I heard from some friends and also on a commercial that their is an increase of condo’s thats being developed in Manila due to the value going up and everyone getting in on the action….
Gerald
Comments
it’s better to invest on lots because buildings would be demolished after a few decades. it’s not advisable.
Check out the risks in the previous issue of Filipinas Magazine, this year’s publication (Jan, Feb or Mar 2007).
I found the letter written by Mr. Primo Quesada (Mar 2007) and here is what he wrote word for word.
Condo Buyers Beware!
Buying a residential condo in Makati City, Philippines is a move that more and more of us balikbayans seem to be doing. Buying real estate in the Philippines with money earned overseas is good for the country’s economy as well as for the balik-buyers who will have a home in their birth land for vacations or retirement.
However make sure that you read the sales contract that these developers are using. Better yet, make sure you ask for and understand the contract, deeds covenant and restrictions, condo homeowner’s rules, maintenance fees, etc. In all states in the U.S., the term disclosure is taken seriously by the real estate industry. Sad to say that in the Philippines, disclosure is not a priority for the local real estate developers and sellers.
Make sure you understand what the late payment and default penalties are. If you are buying a home still being built and you are paying now in the hope that the home will be finished on the promised date, good luck! If you read their sales contract, you will find all sorts of buyer penalties but none for the developer.
There are late payment penalties of 3% per month and default penalties where you agree to forfeit 50% of whatever you have paid in favor of the developer. In contrast, if the developer is delayed in the delivery of your home, they are not assessed any penalty and, even worse, if the developer does not finish the project, you as the buyer will really be out of luck, no new home and you kiss your money good-bye.
Well, if you are living in Manila, there’s no need to buy a house and lot because of the very hectic and toxic environment so a condo would do just fine. If you plan to buy a house and lot buy at the suburbs or provinces because the environment would be less stressful.
i agree with usmcvet. if you really want to buy a condo as an investment in manila, make sure that the developer have a good reputation. i remember that ayala corporation is a good one. checked out some condos the last time i was there. so be careful and tread slowly but surely. this is your hard earned money and the feeling of being duped by a fellow kababayan will leave a mark. as also advised by warrior: better to buy a land only like the ones in tagaytay with the view. go there and check the place and do a lot of research. good luck!
I am a real estate investor here and generally my answer to this question is no. First of all they dont appreciate as much as a US property would. Second, I have taken a closer look at those condos and most of them have clauses in their contracts that I would never sign for in the US.
I would consider buying one only for the purpose of having a place to stay that is close enough to having the amenities of a hotel that I own but not as an investment with hopes of having some equity later.
