How do you feel about condos in the Philippines?

[GeoffH]

20 minutes ago, Gandang Smile said:

Hi @GeoffH,

Interesting, if sad, story. Is the condo complex you invested in located in CDO?

 

Yes it was/is in CDO.

[Shady]

18 hours ago, OnMyWay said:

I have only stayed in a high rise condos when renting an Air BnB.  Every single one either had ants or had signs warning about ants.  They apparently climb to any floor!  You are never out of reach!

Roaches too, you see one it means there are hundreds you're not seeing.

Brings up another negative point about condos, your neighbors can be short-time renters without any concern for the property.

[Gandang Smile]

10 hours ago, Explorer said:

Is a condo a good investment in the Philippines?

I think it is an excellent investment if you buy a condo or any other property to live in it, but if you buy a condo just to make money, I don’t think so.

Maybee for a filipino, who don’t have easy access to the financial markets, condo “investment” is a good deal.

But as a foreigner, why should I bother to “invest” in condos? I have my money in conservative index funds, ETFs, earning 10%-11% per year, zero cost to buy or sell with a click of a mouse, very low cost to maintain and my money is compounding year over year. I guess if you get the rare killer deal, too good to be true, so yes but other than that why bother to “invest” in condos in the PH as a foreigner?

All in all, I think it's one of the worst investments available, unless you buy off-plan and plan to sell higher after completion and maybe after some redevelopment work.

In terms of rental yields, I think houses have far better ROI. Here in Davao you can build a cluster of 5 small houses, for a total cost of maybe 5 millions, including land title, and rent them at 15,000 each every month to local families. That would be P900K minus expenses, per year. You would amortize the cost of development in less than 6 years.

A studio unit in a decent condo complex would probably cost you more than 5M, if bought now. At least here in Davao, the budget of a typical "urban dweller" or small family is still 20/25K a month, max. Best case scenario, you would make P300K a year and able to amortize the cost of the condo in more than 16 years.

Again, learning from the locals is probably the best way to invest here. The typical upper class family with some land and a few millions to spare will always, invariably, go for the low or mid-rise with modest residential or commercial units. 

[hk blues]

3 hours ago, RBM said:

Having stayed many times in same units I concur. Except though what they lack is a terrace. My partner just reminded me some over looking the lovely pool do have a terrace.....

After an exhausting day roaming around, eating drinking in beautiful up town Iloilo one needs to relax on a terrace with another beer. Pity as same units on upper level offer superb views through windows.

Here in Iloilo, it's Avida brand.  The block at the front have balconies, at least some of them do, but probably only big enough for 2 small chairs and maybe a tiny table.  All other blocks are without balconies which, as you say, is a missed opportunity given the river and greenery on show.

[Shady]

12 hours ago, Gandang Smile said:

Again, learning from the locals is probably the best way to invest here. The typical upper class family with some land and a few millions to spare will always, invariably, go for the low or mid-rise with modest residential or commercial units. 

True, also learning from the locals is best when considering a home, and those upper class city Filipinos aren't living in condos, they're in big houses surrounded by big walls protected by guards with big guns.

And that's why the costs are also big

[Jollygoodfellow]

15 hours ago, Shady said:

Roaches too, you see one it means there are hundreds you're not seeing.

Our building has pest control every 3 months. Not very often do we have cockroaches but what would you expect in a tropical country.

[Explorer]

4 hours ago, Shady said:

those upper class city Filipinos aren't living in condos, they're in big houses surrounded by big walls protected by guards with big guns.

Interesting... I always wondered who is buying all those condos priced at 40 millions in the building in front of me, now you cleared it up, it is not the upper class Filipinos... 

Edited May 25, 2021 by Explorer

[Dave Hounddriver]

3 hours ago, Explorer said:

I always wondered who is buying all those condos priced at 40 millions in the building in front of me

It is quite conceivable that the wealthy filipinos are buying them for investment but I do not see many living in them.  They rent them, they keep them as home away from home, and sometimes they are left empty for investment.  Such is my observation.  Also, the rich filipinos seldom pay the same price as you and I. 60% of the units have to be presold to filipinos before you and I even get a shot.  Those advance buyers pay half what you and I pay.

Edit:  If ya think I am talking out my arse then make friends with a Filipino who went to the US to make his fortune then came back to retire in the Philippines.  Ask him to chat with developers and get on the list to be contacted when the next condo is available for investment and then get him a little bit drunk so he will give you all the details.  That is what worked for me.

Edited May 26, 2021 by Dave Hounddriver

[Mike J]

So to summarize:

Some people like condos and some don't.

Some people think they are a good investment and some don't.

Some condos are nice and some are not.

Some had good experience buying and some did not.

You should buy off the plan for good investment.  Never buy off the the plan.

Did I miss anything?  

[Old55]

39 minutes ago, Mike J said:

So to summarize:

Some people like condos and some don't.

Some people think they are a good investment and some don't.

Some condos are nice and some are not.

Some had good experience buying and some did not.

You should buy off the plan for good investment.  Never buy off the the plan.

Did I miss anything?  

Mike, you got it entirely wrong.