Investing in Real Estate in the Philippines

[marites4]

Originally Posted by Dvorak

the only advantage of a condo is that it's within the city and nearer to your work, provided you work in the vicinity. Security might also be an advantage for condos.

on every other aspect, nothing will beat a house and lot.

a condo like any other building only has a lifespan of I think 50 years. A house and lot can last forever, if the house doesn't then you can always build another one on the same lot.

A lifespan of 50 years ? really Isn't it possible for it to last longer than that if the building is maintained or no earthquake occurs or you're unable to dispose it by selling. Do you think by then you'll be able to recoup your investment.

[Dvorak]

thanks for that link.. it says there that Real Property Tax (RPT and SEFT) is computed as 2% - 2.5% of the assessed value of the property. And Assessed value is usually 20%.

So if you have a 3M condo. It's 600,000 x 2.5% = Php15,000.00 annually for the real property tax.

Manila, Makati, Pasig, Mandaluyong, QC are all pegged at 2.5%.

Originally Posted by AkafloresToo

Very educational thread, expecially for expat condo-owners like me. For additional info, try this link that talks about these ad other similar issues.

http://www.myhomeland.com.ph/

[bustero]

yes, condo corps which own the lot and sturucture actually have lives of only 50 years but you can extend it anyway. Many coop's (the forebearers of condo's) have been around for over a hundredyears, and in Europe, many apartments, condo's, coops etc, are even longer. There are families in NY that have been living in the same apartment for 4 generations even longer. As long as the building is well done and maintained, there is no reason why you can't expect it to go on for a long time (on a practical basis your lifetime really).

[bustero]

Originally Posted by marites4

IN this case why are they selling like hotcakes, it seems with all these new developments. Or maybe it's just a marketing ploy to make people think they're selling like hotcakes. Do people have a lot of disposable income.

There two kinds of buyers of these things:

End users and Investor/Speculators.

The first does not look at the appreciation in capital as their primary motive for purchasing a home.They look at very practical matters such as how close to work, expense and affordability, location, school etc.

The second party looks primarily at how all the factors above will figure in a demand/supply situation which will raise the value of the investment. They also need to look at liquidity and ease at which them may exit the investment.

The present hotcakes has got to more to do with the huge supply - demand gap in MM. There are a lot of choices for lots in the boonies but not for cityspaces. Considering the changing demographics , attitudes, and fianincing situation, coupled with a dearth of new developments started in the 5 years after the financial crisis, only in the past 2 years has this demand been served and still this is not enough. Just look at the HUDCC figures and you'll see how big the backlog is, and you still will not believe in their demand figures.

That's why right now condo's sell like hotcakes.

[ryanr]

Condo buildings only have a lifespan of 50 years? How come? Shouldnt it be longer?

[queetz@home]

Originally Posted by AkafloresToo

Very educational thread, expecially for expat condo-owners like me. For additional info, try this link that talks about these ad other similar issues.

http://www.myhomeland.com.ph/

This site is awesome!!! Thanks so much, Akaflores!

[bustero]

Originally Posted by GreyX

Condo buildings only have a lifespan of 50 years? How come? Shouldnt it be longer?

Structurally they will last as long as the earth beneath is standing if the building is properly designed and maintained.

What is 50 years is the life of all Philippine Corporations as defined by the corporation code of the philippines. Granted there are other ways of owning the land underneath but ussually you use a condo corp to own the land. When the charter is gone theroretically there is no entity which owns the land though in reality there is a building there. You just need to extend the life of the corporation that's all.

[marites4]

By the way are most of these condos earthqUake resistant.

[bustero]

they have to follow the building code which designs to the best of available and known technology for up to around intensity 9, no guarantees though

[Dvorak]

just to give you guys some update on the fitting out I'm doing for my friend on his unit at Boni Ridge.. I'm having problems dealing with them re:aircon in the living / dining area. The units are turned over with 2 split type aircon in the master and secondary bedroom and 1 window type aircon in the small room/den. The 2 FCU of the split type aircon are located at the laundry area.

There's provision for 2 split type aircon for the dining/living area. The problem is there's not enough space to put in two FCU in the laundry area. Also - you can't just put in any aircon, it has to be CARRIER as there's an existing agreement between them and Boni Ridge.

Carrier's solution is to remove one of the FCU (return it to them), and they will install 1 Multi-split FCU, it's a bigger FCU that can handle 3 split types. So the aircon from one of the rooms and the 2 new aircon that will be installed will all use this multi split FCU. Sounds ok, but the problem is, they're asking for Php80T for this FCU and 2 one HP split type and another Php30T for the installation (whooping Php110T).

Checking out the space at the laundry area, there's still a place for one FCU, so installing one 2.5 horse power split type in the living/dining area could be an option as there's still room for one FCU in the laundry area. This will only costs Php38T for the aircon and Php7T for the installation. The problem is, CARRIER will have to void the warranty of the 2 existing aircon and the new 2.5HP aircon that I will install. They are saying that we have to get the multi-split system otherwise they will void the warranty if we pushed thru and install the 2.5HP. I asked why they will void the warranty, they just said that it's because we're not getting the multi-split system.

Been talking to them for 2 days na.. nakakainis na.... gusto nila kunin yung pagkamahal mahal na product nila.. eh pwede namang mag install lang nang isang 2.5hp na split type.. kasya naman yung FCU.. kesyo magiging 3 na daw yung magkakapatong na FCU sa labas.. eh lahat naman yung facing the outside.. so wala namang problema.. eh kahit yung mag i install kinausap ko na.. wala naman daw problema basta facing outside yung mga FCU..

[sedna]

Why is the unit turned over with aircons installed? Is this in the contract? What if you don't want any aircon at all? Isn't this type of collusion between the developer and carrier illegal?

[thomasian]

It's probably legal because Ayala Land and Carrier are big companies so they wouldn't want to get into any legality qualms with the unit owners.

[bustero]

You can check the contract and the deed of restrictions if there is any such agreement. I would think these kinds of agreements can be abrogated by the association though as it does not seem fair.

[sedna]

Problem is there is no association yet to speak of in the first place. Meanwhile unit owners are stuck with this dillema. Apparently Carrier is in collusion with Ayala and I think this is illegal. It could pose a potential lawsuit for both parties from the owners association that will eventualy be set up in the future. AFAIK most condominiums are turned over only with a "provision for aircon" unless otherwise stated in the contract.

[Dvorak]

all units are turned over with 3 carrier aircons, two split type on both bedroom and one window type on the small bedroom/den.. then there's provision for two split type aircon in the living/dining area..

yes, this is in the contract.. same as all 3 bathrooms are turned over with exhaust system in the ceiling and also one exhaust in the kitchen (above the range position)..

so kasama na sa contract price yung 3 aircons..

Originally Posted by sedna

Why is the unit turned over with aircons installed? Is this in the contract? What if you don't want any aircon at all? Isn't this type of collusion between the developer and carrier illegal?

[highlander]

developers usually mandate the brand/model of air-conditioning unit that should be used only if the ac unit can be seen from outside the building. this is to maintain uniformity so that the building would not look bad having different kinds of acs installed. on the other hand, if a concrete casing for the ac has already been provided and the ac can't be seen from outside, then they should not really mandate the brand/model.

[bustero]

I see , I'm not sure if this is entirely legal as a contract provision (you can ask a lawyer or better yet hlurb) but assuming it is and basically they're forcing you to do an upgrade or they void your warranty then one other way you can work is to talk with building administration or seller (ALI) and tell them the situation. It seems unreasonable, if they insist that there is nothing they can do you can try work it out on the building association level if there is one if none you'll have to organize them or at least find out if there are other people willing to complain like you. There will be better strenght in numbers and you also have certain rights as buyers.

[rmb]

Hey any suggestions for a condo? My aunt is planning to buy a unit. She pefers near the airport such as in fort bonifacio or makati or pasay. Inexpensive and far from pollution. Thanx.

[Dvorak]

what's her budget? how big? there are lots of condo sa global city..

Originally Posted by rmb

Hey any suggestions for a condo? My aunt is planning to buy a unit. She pefers near the airport such as in fort bonifacio or makati or pasay. Inexpensive and far from pollution. Thanx.

[rocky-j]

hi guys, am new here. my two cents.... avoid makati, people told me that the property tax is astronomical. ortigas is not a bad idea. my friend just bought a one bedroom in a fairly new building for less than 3m.