BUYING A CONDO IN THE PHILIPPINES? TODD SHARES HIS EXPERIENCE AND ADVICE

Buying a condo in the Philippines can be a good real estate investment or a home longterm. Todd bought one in Mactan Newtown, Mactan, Cebu, the Philippines and shares his experience.

184 comments

  1. I sometimes am glad we bought our property and built the house ourself. We did run into some issues as mentioned with all the signatures needed on a gazillion forms.

  2. “Banks are a different world here?” You’re absolutely right. I bank at Robinsons Bank, making a draw from another Robinsons Bank charges 125 peso (?)

    1. But on the plus side I looked at financing for a car and it was virtually the same to finance for 3 years as the sticker price. There’s probably a discount for a cash purchase, but at least you’re not paying an extra $4000 like you would in America.

  3. I’d like to see a video about the various payment schemes they have in the Philippines, especially how long it takes to pay them off.

    1. I did a little bit of a video about that 3 years ago or so. Some offer in-house financing. Some offer different discounts at various down payment levels. Some offer “rent to own” options, but in the end one usually needs to pay a certain equity amount before you can move in. Many take advantage of the rent to own and move in for a year or 2 with low payments and then bail out of the deal.

  4. I don’t want to spread false informations, but as far as I know the Philippines’ law, a “professional” builder has to involve “independent” real estate brokers / agents for the marketing. If these brokers work just and only for that company, then they’re not independent and therefore not permitted to get any percentage in form of a provision or compensation from the buyers!

    1. @Amazing Philippines Right.

      But if you buy under the assistance of an independent broker, you’ll have to pay a provision to him or her. But if that broker is not independent, indeed that guy is an “in house broker”, a provision would be unlawful. That was my message.

    2. Thanks lamberko. Many of the developers have their “in-house” agents that only sell their units but that doesn’t exclude other brokers from selling also.

    1. I would NEVER give “12 postdated checks in advance” to a landlord in the Philippines! If something has to get repaired in your apartment/ house, and if the landlord doesn’t care, then you’re lost … while the landlord will cash the checks month for month for month.

      Of course now you could go to the bank and turn these postdated checks into invalid, means when he tries to cash the checks will “burst”. But, in the Philippines a burst postdated check in your “financial history” will destroy your financial reputation for ever!

      Nowadays the supply of apartments/houses “for rent” is much higher than the demand. Every landlord will be happy to find a renter (teanant). That is your advantage, because no reason to become pressured. Most landlords are willing to discuss alternative procedures. Pay your deposits, and maybe 1 to 3 rents in advance … show him a proof of your stabil income … and instead of postdated checks you simple pay cash every month. If something goes wrong, you just stop paying and move out. Now the landlord is under pressure; not you!

    2. @Daniel Murphy And as for paper trail, online transfers and wire to wire bank transfers are good enough these days. No need to “destroy the environment”. See, I can be anal too.

    3. @Daniel Murphy BTW, there are a ton of grammatical errors in the other posts. Are you gonna point them out so you can show how superior or anal you are in your grammar?

    1. @MarkCEO09
      In US or any other developed country, there is laws that work for anyone. Laws in PHP and other South East Asian countries; work only for locals or the corrupted. You know it’s true

  5. Just for information

    “Housing and Land Use Regulatory Board” (quote) …

    BEFORE BUYING

    Check if the Project has a Certificate of Registration and License to Sell.
    You should ask the broker/agent of the owner/developer if the project is registered and has a License to Sell issued by HLURB:
    * This can be verified at the On-line Queries/HLURB website (www.hlurb.gov.ph) for the list of projects covered with Certificate of Registration and License to Sell as well as any encumbrance thereon, e.g. Cease and Desist Order, Suspension of License, etc.;
    * Or you may visit or call the nearest HLURB Regional Office for this information.

    Visit the subdivision/condominium, where the house and lot or condo unit to be purchased is located to know its natural topography, viz: susceptibility to landslide, flooding, erosion, etc.;

    If the project is covered with a License to Sell, you may already enter into a Contract with the owner/developer. However, there are things which must be checked:

    The date of completion of the project as indicated in the License to Sell;

    If the property is mortgaged, it should have a Clearance to Mortgage from the HLURB;

    The facilities and amenities represented in the advertisement flyers/ brochures are in accordance with the approved subdivision and condominium plan on file with HLURB.

    WHEN BUYING

    Check if the broker/agent is registered with HLURB/DTI;

    Verify if the property has not been sold to other buyers with the Register of Deeds;

    Check into your source of income whether you can afford to pay the equity and the monthly installments;

    Check if the materials of the house or condo unit conform with the development standards and approved construction specifications submitted to HLURB;

    Check whether the developer would payfor the water and electric meters, the subdivision perimeter fence, etc;.

    Check who would eventually operate the subdivision/condominium water system.

    BEFORE SIGNING THE CONTRACT TO SELL

    Don’t sign any blank form of the Contract;

    Read thoroughly all the contents of the Contract more especially the terms and conditions in fine print;

    Secure a copy of the Contract and all other documents that you have signed;

    Make sure that the Contract would be registered by the owner/developer to the Register of Deeds;

    Pay directly to the owner/developer or the marketing agent authorized by said owner/developer only; and

    Ask an official receipt on all payments for your file.

    RIGHT TO A CLEAN TITLE

    The buyer of a subdivision lot or condominium unit shall have a right to a clean title of said lot or unit upon the full payment of the purchase price.

    If the lot or unit is mortgaged, the owner/developer shall redeem the mortgage within six months from full payment so that the title could be delivered to the buyer. The only fee collectible from the buyer is the registration fee for the deed of sale in the Registry of Deeds.

    Realty taxes can be assessed on the buyer if he has actually taken possession and occupied the lot or unit prior to the transfer of the title in his name.

    These are so provided under Sections 25 and 26 of PD 957, Subdivision and Condominium Buyers Protective Decree, thus:
    “SECTION 25. Issuance of Title. – The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fees, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and delivered to the buyer in accordance herewith.
    “SECTION 26. Realty Tax. – Real estate tax and assessment on a lot or unit shall be paid by the owner or developer without recourse to the buyer for as long as the title has not passed to the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.”

    NON-FORFEITURE OF PAYMENTS

    A buyer’s payment for a subdivision lot or condominium unit cannot be forfeited by the owner or developer when he desists paying on the ground that the project is not develop per approved plans and within the time limit for development. He must, however, notify the owner or developer of his decision to suspend payments.
    The said buyer has the option to demand a refund of the total amount paid with legal interest. The total amount includes amortization interest but delinquency interest is excluded. Section 23 of PD 957 Subdivision and Condominium Buyers Protective Decree provides, thus:
    SECTION 23. Non-Forfeiture of Payments. – No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desist from further payment due to the failure of the owner or developer to develop he subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer, may at his option, be reimbursed the total amount paid including amortization interest but excluding delinquency interest, with interest thereon at the legal rate.

    FAILURE TO PAY INSTALLMENTS

    In case the buyer fails to pay his installments for other reasons not attributable to the non-development of the project i.e. he failed to raise the needed money, he may avail of his rights under Republic Act 6552, Realty Installment Buyer Protection Act. This is so provided under Section 24 of PD 957, thus:
    SECTION 24. Failure to Pay Installment. – The rights of the buyer in the event of his failure to pay the installment due for reason other than the failure of the owner or developer to develop the project shall be governed by Republic Act No. 6552.
    Where the transaction or contract was entered into prior to the effectivity of Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary.

    http://hlurb.gov.ph/services/buyers/

  6. Wow! GREAT info Rod! My first thought was that’d be a nice place to rent on our normal 4 month stay, then the $720 a month estimated rent totally destroyed that thought! lol Seems like my thoughts of the Philippines being an affordable place to live is rapidly changing. Looks like it’ll be the nippa hut for us! lol. Thanks for sharing! Don Jenny & Asia

    1. @Amazing Philippines I see our plane ticket cost is down about $1200 for us 3 to fly round trip there! My biggest fear is not being able to re-enter the USA or get hit with a 3-4 week quarantine.

    2. Thanks Don. You might find some real good deals as the tourist form Korea and China have dwindled to very little. I think the $720 rent was for a corporate lady out of Manila.

    1. Chris Cook I understand and see your point. We have been overwintering the last 7 years. Like 3-4 months. Been to Asia end enjoyed almost every country. Been to South America and currently in Peru.
      Our neighbors looking after the house. One is a retired plumber and the kid next door shovel the driveway.
      We have thought about moving to a warmer country.
      Looked into buying in Ecuador. Friend we know did in 2015 with the promise of being done by November 2016.
      Guess what there are still know condos to this day. There still working on the project so it could be 2026 by the time it’s all done but way to old to enjoy the golden years. But he wasn’t the only one . 90% where Canadians and Americans. Because no Ecuadorian could afford these places.
      You where lucky you bought into a finished complex.
      So enjoy. Never made it to the Philippines. But we bought airline tickets from Vietnam to Manila but the had some bad floods and mudslides where we wanted to go so we just did not go . To bad. And now are traveling time is coming to an end do to age and physical not fit to enjoy traveling. Husband is a disabled Vet. All I
      His Medicine is paid by the Canadian government. And it costs a lot.But we where lucky to seen a large part of this world. Take care and stay healthy.

    2. @Evelin Holmes I can leave my condo and not have to worry about all my things going missing. We have both condos and a house and the only way to leave our house for months at a time is to have family moving in.

  7. Great video Rod. I’d assume there are a awful lot of people that are interested in this kind of information.
    My wife and I are also still living outside the Philippines at present, but got in on a pre-sell at Azure North in San Fernando, Pampanga and are currently waiting for our condo turn over.
    It seems like Century Properties does things a little bit different after listening to this, but we look forward to the day we can enjoy our own little piece of paradise too.

  8. Useful info. Bottom line do your homework, look before you leap. Honestly tho $700/ USD. for a one bedroom seems high. Foreigners, EX Pat’s paying this kind of money is squeezing the Philippines out of the market.

    1. Thanks Joe. I think the lady who had rented it was a company executive who was recalled to Manila after a month, company paid the rent. This is a higher end market also.

  9. do they have 30 year mortgages in the philippines ? seems like all these condos are required to pay all cash . If this is the case it would seem impossible to sell them as you would need all cash buyers?

    1. @Ray Wolf Hah Hah Hah, yeah those agents can be quite snobby. The ones that give me pamphlets I just say I just bought a unit last year and I have no more money. BTW, I love the returns from your condos at BGC. I only started investing in 2012 and capital gains and rental yields are pretty good but not as good though as the 15% plus returns from investors that bought before 2012. I’ve got one more unit coming up next year and once that’s rented I’ll look for my next condo. I’m looking at a commercial office or condo at the Galleon but the presale price for the condo is 247K psm. Not sure if I can get a 7% return from that as I’ll have to rent the unit at over 250K pesos a month, can be done but not likely in Ortigas even though it’s directly across ADB.

    2. @Ray Wolf My point was there are local CASH buyers in Manila, happens regularly subdivision purchases in the 7 to 20 million peso range. You implied only foreigners get those condo pamphlets at the malls. They hand them out to me and I’m a Filipino dressed very casually.

  10. Dont forget condo fees and condo board mismanagement of funds and maintenance going to shit. If the government cant manage federal affairs, provincial affairs, LGU affairs, Barangay affairs…what makes you think the 5th level of government (condo board) will be any different?

    1. Good points. One want to check out a developers other projects to see how the maintenance is holding up. Megaworld has a good reputation and Mactan Newtown would lose considerable business if they would not maintain the property well.

    1. @Amazing Philippines That means nothing in the context of the Philippines. Its apples to oranges. Thats like saying there are many efficient democracies in the world – still does not change the fact that the Philippines is not.

    1. Gary Lafferty It’s very difficult to find a safe place if there’s a fire in the condo where you at higher floor it’s to scary you end up to jump to the ground when the fire is worsening.

  11. The thing I’ve seen is that financing is very cheap (not as good as cash, but nowhere near as bad as American financing). I’d also be very concerned about investing in a pre-built condo because things happen there and if it falls through or turns out badly it would seem impossible to get your money back. Also, you still have association fees there so I’m curious why not a house instead? If you’re single and not a citizen yet then obviously there’s a land issue, but if you have the chance to get your own house with no property taxes, why have neighbors on all sides in a building in the middle of the city instead of a home where you have some privacy?

    As an investment property I can see it, but I’m not sure I’d go that way unless I had to as a place to live permanently (especially since I’m a musician and have no idea of the quality of sound insulation in a place like that). But I definitely am interested in getting more information on how to work with a GOOD real estate person. Love the channel…..keep it up!

    1. A condo is easy to secure. You lock it up and it’s good. There are cameras in the elevators and guards at the entrance. A house he will need maids or people to stay there to safeguard his property while he’s in the US. If you don’t that house can easily be broken into. There are also amenities that a house normally doesn’t have like a gym and pool. He can also ask the staff to help him if he needs assistance in emergencies like going to the hospital. Lastly a condo is usually in the city close to malls and hospitals. I can’t say enough how important it is to be close to hospitals during retirement.

      As for privacy, that condo has cement walls and most likely tile floors which is very good sound proofing. As for a house, foreigners also can’t buy land but condos are good up to 40% of the units.

    2. Thanks S Des. Condos are often a lifestyle choice. Many developers have a good reputation here and finish their projects but on wants to check them out. An Australian friend of mine got money back from a large developer when the project was delayed through the help of an agent.
      Noise…I paid dearly for 2 apartments in the USA that had “party walls” and I could still hear the neighbors alarm clock and phone. I would do my own soundproofing before moving in as that was may business in the USA for years. I have done a couple videos about it here: https://youtu.be/DDnj6iUJgWY

  12. Rod,
    Todd is an excellent source of information – same case as the gentleman at the immigration service. So, I guess you can buy a condo and resell it at a profit. The market in the Philippines is going to depend heavily upon the outcome of the Corona Virus Pandemic. ( I’m trying to not sound like I’m talking out of my ass , but common sense would lead you to believe that impact may be evident for at least in the short term 6 months – a year)
    Daniel

    1. Thanks Daniel. I know of a few expats who have sold properties for a profit and/or are obtaining good rental income from them. The virus is having an impact on the world including the Philippines with so many of the tourists coming from South Korea and China.

  13. There is a condo building in Century City, Poblacion Makati in Manila that was 90% pre sold—the Stratford Residences—was going to be the tallest in Makati–the developer got into a few disputes and just walked away—-it has been a 74 storey shell for the past 4 or more years. I have also been told that there is a 25 year law in the Philippines—that the building owner can demolish the building after 25 years and the condo owners have nothing and the owner can rebuild

    1. That information is not correct. Sorry.

      The “life span” of a Philippines’ condo-corperation is for 50 years (btw like every business corperation in the Philippines!) and after the 50 years the corporation can be renewed or the building destroyed (in that case the owners get a compensation for the land; based on its value then).

      That depends on the final decision (votes) of the “majority” of the condo-owners, because – when they buy the condos – they become co-owners in that corporation. Like common shareholders.

      Sounds complicate and “dangerous” or high risk, but it isn’t.

      The reason for that is, in the Philippines the business corporations have a life span for 50 years. If you ran a business, and after 50 years of hard work you’re still alive, you can renew your corporation for the next 50 years. And so on. In theory for an eternity.

      Means in the Philippines (when you register a corporation for doing business) it will have a limited (but renewable) life span of 50 years; right from the beginning.

      And if you want to buy land and build a condo-skyscraper on that lot, that project will have to be registered as a “business” because for the reason of the responsibility. Means the projector/developer has to form a corporation. And we’ve learned: The life span of a corporation (in the Philippines) is 50 years.

      Imho no reason to worry.

    2. I have friends where the contractor stole their deposit while building their house or the land title of a house was not from the original owner. There’s risk in condos and homes, do your homework. Best advice is only buy from reputable developers. Shangri-la stopped development of a condo in Makati in the 90s due to the ACC. Buyers got their deposits back.

    3. Thanks Clyde. There is always risk involved with real estate. MegaWorld has finished every project they started so it is important to know who you are dealing with. I have seen a few projects be delayed here in Cebu City but they were each completed. I have seen one smaller one sitting for over 4 years.

  14. It’s frustrating wife and I have a beach home in saiton area. It’s been a year with an attorney and we still don’t have the house in our name. I’m frustrated over how slow everyone is getting this completed been over a year. Been told it’s in Cebu office so hopefully this year.

    1. Peter Nickname Licensed ones usually do due diligence before selling the property. We get the Certified True Copy of the Certificate of Title and the Tax Declaration to verify so the buyer won’t have problems with the transfer of title later on.

      If ever you really transacted with a licensed real estate broker, you can actually make them accountable and compel them to do everything in their power to help expedite everything e.g. Go to respective Cebu government offices 😊

    2. Own Property PH we used one and the people had bill of sale but never put it in there name. We find out after purchase. So we had to contact original family the owner was deceased. Thank god we come to find out it was a friend of my father in-law friend of brother. So we had to get his three siblings to agree and sign off and submit everything to Cebu from station. So I’m told it takes time. But know one can tell me how much time. So I wait before I rebuild this place.

    3. I’m not sure why the attorney is involved in the process. Licensed real estate brokers are the ones who help with the process. It should only take 2 to 3 months to process everything.

  15. Thank you Rod and your guest, good and informative video. I have question about “rent to own” condos.
    Is it allowed for foreigners to rent to own condos in the Philippines?
    What are the precautions and measures someone should know about before doing that?
    Is it recommended?
    Thank you in advanced, if any one knows or have experience like this please share with us.

    1. Yes, foreigners are allowed to rent to own a condo in the Philippines but you should ensure that you have the financial capacity to really purchase the unit so as not to waste your investment.

      The real “Rent to Own” is ready for occupancy units (units unsold during the preselling phase) whereby the “rent” you pay will be credited to the selling price if you decide to purchase the leased condominium after an agreed period of time. This is more expensive than rent since you’ll have to pay 5% to 10% equity before you can move in.

      If you want a lower monthly payment and more choices (unit view, floor level, and proximity to amenity area), purchase a preselling condominium project instead but make sure that you get it from a reputable real estate developer that has a good track record. You’ll want your condominium to be delivered on time as well as the quality of the craftsmanship to be good.

      Me-An Clemente
      PRC Licensed Real Estate Broker and Condo Owner

    2. Amazing Philippines That scams is going here in Canada to or say world wide.
      Vancouver, Canada has so many scams going on with Chinese realtors it is unreal. Wish the would send all scammers to a place of no return.🤬

    3. Thanks TravelLover and good question. One needs to be careful as some sales people will use the term “rent to own” loosely when all they mean is that you will make payments for a couple of years and then have to pay the total amount. There are companies offering in-house financing with longer term payments but you usually have to reach a certain level of equity before moving in, but not always. I know of people who “rented to own” for 1-2 years at the lower rate of 10-15,000 pesos/month and then bailed out when the total was due and the units went back up for sale.

    1. There are actually condominium projects equipped with Japanese visco-elastic coupling dampers (VCDs) that help vibration control. So long as you buy a condo from a real estate developer with a good track record and known for craftsmanship, you’re more safe living in a condo than a house 🙂

    2. David Henson Hello, I’m an in-house agent here in the Mactan Newtown. With the earthquake issue, the Township is located at mactan and mactan is made of coral, which is the hardest rock formation. We have a massive based foundation for our project and we passed the ISO standards.

    3. The condos held up well during the 2013 7.2 earthquake David but there is always some risk. There was a condo in Davao that was badly damaged last year but most of the damage seems to be houses and smaller buildings that probably were not built properly.

  16. WOW 725 is steep for SEA. You can get a super nice condo with all the bells and whistles for 400 – 500 in BKK, less if you shop around and have a Thai friend you can trust to help you navigate the process. Great info on the prefinish sales.

    1. Thanks JC. This is a high end area and the lady renting was a corporate account who was transferred back to Manila after a month. I just watched a video about the hotels and resorts being very empty in Thailand with the new rules and the virus is causing less travel all over the world including the Philippines so I suspect one can find many very good deals soon.

  17. Im a Filipino and bought a condo in the Philippines and pain in 3 yrs .I didnt receive the Title ffrom Bureau of Lands 4 yrs,after paying it in full .It caused me a lot of stress and headaches,$$$$$,hundreds of phone calls from the USA and numerous trips by me and friends and family members to facilitate process .To this date ,they havent transferred the Title of ownership at the CITY Hall ,where i pay my real estate taxes yearly .They kept promising since 2015 .Name of Company is Suntrust .Any future buyers ,dont deal with them ,theyre crooks!

  18. Most ppl should look at the law about inheritance in the Philippines.
    It states that children get 50% ,remaing spouse gets 25% and the other 25% will go to who the person that die put on there Will to receive it .
    So if your children what the money now they have the right to sell up everything to get their inheritance.
    And condominium is the only thing a foreigner can have in his name and own 100%.
    A house and lot can only be put in you philpina name and she will own it 100% no foreigner can own any land in the Philippines.

  19. Informative video. I’m in the BPO business and Mactan Newtown is like being on the moon in Cebu. Too far from anything. Lot of speculative buyers thinking it may be the next IT Park which is in the city in Lahug. Maybe in 5-10 years it will be but still so much new building and nicer condo complexes in Cebu City. And I talk to too many foreigners I know are struggling to rent units in Mactan Newtown. That said if this gentleman is living there and is happy then god bless. I’m engaged to a Filipina so I’ll likely buy a house with her as opposed to buy a condo. Just my preference.

    1. Amazing Philippines The other issue is getting to Cebu City from here on either bridge. Traffic is horrendous. But if you are staying on Mactan all the time this location is fine and the units look nice. But real estate is all about location location location. I went there for an annual Mango Festival which was really nice but even then area felt a bit like a ghost town. Btw, love you videos on Condos all around Cebu. Thanks for sharing. Nice work.

    2. Thanks Chris. I know what you are saying. It has taken me a couple of years and a few trips over to visit friends on Mactan to get a new appreciation for the area.

  20. Hey, you’re a good interviewer too. Interesting to learn about other countries business ways. The dryer that won’t dry. See if its the heating element, sounds like it

    1. Common practice in Manila is after the initial presale, the developer will raise the price by 2% to 3% per quarter. Condo projects take between 5 to 7 years so you can roughly calculate how much the price will be upon completion.

    2. One should do their due diligence Tim. The best pricing is during pre-selling and most developers do complete their projects so know who you are dealing with.

  21. I have been in Manila since May 2018, my Filipina Wife and I moved from Dubai to be here to start a new Life as we had been in Dubai for 10 years which was 9 years too long, we have looked at buying Land and buying House and Lot but the Prices here are crazy, 500 square meters of just Land will set you back $300,000 and then you have to build the House, my biggest concern in buying here is if you have to move away from PH quickly you will not be able to sell your property quickly, it is not like the Western world here as the whole selling process is so slow, on a few occasions we were close to sign on the dotted line to buy Land or House and Lot and I am so Happy I decided not to, on a positive side I am now 54 years old and semi retired and it is so cheap to Live here apart from the High Rental and Real Estate Price

    1. If you’re buying a preselling condominium project, time varies depending on the real estate developer. If you’re buying a resale condominium, the documentation takes 2 to 3 months depending on the how quick the respective government offices are i.e. Bureau of Internal Revenue, City Treasurer, and Registry of Deeds 🙂

  22. Beware! When you buy a condo you are stuck with your neighbours and the whole condo development. If you rent you can move away, if you buy you are stuck. Condo developments get run down very quickly, poor maintenance and careless owners. Whilst the development is new the developer has a duty to remedy this stuff but after it is handed over to the owners this can quickly get very bad. When you want to sell you will have difficulty finding a customer with cash. There are endless new condo developments where they can go into a brand new unit on installments. With women I always found it’s better to rent than buy, same with condos.

    1. @Amazing Philippines You are quite right. I have owned three condos and one house and lot. Another point I failed to make is that property does not automatically increase in value as time goes on and many Filipinos buy a property for that property to remain in their family for a lifetime. On average if you buy a second hand property you will have to completely remodel the whole thing, it will be trashed. However with my house and lot I am lucky as all the surrounding units are empty and although my neighbours are far from ideal they could be a lot worse.

    2. You make some good points Bob but much the same goes with housing if you don’t like your neighbors and many of the housing developments are not maintained as we might be used to.

  23. soon after all apartments in building are sold maintenance stops and building start to deuterate filipino building quality is very bad.tales start falling of walls in corridors roaches everywhere …so soon nobody want to buy this building…it is always hard to sell apartment because filipinos buy houses expat can’t buy houses…so they owerhipe prices of condos knowing expats can’t buy anything else..but soon you are left with unmaintained building forever…. …if you have children with filipina best buy house on childrens names…also if you want invest in property asia Philippines are not top of the list ……

    1. This is partly true for some developments but the better developments have a motivation to provide proper maintenance and promote their reputation also Dubravko.

  24. Isn’t 4.5 million pesos $90,000 USD? The 40 meter condo is about 400 sq ft.. If correct he paid $225 a sq ft.. My god. And we don’t what know fees are. Any condo I seen keeps raising fees. I bought one & fees became almost as much as the payment. Like he said there’s a slow dn do to Chinavirus. Maybe condo prices will crash like the PI stock market which was 900 & now 600.

    1. @Amazing Philippines When they take a hit I might buy at 1/2 price. I’ve heard tell that condos are way over built even before this Stock crash. PI Stock Markets Manila PCOMP 5,900, dn again to today 7%. Its said do to China Virus. As I said DJIA is going dn. May be to 18,000. Futures are at 22,250 tonight. It never should’ve went to 29,000. Nice vids.

    2. Correct M S. This is a high end development with residential, commercial, retail, and school all on the same property with a nice beach and lagoon part of it. I would not be surprised if prices take a hit here and many parts of the world.

  25. I bought a condo. It is all fun and games until you try to sell. There is no MLS. Transaction costs are 10%. Virtually all of the condos are for sale or rent or both. Your only market is expats or OFW’s. The guy in the video alluded to it, but there are a lot of headaches that come with real estate transactions in the PI. I’d recommend just renting, especially with the cap rate so low. Most condos can be had for .5% of the purchase price per month. This also gives you much more flexibility if you want to move either in the PI or go back home.

    1. Thanks for sharing your thoughts and experiences Steven. I have an Australian friend with 5 units. He sold 1 for cash and rents the others out while looking for buyers but I am not sure how his rentals are going.

  26. The buble is going to collapse now. When the world trade is stopped for a few month people have to sell their assets to pay bills. This is not a simple crisis. The prices will come down and the prices for the PH (or TH same thing) are so insane bloated beyond any real value. They should be at 25% to be a match for the value they offer.

    1. We are living in interesting times Lothar. I have lived through several recessions and market collapses and hope to do the same during all of the future disruptions as well.

  27. Just to add to the discussion.

    There is no realtor in the Philippines. The recognized professions in the Philippines are the following:

    1. Licensed Real Estate Consultant (10 years real estate broker or 5 years appraiser)
    2. Licensed Real Estate Appraiser
    3. Licensed Real Estate Broker ( the only profession authorized to get commission | neither family nor friends of owners not having real estate brokerage license may do so)
    4. Accredited Real Estate Salesperson

    When Buying a Preselling Condo

    Even if a salesperson is employed under the developer, check with him/her if he/she is working in the company for a long time. Chances are he won’t leave the company anytime soon and he/she would be able to assist you until turnover. So it’s good that Todd got a salesperson who is high up on the corporate ladder. Another option is to get a licensed real estate broker accredited with the real estate developer selling the project you are interested in.

    When Buying a Resale or Ready for Occupancy

    Only transact with PRC licensed real estate brokers or accredited salespersons working under the supervision of a licensed real estate broker. This is to ensure that the transaction isn’t only smooth but it’s also safe and secure. When you seek the assistance of colorum brokers, there is the possibility of being scammed and/or they’ll just sell to you the property but they won’t guide you with the documentation process which may end up the property title not being transferred to your name.

    To verify if a real estate broker is listed in the Registry Books of the PRC, you may use the following procedure:

    Step 1 – Visit the “Verification of Professional Licenses” page at PRC’s website:https://onlineverification.prc.gov.ph/ and use the VERIFICATION OF LICENSE (By Name)

    Step 2 – From the list in the “Profession” box, select the REAL ESTATE BROKER.

    Step 3 – On the “First Name” box, enter the first name of the real estate broker whose license you want to validate.

    Step 4 – On the “Last Name” box, enter the last name or surname of the real estate broker whose license you want to validate
    .

    Step 5 – Click on the orange “Verify” button:

    Step 6 – The verification result will be displayed at the bottom of the page
    and you should see that the name is listed.

    When Leasing a Property

    Also, transact with licensed real estate brokers, not colorum brokers to ensure it’s not subleasing.

    Indeed, foreigners are not allowed to own land in the Philippines. I’ll create a video soon on my channel to discuss more about it.

    For my fellow Filipinos who are considering buying a condo in the Philippines, here is a video whereby I shared tips that might be of help https://youtu.be/HsaHnMy0vyw.

    1. Assess your Financial Capacity
    2. Location Matters
    3. Reputation of Developer

    1. Most buildings built in the last 4+ years have fiber and I always get the 15 mbs that I pay for so I am happy but once you get away from the cities it gets much more challenging.

  28. Trust me, rent, rent and rent some more……………to many places to see here. For Example: For the people who are limited on funds, if you buy a condo you are pretty much stuck at that one place. What happens if you take a trip and find a place you fall in love with, well your stuck now paying on a condo. Renting is freedom to pack your bags and go to a new place every 6 months!

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