I very nearly bought a condo in Manila (Marikina City)
Seemed to be a great place and a great location. Essentially it was a very nice location actually.
But....... well 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 any kind of 'specification'.
Here's my Experince points to note:-
1. Think about a parking space. A standard parking space would have cost me an additional P375,000 and be large enough for a "typical car". I could never get a specific size big enough for the "typical car", as is was too early to tell.
2. Think about ongoing maintenance costs. I Could never get any specific idea on the maintenance costs. Remember, these cost are obligatory, and can change from time to time. Usually after the contract is signed.
I was eventually told 'in-confidence' that the projected minimum maintenance fees would be about P3000 per month but... could finally be between P4000-P6000 because no one can say until that all important contract is signed.
3. Think about insurances. I Could never get any specific idea on the cost of insurance which is obligatory. Insurance costs can vary from time to time. Usually after the contract is signed.
4. Think about deposits. I was told there was a non-refundable and also completely non-transferable deposit required. Basically this meant that If I paid a deposit for 'property A' and then later decided (for whatever reason) to purchase 'property B', I would lose all of that deposit.
5. Think about 'Hidden One time Charges'. I found out I would need to pay a P120,000 "facility entrance fee", for a one time contingency fund. Whatever that was. Couldn't get any answer I could understand. Maybe White-Guy tax?
6. Think about what you will end up with. Now, finally the condo I was being sold, was in fact a concrete room with a toilet and waste and with ONE set of hot and 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 it goes without saying, no appliances, no fittings and no furnishings.... ALL EXTRAS
7. No information on the promised pool or in fact on any other facilities, other than they are usually completed before the last condo is finished (ie sold and completed to contract)
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, always buy a completed condo in a completed building with completed facilities and with a parking spot (big enough). Always be sure the maintenance costs are fixed'ish' for a specific known time period.
Then and only then you can really know what your costs are, and how much you will either pay in rental charges or alternatively just what you can charge for rent, then how much profit you MIGHT make.
This is the Philippines. Not all that glisters is found to be gold
Oh, BTW, don't forget the legal fees.
I don't know if it's true or not, but I have heard say that many new condo developments these days now have a certain 'life' before needing to be re-cycled.
This is in terms of materials which tend to crack, crumble look tatty, get poor repairs etc.
This period has been said to be about 10 years.
Now I have no idea at all if there is any truth in this, but I do wonder.
This is not meant to be advice, a guide or even a general description. Just something that happened to me one afternoon.
As always no offence intended.
Originally Posted by stevewool
