Jump to content
Sign in to follow this  
Enuff

Will new home prices ever go up in value?

Recommended Posts

Enuff

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

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites
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 

  • Like 3

Share this post


Link to post
Share on other sites
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.

  • Like 2

Share this post


Link to post
Share on other sites
spydoo

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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 ] 

Share this post


Link to post
Share on other sites
Enuff

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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 

Share this post


Link to post
Share on other sites
Lee

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.

Edited by Lee

Share this post


Link to post
Share on other sites
BossHog

 

 

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

 

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

  • Like 5

Share this post


Link to post
Share on other sites
Banacon

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

Share this post


Link to post
Share on other sites
Enuff

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

 

sorry, 2 br, 1 cr, total for everything is 28-33sqm

Share this post


Link to post
Share on other sites
rainymike

For now, I rent and am quite pleased to do so. I've moved a lot of times. Even walked away from my deposits when it made sense to do so.

 

I will probably purchase in the future when I can pay in cash and have some negotiating power. I agree with other posters who believe the quality of construction here is not so great. However, that's not a real problem if I figure in regular maintenance. From all the rentals I've lived in, that maintenance is very frequent and needs to be part of the budget plan.

 

Lot of the locals in my current neighborhood will buy small and then expand the unit. But, homes that have built upwards are scary to me. One moderate quake and I fear the walls will come tumbling down. And homes that have expanded sideways to the property lines are annoyingly close to the neighbors. So I actually prefer buying the smallish starter homes that I can modify to my needs. Not interested in building from scratch as I really have no expertise in that area.

 

I'm not really interested in appreciation as I don't anticipate selling any property in my lifetime. Of course, land will generally appreciate in value over time. But in those places that I prefer to live - outside of the urban center - appreciation will be slow. So I'm more interested in appreciation far down the road for my family. 

 

 

  • Like 2

Share this post


Link to post
Share on other sites
Hy H

 

 

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

 

Yeah same thoughts.

 

Sounds like advertiser wrong wrote it but meant.

 

A 22 sqm motel style with own cr and.........  You can just fit in two single beds and a dining table for two ,

Share this post


Link to post
Share on other sites
Contango

sorry, 2 br, 1 cr, total for everything is 28-33sqm

 28 to 33sqm on a 40 sqm block is very small..my NCR condo is 55sqm and small..i decided when i was house/condo hunting last year that 32sqm was the absolute minimum size that was needed, and that 32sqm with only 1 bedroom would be only marginally comfortable. still 720K is a great price, big picture very affordable and affordability is very important...i basically used a combination of wages, cash, asset sales (shares) and 2 credit cards to pay for my condo.

Edited by Contango

Share this post


Link to post
Share on other sites
Enuff

28 to 33sqm on a 40 sqm block is very small..my NCR condo is 55sqm and small..i decided when i was house/condo hunting last year that 32sqm was the absolute minimum size that was needed, and that 32sqm with only 1 bedroom would be only marginally comfortable. still 720K is a great price, big picture very affordable and affordability is very important...i basically used a combination of wages, cash, asset sales (shares) and 2 credit cards to pay for my condo.

Yes. 28-33 sqm is VERY tight but I'm think more about resale. If I'm going to spend money on housing I would prefer to be able to resale quickly. Buying bigger means less qualified candidates for purchase. I only plan on keeping 1 or 2 years unless anything changes. I don't care much about the space as I live out of hotels now. I lived in a camper 1/3 the size for 3 months one summer and was never happier. Bottom line is I don't want to through rent money away if I have a opportunity to gain equity.

 

Sent from my SCH-I545 using Tapatalk

 

 

Share this post


Link to post
Share on other sites
Contango

Yes. 28-33 sqm is VERY tight but I'm think more about resale

 

Well i would think that at 720K there is an excellent chance that given time and the continued growth in the Filipino economy and the Global rebound that you would have an investment that would at least keep pace with inflation, i just think that buying Filipino real estate and having resale (at a profit) as a primary objective is probably not compatible, especially with such a short time frame in mind...lots of other factors to consider such as Fibre internet availability, distance to transport/amenity's and the developer going bust etc.

Share this post


Link to post
Share on other sites
sperry

um just saying...... but you keep saying "I"

 

but you know you cant buy land, you need a filipina so u should be saying "we"

 

so 28 sq m for 2 is very cramped.  u must love close physical contact to try that

  • Like 1

Share this post


Link to post
Share on other sites
Enuff

 

 

i just think that buying Filipino real estate and having resale (at a profit) as a primary objective is probably not compatible

 

if rent is p10k per month, that's p120k per year. if I can buy for p700k and sell a year later for more than p600k............ im my mind I have made a profit.

 

um just saying...... but you keep saying "I"

 

but you know you cant buy land, you need a filipina so u should be saying "we"

 

so 28 sq m for 2 is very cramped.  u must love close physical contact to try that

 

my apologies, SHE will purchase, I just write check.

I am still very young (44) so close physical contact is my way of life :yahoo:

Share this post


Link to post
Share on other sites
bargeman

if rent is p10k per month, that's p120k per year. if I can buy for p700k and sell a year later for more than p600k............ im my mind I have made a profit.

 

 

my apologies, SHE will purchase, I just write check.

I am still very young (44) so close physical contact is my way of life :yahoo:

Just be patient, that will change !!! :killself:

  • Like 1

Share this post


Link to post
Share on other sites
SomeRandomGuy

it does not really matter if u can not buy the land. U can lease the land for 25 years and own the house.

 

If u love your wife enough to marry her then i am dam sure u can trust her enough for a 25 grand investment...  all good i say go for it

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  

  • Sailfish Bay Fishing Charters

×
×
  • 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..