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Will new home prices ever go up in value?


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I have been looking at 2 subdivisions for new homes. Antonioville in Manduae City & Grand Terraces in Casili, Consolacion.

 

They both have small units (2 br, 1 cr 28-33sqm for p700k), they have town homes (3br, 2 cr 62-66sqm for p1.3m)

 

Both subdivision work out to be around p20k per sqm with lot included, but doubt the quality is good, more focused on quantity.

 

Here is my question...............

 

As foreigners these prices are fine (although units are tight), but who in the world would ever buy the unit if you sold it?

 

I'm sure after a few years (or months) the neighborhoods will be packed full and I can only imaging that property values will decline.

 

Is there any way possible that these subdivision will ever go up in value?

 

Who in the world would ever pay p700k for a very small house in a subdivision?

 

https://www.facebook.com/antonioville.cubacub.9

 

https://www.facebook.com/GrandTerraceSubdivisionGrandville

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I dunno. Sounds like a decent sized bathroom to me.

Lots of people will buy them from you .  Why ? because of the low price .  It is much easier to sell 15   700K houses than one 12 M house .  [ just ask Smokey or me for details ]   Here price is muc

the problem with anyhting you are trying to sell here is financing. I sold a house here and it was only possible because I was willing to finance over 5 years (with lawyer arrangement mortgage, title

InternetTough

I am a committed renter. As a corollary, I never want to become a landlord, as that is a tough job. Judging from comments of others with far more experience than I in the Philippines, selling a house here can be difficult. And if you don't want to live in it, and can't sell it, then you could only rent it out.

 

I think that your thoughtfulness before buying a house here is wise.

 

Right now, I know what I would do if my neighbor decides to go into the karaoke business. I'm only locked in for the duration of my rental contract.

Edited by InternetTough
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Davaoeno

 

 

As foreigners these prices are fine (although units are tight), but who in the world would ever buy the unit if you sold it?   I'm sure after a few years (or months) the neighborhoods will be packed full and I can only imaging that property values will decline.   Is there any way possible that these subdivision will ever go up in value?

 

Lots of people will buy them from you .  Why ? because of the low price .  It is much easier to sell 15   700K houses than one 12 M house .  [ just ask Smokey or me for details ]

 

Here price is much more important than quality . Unlike westerners, in general a filipino wd prefer to buy a poorly built house for 700K than a much better built 900K house.  Many times that is because they simply can not afford something better, but many times it is because of attitude.

 

I'm sure that there are rich filipinos who think like most westerners and put quality ahead of price, but in my experience they are certainly not the norm . And that seems to apply to most/many things sold  here . 

 

The most important thing here when selling a low cost house is financing - usually thru Pag-ibig .    You will see many new homes for sale with very low downpayments, and low monthly payments [ altho you usually have a year or more to pay the downpayment thru monthly payments].  Those units seem to sell much more quickly. The fact that interest rates of up to 22% are common does not seem to phase many filipiino buyers. They dont care how much interest they will pay - just as long as they can move into a house and maintain the payments. The fact that they have to keep paying for 20 or 25 years is not that important to them.  [ its similar to the pawn shops here - they are everywhere, usually charging 3% interest a month- but have no shortage of customers.  This is very much a " tomorrow " society - where you buy whatever you can get on financing today and worry about making the payments tomorrow ]  Its no wonder 5/6 lenders are everywhere- and they charge 10% interest per month 

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cebulover2000

the problem with anyhting you are trying to sell here is financing. I sold a house here and it was only possible because I was willing to finance over 5 years (with lawyer arrangement mortgage, title in my hand etc.), probably true for a 700 K house as well as a 5 mio house.

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the problem with anyhting you are trying to sell here is financing. I sold a house here and it was only possible because I was willing to finance over 5 years (with lawyer arrangement mortgage, title in my hand etc.), probably true for a 700 K house as well as a 5 mio house.

Why? I've looked at the bank websites, for example http://www.hsbc.com.ph/1/2/personal/loans, and see apparently reasonable conditions for obtaining loans. (I haven't looked into the effective interest rates yet as I don't understand how their definitions).

 

I'm looking at buying a condo using mainly finance, so I'm asking to gather information.

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cebulover2000

Why? I've looked at the bank websites, for example http://www.hsbc.com.ph/1/2/personal/loans, and see apparently reasonable conditions for obtaining loans. (I haven't looked into the effective interest rates yet as I don't understand how their definitions).

 

I'm looking at buying a condo using mainly finance, so I'm asking to gather information.

 

I would also like to know how foreigners deal here with financing. I know that HSBC wouldn't give me a loan in real estate here.

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Davaoeno

I would also like to know how foreigners deal here with financing. I know that HSBC wouldn't give me a loan in real estate here.

 

You get whoevers name the house is in to apply for the loan .   Or in my case i use my filipino corporation to apply

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cebulover2000

You get whoevers name the house is in to apply for the loan .   Or in my case i use my filipino corporation to apply

 

I would be interested in requirements and conditions.

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Davaoeno

I would be interested in requirements and conditions.

 

You will have to get that information from either the developer or the bank .  Both change from subdivision  to subdivision ,  and if you go thru the bank from bank to bank . 

 

The developer/broker can fill you in on the Pag-ibig requirements [ or you can look them up on their website ] 

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Unfortunately I wont be inquiring about financing.......... My big question........ will they deal?

 

They have them advertised for p700k but when they originally sold, they started at p550k.

 

Of course that its the price I want. Will they cave to my request of p550k or will they hold strong at p700k?

 

I know everyone offers a 5% to 10% cash discount, I'm just looking for the best deal possible.

 

I will have my realtor show me both places and hopefully she will be able to use this as leverage. (whichever one deals, I'm in!!)

 

If they are anything like Americans they will cave as I will go visit the places on 12/24 and everyone wants a sale for Christmas.

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cebulover2000

Unfortunately I wont be inquiring about financing.......... My big question........ will they deal?

 

They have them advertised for p700k but when they originally sold, they started at p550k.

 

Of course that its the price I want. Will they cave to my request of p550k or will they hold strong at p700k?

 

I know everyone offers a 5% to 10% cash discount, I'm just looking for the best deal possible.

 

I will have my realtor show me both places and hopefully she will be able to use this as leverage. (whichever one deals, I'm in!!)

 

If they are anything like Americans they will cave as I will go visit the places on 12/24 and everyone wants a sale for Christmas.

 

I have seen them selling used at lower prices than new. I doubt they will cave in now and lower the price, those are only sales people anyways.

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ellenbrook2001

will never buy anything here all build sub standard after 2 years paint fade tiles not lay properly they all not very professional plumbing grrr bad electricity bad also i never see a building or a construction safe or well finished  he may look good when finished but after fews years disaster 

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Some developers have in house financing, my advice would be to check with the developer of the places you might be interested in. The condo we live in, had in past years offered 5 years no interest and also longer terms with interest but all that is always subject to change, so always best to check at the time you wish to buy. One downside to in house financing is that you usually will not get title to the unit until you have paid off the loan. 

 

Oh and to add, will prices go up, of course they will as cost of construction material and greed goes up.

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BossHog

 

 

2 br, 1 cr 28-33sqm for p700k...although units are tight

 

I dunno. Sounds like a decent sized bathroom to me.

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Some developers have in house financing, my advice would be to check with the developer of the places you might be interested in. The condo we live in, had in past years offered 5 years no interest and also longer terms with interest but all that is always subject to change, so always best to check at the time you wish to buy. One downside to in house financing is that you usually will not get title to the unit until you have paid off the loan.

Inhouse interest calculations are not the same as a banks. They dont caculate interest on a reduced principal. I stopped looking as i decided not to pay that method. They will multiply the principal by the the interest rate times the number of years , add bck to the principal then divide by number of months. Scam city in my opinion. I built my nice home in bohol, one million. No loan.

 

Sent from my KFTT using Tapatalk HD

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