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billy

Condos starting to faulter

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billy

i was looking at a couple resale condos a year ago. they are in an upscale condo building. i was reading the paper a week ago and saw they were both for sale still. one was listed for 12 mill and now he's asking 9.75 mill. the other they were asking 12 mill now 10.5.... at the time i offered 11 mill and the lady accepted but she wanted me to pay all closing costs which were around 800,000... i told her at the time she pays her closing costs i will pay mine and she said no....  so i said forget it.... anyone even thinking of buying a condo now be fair warned you are taking a big risk. there are so many buildings under construction with no renters to fill them. we will see blood on the streets with condos....

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Skywalker

It is pretty common here for the buyer to pay all the outgoings of the seller.  It's not what we are used to that's all.

 

Is this going to be another Condominiums crashing and burning thread?  We have covered this quite a few times.

 

Is there something new?  What is the falter now?

Edited by Skywalker
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Lee

Billy your reference relates to mid to high end condos, so I  sort of agree, just as I have always said, buying something in a price range that fewer people can afford, means it will be difficult to sell in a country where borrowing money is difficult and costly, if a person manages to even find a way to borrow. 

 

There are many condos going up and the units are getting smaller and smaller in order to keep the price range down and the builders offer no interest loans for short lengths of time. More second hand condos are showing up online for sale or for rent and not a lot of movement seems to be taking place, so IMO you are correct to some degree but I believe that lower priced condos will continue to sell or rent to those with dreams of getting rich or those who need a place to put their heads down at night. 

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Lee

BTW, as I look out my balcony there are approx 20 high rise buildings going up with most of the condos that I have researched having under 30 sq meter units to keep the prices under p3 million.

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Ronin

I would insist that I paid the sellers cost but deduct that from the price.

 

If the seller "Forgets" to pay their part, you're stuck with a condo you cant sell until it's paid.  Also, I think there additional penalties for late payment.

 

The 3 million is a magic number, above that (3.2 IIRC), you pay a 12% vat (Davao jump in if I'm wrong).

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Lee

  1. sale of residential lot valued at one million nine hundred nineteen thousand five hundred Philippine pesos (Php1,919,500.00) and below

sale of house and lot and other residential dwellings valued at Three million one hundred ninety-nine thousand two hundred Philippine pesos (Php3,199,200.00) and below.

Philippines: VAT essentials  unless it has changed, this should be it

 

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Skywalker
The 3 million is a magic number, above that (3.2 IIRC), you pay a 12% vat (Davao jump in if I'm wrong).

 

Which is why they often market these small condos as pairs.  Buy 2 save the VAT, and knock together.  I don't think the VAT threshold figure is quite that high though.

 

Edit:  Thanks Lee.

Edited by Skywalker

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Lee

Anyone know what it is on condos?? I assume it is number 2

Edited by Lee

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smokey

BTW, as I look out my balcony there are approx 20 high rise buildings going up with most of the condos that I have researched having under 30 sq meter units to keep the prices under p3 million.

wow 100,000 peso a sq meter ... dang  that's not fair super houses can be build for 35.000 sq meter  I should turn my place into condos its tall and has an elevator and plenty of parking

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bkkmarlowe

 

 

hey often market these small condos as pairs. Buy 2 save the VAT

 

The Taxation department are a wake up to this and have now clamped down on it with new regulations and VAT fees re buying adjoining condos. I think this was published on their website... ?

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A_Simple_Man

 

 

as I look out my balcony there are approx 20 high rise buildings going up with most of the condos that I have researched having under 30 sq meter units to keep the prices under p3 million.

 

If all the developers jump on the band wagon does that mean the horse is guaranteed to be able to pull it?

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dc3driver

wow 100,000 peso a sq meter ... dang  that's not fair super houses can be build for 35.000 sq meter  I should turn my place into condos its tall and has an elevator and plenty of parking

well you really should. Wait a minute, I thought you already did!
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billy

Condos have seen there day. It doesnt matter what size or price, there is a glut of condos. Think about it filipinos cant afford to pay the rent on studios. There isnt enough foreigners to rent them. The writing is on the wall. Of course condo owners on linc are going to take this personally. The rents will drop the investors will dump them when they cant be rented. Its going to be a mess its starting now.. Ive been following the market closely. It takes months and months to rent them. Then when your tennant leaves another 3-6 months to rent and the rents are dropping. There are so many for rent everywhere. Condo buildings are empty..... DONT BUY A CONDO NOW WaIT THE PRICE WILL DROP

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contraman

I tend to agree that the market is already saturated.

I started testing the water about 18 months ago in regards to renting a condo.

I was in no hurry and looked at 6 that I would thought suit me.

Pricing was in the 30 to 40 k range.

I did not go ahead until September 2013 when I took up a 12 months lease on this place.

When I first looked at this unit, it was being offered at 40k, it had no one in it for over 6 mths and

I pay 25k, some discount in anyones money. (That makes a total of 13 months that it was empty)

(I even got my bathroom door fixed to boot) :)

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billy

For anyone that owns a condo that doesnt believe me try selling your condo. Umless you give it away and slash your price no chance on selling...

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