Honestly I think it’s worth it to invest in the US than the Philippines. Plus if you are still paying your mortgage you can use even it during the tax filling but I don’t know if your investment is in the Philippines. I even worried mine especially the value of Philippine money right now is too low.
Fair market value in the US is a great guideline for both sellers and buyers because it is based on the average price per sq foot of sold homes. It’s not the same in the Philippines like you said because there is no centralized database. This is also the reason why prices vary wildly in the Philippines. Sales price vs list price is/are typically lower because they are speculative in nature (higher than fair market). There are tons of units being resold in the Philippines because of buyers remorse, change in financial situation or they “think” they have enough equity to eke out a profit. The biggest challenge that affects the Philippine real estate market and like everything in the Philippines is the ineptness of the gov’t to support its growth. The legislations and taxations including the weakness of the peso against dollar contributes to - most of the time a loss on the (foreign) sellers part. You cannot be technical all the time when it comes to the Philippines because the society has not changed as a whole when it comes to these type of transactions. Maybe someday. This is why I continue to invest, flip and retain properties in the US. If I want a place in Asia as a jumping point to travel between countries I would rather buy a luxury condo in Thailand and hold it for my kids to inherit rather than taking a gamble in the Philippines.
"tons of units being resold because of buyers remorse". You have solid figures on that or is that just anecdotal or eyeball estimate. As for investing in the Phil property market, you must've been living under a rock for the past 23 years as CBDs have been cropping up all over Metro Manila and Cebu, bringing with it an increase in property values for houses and condos. If you think investors are gambling shows how little you know about it. As for Thailand, there is an oversupply of condos and leaving a luxury condo in Thailand for my kids would be stupid as there are residency requirements and strict travel rules within Thailand.
My wife and I just have a house in the provnce in PI. We live in Scandinavia and have a condo here. But we agree, we would not rent out any of our properties.
Great info. Please pass this on to the NY judge and NY attorney general who is overseeing the Trump trial since they don’t know what is the difference of fair market value vs the assessed value. Very appropriate post just for that reason.
True. VG missed this critical piece of information in his presentation of zonal values. It has a significant, negative impact on net proceeds from a sale of property especially if ZONAL VALUE IS GREATER THAN the fair market value.
True. But what I said is to ignore that in determining fair market value. I even said that it is important to know the zonal value to see if there is a possibility of filing an assessmentt appeal. Again, zonal value is not fair market value.
Thanks for the information. Keep properties you live in separate from one’s you rent out. You care more about your properties that you own than the renter.
At you age, you should not thinking about real estate investment, you should enjoy life to the full with your children, grandchildren and travel. As long as you are healthy and not end up in the street because you could die any day due to health problems.
Honestly I think it’s worth it to invest in the US than the Philippines. Plus if you are still paying your mortgage you can use even it during the tax filling but I don’t know if your investment is in the Philippines. I even worried mine especially the value of Philippine money right now is too low.
Fair market value in the US is a great guideline for both sellers and buyers because it is based on the average price per sq foot of sold homes. It’s not the same in the Philippines like you said because there is no centralized database. This is also the reason why prices vary wildly in the Philippines. Sales price vs list price is/are typically lower because they are speculative in nature (higher than fair market). There are tons of units being resold in the Philippines because of buyers remorse, change in financial situation or they “think” they have enough equity to eke out a profit. The biggest challenge that affects the Philippine real estate market and like everything in the Philippines is the ineptness of the gov’t to support its growth. The legislations and taxations including the weakness of the peso against dollar contributes to - most of the time a loss on the (foreign) sellers part. You cannot be technical all the time when it comes to the Philippines because the society has not changed as a whole when it comes to these type of transactions. Maybe someday.
This is why I continue to invest, flip and retain properties in the US. If I want a place in Asia as a jumping point to travel between countries I would rather buy a luxury condo in Thailand and hold it for my kids to inherit rather than taking a gamble in the Philippines.
"tons of units being resold because of buyers remorse". You have solid figures on that or is that just anecdotal or eyeball estimate. As for investing in the Phil property market, you must've been living under a rock for the past 23 years as CBDs have been cropping up all over Metro Manila and Cebu, bringing with it an increase in property values for houses and condos. If you think investors are gambling shows how little you know about it.
As for Thailand, there is an oversupply of condos and leaving a luxury condo in Thailand for my kids would be stupid as there are residency requirements and strict travel rules within Thailand.
Great info. Thank you.
My wife and I just have a house in the provnce in PI. We live in Scandinavia and have a condo here. But we agree, we would not rent out any of our properties.
Great info. Please pass this on to the NY judge and NY attorney general who is overseeing the Trump trial since they don’t know what is the difference of fair market value vs the assessed value. Very appropriate post just for that reason.
Isn't that terrible? This judge probably just bought his license!
I agree. You know more on this topic than the judge and attorney general combined.
Zonal value is very important, if you sell for less than the zonal value the BIR will charge CGT 6% based on the zonal value.
True. VG missed this critical piece of information in his presentation of zonal values. It has a significant, negative impact on net proceeds from a sale of property especially if ZONAL VALUE IS GREATER THAN the fair market value.
True. But what I said is to ignore that in determining fair market value. I even said that it is important to know the zonal value to see if there is a possibility of filing an assessmentt appeal. Again, zonal value is not fair market value.
Thanks for the information. Keep properties you live in separate from one’s you rent out. You care more about your properties that you own than the renter.
At you age, you should not thinking about real estate investment, you should enjoy life to the full with your children, grandchildren and travel. As long as you are healthy and not end up in the street because you could die any day due to health problems.
My brain is always young! What are you talking about? 🤣