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Property 'bubble' In Cebu - Your Views Please!


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For Real

i bet if i could sell my house with 10% and 30 years to pay there would be a line to buy it...

And what is the point of your bet? There probably would be fatalistic buyers lining up but there is not a financial institution anywhere in the world that is going to finance this dream during the time your's and my ass points to the ground.

You are a big boy, you know in your heart what you invested could have been done better but you have the grace not to need to sell the property...i hope it stays that way.

 

You have taken many a shot at members posting dodgy investments, please tell me how your property advise (in the Philippines - not Arizona- you are doing well there) is anything better than what you have taken David to task over. It might be a good time to stop pretending you are in the Cebu market

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It's not that the market is immune to forces. It's that filipinos are immune to logic.

You are communicating in the wrong place. You should be going into pubs all over the island with a shirt that details your proud investments, then you will are talk to folks that live or visit there a

what i invested was found money ,,, i made a lot of money in a short time with little effort so i spent it sure i could of cut here and downsized there but i did not i am of the mind that life is a hu

thebob

Property is "worth", whatever someone is willing to pay for it.

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Headshot

On sellers...there are two kinds here...those who want to sell but don't need to...and those who need to sell. The first group will never reduce their price (in fact they may raise the price over time) unless they move into the second group. The second group need money and they are running out of time to get it. Always buy real estate from the second group...never from the first group. It could be a health problem or it could be something else. The couple that owned our house before we bought it had received work visas to Canada four months before we looked at the house. Those visas would expire if they didn't arrive in Canada within six months of approval. They had also taken out two loans against the property. When I found that out (the loans were on the title), we found out how much was owed on the loans. Then I added the cost of plane tickets to Calgary for the whole family (which was where they were going) and what the closing costs were going to be, and offered them slightly over that (rounding it off to an even number. At first, they tried to get me to go up on my price (as it was seriously discounted from what they were asking), but in the end they buckled and accepted my offer. Now they live in Canada, and we own the house and property. In the end, the value of property is whatever the seller can get...no more and no less.

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Headshot

Will the bubble burst? I don't think so, and here is why...

 

First, there ARE a lot of foreclosures here, but foreclosures aren't handled the same here as they are in the West. In the west, when a bank forecloses and takes over a property, they see it as a liability. They will bring the price down to a point where the property will sell quickly. That drives the market down. Here, Banks and developers (who often finance their own offerings) see a foreclosed property as an asset. Generally, the lender starts out in a positive position and never really loses that advantage. Down payments are generally higher her than in the West. Interest rates here are substantially higher here than in the West. Lenders will often foreclose here after only one or two missed payments. They come in with police, move the family's belongings into the street and board up the doors and windows, so nobody can get in. Then they immediately put it back on the market. If they get interest from a potential buyer, they remove the barriers, and show the house to potential buyers. If they get a buyer, they again get a large down payment and high interest on a new loan...or they get somebody who can pay cash. Either way, they make money.

 

That is the difference between here and the West. Those with a lot of money control the real estate market. Can Westerners get good deals on real estate? Yes...but usually rich Filipinos with their ears to the ground will snap up those deals before a Westerner ever hears about it. Most Westerners buy high and sell low here. Why? It is because they believe the nonsense that there are no deals to be made and that prices will never drop, so they pay asking price from some developer who has overpriced the property. Like I said in my last post, NEVER buy from anybody here who does not NEED to sell. Buying from a developer is doing exactly that. Then...when the Westerner has to leave for health reasons or some other reason that makes living here untenable, they end up selling for less than the list price. That is how money is lost on real estate here. The rich Filipinos who control the market rely on others who will lose money to play their part. They usually oblige. They have no choice. They NEED money...even if it is less than they wanted.

 

In the end, none of this has any effect on the real estate market as a whole. That is why the real estate market won't crash here. People's dreams crash, but the market will remain strong. The market here is an entirely different animal than in the West. If you are planning to buy, you need to remember that.

Edited by Headshot
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Skywalker

It's very interesting to read what people believe and have experienced here. My experience is quite limited to a particular area in South West London, but I agree with Headshot, the market is far different here.

 

For instance I would never have bought a property off-plan in the UK, precisely because they are often overpriced due to popularity, good advertising etc etc. But against that, I went and bought my place here in Cebu, because the position is just where I want it, it's a blank canvas that I can turn into the kind of home I particularly want - you know, the little things like steel rings in the walls for the chains, hooks in the ceiling, that kind of detail missing from most properties! I don't really care whether it's an investment from a resale point of view (that was not a consideration at all), although if somebody makes me a good offer I wouldn't dismiss it out of hand - everything is for sale after all.

 

I quite understand from others the particular situation whereby they are fully committed here financially, and therefore their options are limited. That is the gamble I suppose, like getting married and settling down in a foreign Country. I decided many years ago, that I would never live in the UK again, but I keep a house in London, because I don't need to sell it, and I get an income from it (friends live there so they get mates rates!).

 

Incidentally, almost everything that has been said about the housing market here, is equally pertinent to the Bangkok housing market, where they have been expanding rapidly for many years, with no sign of a bubble yet. As somebody said to me years ago, all that graft money has to be invested somewhere!

Edited by Skywalker
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stevehann

I don't know anything about this subject, so just an opinion:

 

When I moved here 7 years ago, there seemed to be a shortage of condos. Right now, there are a dozen condo towers being built. My guess is that there will be a glut as this will simply be too many condos and not enough customers. So, condo prices should go down to match the prices in Manila. However, the odds of an across-the-board property collapse here are really slim, as so many purchases are cash or 50% mortgages.

 

It looks like selling a house is really tough here. I will probably take payments when I sell mine.

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Skywalker

stevehann, your opinion is welcome, it's what I asked for!

 

I think there is a difference between the housing market and the condo market, and there are experienced people, like yourself, who I want to hear from.

 

One of the things I am considering is a house outside of the City as a weekend retreat.

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Luxury Condos are a new thing in Cebu and they are expensive. I'm sure rental prices will drop down by 30% when all buildings have been completed within 5 years

Edited by Mr.T
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Skywalker

Luxury Condos are a new thing in Cebu and they are expensive. I'm sure rental prices will drop down by 30% when all buildings have been completed within 5 years

 

absofeckinglutely. How are the meds this evening?

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absofeckinglutely. How are the meds this evening?

 

The problem with most new Condos in Cebu is the rental price, they want 50,000 pesos for a 70m² condo with gym and pool facilities and overcharged electricity rates.

 

I know people who would be ready to rent a place like that any time for 35,000 pesos + monthly fees. Now what most Condo owners are seeing is empty units, theres just not many people willing to rent at this price.

 

If they would be renting out their condos at 35,000 pesos instead of trying to go for 50,000 pesos they would be getting their investment back in 10 years, which is a good deal but that's not what they are trying to do, they are trying to get it back 7 years which results in empty units and no return on investment at all

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Skywalker

Mr.T - why did you choose this nickname? Evidently you are nearly up to speed. Nearly.

 

God, is that the time, sorry must wander off to bed, Batman tomorrow and all that...good night.

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Skywalker

Sorry if I didn't make it plain, I want comments from people who live here! Who have made an investment in time and money. Not somebody who just got off the boat, and can't decide what inexpensive vehicle to buy.

 

Come back when you've made some sort of an investment please, besides a cheap run around.

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Sorry if I didn't make it plain, I want comments from people who live here! Who have made an investment in time and money. Not somebody who just got off the boat, and can't decide what inexpensive vehicle to buy.

 

Come back when you've made some sort of an investment please, besides a cheap run around.

 

The truth is i've been living here since 2008 and have local businesses which have cost me twice the price of your average condo in the city. Buying real estate here is within my interest also. I was just giving you some information I know about new condos here in Cebu. I'm not sure if anyone is willing to honestly help you with that kind of attitude. Show some respect first

 

Theres people who say that buying real estate 50 km's away from where you live is a bad idea because you don't know the place. This might exactly be your case if you don't be careful

Edited by Mr.T
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broden

there is no bubble if your view is long term enough

 

 

i remember a story i heard somewhere once about a Westerner and a Chinaman

 

they were both looking at a piece of property to buy and they got to talking to each other

 

the Chinaman said to the Westerner yes you are wise buying property is the way to wealth

 

yeah said the Westerner buy low sell high

 

the Chinaman looked at him funny and said no

 

buy and keep buying and pass down through your family for many generations

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miles-high
Sorry if I didn't make it plain, I want comments from people who live here!
The truth is i've been living here since 2008 and have local businesses which have cost me twice the price of your average condo in the city. Buying real estate here is within my interest also. I was just giving you some information I know about new condos here in Cebu, but with your kind attitude i'm not sure if anyone is actually willing to help you. Show some respect first

Well, as Paul has said before no one including OP "owns" the thread he or she started... You are free to express your opinion within the purview of the forum rules... Haha OP should be banned for his attempted censorship... :ROFLMAO:

Edited by miles-high
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