US Credit Report

[danhil]

I purchased a Condo in the new Arca South development in Manila. I live in the US. I'm paying three years of down payments equaling 20% of the total price with the balance due in March 2018. I've already paid two years.  With the recent developments I want to get out and cut my losses. I'm concerned about the effect on my US Credit report. Is anyone aware if Philippine developers report these default to US Credit agencies ?

[Bruce]

No reporting in the US. The phrase 'cut my losses' is used by people wanting to take a loss and get out instead of a more break even or profit approach. Are you sure? Post details on how to buy from you and what terms. A buyer might be lurking right here on the forum. !

[scott h]

5 hours ago, danhil said:

With the recent developments

I can not really comment on credit ratings Dan, but I would council patience.

This is just my opinion, but things are not nearly as bad as the news accounts make it appear. It would be a shame to flush two years of investments down the toilet because of some sensational reporting.

If you are worried about the so called "war on drugs", I live in Manila and have yet to see a dead body in the street or hear a shot fired. If you are referring to the recent anti American rhetoric that's been hitting the news, I haven't seen a "Yankee go home" poster (except the nuts that are always around the embassy lol) nor heard a single derogatory comment.

Like typhoon season here, this will blow over.

[johnbarley]

On 10/25/2016 at 11:57 PM, danhil said:

I purchased a Condo in the new Arca South development in Manila. I live in the US. I'm paying three years of down payments equaling 20% of the total price with the balance due in March 2018. I've already paid two years.  With the recent developments I want to get out and cut my losses. I'm concerned about the effect on my US Credit report. Is anyone aware if Philippine developers report these default to US Credit agencies ?

Were you planning to move into your new condo or was it for investment? Can you expound more on why you changed your mind?

I'd be shocked if anything from the Philippines is reported to US credit agencies. Are you simply going to stop paying or are you going to sell it? From what you said, it sounds like you have already paid 14% of the cost. 

Edited October 31, 2016 by johnbarley

[danhil]

Hi John,

I started the down payment process in Sept 2014. I married a Filipina in Sept 2015. We are currently living in California. I was planning to purchase this as a vacation home and rent it out when we are not there. My fiancés family lives in Digos City( in Mindanao)and my wife has a Daughter that lives with them in Digos. We are planning to have our primary home in the US and live part time ( 2-3 months per year) in the Philippines when I retire in 3-4 years.

There are a number of reasons why I am considering not completing this transaction:

1) We purchased land next to my wife's families home. We are considering building a second home there.

2) My wife is pregnant. We may not have the time to enjoy the Arca property.

3) I've had recent health issues in the last 8 months ( Afib & a pacemaker).

4) The recent anti US sentiment worries me.

5) Communication with Ayala Land is difficult. Hadrto get straight answers to questions even though Ayala has a US Sales Office 30 miles from my house.

In the last few days I've been leaning towards completing my down payments and keeping it as an investment property. I don't know how difficult it would be to rent this out or whether I would have positive or negative cash flow. Arca South is being marketed as the next Makati or The Fort but who knows.

I would appreciate any feedback concerning the rental market and my concerns.

Thanks.

 

 

 

 

 

 

[Queenie O.]

I'm confused Danhil--you have a wife AND a fiance? 

[johnbarley]

14 hours ago, danhil said:

Hi John,

I started the down payment process in Sept 2014. I married a Filipina in Sept 2015. We are currently living in California. I was planning to purchase this as a vacation home and rent it out when we are not there. My fiancés family lives in Digos City( in Mindanao)and my wife has a Daughter that lives with them in Digos. We are planning to have our primary home in the US and live part time ( 2-3 months per year) in the Philippines when I retire in 3-4 years.

There are a number of reasons why I am considering not completing this transaction:

1) We purchased land next to my wife's families home. We are considering building a second home there.

2) My wife is pregnant. We may not have the time to enjoy the Arca property.

3) I've had recent health issues in the last 8 months ( Afib & a pacemaker).

4) The recent anti US sentiment worries me.

5) Communication with Ayala Land is difficult. Hadrto get straight answers to questions even though Ayala has a US Sales Office 30 miles from my house.

In the last few days I've been leaning towards completing my down payments and keeping it as an investment property. I don't know how difficult it would be to rent this out or whether I would have positive or negative cash flow. Arca South is being marketed as the next Makati or The Fort but who knows.

I would appreciate any feedback concerning the rental market and my concerns.

Thanks.

 

 

 

 

 

 

I have several  condos that I rent out and based on my experience  the ROI ranges between 0.5 and 4%. 

I have also tried renting out units on Airnb  and the return was even worse not to mention far more work.  I think this could work under an ideal setup. Certainly  you would have to scale, ie it would not work with one unit. 

Overall I'd say it's a poor investment especially if won't be of any personal use and if you won't be in the area to work out problems. 

However  I'd imagine that you'd be better off selling the unit rather than defaulting on payments. Maybe you can post the specs, eg  total  price, sqm, rooms. 

Edited November 1, 2016 by johnbarley

[Jollygoodfellow]

Just to be sure everyone knows, to sell anything on this forum results in a fee so even hinting towards what is for sale, price location etc in the sense of selling something will result in deletion unless the seller wants to go the required route and purchase an advertising package. Advice is free, cost to run this forum generally comes out of my pocket and now i'm In Cebu with no income something needs to give.