Is my condominium in Philippines appreciating a lot?
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- Опубліковано 16 лип 2024
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Property appreciation in the Philippines
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You need a financial genius to figure everything out. Some will lose some will gain money. Buy a condo or home, enjoy living in it When it's time to sell get what you can. Be happy dont worry to much if you make or lost money.
I completely agree with you grandpa but you forgot to include the condo and maintenance fees per year. I own a 2 bedroom condo in Cebu and stayed 5 months per year, I have been wondering if staying in a 4 star hotel would be cheaper.
It is very hard to sell condos with the proliferation of condos now. I was shocked to learn one relative of mine is paying 6k monthly for condo dues . If u convert to US$ the proceeds of d sale of yur condo, u will even lose more with the depreciation of the peso
Exactly. I see so many condos for sale now 😢
@@phillyboylaboy many people bought condos to use them as Airbnb rentals but there's oversupply and covid happened (less tourists, whether local or foreign). Condo buyers couldn't afford their monthly payments and the banks foreclosed.
Real estate investment is all about location! location!……
If you have a very good household retirement income, just rent a furnished condo (PHP100K/month) in BGC and enjoy life without worries. It is just like buying a nice car, a nice vacation and nice house, enjoy them while you can. Forget the cost, just enjoy what you acquired. Money/property is nothing when you are already old and sick. Life is to be experienced and remembered. You cannot take money/properties with you when it is your time to go.
Your wife and me very similar, I like to buy things discount 50% or more instead of full price , not because I am poor but because it make me feel good and happy> I save money when other people throw money out the window. Money not come from heaven ?
Another factor to consider is the association dues ,cost of electric ,water, internet, taxes and maintenance like air conditioning units or fees associated with a rental agency if you rent it out and the cost of furnishing the unit and paying someone to clean the unit if it's a rental.
They didn’t tell us this when buying a condo there’s so many hidden dues
Invest In stocks. Reits pay good dividends like ayala reit, DMCI..in the US, O rental income, SLG, etc. Some of them pat monthly dividend.
@@geraldynson753 Oh boy! I wouldn't say those costs mentioned by @keithz6737 were hidden to buyers. In my experience, brokers/sellers do not put emphasis on the associated costs in owning a property. I would suggest that buyers ask a lot of questions. In addition to acquisition costs (purchase price and settlement costs), prospective real estate buyers must consider costs to furnish property (furniture plus appliances) and the recurring expenses such as real property tax, condo/HOA dues, utilities (electricity, water, cable/broadband services [internet]). Monthly condo fee is based on the size of the property. Please note that the more available amenities, the higher the condo fee; by way of reference, I pay over Php11,000 for our 1BR condo in BGC 82sqm. Real property taxes (RPT) may be paid years in advance for a discount. "Some" HOAs offer discount when paying condo/HOA dues in advance.
2020 is the best time to buy property.......🙄.....property zonal value is the key to the value of property.
What about monthly/yearly condo fees that are on top of the condo purchase costs? Also, I have noticed that condo buildings aren't maintained as well as they should be, they become worn out quickly in the Philippines. Elevators break, walls crack, windows stick, common use facilities aren't maintained, all making the purchase less attractive compared to a new condo. I don't know how the average person in the Philippines can afford a condo, I think there are a lot of Chinese investors and OFW's as many condo units sit vacant for years, or are rented out as AirBnB units. It is so annoying with the number of units being rented on a short term daily AirBnB rate, constant noise and other issues from these short term renters, who often bring in large numbers of people into a small condo unit.
Maintenance quality is my biggest frustration as a condo owner in the Philippines… unlike here in the US, your HOA fee is worth every penny.
Condominium is a bubble here in the PH. They are oversupply and overpriced. To many buy thinking it will be earning in rentals such as air bnb but the demand is very little. if you would check the foreclosed properties from banks, most of them are condo units.
None of those condo residences you mentioned are developed by Ayala Land. Also, you are correct in saying the average person cannot afford a decent condo in the Philippines. The same is true in the US.
Great video Grandpa! For me, I will consider it as an investment/lifestyle. Now, that is what I call WIN/WIN
Gods favor and grace Meron akong binili na property condo sa san juan 2014 at mega world rent to own at 2.9 m ngayon nasa 4.5 m later il have it fix rent since na sa baguio ako…sa baguio outlook drive noong 2017 with vista land may na bili akong pre selling at 3.4 million now at pre selling its selling at 350k and with my downtown condo investment its now times 2 with goshen land development and with the air bnb it gives me a income…started renting a condo because of my experience with air bnb rent muna developed it to accommodate more people the beauty is the upside turn of the property…i remember when noong 2015 with its pre selling ang mahal 100k per m2 pero ngayon dito sa baguio wala ng 100k per m2 location location amd location just sharing my experience salamat.
I'll just rent a hotel or airbnb while vacationing. Rent condo/appt for longer stay. Less hassle (no RE Tax, no HOA, no mtce) and more flexible when moving 😂
We have same thinking..and invest your dollars in the U.S,your gain pays the rent and cheaper
Lolo, I agree with you this time. At the end of it all, if your condo is not being rented out and putting cash in your pocket, then it’s not an investment. Those who say they “make money” (through value appreciation) while living in their own condo are delusional in believing the lies that their sales agents told them with a straight face 😂.
I agree with you looking at land / house as my home not my investment. Americans are obsessed with money.
If you makes 2% annual gain in your investment (like in this video) is not a good investment
Humans are surely emotionally attached when it comes to their "investments" and will strongly argue their position for the sake to remind themselves and everyone around them how great their one investment was. Your rational thinking about the risks without emotions is a rare skill and it's vital when assessing future investments (plural, not just one) are profitable or they just FOMO'd at the right time. We can be lucky once, but wisdom comes at a cost.
I love condos.. Buy a land and the land will keep you.. I bought a lot 8 yrs ago and sold it with 160% returns..
I bought a lot in Fairview in 2000 for P1million and i sold it for P5Million in 2020. Did i make money? Yes, but did i make money more than if I invested it in equity fund? NO! Why? Because the exchange rate in 2000 is P25 to a dollar and when i sold it in 2020 the exchangecrate is P52 to a dollar and i also have to pay capital gains tax in the phils and someone said i should have paid US tax...bottom line my investment only gained 3-4% compounded which is way below the S&P performance...now im tempted to buy a condo in bgc because my friends have condos in bgc...but I'm thinking if i just invest my P10M in CDs at 5% and use that money (10M x 5%) which P500k to rent for the 3months we stay in the phils. then Im waaay ahead than buying...
My wife and I bought a small condo on presell back in 2016 in the beautiful city of San Fernando, Pampanga and moved in a little less than 2 years ago. Originally our unit was just under 3 million and an identical presell in the tower going up beside us is now 5.5 million.
The thing is that there are a lot of people selling units like ours in the first two towers built for not much more than they paid for them, which in my opinion keeps the value of ours well below market value.
I love it here and I think when the entire project is finished that prices will rise to maybe double what we paid, but I'm glad it's a place we live on a permanent basis, because if we bought it to make money we'd be sadly disappointed right now.
Some condos are being "appraised" above market value to LGU to get more money on property taxes. But, LGU does not consider the market value of the property (home or condos) to go down due to current conditions from flooding, noise pollution, noise generated from traffic, construction, etc. LGU, just want to make more money without improving the area...
Try putting it up for sale if someone will buy it with that price.
Some people forget about inflation and also the monthly condominium association dues which need to be paid no matter if it is rented out or empty.
If you did not buy a condo, what would you do with your money? Where would you invest it to beat the inflation? Exchange rate is really not applicable if you don't need to convert pesos back to usd, inflation inside the Philippines is applicable.
Gold stocks and stocks grow and some pay dividends .
We bought ours in 2012 and it has appreciated more than 110% as of now.
@@EamonnHogan-eu3qc my hoa's are $22 a month. Electric unoccupied is about $10. My unit is paid and rented generating income. It's in a high desired area with lots available. Yes you're a ray of sunshine.
VG, another issue is the glut that is being created with so much inventory. But yes, if you got in before 2019, it was a good investment. Would I buy now? No. But like anything, markets change.
While 6% tax being charged for buying a condo now, it might not be a bad idea since there is no property taxes due every year correct??
Well said Grandpa
Owning gold is not an investment, it is a store of value. Owning a vacant piece of property is not an investment, land banking is a store of value because you cannot collect dividends. Buying stock and hoping that some bigger fool will pay you more in the future is not an investment. That is speculation. Investment is the purchase of something that will grow or pay dividends. Renting (personal) a home is consumption. Buying a home and living in it is consumption. And if you find a bigger fool to buy that home in the future you can think it is an investment. But when you buy a home to live in you will learn it was not.
You are correct sir 👍
The statistics you used were based on national and general averages. It will obviously depend on where you live. We bought our Antipolo lot in a nice subdivision for 13k psm. The rate now is 31k psm. After we built our house it costs a total of 17 million. That includes the purchase of the lot and the building of the house. If we sold today, we would get 30 million conservatively. Oh yeah, we bought the lot in 2019. So in 4 years, our "investment" has grown considerably. We are living in the house, but that's a non issue because eventually it will have to sell. For us, when my wife and I pass, our daughter will benefit from the investment.
Luxury Condos have also held their values, way better than lower priced B-grade Developments. Areas where Luxury market remain strong are BGC, Makati, Rockwell and Ortigas.
Good luck selling your house😁
Not always the case.. price also depends on the structure condition. Buyers will always look for a cheaper deal. They also considet the accessibility and traffic.
Bought my unit pre-selling price 2021 and turnover will be next year I noticed price has gone up by 20%.
You arent really making money in realestate unless you are adding value by improvements and resaling the property very quickly. What you are doing is riding with inflation.
I am from Florida and I can't wait to get back to the Philippines in November and make it my second home. I was there for 7 months last year and loved it. I looked at property in the Dumaguete area , Siquijor Island , Bohol Alona Beach area and Cebu city. I may decide to rent unless I find something exceptional. Anyone have suggestions ?
You don’t offer enough info about yourself to have readers here provide suggestions. One thing is for sure: don’t build a house in your wife’s name if you’re not a Pinoy citizen. Rent a nice place instead.
Investment make money.
I have a condo in Tagaytay and don’t care if I make money or not. What’s important is my peace of mind . I can stay there whenever I want and I go back to USA anytime I want. Very safe to leave all your personal belongings.
I agree!
If you have a lot of money paying your hoa every month go for it. . Your totally wasting your money. Nobody care if you waste your money after all your working hard just to pay your nonsense hoa otherwise your condo could have pay its own expenses if you turn your condo into investment.😅😅
@@hildamiller-3816HoA fees are paid by the owner or the renter so it really doesn't matter. It's a given cost for all residents
I bought a condo for my security, flexibility, and privacy. Appreciation is just a bonus for me. I am going to live once on this earth, everything that accumulates will remain here on this earth. Why not live fully, while you have the energy to walk? In short, enjoy. 😊
condo appreciate but real money value is when you sell it specially today were condominium is very much oversupplied. ill wait when the bubble pops. there are plenty of condos as foreclosed properties.
Most condos sold in the past was intentionally for income generation, but times change. Now foreclosure is sky high, regrets, losses, bankruptcies, over supply, never again...
also add to that, condos today are waayyyyy to overpriced. Being dictated by the developers out of thin air.
But Granpa...it's very hard to sell a property in the Philippines. How do you sell it? We have a nice place in davao right in the city right accross Global town. Waiting for the right buyer.😊
Is it listed with a real estate agent? Don't try to sell it yourself. I think you will have better chance by giving it to someone who is in the business.
A condo might appreciate in value, whether it is being rented or not. But, as an investment, the condo must generate an income to be considered as investment. But, if the condo is vacant most of the year, and only occupied by the owner occasionally, then it is not considered an investment. It is called a "home". Most of the condos sold decades ago are put up for foreclosure due to failed payments, lost of interest from owners, lack of buyers, etc. Buying stocks for growth or value is an investment, paying dividends at times. Although, stocks goes down in value due to stock market dropping in value. Gold is a speculative investment, expecting it's value to grow, but not as fluid as stock or money market funds.
FYI, owning my primary residence means I don't have to pay rent. The rent for my residence is actually more than my monthly mortgage payments. My mortgage payments will also end after 25 years while renters will continue to pay until death. So please don't tell me a primary residence that is used by the owner is not an investment.
Another tidbit - my primary residence has appreciated in value by 120%. If I sell my residence today, I get back my initial deposit, past mortgage payments and interest, property taxes and maintenance, pay off the remainder of the loan and what's left over is equivalent to 17 years worth of rent for this same property. If this ain't an investment than what is it?
@@robocop581you’re confusing investment with personal expenses. Living in a home with a mortgage is an outflow of money every month. How is that an investment? It’s a personal expense, much like food and utilities. Buy a second home and rent it out, then that is what I call an investment. 😊
@@jellymadrigal5879 My mortgage is US$2,800 while the rent for the same property is $3,200 so I'm already ahead. Second, tenants pay all associated costs in renting a property such as maintenance, mortgage, loan interest, property taxes, and replacement of appliances. These costs are built into the rent, tenants just don't see it. I know because I own several rental properties and my net rental yield is 7.5%.
@@jellymadrigal5879 If you didn't grasp the calculations in my first comment then you need to go back to school and take Grade 10 math
@@robocop581 a person who resorts to personal attacks in lieu of proper subject-related responses usually suffers from a lack of reasoning and basic knowledge of said subject matter. In which case I stand by my last comment that triggered said response. 😊
There will always be renters. Rentals are great tax write offs 😊
And renters are a great source of Landlords' mortgage payments
there will be renters, but there is also a constant increase of landlords which you would be competing.
I bought a condo for flexibility, security, and privacy. Enjoy you just live once then we disappear. 👁️☺️.....There is no such thing as real investment on this earth. Imagine this scenario, your son or daughter married then your bloodline deceased nonbloodline remarried again ...boom your hard-earned money went to the stranger. What a life aha.😂😂😂😂.Therefore enjoy your property or money now while you are still breathing .😊😊😊😊😊😊. Happy memories will be the greatest gift for you. 🎉🎉🎉🎉🎉🎉🎉
You are absolutely right! Condos in the metro Manila is a temporary home for people to like to be close to their place of work, due to deteriorating traffic condition. Eventually, upon retirement to sell the condo for whatever the market value it will present to the next buyer. Go back to your homestead in the province or outskirt of metro Manila upon retirement and avoid noise, air pollution.
Renters destroy rental properties also. Keep a rental property a rental property not one you have to move into later.
This is so true, and there are also vacancy period. If you are lucky, you will have someone permanently renting your property forever and taking care of your unit like their own. Highly unlikely. I did not say impossible...I said unlikely.
Depends on the tenant. Most are pretty good. I'm assuming you rented before. Did you destroy your rental apartment?
@@robocop581 If you were asking me, yes, I did own a rental property (not a condominium). Also, I am a real estate broker and was managing other people's rental unit. This is why we were now ask for 2 month's deposit because of some less than desirable tenants. I guess it all depends on what you have experienced. My brother also had a very good experience at first, then gave up rental after a experience with a bad tenant.
@@vloggergrandpa2707 There are significantly more satisfied Landlords than disgruntled ones. Otherwise, there would be zero Landlords. Your issue is you think all tenants are the same. I cater to Foreigners that work for International companies and I deal directly with the company with regards to moving in and payment. To assume that my tenants are like your tenants in the past would be ridiculous
@@robocop581 that is why it still depends on your target market
VG, once again, you fail to take into account the possibility of the zonal value being higher than selling price. Your capital gains calculation will still be based on the higher zonal value thus further reducing your net proceeds.
Zonal value is "generally" lower than market value. Zonal value is used if you try to understate the real transaction price.
@@vloggergrandpa2707 your comment is for those people who will unethically underreport their capital gains but for those who live in an area where the zonal value is unfortunately higher than the market value, they get walloped with a significant tax bill which further reduces the net proceeds from the sale. Believe it or not, there are still people who try to comply with tax laws even if it hurts their pocketbook.
This is very off topic to the video but I was wondering if you could get filipino dual citizenship if a parent who is a US citizen by naturalization applies for Retention and Reaquisition for Philippine citizenship by being by being included in the application form of the parent.
Yes
The requirement is that they should be a Filipino citizenzen at time of your birth, not before or after.
@cass - in addition to what grandpa said, you can be included in the dual citizenship application of a former Filipino citizen IF you are still a minor (below 18). If you are above 18, you can't "ride" with the application of your parent(s).
Hello Grandpa Love to watch your videos lots of good information. I have a question for you Would you say ring now is it a buyers market or a sellers market ?
Thank you and take care
It really depends on where you are. It is a regional thing. Foe example, recently the market was bad in the Midwest but it was booming in the east coast. Also, certain conditions could cause a downturn. For example, the weather in Florida is causing a big problem with availability of home insurance and that's causing a downturn in real estate in this once upon a time a very good market.
I am talking about the housing market in the Philippines NOT the states Here In California its sellers market there is not enough homes for sale and the demand is up
Nope, it’s wrong po basing your number on an article and using imaginary numbers is the same as these 2 guys assuming they have 100-225% appreciation value, also you only did until 2021, market value in 2023 is booming and a lot bigger than the previous years. You know the value of your condo/home depends on what is the market value in that area. Also dont forget that if you live in that condo and sell it 10yrs later even if you break even you still got that money back you spent on that condo you worked hard for for 10yrs. If you rent then that money, you pay towards rent has no return. Even if you take association fees and maintenance fee, the value you will get from investing your money on a unit you lived in still has return because you lived in it. If you didn’t invest where are you going to live?lol are you gonna live under the bridge or maybe your parent’s house for free? Is that the option?lol People pay rent/mortgage for life unless you inherited a house and lot or won one. An example is a friend of ours bought a pre selling unit in BGC before venice mall was built, unit is located behind that mall now, she bought the unit at mckinley for 3M, it was a 1br, 1ba condo. Right now, that unit cost almost 7M if you look at the units being sold. That unit will not get sold under 6M no matter what you say unless bgc becomes crap but no gnbgc is getting more expensive.
May tanong po ako kc ito po nangyari sa dollar na Pina check po nmin sa banko kinumpiska po yong dollar nmin ng walang pinakitang kahit na Anong papel ano po ba ang gagawin ko pasago po kc para po sana sa pag aaral ng mga bata
Bakit daw kinumpiska? Wala silang karapatan na gawin iyon ng walang paliwanag. I report ninyo s Central Bank. At anong bangko ba iyan?
They may be fake?
If I have a SRRv visa can I use the Medicare with Phil health , ?? I’m told I can
Medicare cannot be used outside the US unless you have Part C Advantage Plan. Even then. You have to be aware of its limitations a d you have to.know your Plan. They are not all the same.
Thanks for your reply I just went with pacific cross here locally seems the best way to go , Hell with the head aches
You should have a US address in order to enroll for Medicare.
i keep my medicsre
Biggie here is my supplemental that's provided via my retirement is inconsistent with Medicare so if I cancel my Medicare it also just closes down everything because as you know supplementals don't apply in the Philippines so but they're always active they don't they won't cover you but in the event there's a catastrophe I can go home and reactivate everything right away as long as my Medicare is current and I'm always reapplied for my annual renewal with my retirement insurance
I didn't know you were taking into account the Gov't Transfer Tax and Broker fees. If that was the case then my NET gain based on the last selling price of a condo in my Luxury development is 172% (from 225%).
How did you determine "value.?" Unlike the U.S., there are no easy source of SOLD units to compare your unit with. Simply asking how much people are asking for their unit does not mean Value. To establish value, units have to be SOLD. Just asking.
@@vloggergrandpa2707 The last sold unit at OSP was 285,000 pesos psm. The stats are all available, just look it up. I also know a broker that sold a unit a few months ago at that price level. Comparables just like in the US are also used in Manila
@@TJ-hy4lh My condos have been fully leased since 2017. The net rental yield is 7.5% for the condos and 9% for the parking spaces. When I say NET it includes all associated costs on the property
Buying property in the Philippines is like looking for trouble. Buying a property in the US is like going to a Drive-thru window. As long as you have a steady job and have been in that job for 5 years, or longer, a good credit report, 10% or 20% down payment, you can buy your dream house with one click on the mouse. You don't even need to go to the back.
Buying a house or a car in the States is that simple.
Meanwhile, in the Philippines, is a total nightmare.
Ignorant comment. Property transactions in the Philippines is straight forward
Country like PHL, is so corrupt that buying properties is like betting in a casino. Good luck!
I am mortgaging 2 condos and I the tenants are paying 95% of it thru rent payment. So far, the unit has been rented since and so I am only paying a small amount out of pocket. I don’t think it’s that bad. I get to own a property with minimal cash out. Once fully paid I can enjoy the the income. I am in Japan investing my earnings so I can retire early and be able to live in both countries.
@@MBihon2000how is it like betting in a casino in relation to buying a property there? I’m interested in learning about this topic.
It would take a real sucker to pay someone else's capital gains taxes. I can't believe anyone would be stupid enough to ask, but you're right, the price would be adjusted another two $300,000 below that