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Buying Condo -- still a good investment?

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Fastlane_dude

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Reply #15 on: Oct 25, 2014, 01:28 AM
i paid cash for my condo in 2007. it was turned over to me in 2009. i could sell it right now for about twice of what i paid.

on top of that, i paid in 2007 in $$$ with a 56:1 exchange rate. now, the rate is about 45:1. so that's another 20% additional profit.

since 2009, i've had it rented. rental income so far is over P3M.

why would the condo building be completely demolished? our condo buildings are insured for replacement value. insurance is continually reviewed to ensure sufficient coverage. furthermore, i own a proportional amount relative to the value of the land and the size of my condo.

Agree bro!  :rakenrol:


TigerMomTess

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Reply #16 on: Oct 25, 2014, 01:46 PM
Hi. Our eldest is also considering investing in a condo. To be honest, di ko rin masyado alam kung gaano ka stable yung investment na yun. I believe she's looking into getting a unit from one of the DMCI projects in Taguig. While I'm happy she's already thinking of investing, would be interested to know if there are any expected downturns sa real estate market natin. Thanks so much.


TigerMomTess

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Reply #17 on: Oct 25, 2014, 01:47 PM
p.s. our daughter still lives with us so the renting vs owning debate doesnt apply to her.


gang13

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Reply #18 on: Oct 25, 2014, 09:12 PM
Salamat sa mga sumagot sa question ko.
Ang problema, parang ang taas na ng price ng brand new Condo ngayon (esp in Makati and the Fort). Tapos ang dami dami na ng condo nag sulputan, Im not sure if maganda pa ang ROI if demand vs supply ang titignan. Ang alam kong kumita sa condo ay mga bumili dati pa nung mejo mura pa, pero now OA na talaga ang price ng condo, esp sa the Fort at Makati... :-(


pulubing_palaboy

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Reply #19 on: Oct 26, 2014, 01:19 AM
ano ba ang mahal o mura para sa iyo? ano ba ang budget mo para sa gaano kalaking condo?


agent_mango

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Reply #20 on: Oct 27, 2014, 08:34 PM
@gang13 - It's because mabilis mag aappreciate yung value nung property diyan sa Makati at The Fort. Wala pa akong experience bumili ng condo. So far ang average price ng 1BR 25- 30 sqm from the top developers DMCI, Ayala Land, SMDC ay naglalaro sa 2.5m - 3.5m. Meron po ba nakabili na ng condo sa inyo noon early 2000s? Ganito rin po ba ang price ng condo or malaki ang itinaas?


pulubing_palaboy

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Reply #21 on: Oct 27, 2014, 11:14 PM
high end ba o pang masa?


Fastlane_dude

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Reply #22 on: Oct 27, 2014, 11:48 PM
@gang13 - It's because mabilis mag aappreciate yung value nung property diyan sa Makati at The Fort. Wala pa akong experience bumili ng condo. So far ang average price ng 1BR 25- 30 sqm from the top developers DMCI, Ayala Land, SMDC ay naglalaro sa 2.5m - 3.5m. Meron po ba nakabili na ng condo sa inyo noon early 2000s? Ganito rin po ba ang price ng condo or malaki ang itinaas?
j

I think Ayala Land shouldn't be in this category.


gang13

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Reply #23 on: Oct 28, 2014, 06:10 AM
Whether high end or low end, natataasan ako sa price ng brand new condos. My intention is to earn monthly rentals as passive income. I realize both condos and with H&L in prime areas like Makati are so high na. But I have consolation that with lots, my properties will appreciate in time, but with condos, I am not sure since there are so many new condos nowadays. With easy financing and more supply than demands sa condos, I am not very confident.


Fastlane_dude

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Reply #24 on: Oct 28, 2014, 08:48 AM
Whether high end or low end, natataasan ako sa price ng brand new condos. My intention is to earn monthly rentals as passive income. I realize both condos and with H&L in prime areas like Makati are so high na. But I have consolation that with lots, my properties will appreciate in time, but with condos, I am not sure since there are so many new condos nowadays. With easy financing and more supply than demands sa condos, I am not very confident.
It is a fact that all condos are not created equal. Location defines it all + developer reputation. High end condos will always appreciate big time.
 
Hindi po porket gusto natin magkaroon ng passive income ay bibili na lang tayo agad ng condo. Hindi po ganon kadali iyon, we need to practice due diligence. Tayo po mismo dapat ang magaral at hindi dapat tayo madala sa mga sales talk ng mga ahente. Ang Financial Capacity ang mag didictate kung ano ang kaya nating bilhin. Sample comparison lang po,

1.bought my 2 bedroom, 81 sqm around 7M at the fort back in 2008. I also hired an interior designer. Passive income is 80k per month, rented by expats. Present market value is 11.5M
2. A friend of mine bought 28 sqm studio condo in ortigas ( cityland) in 2010. Price is 2.5M with a passive income of 12k per month. Present value almost didn't change. Been telling him to go big but he refused despite having enough money to purchase high-end.

It is very clear that you will reap your reward big time if you apply due diligence.





richpulubi

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Reply #25 on: Oct 28, 2014, 09:59 AM
It is a fact that all condos are not created equal. Location defines it all + developer reputation. High end condos will always appreciate big time.
 
Hindi po porket gusto natin magkaroon ng passive income ay bibili na lang tayo agad ng condo. Hindi po ganon kadali iyon, we need to practice due diligence. Tayo po mismo dapat ang magaral at hindi dapat tayo madala sa mga sales talk ng mga ahente. Ang Financial Capacity ang mag didictate kung ano ang kaya nating bilhin. Sample comparison lang po,

1.bought my 2 bedroom, 81 sqm around 7M at the fort back in 2008. I also hired an interior designer. Passive income is 80k per month, rented by expats. Present market value is 11.5M
2. A friend of mine bought 28 sqm studio condo in ortigas ( cityland) in 2010. Price is 2.5M with a passive income of 12k per month. Present value almost didn't change. Been telling him to go big but he refused despite having enough money to purchase high-end.

It is very clear that you will reap your reward big time if you apply due diligence.





Besides location and developer, you forget one more thing...TIMING.

2008 was a great time to buy property, cuz there was so much panic due to the housing crisis and start of the great recession worldwide.

Even I benefited from timing...I can sell our property for four times how much I bought it ten years ago...but that's a house and lot in Makati.

As to timing...I kinda believe we're at the end of the 7 year real estate market cycle.  Therefore, we're almost at the peak and re is expensive.   FYI, 2008 may have been the START of the cycle...therefore, was a good time to buy cuz it was cheap.

Therefore, you may have to choose carefully areas of growth, if you're looking for investment...and maybe BGC is no longer it.


Fastlane_dude

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Reply #26 on: Oct 28, 2014, 10:55 AM
Besides location and developer, you forget one more thing...TIMING.

2008 was a great time to buy property, cuz there was so much panic due to the housing crisis and start of the great recession worldwide.

Even I benefited from timing...I can sell our property for four times how much I bought it ten years ago...but that's a house and lot in Makati.

As to timing...I kinda believe we're at the end of the 7 year real estate market cycle.  Therefore, we're almost at the peak and re is expensive.   FYI, 2008 may have been the START of the cycle...therefore, was a good time to buy cuz it was cheap.

Therefore, you may have to choose carefully areas of growth, if you're looking for investment...and maybe BGC is no longer it.

yes, 2008 was a great year! And also I agree that there is RE cycle but I will disagree on areas of growth. BGC, ROCKWELL, GREENBELT AREA and some parts Of ORTIGAS will always be prime and & red hot...growth may slow but it wIll never stop.

I can bet my donkey on that =)

« Last Edit: Oct 28, 2014, 10:58 AM by Fastlane_dude »


richpulubi

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Reply #27 on: Oct 28, 2014, 11:30 AM
yes, 2008 was a great year! And also I agree that there is RE cycle but I will disagree on areas of growth. BGC, ROCKWELL, GREENBELT AREA and some parts Of ORTIGAS will always be prime and & red hot...growth may slow but it wIll never stop.

I can bet my donkey on that =)



Hey, you're probably right about them being prime...but I beg to disagree that they will will be red hot for long. 

I'd look for areas that were like BGC during 2008......


bauer

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Reply #28 on: Oct 28, 2014, 11:40 AM
1.bought my 2 bedroom, 81 sqm around 7M at the fort back in 2008. I also hired an interior designer. Passive income is 80k per month, rented by expats. Present market value is 11.5M

Can you answer a few questions?

1. did you bought it cash (7M) or is it thru bank finance, if bank finance, how much is the interest rate per annum?
2. How much is your home insurance?
3. Who pays for the monthly dues?
4. How much is the realty tax?
5. did you spend for maintenance & repairs?  How much is the total for the last 6 years?
6. How much did you spend for interior design services?

Without the costs I mentioned above and with the income of 80k per month, it is not much different back then when a Petron preferred shares is bought at an annual interest rate of 9.5%

Of course, the 11M current price tag is just relative until the time you decide to sell.


Fastlane_dude

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Reply #29 on: Oct 28, 2014, 09:46 PM
Can you answer a few questions?

1. did you bought it cash (7M) or is it thru bank finance, if bank finance, how much is the interest rate per annum?
it's bank finance with 30 % down, interest rate is around 7%(more or less). I paid it in full for just couple of years using advance payment method. The actual price of the unit is just 6.1M (bare as in no lavatory, flooring etc). I spent around 1.3 M plus(can't remember the exact figure) on interior design ( including furniture, appliances etc.). Total is 7.4M all together.


2. How much is your home insurance? 10k per annum
3. Who pays for the monthly dues?- I am shouldering it. 5k per mos.
4. How much is the realty tax?- 14k per annum
5. did you spend for maintenance & repairs?  How much is the total for the last 6 years? Yes, don't know the exact figure but it is very minimal.
6. How much did you spend for interior design services?- 1.3M more or less. I concentrated on this area, since this will be the make or break of getting tenant.


I am also paying for a property manager which does the duty of paying all my bills, dues, taxes etc.

Without the costs I mentioned above and with the income of 80k per month, it is not much different back then when a Petron preferred shares is bought at an annual interest rate of 9.5%-
sir, it looks like stock market is your forte. I don't own any stocks, but I'm willing to learn the trade with you in the future. I would like to put some my excess pie in stock instead of putting all my cash in savings


Of course, the 11M current price tag is just relative until the time you decide to sell. -
Tested the waters back in 2011 when I told couple of brokers that I want to sell my unit for 11M...well lo and behold! Buyers are swerving like bees bidding to purchase my unit. I understand that they are different cycles, but mine has been tested.

Just to give you an idea, my unit is located at Crescent Park West, BGC. Few steps away from St Luke's hospital, Shangri-La at the fort, Burgos circle and mind museum.
« Last Edit: Oct 29, 2014, 03:29 AM by Fastlane_dude »


 


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