Will the Philippine real estate market ever recover?

[Dave Hounddriver]

1 hour ago, Gandang Smile said:

a buyer may end up waiting up to 2 years for the title

Here's an interesting story.  I bought a cheap house and in a subdivision when I lived in Dumaguete.  I bought it when it was a grassy field, then it took them 6 months to construct it.  When "finished" I still had to hire a contractor to do the real finishing and that took another 6 weeks.  Now for the title . . . 5 years to get it!.  I bought in 2014 and got the title in 2019.  But on the bright side, when I went to the municipal hall to pay the taxes I only had to pay for 2019.  Since that was the year the title was issued, that was the year I started paying property taxes.  Maybe they made a mistake but I liked it.  Your mileage may vary.

[Gandang Smile]

1 hour ago, hk blues said:

Sure, I understand there is a timing issue but cannot see how there can be a legal issue with a title when buying from a large developer.  We waited 6 months for our Title from Vista Land, some of our neighbours were a year - the good thing is the land tax is only payable after the Title is transferred.

I am not sure about the details. It's common practice and it's legal, albeit not quite ethical, which is why nobody wants to talk about it in the clear.

I think it's got to do with "tiered" taxes charged on the developer depending on the number of titles (or total property value) filed every year. They basically try to minimise this expense by spreading the number of titles filed over the period of one or two year. This explains why some people feel their title is release almost on a "first come first served" basis.

Edited November 6, 2020 by Gandang Smile

[hk blues]

28 minutes ago, Dave Hounddriver said:

Here's an interesting story.  I bought a cheap house and in a subdivision when I lived in Dumaguete.  I bought it when it was a grassy field, then it took them 6 months to construct it.  When "finished" I still had to hire a contractor to do the real finishing and that took another 6 weeks.  Now for the title . . . 5 years to get it!.  I bought in 2014 and got the title in 2019.  But on the bright side, when I went to the municipal hall to pay the taxes I only had to pay for 2019.  Since that was the year the title was issued, that was the year I started paying property taxes.  Maybe they made a mistake but I liked it.  Your mileage may vary.

No mistake Dave...tax is payable by whoever holds the title.  The longer they take, the less you have to pay.  I was unlucky - it took only 6 months! 

[hk blues]

12 minutes ago, Gandang Smile said:

I am not sure about the details. It's common practice and it's legal, albeit not quite ethical, which is why nobody wants to talk about it in the clear.

I think it's got to do with "tiered" taxes charged on the developer depending on the number of titles (or total property value) filed every year. They basically try to minimise this expense by spreading the number of titles filed over the period of one or two year. This explains why some people feel their title is release almost on a "first come first served" basis.

I'm sure there is a reason but it seems not financially sound to pay land tax for longer than they need to.  I can only assume the benefit in not transferring ASAP outweighs the cost of land tax they pay. 

[Snowy79]

I think I had a lucky escape with Regatta Bay in Puerto Princesa, Palawan.  A good 5 yrs ago maybe 6 I looked into buying what looked like a beautiful apartment off plans.  I visited the site before deciding and was shown around what was basically a cleared jungle then taken into the city to look at some mock scale models of what the apartments would look like.  Everything seamed professional and the company although not large had a few finished developments.

I signed the initial paperwork stating I will buy and pay the full amount within 6 months to avail a large discount.  I was given an 18 month completion time. I kept up on the development watching the company sales videos etc on the web and visited again after about 4 months.  If I remember correctly a shovel had been moved in the 4 months but nothing else.  They explained that they were shipping everything from Manila and lining up all the trades to crack on within the next couple of months.

At the six month time they were on my case for the money but I told them I need to see some movement as I had a bad feeling.  They offered me the same deal but in 3 payments spread over 6 months.  I stalled them and said I'll visit once more in a few months but I returned unannounced and sure enough nothing had been done. They never knew I visited and were chassing the first payment, they sent photos of a ground breaking ceremony showing then starting on my condo so I told them I'll be back in the Philippines in 3 months and just pay cash.

Again I returned unannounced and the ground breaking hole was overgrown so I just emailed them and told them they could shove their condo.  I kept an eye on the build via the web for a couple of years and couldn't see any real movement.  Even friends in Puerto Princesa were saying they never even heard of the development.  I've just looked online and there are some sad reviews.  A lot of photos some only from a few weeks ago showing part built structures that are already in decay and building materials almost completely covered by the jungle again.  Some poor OFW was commenting that she hopes it turns out to be a good investment followed by another review saying the company has closed down and can't be contacted. 

Just done some more research.  They are back and calling themselves " The New Regatta Bay."  Same artists drawings of the original buildings but a whole new sales video that looks very professional. I don't know how they get away with it as it's the same construction company.  

[jpbago]

5 hours ago, Dave Hounddriver said:

I bought a cheap house and in a subdivision when I lived in Dumaguete. 

Were you able to sell it at a profit after 5 years before you returned to Canada?

We haven't sold ours yet.

[graham59]

2 hours ago, Snowy79 said:

I think I had a lucky escape with Regatta Bay in Puerto Princesa, Palawan.

THINK ?

Yet another bunch of crooks conning and  fleecing people.... appears to me.  A popular pastime here. 

Well done for cutting your losses.  

[Jollygoodfellow]

6 hours ago, Snowy79 said:

I signed the initial paperwork stating I will buy and pay the full amount within 6 months to avail a large discount. 

So in reality if most other purchasers also never paid on time then how could anything go forward which is probably what happens? No money comming in; the end of great idea of a huge condo complex. Boils down to projections of developers, then financial climate which can go up and down as well as sales team and or management.  To me it's like this, If I come up with a good idea which I believe in and need financial backing and the financial side slips the rest is history as well. 

[Jollygoodfellow]

13 hours ago, Dave Hounddriver said:

So condos are not a safe investment if someone buys a "pre-purchase"

Mostly true but it depends on where or location but who knows what virus is around the corner to change that safe investment. 

The old saying and everyone knows it, location, location. 

[Dave Hounddriver]

5 hours ago, jpbago said:

Were you able to sell it at a profit after 5 years before you returned to Canada?

I was able to quick sell and get back the cash I had put into it but not a profit.  That was fine though.  It meant I had free rent for those 5 years.