Owning Vs Renting (Condo In Pasig/ortigas)

[Shol]

I have asked this question before but was wondering what the up to date advice might be.

 

I have lots of people saying I should purchase something outright or with a rent to own option rather than "wasting my money" on rent.

 

I am here now permanently unless something drastic changes.

 

Some say well there might be earthquakes and its cool to switch places but others say it's great to have an investment, etc.

 

Just wanted some opinions and one of the reasons I hate renting is how nice the landlords seem to be until you pay and then it's like you don't matter.

 

Anyway any advice would be cool

 

Thanks

 

 

[Gerald Glatt]

have lots of people saying I should purchase something outright or with a rent to own option rather than "wasting my money" on rent.

 

Use the 25 year rule.

 

In 25 years will the cost of the investment plus the cost of maintenance exceed the return on your investment?

Will you resent the money spent in relation to the opportunities lost in regards to travel, entertainment, and adventure?

IN 25 years will you care about owning your "investment" or just a plot to rest in? 

[mogo51]

I think it is a personal choice, everyone is different (aint that the truth) but investing in Asia is a bit of

a lottery (talking from experience). Do not go up the 'company ownership' road. IMO

[Gratefuled]

I'm assuming you are retired and can afford to buy a condo. I'm also assuming you have done some research and have settled on living in the Philippines verses any where else.

Since you are probably not married or else your wife might want you to buy a house and lot. I suggest you buy a condo or townhouse but first make sure the location is where you want to remain. If it were me, I would want to be close to a mall.

Do not worry about earthquakes. They are going to happen anyway without worrying about them. The Philippines is in The Ring of Fire. So is California and I never worried about them.

Whenever you do decide where you want to live use your negotiating power.

Good Luck on whatever you decide to do.

[chris49]

I have asked this question before but was wondering what the up to date advice might be.

 

I have lots of people saying I should purchase something outright or with a rent to own option rather than "wasting my money" on rent.

 

I am here now permanently unless something drastic changes.

 

Some say well there might be earthquakes and its cool to switch places but others say it's great to have an investment, etc.

 

Just wanted some opinions and one of the reasons I hate renting is how nice the landlords seem to be until you pay and then it's like you don't matter.

 

Anyway any advice would be cool

 

Thanks

 

A condo is reasonable. An upmarket condo in those areas can go 10-12 M, now that is a hell of a thing to put on a Filipina. she might get trouble over that. I personally would not do it. I would rent for a year and weigh up my options. You might not know that a new condo comes totally bare, youj are the one to get it ready for occupancy.

[Shol]

 

I have asked this question before but was wondering what the up to date advice might be.

 

I have lots of people saying I should purchase something outright or with a rent to own option rather than "wasting my money" on rent.

 

I am here now permanently unless something drastic changes.

 

Some say well there might be earthquakes and its cool to switch places but others say it's great to have an investment, etc.

 

Just wanted some opinions and one of the reasons I hate renting is how nice the landlords seem to be until you pay and then it's like you don't matter.

 

Anyway any advice would be cool

 

Thanks

 

A condo is reasonable. An upmarket condo in those areas can go 10-12 M, now that is a hell of a thing to put on a Filipina. she might get trouble over that. I personally would not do it. I would rent for a year and weigh up my options. You might not know that a new condo comes totally bare, youj are the one to get it ready for occupancy.

 

 

I'm assuming you are retired and can afford to buy a condo. I'm also assuming you have done some research and have settled on living in the Philippines verses any where else.

Since you are probably not married or else your wife might want you to buy a house and lot. I suggest you buy a condo or townhouse but first make sure the location is where you want to remain. If it were me, I would want to be close to a mall.

Do not worry about earthquakes. They are going to happen anyway without worrying about them. The Philippines is in The Ring of Fire. So is California and I never worried about them.

Whenever you do decide where you want to live use your negotiating power.

Good Luck on whatever you decide to do.

 

Hi there. I actually am not yet retired have been working here previously as an expat now as a local employee for BPO Industry so the compensation is quite good. (Although not as good or lucrative as before) but it's decent.

 

I can afford a condo just trying to figure out if i want the hassle just to not have to make rental payments and to finally own something that I can love and cherish as my own.  I also hate having a landlord because most of them are uncaring money vultures that smile up until you pay.  

 

The biggest question is will I stay here for long ? It's been almost 8 years so probably unless something horrible was to happen to force me to go back.

 

I guess there are pros/cons of both.  It's kind of nice to rent a new place every few years for a change scenery and you don't have to worry about maintenance or what to do if I need to leave, ie selling it in a bad market.

 

Will ponder it and see perhaps the right deal will present itself :)

 

Thanks

[bootleultras]

I have been over here a while now, have a house in Rizal but due to working commitments for both me and my wife which meant minimum 3 hour travel days, we bought a condo in 2008..... a spade hadn't been placed in the ground at that time so we managed to spend only 3 million on a 40 sqm unit in Makati which when turned over last year has saved us alot of rent or travel as we have gone between both with our jobs previously. The value is increasing as each new condo in the new district called century city has risen so all in all it has worked out great for us, but each to their own. My condo was purchased with the option to have it furnished or not so we had a fully furnished unit to move straight into

[cyberbro]

To the OP, it's hard to say what you should do so I will give my thoughts on what I have seen so far and what I did.

 

I'm not living in PH yet (I'm 45), I bought a condo recently in Cebu, I must say they are not cheap but neither are rent's in that area.

If everything stays as is, I think my break even point is in about 12 years vs/ renting. I will then also have something to leave someone

as opposed to renting, so the fact that I bought a condo gives you my feelings about getting one. Even if I never retire to PH and totally change my mind, I still believe it will be a good (no not great) investment and will be ok with it as an investment property.

 

I see PH in a very unique position in Asia, with a lot of English speakers and big overseas investment in IT projects.

Along with Tourists from other parts of Asia (they are like the Caribbean of that area) and expats buying up condo's; I really don't see it going to sh&t like Florida did in 2008.

[afathertobe]

Great question, I am currently pondering the same. I have to pay for an apartment for my kid (and his mother) longer-term, so after a year of doing so I am considering buying a condo, though taking my time.  

 

I'll be frank here so that you have an idea of my thoughts, finances. I currently pay rent for an older residential unit with a nice common play ground, a pool, friendly property management and security so quite ideal for a family. Location is not perfect but pretty good all in all, not too far from the airport which is important for me. Monthly rent is 25'000 (roughly 5k of which for utilities, internet). It's a smaller, somewhat rundown 2BR, though again a good community and some of the other units are nicer. 

 

I found after a bit or research that I could buy a 2 BR condo unit from anywhere between 3M-15M (and more for really luxurious places), though I will go for the lower end of that range. Taking the above stated 25 years rule into account it would justify a price of up to 6M PHP, not taking into account any maintenance fees, taxes, replacement of furniture etc. which would not occur with rentals. 

 

Calculation: 20k x 12 months x 25 years = 6M PHP. 

 

I'd prefer a payment option over 2-3 years and move in by the end of next year to early 2017. I will search over olx.ph or the property developer websites and close in on a few interesting developments in my target areas of BGC, McKinley and perhaps Makati - rather pricey areas. 

 

My very initial research says condo purchases are open to foreigners without limitations, and there is no yearly property tax(?) or otherwise prohibitive fees and regulations. Am I missing something here? Other financial risks to consider?

 

From my understanding the big price appreciations have already happened, and there is a bit of oversupply of mid- to high range condos in metro Manila. Prices may not rise too much anymore, but probably also not fall. So timing isn't all that important and there is no rush. 

 

Comments? Bit of a long article, just a summary of my current knowledge. 

[Anthony]

When you buy a condo it's like investing as well. When the bldg reaches the age of 50 or maybe less than that due to poor maintenance, the condo corp will have a voting whether to sell the land where it's located (by that time, it would be pricey after how many years) or build another condo. Your child will of course inherit that if you don't have other immediate family.