Investing in Real Estate in the Philippines

[daDJ]

If I were rich I would have a villa built in Lago de Como.

[ThisFire]

Originally Posted by OtAkAw

If I were rich I would love a place like Newport Beach, Orange County to live in. A place filled with 5-million-dollar mansions, all the people are rich (LIKE ME:-) No pollution, disneyland is just a drive away, the main city (LA in Newport's case) is near, your "Mansion" has a glorious view of the ocean, socialization is a cinch, many restaurants, a beach, hundreds of places of fun like bowling alleys, golf courses, yachting etc., great fun and celebrity neighbors!

A scenario like that could develop in Batangas or Bataan isnt it? Kulang lang tayong mga pinoy sa pera literally.

Actually California is overrated and not so great. It's so known now, including those who know it but don't want to speak of it. What you've mentioned has now become only a portion of the peak during the past, which was a very short-lived peak. Its existence is based on what people want it to be, forcing it. People tend to be fake too. And all those "qualities" listed do exist, but they really do turn out to not be qualities. Almost like when finding a really cool jacket, and it is really great and what you've been looking for, but it turns out to have rips inside. Don't be fooled by images on TV or the media. It's also very expensive.

Oh, plus the quakes and fires (san andreas fault) are more than ever in California, just like how it's always been predicted that California is a ticking time bomb and vulnerable land.

[marites4]

^ So it's not like Bev. hills 90210 with the beaches, nice weather and beautiful mansions?

[bustero]

yes but what you buy should depends on what you want to achieve.

Distinguish between capital appreciation and cashflow. Some properties will go up in value, some properties will yield you a nice cashflow. These are not mutually exclusive but it's very difficult to find a high yielding investment with great capital appreciation.

An example of very high capital appreciation is land which is in the lahar zone. A few years back you could not give it away. In the right places you bought it for like 50 centavos per sq.m. or Php 5,000 per hectare. Now with the SCTEX if an exit hits that land then it would be worth a minimum of Php200 to Php 300 per sq.m. This turn around took less than 5 years. That's a few thousand per cent return. Of course this si like the riskiest type of real estate just in case lahar actually covered the land. But this is just to highlight capital appreciation.

Properties with cashflow ussually means primer or more usable property. It's almost always in developed areas where someone will rent the land or if it's a building rent space.

Do not confuse your home of primary use with an investment, it's almost always cheaper when you do the numbers to rent, it just depends when in the real estate cycle you buy or sell as the alternative to renting. A primary home or even secondary home which is recognized as consumption rather than investment though brings untold psychic income in terms of happiness and memories things which are more important the older you get as money can always be earned.

Islands are romantic but not practical. My family owns one and it's a money pit. Unless you are able to get a substantial size which has the most important feature ,neither view nor beach nor trees nor even cleanliness , it's water. That almost means a sizable island. Land without water is of no value, you can't stay in it or even develop it. It's like getting a million hectare ranch in the desert. The idea of having land which is that big or an island is great but you can't even live there.

[OtAkAw]

Originally Posted by ThisFire

Actually California is overrated and not so great. It's so known now, including those who know it but don't want to speak of it. What you've mentioned has now become only a portion of the peak during the past, which was a very short-lived peak. Its existence is based on what people want it to be, forcing it. People tend to be fake too. And all those "qualities" listed do exist, but they really do turn out to not be qualities. Almost like when finding a really cool jacket, and it is really great and what you've been looking for, but it turns out to have rips inside. Don't be fooled by images on TV or the media. It's also very expensive.

Oh, plus the quakes and fires (san andreas fault) are more than ever in California, just like how it's always been predicted that California is a ticking time bomb and vulnerable land.

I did not know that. Perhaps I'm just soaked in too much The O.C. right now, I'm lovin that show....

[_zner_]

ive got this one in malayan plaza condo in ortigas..

[Espma]

hehehe..well Bustero that's your opinion, but yeah totally agree about the practical aspect of buying an island..definitely not practical lol ..nways its still a dream that would be soo hot i reckon, an island big enough to maybe even develop into a decent resort. HAHA maybe this will happen when I become a multi millionaire hehehe, Marlon Brando had one ughhhhh!!!!!

[bustero]

If you're serious , I'm pretty sure you can get an island in the middle of nowhere for a few million.

[Lili]

Originally Posted by Espma

hehehe..well Bustero that's your opinion, but yeah totally agree about the practical aspect of buying an island..definitely not practical lol ..nways its still a dream that would be soo hot i reckon, an island big enough to maybe even develop into a decent resort. HAHA maybe this will happen when I become a multi millionaire hehehe, Marlon Brando had one ughhhhh!!!!!

Or even self-improvement guru Anthony Robbins in Fiji. He converted his island into a convention center where he conducts those walking on flaming coals breakthrough courses. Then, it becomes not just your island hide-away but a lucrative venture, too. But first, you need to concoct that 'snake oil', wellness, self-improvement gig and develop that magnetic personality to boost.

[bustero]

For you guys who want to have your own islands.
http://www.philippine.islands-real-estate.com/ for local islands
http://www.tropical-islands.com/ tropical islands
http://www.privateislandsonline.com/ for all around the world

dont' forget youcan buy an island in Canada , or the northern US , quite cheap but not the tropical paradise you may imagine.

and of course that ultimate island steal for just 24$ worth of trinkets...manhatan

[Lili]

^ Courtesy of the Manahatta tribe.

[Lili]

Originally Posted by rmb

Here's what my aunt wants:

Nothing fancy...2 bedrooms...small kitchen...a place conveniently located near US embassy and airport...no flooding...any suggestions?

Check poster champagnesupernova's unit along Roxas Boulevard. She might like it. Here's the thread:
http://www.skyscrapercity.com/showthread.php?t=286248

[sterlinggal2002]

Major consideration in choosing a property is its location. Most people go for view but i go for the investment potential of the property. Roxas Blvd area has started to flourish but as to where the Mall of Asia is and if ever there sections for residential it is still part of the Reclamation Area. i dunno know hos sophisticated the construction engineering of this place is but law of gravity will still apply.

[3cr]

Are you pertaining to liquifaction? Yes this will always be a concern for building structures constucted on reclaimed land. Just like you, I'm personally staying away from them maski na maganda pa ang sunset view sa Manila Bay lalo na since sa Pinas halos lahat pa naman nadadaan sa lagay eventhough the building construction/engineering may actually be shoddy and it's not until some tragedy happens that the shoddy work gets exposed. Too late na by then di ba.

[ishtefh_03]

i agree to that, the place or view is not that important, well to some yes, but the most important is if the building if strong enough or build properly... hindi nadadaan sa ganda ng structure of sa ganda ng lugar...

[3cr]

Just reposting Thomasian/Aaron's posting on the topic of liquefaction...

Originally Posted by thomasian

It's not just the reclaimed ares that are vulnerable to liquifaction, Manila (especially within the pasig river delta) and the nearby coastal cities can also be victims of liquifaction.

Read more in this article:
http://www.newsflash.org/1999/12/hl/hl011767.htm

"Solidum said it also warned about the threat of liquefaction, where geysers of underground water triggered by huge quakes dissolve the ground, swallowing up everything above it."

"Parts of the city, including the coastal areas along Manila Bay and the Pasig River delta, are more vulnerable to liquefaction than elsewhere because they sit on soft sediment instead of more stable volcanic rock, he added."

Quoted from this article:
http://news.yehey.com/news3.asp?c=11&i=75760

[bustero]

A good building can be made in Manila just as sturdy and as well as in the more solid geography in SanJuan to Quezon City area. What's important is that it's engineered properly. You can do the research who did the strucutral engineering if this is your concern, firms like Aromin and Sy , DCCD among others do international work and compete with ove arup for structural works and you can be sure if they are wililng to sign off on it it's good enough. If it's a not to famous engineer you can ask around be advised though that more engineers tend to overdesign( the structure is stronger than it should be) than underdesign in the Philippines. As food for thougth remember than Makati used to be a swamp and while it does have better soil than Manila it's not as good as the hard adobe in the Ortigas Area stretching North. But then again even in this area (or even Manhattan bedrock) if the engineering work is not done well you can still have structural failure in the building.

[ishtefh_03]

is there anyone here who is interested in getting a unit in aeropolis 2 or in any Laguna Properties Holdings, Inc. (LPHI), Ayala land??? just tell me...

[3cr]

Per Bustero's request, just reposting this discussion on the importance of (or lack of) parking slots in condo ownership taken from the One Rockwell thread. Hope this helps future condo investors strategize better as well as reach a sound decision based on their own individual requirement(s)...

Originally Posted by bustero

mods some of the posts here are very interesting for future buyers maybe you can link or repost them in the relevant sticky threads, otherwise it'll get buried in the one rockwell which sooner or later will die or loose interest.

[3cr]

...

Originally Posted by Mamichi521

hello all,
I just happened to come across this site by accident and I'm glad i did. I recently purchased a studio unit at One Rockwell at a Roadshow event they conducted here in Virginia. This is my first home purchase in the philippines and I'm anxious and excited at the same time.

I bought the unit on a cash basis so that i could avail of the 19% discount; and I also did NOT purchase the parking space. The parking space would be an additional $12,000! I figure at that price, i could buy another vehicle.

Did I make a smart choice in not getting the parking spot?

Originally Posted by tootsjap

Mamichi521,
Buying parking space only make sense if you can't rent parking space once you move in. It rarely happens that there is no available parking space for rent specially in huge developments. Admin will always have a parking space for you that may not be a good location but still good for parking. You will normally get parking space for rent from owners who bought parking space for a lesser cost. I recently leased my unit in a relatively new condo in the heart of Makati CBD and my lessee easily rented a parking space for P2,500/month. Do your math. You can already get this amount if you get at least 5% net interest from your $12,000. So you still have your $12,000. You have not sunk that money and it can make more money for you while you are waiting for your unit to be delivered. The rule of thumb is, if the development is big, don't buy parking if that is an option (some developments bundle the parking and the buyer does not have a choice). I think you made a wise decision.

Originally Posted by 3cr

Mamichi,
Tootsjap already posted a very good response to your inquiry and I'd just like to add my two cents on the issue. The parking slot may indeed sound expensive at $12T so if you will only rent a vehicle during your stay in One Rockwell then you really don't need a permanent parking situation (just rent) but if you are buying one for your use there then it won't hurt to secure atleast a spot for your vehicle. The other thing you need to determine is how you will be using your One Rockwell unit? If it is for your own use/residence when visiting the Philippines, then whether or not parking should be purchased is really up to you; however, if this will also be an investment and you are possibly going to rent it out and/or sell it in the future, it will be easier to both lease/sell the unit when there is a parking slot included in the said unit. You can just increase the rental rate accordingly to reflect the unit/parking combo. And even if you decide to keep the unit for yourself, you can always rent out the parking slot until the time you actually need to use it. This way you can use the proceeds from the parking rental for your monthly association assessment. Since you bought your unit cash, you should be able to negotiate the parking slot purchase in such a way that you can just pay for it in full upon unit turnover so they don't get your money right away. Just be aware though that depending on the development, the parking slot may or may not be included in the computation of the monthly association assessment so it will be prudent to ask your Rockwell Sales Rep. If you get a moment, you can also check out the current Soma and Fairways Tower threads where the issue of parking is also currently being discussed. In the end it's really going to be up to you but hopefully the information shared helps you in making a sound decision. Good luck!

Originally Posted by Dvorak

on an investment point of view, having a parking slot is a plus as a lot of condo buyers wants a unit with a parking space.. and in the long run.. i think it's really worth buying a parking space now as the price will appreciate in the future..

in our unit in GA Tower, when they started selling 3 years ago, the parking space was 350T for single and 500T for tandem parking space, now the parking space is 500T for the single.