I Bought a Condo in the Philippines, Don't Make the Same Mistake!
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- Опубликовано: 7 фев 2024
- Book this unit through Airbnb: airbnb.com/h/90sqmbgcstaycati...
Interested in this property? Reach me at john@dreamaway.homes or Instagram📸 /TikTok📱: @johndang808
In this video, I take you through my three-year journey of attempting to sell my condo in BGC, Philippines, a journey that saw its price drop from PHP 18M to 12M. I'll uncover the single mistake I made when purchasing it and how it's impacting my sale.
Additionally, I've included some figures from my experience of managing this condo on Airbnb, which I hope will help you in deciding between long-term rentals and short-term Airbnb options.
Enjoy
#realestate #sellingproperty #airbnb_business #realesateconsultant
#renovation #realestatetips #bgc #philippines #airbnb # #propertymanagement 
Развлечения
I can only speak from experience with Cebu. There are far more condos than people that can afford them. Judging by the lights at night, the buildings are 25% occupied. It’s not like all the dark units are distressed…. Rent yields are 5%. You might as well buy US Treasuries and not deal with renters.
The builders are apparently losing lots of money on these buildings. Kind of over optimistic & asinine projects.
Nice. The developers are so greedy and have inflated the prices sometimes like major cities. condo investment in Philippines is not an investment. The purchase price is too high if you are planning to rent/airbnb it. Your grandchildren will grow old before you get your ROI lol😂
china is doing the same thing with much exponential rate and now it's collapsing
The people buying condos in Cebu are expats and OFW. The reason why some lights are off at night. Ayala condos are sold out. Cebus rich folks or their older parents are living in it to avoid the traffic. They go back to their suburban homes on the weekends. These are vacay homes for personal use. If I wanted a home, I would but that would be a money pit to me if I have to hire somebody to live in it to avoid squatters. Also those people you are hiring to stay in it don’t know squat about maintaining a home. My friend’s family bought 7 units- one for each child and the penthouse for the parents.
Yup, I looked at a new 2brm unit at IT Park, oct. 2023. Asking price was 36M. Just like most condos it's like a shoebox divided into rooms. Nice interior design for show though.
If you really wanted to sell it, you would have included a link to a listing. You’re almost certainly asking too much for it. Looking at the AirBnB listing, you most definitely are not 100% booked… Which means this video is basically being used to advertise. You could easily sell this for more than enough to cover closing costs and make a profit. There are no 2BR units in BGC that are 90sqm for less than 14m.
And parking isn’t a huge deal to most foreigners… Who is most likely to buy the unit.
You got it😅
The reviews on this unit all complain about a sewage smell and cockroaches.
In 2020, I almost bought a condo in McKinley for 19.5M, 1BR, 1bath, 66sq meters. Parking spot is another 1.5M (php). I was excited, until I realized the price is above LA prices. I backed out 😊 as quickly as I could.
That is a rip off. Good thing you didn’t.
No reason to live in Manila
good decision, sir.
Never buy a property that has no local demand.
I love your Transparency, most people who sell you something they always tell only the Good Side of a thing, this guy tell you the Good and the Bad. BTW great location and minimalist interior.
What an honest take! This is an eye opener. Thank you for this! Hopefully you can sell it soon.
Condos in the Philippines are way overpriced in some cases they are more than they are in the United States for the same amenities perhaps more amenities in the United States for less money
I agree.
Yep plus terrible infrastructures, heavy traffic, security issues outside BGC, public transport horrors, and unstable government. If you factor all that in, it’s not worth the price
Some cities in the US are not as progressive compared to BGC, Makati, and Cebu. These areas are Metropolitan areas like NY, DC. Land is scarce in the Philippines. I am glad the the Phil government is not allowing the middle income earners from other countries to buy land. US homes are not that strong either. Made of wood and sheetrock. A wolf could blow it down. The US is just catching up with the world about eating healthy stuff. Filipinos fortunately are lucky to have fresh fish, vegetables,legit coconut water. Some Americans don’t know but in some nursing homes, their folks are eating meatloaf, canned green beans and mashed potatoes repeatedly. If you retire in one of these condos, you can have your fresh fish delivered to your unit and enjoy the amenities and you will retire long and happy.
@@Shy-807 rubbish! Would you buy an overpriced condo just to get fresh fish? You’re insane. Are you sure it’s fresh? Philippines is polluted. What we’re saying is that Philippine condo is overpriced. The value isn’t justified by what Ph has to offer, the prices are mainly pumped up and pure speculation. Not worth it especially if you add up the expensive electricity, water, and association dues(not to mention food is also not cheap in major cities). I’d advise anyone to rent than to buy a condo. It would cost around an average of 6-7 million php. At least in London, Singapore, Taiwan, properties are expensive but one can get around the country with ease because of good infrastructures - You pay for the convenience. Living in Philippines is a major inconvenience!! 😂 from doing bank transactions, paperworks (very long queues) to getting around the country (toll gates everywhere, no trains), high crime rates, unstable government, it’s a nightmare.
Appreciate the info. Very insightful.
Just stumbled across your page. I like that you engage with your comments. I can speak on this. I just recently as in Jan and Feb, 24 sold my condos that I've owned in Malate. They were purchased pre completion, turnover was in 2013. Although its not BGC, I had considered there in 08 also, but didn't because I saw the rapid construction taking place.
Over the years, most of the projects haven't been kept up, even my building has 4 elevators, often only 2 are active. But the main thing to realize is there is sooooooo much supply and it's increasing. There is negligible difference between a condo on the 51st floor vs one on the 50th or 49th. So if you're trying to compete in the rent game, lowest typically wins as customers price shop.
My places sold for less than purchase price, a justifiable write off as I'm anticipating the market to get worse, not better and they've been fully rented since turnover. Appreciation is minimal as well as novelty. These are things to keep in mind. Best of luck.
Thank you 🙏
Market is getting worse, we’re at the beginning of a bust cycle worldwide.
Note that there are proposals reclaim parts of Manila bay by Aristocrat Restaurant to build luxury condos.
DMCI stock more than doubled, so if you're wondering whose getting rich off these condo owners. You know who.
The cost of your property is impossible to recover the unit price. 5000 pesos per day is like impossible to get in Airbnb on straight 30 days. Many condo owner also in philippines are desperate the just rent out their property in very low. if you do the math let say you make average income per month of 50k that will be realistic. 12milllion divided by 50k thats 1000 months or to recover your 12 or 83 years hehehehe. The solution for that is hire an architect and make it high class same as 5 star hotel can offer. then rentout as high as you can. To be honest you will not get much income on this property the goal only is to recover your 12 m. Forget this property and find a lower condo like 2-3million and make in on airbnb that will be more feasible to get income.
You are 100% correct!
I said the same thing in my head after watching the video. Foreigners have the means to buy 10-20m condo units but they’re unaware about the price range most Filipinos can afford.
They can’t profit from their 10m condo unit and then will say that Philippines is a bad investment 😂 they’re expecting a stable & high ROI from a single huge rental unit.
In the Pinas, I’d rather start a 5 pesos public toilet than a luxurious spa business. They’re forgetting that Philippines is a developing country.
If you can’t sell it for 12million, renovating it to get more money won’t make any difference. You will be best to cut your losses and sell it even if you break even to release the money you have tied in that property. Condo properties in the Philippines is saturated and over supply, the longer you keep it the more money you will probably lose because why would people buy something old when they can buy one brand new at much lesser price. I have been through what your are currently going through few years ago and i just cut my lose, sold the property and broke even and reinvested the money towards a property in europe and i got far more return in the last two years than i did with my condo in the Philippines which i had for 10 years. Just think of it as cashing or getting back the money you already paid for it.
The lack of parking is a huge issue as most guests will look for one, especially if its a lonng term lease type. Also buyers would look for it too, since Manila is a car centric society. And if you have P12M to burn, chances are you don't take public transport.
Agreed. Without spending anything, his place is rented on Airbnb full time. He could do nothing or spruce it up like he mentioned and make a bit more. For me, I would do nothing. What he is doing is working right now. Leave it alone and collect the income. Maybe the income is not covering his mortgage though. The big problem is that he is at the mercy of a single rental entity. If he spends the 2 million to remodel and then somehow gets banned on Airbnb, he is screwed with a place he can't sell and has limited long term rental value.
Don't buy a car. Use Grab. If you have to use a card, rent one for a day or two.
Thanks for sharing this!
Thanks. That was really good info.
Hard to sell condo units in BGC. Just sell it for 8mil, take the loss and move on.
Real estate def doesn’t work that way. lol
An index fund will average 7% return. 220k even in a CD would be 5.2%…completely passive. You have it in your mind it’s worth something…a lot of owners have the same mindset in BGC…the time you have had it listed says otherwise. The supply second hand market for condos is very high, with only a small fraction of Filipinos being able to afford and a small amount of expats who want to risk that amount of money on a condo in the Philippines. Nellyslife is in the same boat but paid about double what you did. And is getting less per night on Airbnb…around $60-70 near Venice grand canal. She’s into her place about 450k USD.
Drop it to 8-10 million and it would be sold., tomorrow! I suspect you are asking more than what you paid…and don’t want to sell… My question is do you want to be hosting for the next 15 years? Market correction is coming and it’s going to be harsh in the Philippines…do you want to take a 50-60% loss? Get out.
editing in this video is great
Thank you!🙏
Thanks for your honesty for some Vlog owners in BGC are bragging about how much money they made in the past few years on their purchase. They may be in for a surprise when they actually go to sell. Good luck whatever you decide but honestly you made your money back in 2016 with purchase price of 12 million. I have saved this unit on my wish list for come every year to BGC so my wife can see her family. Also, believe the 2 BR in Sapphire are only 80 SM.
yes that's correct 80 sqm. DM if you ever want to book.
I like the place but just like you no parking is the reason I am looking to just build a house now. So I can have as many cars and bikes as i want. good luck!
Parking is important for most buyers . Hope you get a long term foreign renters. Lucky if you will have a Japanese tenant.
What is the trend outside of BGC? I'm getting the impression that a major downward price correction is beginning outside of BGC. I don't see it becoming a seller's market anywhere in NCR in the next few years. Similarly, there isn't going to be any pressure to drive up Air BNB rates. If you are profitable now, sit tight and be happy for what you are getting. It's too risky to sink more into the place in hopes of a higher return. You're better off as-is if the prices go down without the added expense of upgrades. The only exception is if you can use those funds to get a parking space, the only enhancement that adds true value to justify higher rent.
I do agree with you about your assessment about upward pressure on airbnb prices. I think too many owners don't actually look at their bottom line profits. I assume this based on how they're are pricing their nightly rates and considering what I know about the operational costs and utilities. Most of these guys in BGC doing airbnb are better off doing long term rentals.
Sell, sell, sell. It is ok to lose 20%. Move on to new investment. You already lost. You can make back the money but your time is gone forever. You will lose more on fixing it. Sometimes let go is the best solution. But this is your decision alone. You know best what you want. Good luck.💯👍🙏
It's only a loss if you sell it at a loss. Real estate always bounces back, it's just a matter of how long you can hold on to it.
Man your videos are slick
The most prudent approach (for me) would likely involve leasing the property on a long-term basis, not to individual renters, but rather to corporations requiring temp housing for their employees visiting from abroad.
I've seen this a lot in Makati, where there appears to be a collaborative arrangement directly with the companies themselves.
Might be worth a shot reaching out to foreign companies that have a local office.
Foreigner here, who can afford to buy in BGC, but wouldn't. I started looking at condos etc in that area and then Alabang/Cavite (as I was worling there). What surprised me was how poor the design of the condos (and houses) was overall (at all price points). I rented a condo for a month in Southwoods, across the road from the mall. The quality of fittings was very low and eveything was in that grey colour that seems to be the only colour on the Filipno developers paint chart. In the mall they were trying to sell the condos for 2m.....they all made a beeline for me when i walked past. No way would I buy one. And lets no mention the houses for sale in Alabang at prices that are unbelievable for what you get.......
I am trying to sell 3 condo's for the past 2 years with no luck. 2 in Eastwood city and one in makati. Good luck
I would be interested I’m
Looking
Bad timing Philippines is not yet ready but in due time those 3 properties will be a gold mine. Philippines by 2040 is the time so keep it for now.
@@gregmasters8558 I hope so. As of now I am holding on them .I have no Choice 👍🤲😘
@@gregmasters8558 if you are not making money now on condo what makes you think it is going to be a gold mine when the bldg is depreciating?
Where in makati?
No Parking will always be a deal breaker especially in Metro Manila where everybody owns a car. The Philippines is not a transit/commuter-friendly country for the most part.
Another problem is, inspite the fact that property prices are going up, (which deceivingly sounds good for investors), it is indeed difficult to sell not unless you stumble upon an ultra rich buyer who’s willing to payout. The demand for condos in Metro Manila is not as high as let’s say in Singapore or HK where residents have no other choice where to live in. But the Philippines has more demand for house & lot properties. And with the amount of property taxes in the city, high cost of living, and increasing amount of supply of condos, most people now prefer to get out of the city & live in the suburbs as let’s say Laguna, Cavite or Bulacan.. So the demand for condoliving mostly rely just on expats, foreigners & or corporate buyers.
Thanks for ur honesty, I knew there was a disconnect when time to sell. Developers just artificially keep on inflating their prices and are content with empty units bec their profit margin allows it. Inflated prices means higher amounts these developers can loan from the bank. Rinse, repeat. The losing side are the buyers who think they can sell later but are left holding the bag. I talked with agents and confirmed there is downward pressure on rentals this 2024. Reason is lots of inventory to choose from. I'm still not selling my y2015 condo because I don't yet have a good alternative where to put the proceeds. I'm not putting in more money in real estate for sure and will wait for the r/e bubble to burst.
CBS 60 minutes news program just did a piece on empty apartment buildings in China. They were empty 10 years ago and still empty. Lots of people lost money on apartments that were never completed because the Chinese government changed rules , credit became tight and many developers folded and down went all the deposits which for most was a significant portion of their savings/future retirement income.
One German business man estimated they had ghost cities of empty apartments that could take in a whole country of 80 million families. 12 million looks like just over $210K in USD terms. These are prices meant for foreign investors not locals. Something has to give. Apartment is nice but something tells me it is a little overpriced but I have never been to the Phillipines. The fact that he has been trying to sell for 2.5 years suggests there are no price takers.
These type of investments are for long term not quick flips. Philippines is still developing but has guaranteed potential due to birth rate and median age. Sell those prime lots by 2040 when Philippines is ready.
@@gregmasters8558I don't think he'll be around by 2040. I would rather buy shares of developer companies in the Philippines stock market than sink my money in a condo. It's more liquid and the Philippines is a dividend paradise.
My two cents... long term lease probably not possible without the parking. People who can afford to rent at that location will definitely would not want to worry about parking. Selling the condo on the other hand even at cost, not sure about that either since people will think that it is a used condo so why would I buy it at the same price. Yes inflation and market growth for consideration but those are only applicable if the market is really going up when it comes to real estate value or economy is booming which either the case is not. I would choose your third option which is to renovate and rent for a premium or possibly be able to sell since it will look like brand spanking new 🙂
I very much enjoyed your candor and honesty. So allow me to give you some honest advice since we are strangers. I would sell it at a loss. 1) There is no parking, this is a big, big deal for a 2bd. 2) The global real estate markets are imploding and will continue to. We are in a massive asset bubble and pockets are deflating. It will get uglier and uglier for awhile. 3) The Philippine Peso has dropped against hte USD and will continue to do so. This will erode your value.
I would not do a renovation or improve the unit. Don't throw good money after bad! You won't get your money back, so best to cut your losses and move on. This is coming from someone who had flipped 9 properties in California. A couple of them were losses, but thankfully the majority were winners.
Thanks for your suggestions. I think you offer some sound advise.
Have to agree. The first thing I thought while you showed the condo was that it could use some renovations/upgrades. And maybe change that tub into a walk im shower?
Yes, the tub definitely has to go. Stay tuned for the renovation design we're doing on this place. I think it's going to be very interesting.
Hi. Looking for a condo similar to yours.
Size in sqm?
What tower & unit# is this?
Corner unit? @@JohnDang808
A tub and a shower. Dual purpose?
5k a day is like 15% of 12M . occupancy? not even 100%. bad investment. sell it
Can’t sell it doofus didn’t you listen 😂😂😂
That is what happens when foreigners start buying condominiums in our country. Prices become distorted.
way back in 2018-2019, Chinese investors and buyers began buying a lot of properties especially condos in the country. Prices shot up to astronomical prices after that. And we as brokers, really had a hard time getting inventories in hot selling developers like DMCI, SMDC, Ayala due to their bulk purchases.
That's why I shifted business from realty to solar energy installations.
@@ChristopherBalbuena If we Filipinos are not careful we will lose our beloved country to foreigners. They are coming in droves. We risk becoming second class citizens in our own country.
Blame everything on Duterte. The sudden influx of Chinese caused real estate dillema. Prices went up and now many POGOs are closing, Chinese workers are leaving.
@@axizcorp How is it related to Duterte?
Sudden influx of Chinese is because of good relation between the two leaders back then.
POGO businesses closing right now are their fault too as these are not legal businesses as operators.
I don't see how is it Duterte's fault in the slightest.
An effect doesn't necessarily mean it came from a popular and convenient belief...
Duterrte did not deliver in his promises. He killed so many people instead, which makes our country less palatable to foreign investors. 😢
Why buy in Manila??! It’s not HK or Singapore… huge depreciating asset indeed…
At least ur honest ❤
I have no incentive to lie. I'm not selling anything here anyways. Just sharing what I've learned over the years.
My parents told me once the reason why they didn’t buy a condo in makati was that No one is buying in the Philippines, you’ll find a buyer maybe in 10 years
i could buy a 3 + 1 bedroom in malaysia for almost the same price with more sqm. Condos in the philippines are way overprice!
I suspect the Condo market is getting saturated in the Philippines. Why buy a used condo when new units are coming online all the time.
Moral of the story guys don’t be so quick to invest in property abroad
Never buy property in the Philippines as a foreigner unless you want to gift it to your Filipino family (which is what they want )
You can buy a condo.
Tbh it's easier to sell studio units than the bigger ones because of the price.
Definitely make it a bit more instagrammable because that's what people are looking for now before booking. 😊
I agree. What are the price points for studios and 1BR in Makati or BGC?
@@JohnDang808I just bought one studio 39swm for 7.5M at Times Square West.
@@JohnDang808it's usually 1k per sqm but will eventually depend on your negotiations. I am currently renting a 1BR 76sqm here in BGC for 63k with parking. On my 5th year now and I must say everything is generally acceptable.
Sounds like you answered your own question you just needed to say it out loud. Good luck with your renovation and don't spend too much!
what do you do for work john? just stumbled across your channel and i am looking to move back into the phils in the next year or two so im just curious
I am a US trader and still don't understand majority of people invest in property market: it's capital intensive and return on your money/investment is low, illiquid, lot of charges to pay here and there, such a headache! 😮.
One only needs to buy and hold the main US indices (SP, Nasdaq) can get around 10% per year! Very passive. In 2023, respectively sp500 and Nasdaq returned 24%and 43%!!!.. (exceptional year).
Yawn
any advice on generating passive income though? dividend stocks I suppose? thinking about diversifying between equities and real estate, but worried about the headache from real estate tbh
@@tequilainmaniladividend stocks?.. No need, get the sp500 or Nasdaq ETF, it has on average 10% every year, very passive. Dividend stocks won't earn you much unless you have a big portfolio of them..
@@andreandree4384 Double yawn
@@robocop581 triple yawn 🥱 or more. Don't fuc*ING care 😂
Reco...Sell while continuing AirBnb or long term lease. Dont sink further capital on it. It will sink.
Property appreciation, ladies and gentlemen, is always paper appreciation...Not unless property is sold can you truly realize property appreciation.
You should have had a different approach to condo investments...Buying foreclosed properties, for example, at lower prices. Renovate it...Have it leased...then flip it back to the market. Then, repeat.
What you did was to buy that property during pre-selling....Got duped by the promise of property appreciation in paper in the end. Now, you're stuck with it.
Thanks for the tip. Now I regret not having parking spot in the condo I just bought just south of bgc called McKinley west. If it was me I’d have it rented 💰😊 for about a year
I’m thinking all things considered keep it an Airbnb. A good interior designer could make it more of a showplace which could generate higher interest and such. I don’t think it needs renovated as much as it needs decorated. It’s not like it’s old and outdated. It’s just boring. 😂 Give it more of a hotel feel instead of the basic modern apartment feel it currently has. Start by collecting pictures of luxury hotel rooms you like. Once you have the design narrowed down, you’ll be able to guesstimate the cost. Artwork on the walls will do wonders, and high quality canvas prints look amazing and are not expensive. You can see a bunch in my reveal (NYC style makeover) video.
I will eventually retire in the Phils with my wife and have been looking at the condo market in makati and bgc for years. Many units have been on the market for years and with so many developments and many more being planned I have to ask who in the world is buying all these condos? Are they mostly being bought by bnb'rs and speculators? I worry speculation is driving demand and collapse is waiting down the road somewhere.....?
They are being bought by rich Filipinos mostly OFW’s, doctors, businessmen, engineers, lawyers, bank managers.
Ah good questions. I've been in the real estate market here for many years.Many buyers in the Philippines park their cash in these condos. These are often very wealthy Filipinos. These guys often never sell for less than what they pay so in some ways it makes the high end market very resilient in the Philippines. Just a tidbit for you.
There's no substitute for a piece of land. Condos can be built up endlessly while land is scarce in the Phils. If you or your wife were former Phil citizen then one of you can buy a residential lot up to 1000 sqm or an agricultural lot up to 1 hectare. You don't even need to process dual citizenship, as long as you were a Phil citizen, you can buy land.
Somehow the condo is more expensive.. its good if you buy land you can build your home with parking 😅 I can recommend
@@kellybrycelogisticsinc.605There is always Pro's & Con's.
that is an amazing spot for st Luke's patient's and their family. advertise your condo to Micronesian Islands, especially Guam and Palau. they travel to Luke's alot for medical purposes.
Wow so beautiful condo
Thank you for sharing. You may have saved me millions of peso. Out of curiosity I asked a friend for more information about condos for sale in Cebu, and he connected me to his real estate agent. Now I keep getting constant, but polite, listings and each time I see a new one I scratch my head - how is this a "great" deal when it's 100 times the average salary in the area?!? And they all keep saying - look I bought X 3 years ago and now it's worth 20% or 50% more... but I keep wondering - but can you really sell at this new valuation price?
Good, I'm glad you didn't make my mistake.
I'm renting out one of the cheaper condos at BGC. Wondering if the Metro Manila subway project is going to have an effect on condo values when it's completed.
I'd take option one and invest in the stock market. No headaches dealing with renters or prospective buyers nor other stuff that goes with it.
That's good to know. No parking spot. I was thinking to buy condo on Ayala Makati.. thanks
Really enjoyed your video and your thought process. Unfortunately, I don't have a magic crystal ball to help you. Sorry but very useful info you have presented.
just curious.. why would renovation cost 2m for a condo unit?
that amount could build a whole house with more area than the 2br condo
Same here hahaha
How much is the total monthly maintenance cost (including home owners assoc fee, etc)?
This is the challenge nobody mentions re Manila condos, so I respect you willing give folks the truth. They make little to no financial sense as an investment. Your net revenue is roughly 8% on your original investment. Not terrible, but not great given the amount or work it takes to produce that return. As you mention, for what you paid (roughly $215,000 USD) the bare wall condo doesn't even come with a parking space. The bigger issue is that once acquired, the condo's can rarely be sold unless the owner is prepared to lose money.
I purchased a condo in the PH, specifically in the Makati area, but I decided to cancel it and will receive a 50% refund, losing almost $3K. It was definitely an impulse decision on my part, but I'm glad I've moved past it! I'll focus on buying property in the US instead.
that’s what i heard, it’s difficult to sell condos.
Although I completely agree that your condo is a great location, the inventory of vacancies is very high and the demand is low. Obviously you have direct experience in analyzing the demand and the amount of vacancies that you personally experience with your unit.
Buying any asset in Philippine due to shortage of capital is a big mistake, sell it for what ever you can get for it!
Waiting lose more value!
I’m also selling my Studio Unit in Vinia Residences in QC beside North Ave MRT Station for 5M, but demand is quite low, market is bad & interest rates keep rising 😢.
If there’s no parking space, I don’t think it will sell
bought a cheap condo 4 million at azure 2 years ago.. now theres condos at azure for 2.5 million… i rent it out for $400 and i pay $600 a month… 😢 i always wanted a condo in BGC but tbe cheapest one is around 9 million… and like you said you can only rent it out for around half of your mortgage…
Sell ot as is for what you pay plus expenses and walk away.
Properties like this was strong maybe 4 years ago. A lot of foreigners were coming in due to outsourcing and POGOs. Now a lot of properties like this are hard to liquidate because the buyers market are mostly locals and 95% of them can't afford this. I think you should sell this to someone who already has a unit (and parking) there.
Nice condo man, BGC is a solid place.
1. its near hazardous area and 2. no parking 3. its good for party only if your target is local instead of tourist
I thought all condos came with parking space. Didn't know you can buy without. Can you pull equity out of the property? Use that money to invest in reno cost or something else.
I bought a presale condo in Pasar City in around 2016 time frame. After several years of payments, I have decided to sell. Started listing before the pandemic. I was surprised at how unorganized and without any clear process or system, real estate is being sold in the Philippines. Unlike the US, there isn't a centralized database that websites share. It is like a wild wild west. You tell an agent or agents that you want to sell, and that's it. What's worse is the communication ediquate is none existence. After a couple of years of waiting, I decided to take a loss and stop making payments. DO NOT INVEST IN THE PHILIPPINES. It is nothing but a headache and frustration.
Even renovating has its limits. A smart budget renovation might work to max out profit, but freeing up capital for better investment options might work better.
i have only ex here to and plan also to sell my condo. Then i never go back..Filipinas are money eating machine
put some plants bro and make some colors contrasting, like dark grey and white and some black
Selling your condo for a loss (due to inflation) would be tough, that would be my last option if I had no choice. I keep up with bnb and try to update the condo bit by bit trying to earn extra rent
Putting money in time deposit will earn more than rental at this point in time. TD gives around 6-8% per annum depending on the amount invested versus 4% per annum in rental, less taxes and asso dues 😢.
Cd's?
I was just in Manila this past month and I was overwhelmed by the recent development. BGC is really upscale. There are a lot of preselling units but after crunching up some numbers, it's a little too much for my purse. I would rather airbnb for $20 a day, no headaches of ownership or just buy me a Panerai.
He got stuck in a roach motel... Easy to buy hard to exit
It's not really hard to exit. He can sell his condo right away if he lowers the price. But he doesn't want to.
@@wavemaker2077 duuuuh. That's the point. Give it away free n u exited. Don't post stupid stuff
"i hate this place" that hits deep! And it's just stupid to sell a condo unit without parking.
That’s correct when people from the provinces require elective surgeries and emergency surgeries is because the hospitals in the provinces’s don’t have the resources.
Sell it... we are in a global recession... Only rich can afford your condo which means that only foreigners can buy... If you can sell for 12M be happy you got out before major correction happens...
Let him hold the bag 💼 he thinks he’s smarter than everybody else 😂😂😂
BGC is really expensive
12m?? How much did he pay for it?? Mostlikely less than that...😅😂😅😂😅😂 NOT ALL PINOYS ARE THAT SCHEWPID!
bgc is so fkn overrated, everything is expensive.
@@rlee1068this might be true but for philippine standard, this is the best you can get. If your rich-rich
Interesting to read about how hard it is to actually sell a property in Philippines, even in BGC & Makati. I'm Singaporean.
Because it’s the Philippines no one has that kind of money here, Singapore is awesome lots of wealth there no problem to sell or buy anything like houses gold watches.
I don't think you should do option 3, invest a further P 2M to "upgrade" the unit. It would be very, very hard to do that in a way that would add any real value and recoup your investment.
you didn't get a parking lot when you brought your condo back then ?
I know exactly where this is 😅 I sold a bare 2BR in 2014 for only 6M in the next block from same developer and it exponentially increased since. The parking to unit ratio is limited which is so expensive even if it costs 70% of the unit. The challenge now is the high zonal value which just got increased which makes a ripple effect on related taxes and fees for seller & buyers. Even with SP lower than zonal value rate per sqm, it will still be based in the latter. If this was on Airbnb or leased out, that’s 12% vatable on top of 12M plus 3-5% Broker fee. As much as you want to fetch a higher rental after renovation, you got a lot of competition in new condos with nicer amenities. I’m guessing this is either 1 BR or 2BR. Most client-owners even maintain their rates from 10 years ago, just to keep the tenants.
Love your Panerai!
My heart bleeds for your rich man's problem.........................................................................NOT!
How much are you selling the condo and what is the condo;s name? my sister is an interested buyer,
There’s a glut of second hand vacant condo properties that are not being sold in the Philippines. Condos are overpriced. Unfortunately that is reality. Good luck.
buying real estate in the Philippines is the most stupid thing you can do, unless offcourse your planning already to lose money, because you will
I bought 4 condos in cebu been trying to sell for the last 2 years cant seem to unload them
Really huge bathroom so nice around
John, you’re not understanding the design of the bath-tub. It’s not for you to climb on it. You’re supposed to sit on the edge and then then swing your legs to the other side. It’s actually a very safe design. I’m a Filipino-American from San Francisco, California, and live in BGC as well. My suggestion to you is to hold-on to the property until the subway’s built. You’ll see the demand skyrocket and property values quadruple. Goodluck!
Subway is 2029 at the earliest. Most infrastructure projects are delayed here so likely 2032.
Good suggestion and didn't know about the tub. I do feel like there are better countries that I can move this money to at the moment. Japan is one of them for me. So let's see.
The Japanese are the ones building the subway, so given their reputation for efficiency, I’m sure it will be done on time. But it really doesn’t matter because speculators will jump at the opportunity. My family owned a property in a then sleepy part of San Francisco. When the subway was built, the value jumped tenfold. Now, it’s the IT residential hub of the city.
@@bennmagnoanima1 Other train projects in the Philippines were also made by Japanese contractors and they were still a few years late.
The Japanese have no control on the right of way issues which are still not fully resolved.
@@DannyRwdc … I guess we’ll have to see. I have a condo unit at the BGC Station of the subway. I’m excited to see what happens to the value once it’s done.
Would you mind to share. How much the condo fees?
Where is the Condo (what building) what is the price. I am looking for a place in BGC
Never buy a Condo in PH. .. Unless you will be living there 24/7 and even still I wouldn't buy. Just rent, keep your money and keep your freedom.
Blame the developers for inflating the prices- Philippines has nothing to offer. It is full of inconveniences like traffic, lack of infrastructures, lack of decent public transportation, crime rates, and political instability. Only BGC is the good area beyond that there is chaos. It’s crazy that prices are sometimes above of that of London for a few sqm. It’s a rip off.
The public school need to teach all of them kids about condom too.
Bro who hurt you ? Lol such a negative nanny. I bet you’ve never even visited in person.
Canadian living in the Philippines for months now, and visited as a tourist many times before.
Those statements are false.
I'm living in Davao City and I have visited many cities around the country. It's far from chaos.
And traffic is worse in any Canadian city compared to any city in the Philippines.
@@zaccharybedardchenier really? False statements? Far from chaos? How do you move from one city to another then? By trains? Oh i forgot ph, has no trains! How are the airports?- corrupted! How do you process papers or documents? - you go to office and it will take ages to get your documents. How much are the utility costs? Sometimes more expensive than first world countries. You’ve been there for months, i lived there for years and it’s really inconvenient.
Sell it, even if for a small loss, and put your money in a basket of tech stocks that will give you a far, far higher rate of return, but be more passive.
5% annual net return on initial investment and principal isnt growing. Inflation basically ate that up. Renovating won't make a parking spot and there's really no renovation that will help you charge much more and keep the same vacancy rate. I'd personally sell and put that money in a compounding and safe investment, assuming you're not using your current income for expenses. - WW
I thought he said 75k net each month which would make it 7.5% (900k/12M)
12 m is a difficult to sell..for filipinos..bank approvals is almost impossible..i am a filipino i bought a 5 hectares land 10 years ago now its ten times the prices..of course i sell it per 1000 sqm per lot..
These luxury condos in the Philippines are usually owned by foreigners, Chinese, Koreans as well as rich Filipinos. There's a similar project with Okada and the entertainment venues there. They are in their own submarket bubble.
Most condos in the Philippines are packed in building to building with no open space or land use planning. You see this with seaside residences by MOA and creative financing just to sell these units. There's the 50 year rule to watch out for as well. Anyone can rent a BGC unit on airbnb and studios rent alot cheaper more like 2,500 pesos. More units, more competition in this market, plus the hotels of Resort World, Okada and Solaire and expect his rents to drop a lower rate of return and a lower value.
What's the 50 year rule?
@@laurencehyde2168 The developer generally still owns the land as opposed to an HOA in the States. In 50 years the land could be sold and a portion paid to individual condo owners. This might be hundreds of thousands less than the original purchase price each condo owner originally paid for their unit.
@@Gregory-Masovutch You are giving false information. You are parroting a myth.
The 50-year rule is a myth. It has no basis in law.