HI all,
anyone had experience of doing this before?
My wife has found what looks like a cracking deal on a condo in Manila.
What things should I be aware of?
http://www.sulit.com.ph/index.php/vi...well%2C+Makati
Seems to good to be true, but a cracking investment
First thing I`d be wary of is the size..26 sqr mtrs is pretty small.. You need to actually walk into these places and see if they are suitable for you needs.. Also,take a cat with you and swing it around your head a few times..If it lives,perhaps it is a bargain after all!!
yeah i know its very small, wouldnt be living in it myself, would look to rent it out, nice little batch pad.
and i couldnt do that to my cat
just as a matter of interest, do the values on these types of properties normally go well up after completion?
Buy iy and I'll rent it.... only if you put a bathtub in it
Keith - Administrator
I very nearly bought one in Manila (Marikina City)
Seemed a great place and a great location. Essentially it was a very nice location.
But....... here's what happened to me........ I went with an agent to look around, found it was nowhere near finished enough to realistically compare to 'specification'.
Points to note:-
1. A parking space would cost an additional P375,000 pesos and large enough for typical car. I could never get a specific size, as is was too early to tell
2. Could never get any specific idea on the cost of the maintenance costs. These cost are obligatory, and can change from time to time. Usually after the contract is signed.
Minimum maintenance fees were about P3000 pesos per month but could be P4000
-P6000 pesos because no one can say until that all important contract is signed.
3. Could never get any specific idea on the cost of insurance (which is obligatory). These costs can change from time to time. Usually after the contract is signed.
4. There was a nonrefundable and completely non-transferable deposit required. Means that if you placed a deposit for apartment A and you decide later to purchase apartment number B, you lose the original deposit forever, from day 1
5. There was a P120,000 "facility entrance fee", for a one time contingency fund.
Whatever that was.
6. Now, finally the condo I was being sold, was in fact a concrete room with a toilet with waste and with ONE set hot a cold water pipes. There were no rooms, means no internal partiton walls at all. Those are extra.
No electrical sockets, no other water or waste in or out. No finishes on the walls or the ceilings. ALL extras.
Of course no appliances, no fittings and no furnishings.... ALL EXTRA
7. No information on the pool or other facilities other than they are usually completed before the last condo is finished (ie sold)
Sorry if all this sounds negative, not meant to be just advice on what to be smart on.
So far I have not bought into a condo. I have friends who have done it and done it well.
This is what they tell me, buy a completed condo in a completed building with completed facilities and with a parking spot. Be sure the maintenance costs are fixed'ish' for a know time.
Then and only then you really know what are your costs, and how much you can charge for rent and how much profit you MIGHT make.
This is the Philippines. Not all that glisters is found to be gold
Don't forget the legal fees
What are the reasons you are looking to buy?Originally Posted by bruneicop
Long term growth potential
A place to stay
Rental income
other reasons?
As others have said, be aware of hidden extras.
Make sure you do extensive research and ask lots of questions, if you can speak to any other ex=pat owners on the development and ask them about their own experiences and expenses.
Hi Guys thank for the replies, I must admit a couple of really interesting points that you raised there. (in particular the furnished part), the one we were looking at ws unfurnished and I have a feeling now that it will be like you describe Terpe. (not good)
I need to go and ask some more questions to the agent and understand more on what is actually on offer. (Being a condo i knew there would be a management fee, but wha ti dont know on this one is when you would actually have to start paying the management fee, as this condo isnt due to be finished until 2014
We were basically looking to put some cash into a property and hope for the best when it is completed. (i.e if it the value increases to crazy levels sell the unit on, (if it was just doing ok then we would look at renting it out.
I will see what the answers to the questions are and post them up.
Thanks again
Terpe is right,,,,lots of catch in it,,, be sure to ask everything,,,although good for rental business , but if its not finished building yet you could end up have your money just sitting in that for many years.
I was gonna buy this 4years ago http://www.hamilocoast.com/hamilo/index.php?p=1086 ,,,,for 70,000 pounds,im glad i decided to just buy a house in the uk instead,,,and will just wait for this building to be all finished and there will be always buyer that would want to back out,and will be willing to give me a big discount,than losing it all together,
Last edited by ampy; 13th February 2011 at 10:16. Reason: too long
if u want to buy a condo unit to rent it out later u have to consider the location and what class of people (can be a students, working class, business class, tourist etc.) i got a friend who owns a condo unit in ortigas center and it being rent out to the students and its doing good...if ur really interested and wanted see some model units try and check megaworld corporation located in makati.
Phill is booming at the moment but just be realistic when buying has all the signs of being a bubble with ofw's etc buying plots up before off the drawing board etc..
Just look at the TV adverts and the claims on food you buy from the Phill food store where the claims on some products in the Uk have to be covered up. It does seem he Trade descrptions laws in phill are more laxing than in the UK.
Plenty of empty (due to the OFW's) houses and condos which is good and bad I guess if ytou live in the neighbourhood but hard to judge what your neighbours are like and from what I have heard from people many will let/ lend their house to family and friends resulting in some nice neighbours and anything up to the neighbours from Hell it seems from peoples experinces..
Back in 2004 we looked into condo in Manila and like Terpe said it is very different to the UK market. Keep your wits around you and be aware what your getting and differences in Laws and way of doing things..
Some of the bulidings and places we looked at have turned into nice places but a few still look uncompleted or not quite what was promised even years later..
Some people the Wife and I know have landed on their feet with condos and others have had living nightmares it does normally seems to be linked to how much research and thought has been done before signing on he dotted line ..
Oh lord why did you make so many clothes and shoe shops
Be aware that building regulations are not as good as here, and you may find it crumbles to dust in the first year.
Keith - Administrator
I disagree.
Have you seen the building work in some of the hotels and other buildings? New build condo's may be put up to stricter building codes, but they have in the past been found to be using incorrect (weaker) concrete mix. Not good for high rises, especially in areas with earthquakes.
Keith - Administrator
Maybe cracks?
I seem to remember a slight tremor in the uk a year or two ago..Stories of buildings being shaken and condemned!!
I spent most of my life on UK building sites and a fair few years here too.. The one thing I wish they would add to building code here are cavite walls (insulation wise)..Apart from that the post and beam structures here are far stronger than any ring beam construction Ive seen built in the UK.
Our place is good for a no 8 on the Richter scale..If a Number 8 occurred in the UK then London would look like Berlin in 1945!!
I've never seen new build hi-rises I've been in within the UK having crumbling concrete and cracks, seen a few in the Phil.
They had a problem with the Petronas Towers in Malaysia when they started building them. Management came in and checked the concrete and it was a lower quality that listed to use so they wokers could screw them for a few quid. They were close to pulling it down and starting again until the architects said it would hold as long as they used the quality concrete onwards. This tends to happen quite a bit in Asia. Not a problem with smaller buildings.
You here wrong about the UK houses, all that happens at worse is chimneys fall off. A side wall has fallen off one house, but it was over 100 years old.
Keith - Administrator
is it possible for a foreigner to set up a company and buy property like in Thailand ?
Hi, you can but there are risks involved. personally if i wasn't married to a Filipina I would rent, rather than take that risk.
It's not as simple as you imagine, take a look here:-
http://www.thailand-lawyer.com/land_purchase.html
Yes its possible...Just not legal according to the Filipino constitution!!
Cheers,
Fred.
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