just turned over. I'll need to make the decision 3 years from now.

In case of sale, how long would such a process take from signing to title transfer, assuming fund is ready? I trust my friend but if possible I'd rather fly here to confirm everything myself.

Link to post
Share on other sites
Davaoeno
19 hours ago, rep1 said:

Thanks. It's the tiny Solinea condo I posted before I left Cebu and it was just turned over. I'll need to make the decision 3 years from now.

In case of sale, how long would such a process take from signing to title transfer, assuming fund is ready? I trust my friend but if possible I'd rather fly here to confirm everything myself.

When I buy something I usually pay the same day I get the docs

  • Thanks 1
Link to post
Share on other sites
Chris24

Rep1, is your friend going to be the one buying it?  If not, and if you don't have a buyer already lined up, you're going to find that real estate in the Philippines, even condos, are generall very illiquid and are often on the market for many months or even years before a serious buyer comes along, even in a normal market.  Davaoeno has multiple firsthand experiences in this area and can confirm this. 

If you don't have a buyer lined up already, then your efforts would be well-spent getting a good, professional sales agent lined up.  If it were me I'd start the sales process now, hoping to sell it with a tenant in place.  It is not a good situation to be left holding a vacant condo with you out of the country. 

  • Thanks 2
Link to post
Share on other sites
Davaoeno
Posted (edited)
11 hours ago, Chris24 said:

Rep1, is your friend going to be the one buying it?  If not, and if you don't have a buyer already lined up, you're going to find that real estate in the Philippines, even condos, are generall very illiquid and are often on the market for many months or even years before a serious buyer comes along, even in a normal market.  Davaoeno has multiple firsthand experiences in this area and can confirm this. 

If you don't have a buyer lined up already, then your efforts would be well-spent getting a good, professional sales agent lined up.  If it were me I'd start the sales process now, hoping to sell it with a tenant in place.  It is not a good situation to be left holding a vacant condo with you out of the country. 

I have sold quite a few properties here. The first house took 4 years to sell.  The most recent townhouse took 4 years. 

As many here know I sold 2 condos in Winland. That took almost 2 years, even tho they were priced very cheap.  ( fortunately I stole them when I bought them so still made a good profit. )

 

  Cash is in short supply unless you sell to a foreigner. 

Edited by Davaoeno
  • Like 2
  • Thanks 1
Link to post
Share on other sites
Irenicus
13 minutes ago, Davaoeno said:

Cash is in short supply unless you sell to a foreigner. 

And in my limited experience here, wealthy Pinoys would rather buy land and build their own home then buy someone elses.  Or buy a nice house with land, demo the house and build a new one to their specs.

  • Like 1
  • Thanks 2
Link to post
Share on other sites
rep1
Posted (edited)
18 hours ago, Davaoeno said:

Cash is in short supply unless you sell to a foreigner. 

But who were the main buyers of presale condos? At least 70% of units in the building where my condo is located was sold out in pre-sale before I bought (in 3-4 years). OFWs? Do they generally pay in cash, mortgage or post-dated checks?

The condo is like a hotel room so it wouldn't really interest any families, but more like airbnb or expats without kids - I guess the latter is very uncommon.

Edited by rep1
Link to post
Share on other sites
A_Simple_Man
1 hour ago, rep1 said:

But who were the main buyers of presale condos?

Filipino investors who got a heckuva lot better price than you got.  There used to be a Filipino American living in Liloan who bought one or two.  He went by the real life name of "Don" and I am not sure if he is still active on the forum.  Its been a decade or so and I lost touch with him.

  • Like 1
  • Thanks 1
Link to post
Share on other sites
  • Administrator
Salty Dog
6 hours ago, A_Simple_Man said:

There used to be a Filipino American living in Liloan who bought one or two.  He went by the real life name of "Don" and I am not sure if he is still active on the forum.  Its been a decade or so and I lost touch with him.

He owned one across the hall from me at Calyx Centre in Cebu IT Park. He had a couple more nearby at La Guardia Flats. 

Don hasn't been on LinC in ages and I've lost contact with him...

  • Like 2
Link to post
Share on other sites
  • 2 weeks later...
smokey

I like the look of calyx in it park I lived in sentinel almost 1 year the older condo were bigger this one is 2 bedroom 4 bath about 120 sq meters but noisy with bar next door. And hoa was over 6.000 month why I have no idea I presently rent a studio for daughter in it park for 18 and it's tiny

Edited by smokey
  • Like 2
Link to post
Share on other sites
rep1
16 hours ago, smokey said:

I like the look of calyx in it park I lived in sentinel almost 1 year the older condo were bigger this one is 2 bedroom 4 bath about 120 sq meters but noisy with bar next door. And hoa was over 6.000 month why I have no idea I presently rent a studio for daughter in it park for 18 and it's tiny

One reason I want my own apartment is that proper soundproofing can be built: https://www.familyhandyman.com/project/how-to-soundproof-a-room/

as long as the condo is big enough and space can be sacrificed for more walls

Link to post
Share on other sites
A_Simple_Man
1 hour ago, rep1 said:

One reason I want my own apartment is that proper soundproofing can be built

I did that years ago when I wanted to put a rental unit in my basement.  It didn't work worth a shit.  Let us know if that works for you because maybe I did something wrong.

EDIT:  I can tell you what did work.  I found out by accident when I bought an old wooden house.  The walls were filled with sawdust instead of fiberglass.  The sawdust deadened the sound to a manageable level.  I never asked how fireproof it was.  Didn't want to know.

Edited by A_Simple_Man
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..

Capture.JPG

I Understand...