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billy

Condos starting to faulter

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Lee

Well I do not know about you guys but if I rented instead of buying back when I did, then I would have already paid in rent what I paid in total for the units that I now own free and clear. 

 

I do agree that prices currently seem to be overpriced but if a person is in it for the long haul, then using Hillary's words, "What difference does it make."

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Jess Bartone

clearly

 

Sounds a lot like "trust me"

 

 

Edit:  Thanks Lee.  Nailed!

 

I thought that was for you... oops!

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Lee

No it was not meant for skywalker.

 

Actually I am crying all the way to the bank and if our condos were to fall down or burn to the ground tomorrow, then IMO I already got my monies worth out of them. 

 

During my lifetime, I have always owned my own home on payments and I always felt it was like a bank account instead of giving my money to a landlord. The cost of living keeps going up and as such most of the time so does property costs as the dollar devalues, so it is a wash so IMO making the payments is like depositing the money in the bank because I have always gotten back more than I paid in. 

 

Time will tell who is correct and who is wrong so why bother to argue about it now.

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NOSOCALPINOY

We got rid of our condo in California, couldn't afford to keep it when I took an early retirement before moving to the Philippines. After 2 yrs in the Philippines we bought a small lot and had our home built from scratch, we were in it for the long haul! 16 yrs later we're still here and our home is mortgage free! Can't get any better than that! Our home is worth double now on the open market, but it's not for sale, because it's our home and we plan to stay here indefinite rent/mortgage free!  

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Monsoon

You guys talking.about interest free monthly installments - is that a turned over occupied unit? Or what Filipinos call 'interest free" which is nothing more than an interest free loan to the developer. ..

 

Sent from my GT-I9505 using Tapatalk

 

 

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Scruffydog

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....

 

 

I went to Panama City Beach here in the US about 2004-2005 time period. I told my friends there is no way they can sell this many High end condos. They were being built everywhere.  900 Sq FT houses on lot's hardly big enough to park on car,, were going for 1,000,000 and that was off beach.. I was amazed at what we saw, and talked about it to a lot of people, about how obvious it was.  Now   those Million dollar cubby holes are about 250K and the 800,000 K condos can be had for 175 -275K

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Lee

@monsoon

I cannot speak for all developers but where we live they give either 36 months or 60 months to pay with zero interest but you do have to put down p100,000 and I am not sure how it all works but you can ask Angelo if you are interested to know. I made a post about it HERE which probably better explains it but people would have to check with different builders to see what they offer. One thing a person who makes payments loses if they had paid with cash they would probably get 5% to possibly even 10% off with some builders.

Edited by Lee
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Contango

Sprinklers are of little use if a fire starts far enough below them, too much like peeing on a forest fire in my opinion.

Since concrete and tiles don't burn to well im not overly concerned...my condo building is mid rise, open planned and has a centre atrium with stairs at both ends of the building, chance of getting trapped by fire is pretty much 0.

 

The WTC had sprinklers!  'Nuff said about that!

I'm guessing that the WTC sprinkler system was not engineered to cope with the impact of a fully fuelled Boeing 767, probably a little outside the parameters of the building design.

Edited by Contango
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nameg1111

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...

Why sell my condo,,,I BUY THE CONDO TO LIVE IN IT !!!!!!!!!!!!!!!!!!!!!!

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Monsoon

My experience as a landlord here has taught me there is a sweet spot for better ROI. At least in NCR. For example I have one unit that cost 8.7MM and only gets 50k rent fully kitted out with high end everything. In other words, shit return. However a 3.2MM unit in a different area gets 35k bare or with only beds and ACs. A bit better return.

 

I have concluded however that I dont want to be in the landlord business here. I will focus on other higher return opportunities where the capital remains more liquid.

 

Sent from my GT-I9505 using Tapatalk

 

 

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Oasis Monarch

 

You guys talking.about interest free monthly installments - is that a turned over occupied unit? Or what Filipinos call 'interest free" which is nothing more than an interest free loan to the developer. ..

 

Sent from my GT-I9505 using Tapatalk

 

 

@monsoon

I cannot speak for all developers but where we live they give either 36 months or 60 months to pay with zero interest but you do have to put down p100,000 and I am not sure how it all works but you can ask Angelo if you are interested to know. I made a post about it HERE which probably better explains it but people would have to check with different builders to see what they offer. One thing a person who makes payments loses if they had paid with cash they would probably get 5% to possibly even 10% off with some builders.

 

In my case a 1% discount was offered by the developer for 'spot cash' ( full cash payment). I declined as I calculated that by paying (interest free) instalments over 2 years:

i. my cash flow situation would be better

ii. I can (at least) make the forgone 1% discount  by investing the money thus freed in other assets

iii. I can cut my losses and exit in the unlikely event I had to leave the Philippines

Also, the insurance cover (see my previous post in this thread) in the event of my untimely death gave me a sense of security.

 

And yes, my unit was a 'turned over'/ Ready For Occupation one.

 

Edit: erased duplicate replies. Dunno how it happened..... and also added the last line.

Edited by Oasis Monarch
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Skywalker

 

 

In my case a 1% discount was offered by the developer for 'spot cash' ( full cash payment).

 

That's not good.  I was offered 8% discount for full cash, and I got them to accept 10% (after I got the right person who could actually make the decision).

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Oasis Monarch

Condo's are overpriced as an investment.

However if you are intending to live in them long term, they are a good investment.

 

I have been looking at Manila condo's for 5 years.  Twice I've come close to putting money down at preselling and both times I'm glad I didn't.  A condo in Manila for me would be for rental income, not to live in right now, and I just don't see a rental market looking at the various sites.  Properties sit vacant for months and months, with their adverts steadily revising rents downwards.  It is amusing reading the SkyScraperCity forums for the recently turned over SMDC and DMCI buildings - hundreds of people trying to rent out their units, expecting to get monthly what they are paying in their inhouse financing agreements, and worried that no one is renting and how are they expected to pay the finance next month...

 

If you want to live there great... but I agree with the OP that as an investment they are terrible IMO.

 

I took a look at the  SkyScraperCity forums but can't seem to find the discussion you are referring to (""hundreds of people trying to rent out their units""). Can you provide the link please?

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Bill H

LOL this thread gives me a chuckle!  Thanks.

 

You big city, big dollar types can have your high rises, pollution, constant traffic jams, big city life.  I'll stay in the provinces where crime is low, traffic jams only happen when there is a big funeral and my neighbors look out for my place when I'm gone as I look out for theirs when they are.  To each his own of course and I wish you guys well in those high dollar high raises.  For 100,000p I can build a castle out here, not that I'd want to.

 

As for your titles you are so proud of, all is not as secure as you seem to think but if you think you're wife is going to scam you, you shouldn't have married her in the first place.  Right?

 

Peace be with you, enjoy your noise and pollution and I'll enjoy my peace and quiet and clean air! 

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Skywalker

 

 

Peace be with you, enjoy your noise and pollution and I'll enjoy my peace and quiet and clean air! 

 

Oh Bill, you forgot to mention, you'll carry on enjoying living on land you don't own, and you never will.  

 

Good luck in your sweet nirvana.  And don't forget you enjoy that privilege, because my title is far more secure than no title!  :rose:

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