Why Would You BUY A Condo In The Philippines? (As a Foreigner) 🇺🇸🇵🇭
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- čas přidán 5. 12. 2022
- If you are new to the channel, welcome! In today’s vlog I discuss 7 reasons why it “makes sense” to buy a condo in the capital region of the philippines as a foreigner. Stay until the end to have some thought provoking perspectives.
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majority of condos are not up to the same building standards/quality as the west, the few companies that are making quality mainly build luxury condos and are asking western prices or higher which is comparatively crazy. main concern though especially with the non-luxury ones is upkeep/maintenance of these buildings 10+ years down the road when your run down roach infested "investment" is having to compete with all the shiny new condos popping up everywhere with working lifts etc.
That was my concern about a condo purchase as well. Also check the monthly maintenance and additional fees you could end up paying, and in the 10+ years time the owner of the condo block decides a full refurbish is in order and the condo owners are going to foot the bill! There are some vlogs out there that crunch the numbers, so buyer beware ..
I posted that in my comment too. While it looks nice on the outside, you know who will pay for those eight elevators that goes to the 45th floor when one of them breaks ..... look in the mirror. It's the "owner" of the units. They will pay for anything and everything that goes wrong. Just wait until all units are bought. HOA fees will skyrocket.
This is a real concern in the long run, as the building ages. I have thought long and hard about buying a condo in bgc. I am thinking now it might be better to just rent, thus avoiding upkeep issues and just find another condo when it starts to feel run down. I do appreciate the video though and think there is much more that can be discussed about condo buying vs. renting in the Philippines, not just the easy payment terms and the amazing model units shown most of the time.
@@nicholas6823 There are many questions that need answers before purchasing, as well as a trip to the construction site to witness the materials and specs they are working to. Also sales people will probably be show casing what they want you to see / hear so you really need to dig deep. For example, what are the t's&c's around the maintenance fees? How often are they reviewed and is there a cap on how much they can go up by? Same with HOA fees, if they apply. Is car parking included or extra? How about amenities like pool, gym, etc.? How about any closing costs, legal fees? Also if you do decide to purchase, best to get a property lawyer involved to check the contract you are about to sign. My conclusion is that if you buy then do so during the building phase and flip either when it's completed or within about 5 years (again, check what the purchase contracts say about this).
You don't have to buy majority of condos. Just buy from the reputable ones and you're good. There's enough reputable developers in the Philippines to buy from, just do your research
Quite a few north american based filipinos have bought condos in BGC.
They still live in north america but have the philippine condo for use of their family
Or their friends who occasionally go to philippines for holidays.
You can easily spot their cars in the condo parking spaces, the cars would be dusty or with car covers.
Thats a tell tale sign of balikbayan owners.
This are the ones who ruined it for everyone. This developers/bank wet dream of total overpriced chinese quality build shit. Even $400 for rent is too much. There is no reason to do this just madness. Luckily it will all come down with the chinese crisis and this shitholes will lose 50% value.
Congrats, buddy on your 10K milestone!👏👏👏
Cebu is a good option ✅ new airport ✈️ lots of condos and cheaper than Manila
👍 keep up great knowledgeable content More curious expats need this information and you provide a good amount of it thank you
what you're missing is the LEVERAGE . The builders will let you "move in" a pre-sold condo after just 12 "downpmts" of $500 and you can AirBnB this unit for $50/nt. You get "free" money.
I own several condos so I know first hand.
Also, rents tend to go up overtime, a good hedge against inflation.
Buy now to lock in the price at MINIMAL investment.
In other countries, like US, you need 20%+ downpayment.
i hope you are getting this.
my 2c.
I am thinking of buying a few townhouses that are still in construction and i want to do airbnb. They are located in cebu city, the only catch is that i am a foreigner, my fiancee is filipina, and i an aware that i am not allowed to "legally own land" there. Any advice? We both are really interested in starting this real estate business with airbnb.
@@kendryvega1947You can't legally own land directly in your name but you can legally own it indirectly in a business registered in the Philippines. The only catch is you can only own 40% of the business and a filipino must own 60%.
@@kendryvega1947foreigners can buy condos but I'm not sure if they can with townhouses. You can ask the developers directly to be sure.
There are almost complete with those subways - which will be an influx of tourist traffic to where those condos are at
looking fresh, skin is glowing
Great video. Thanks.
Yw thanks for watching
Congrats on your 10k sus !!!
Thanks! 😃💪🏼
Good food for thought. I also wonder how numerous earthquakes would affect a condo structure over a long period of time. I've been in Cebu a couple of times where there's some pretty sizable earthquakes, even saw the cracks in the buildings and pieces of the certain buildings fall off and stuff and I don't know how well those were ever inspected or repaired. Maybe it won't fall down in the first earthquake but maybe it will in the 15th or 20th? I like BGC, it's a nice fancy modern livable City. The main issue I have with that is I love the Philippines for all the tropical Islands and beaches and I think you have to spend a good amount of time and a good amount of money to get to a decent Beach resort from Manila area. Other than that I love it
I'd rather rent in Philippines, if nothing else for flexibility. If you purchase something to live in, you've got huge liability, even if you pay all cash for unit. Moreover, rentals youve got freedom to move around. After two years you can move to Cebu. Or any other place. I've just heard of so many cases in Philippines where the HOA srcuwz over people. Or they do not maintain them after a few years. And, as an owner, youre stuck.
Truth be told also, my units in Arizona have a lot of up-rent potential. My Az condo units w/ HOA fee of $150 to $255 maintain the outside of the unit and a swimming pool, at most. That's it. I could not imagine maintaining all that stuff with reasonable HOA fees.
@@jonb3189 Yawn. My condos in Manila and parking spaces are netting 8% and 9.5%. I'm only seven years from 100% ROI. You have very limited knowledge about the Philippines and why the CBDs were built. Zero. I bet you don't even know how much the condo dues are in luxury developments and what you get from those fees.
@@robocop581 You are completely correct. I know zero about any of those. Congrats on your 100% RIO.
@@robocop581 Hi Perhaps would you be interested in owning a few more condos not just in manila but in Cebu and other places as well?
Your right,
Thank you for aligning your thoughts with mine
Thank you Spencer this content, is so important for people like us , we want to retire in BGC in 2 years
What if I told you that you can have a virtual tour of available condo units without going to the Philippines? Then bought it when you're ready!
You said that about 80% of those that watch your videos are not subscribers. So I subscribed, because you give good advice and information. Besides that, it doesn’t cost me anything and I can always unsubscribe. I don’t see any reason not to subscribe. I usually watch someone’s channel for awhile to see if I like it. Then if I like it, I subscribe. The one thing that I haven’t seen anyone go into detail on is dealing with banking and credit cards. Like if I log into my US bank account or credit card account. They often want to send a code to my US phone number or email address. They can tell if I’m not in the US, even if I use a VPN. I can’t login to Bank of America unless I first turn off my VPN. So I’m looking for someone that has real experience, not just speculation.
I get around this by having two phones. My main phone has my PH number and my secondary my US Number. And as long as the secondary is connected to WiFi I can always immediately get the text code from the US phone to get into any websites
As a pure investment play, you’re better off doing this in certain parts of the US as you’ll get better protection, a more robust legal system, and smoother transactions. Choose the Philippines only if you want a lifestyle play.
Hi Justin, thanks for your informative vlog about BGC and nearby cities. Rod here from California. I used to live in Manila. More power!
Actually before I saw your Channel and this was like 2 years ago my plan was to live in Metro Manila and live a good western style because rent is cheap there that's all that matters to me planning on taking my Social Security at 65 which is only 9 months away by the way I have a daughter and a son alone three grandkids that lived in Garden Grove California now they live in Chandler Arizona I was there in June for vacation and September for another vacation love that little city
Awesome!
Glad you enjoyed your little vacay here in the Philippines. We help foreigners settle and get a comfortable life here.
Can you do a update on this topic
Not to mention the pi crashes often i just rent a beach house there 200 it 4bdrm 2 bath with a garage for my car those condos were 10k that when you saw way more Americans
Opportunity cost of your money. If you invest it in your own country in the west your ROI would be enough to rent you a condo in cebu for the rest of your life based on the rents you receive in your own country. Also, you can insure your property in your own country. Most insurance companies in Asia and the carribeans are ponzi bate. However, if you got the money to blow and are not worried about opportunity cost then go for it.!
great vid tho may I ask where do you work tho? still in states? I assume work from home?
In the Philippines banks are extremely conservative and inflexible and risk averse. They would only listen to you if you are "too big to fail" but you could always try to negotiate even though the likelihood is they would almost always decline on your request. Basically what you see in their advertisement is what you get.
You just need the right people & bank to help you with bank loan here in the Philippines.
Good stuff. I appreciate the content. Video is a Year old and still relevant. Liked & Sub'd
And You forgot to mention beside all the convinience of staying in the PH is cheap, thanks Justin.
Very good info Justin invest in something that will double the money in a few years from now I just might do something like that Happy Holidays take care man🆒🆒👍👍🎅🎅🤶🤶🧑🎄🧑🎄❄❄🎄🎄
2nd
Nice, thank you so much!!
Your welcome!
In the Philippines buildings are built that meet or exceeds international building standards, I wouldn't worry about natural calamities at least the normal ones.
When our 2nd house was constructed I can't believe the cost just putting up a 2 storey house with massive foundations and thick walls apparently my parents demanded it that way because they are afraid of earthquakes having witnessed it in our condo a magnitude 7 but it did no damage btw. My cousin saw our house and he said we could make it up to five floors without any problem. I think the architect has over-engineered our house.
U should’ve do a video on the cost and tour of the condos i want to buy a few condos in the Philippines
I have many like this
I know where you can get this info with virtual tour for those in a different country. 😊
Nope. I rent a five bedroom house oceanfront pool tennis court El Nido at less than a BGC condo. Crazy
That's awesome.
I have been so close to buying a condo, after saving a nice down payment, but decided no way.
Prices kept going up and BGC is now about 550K US for a 1 bedroom with nosy personnel knowing all of your business, management company you cant not get rid off. Rules that you better abide with and fees that keep going up and services going down with bad maintanance. No HOA available to make rules. Once people start retiring those condos will be full and can you imagine all the noise?
Management companies are now limiting Airbnb rentals and you better follow. Visitors need to sign in and out and you are limited who can come to visit you at any point.
Food is getting expensive and its not that good there unless you really look for great places. The portions are small and have never had a good stiff drink there.
My advice, RENT and enjoy great transportation, night life (lousy local beer), women and song
What do you think about Ellis Makati or Gramercy
as a long hold,
Thanks
You should check out RLC a Prime condominium but discounted price lowest in the market!
horizontal condos arent urban setting
My concern would be political influences to foreign investment in the future. There could be risks to taking money out of the country or confiscate completely. As an investment it would be low on my list.
do they have management companies there to manage the rental,repair ..., for someone seeking passive income as an small investor?
Yes
Price to rent ratio makes no financial sense for purchasing. Put your money elsewhere, pay the rent with the income, and have a good lifestyle to boot.
That rent is joke it's same as wot am paying in UK.thought rental property were low in Philippines
Well if you buy a condo cash on the spot you will get profit selling it later but if you buy it on mortgage you will lose money. Let say I bought mine for 9 million, 7 million mortgage loan the interest is 7 percent.
Appreciation + rental income profit justifies it. If it’s your own residence, then you would be heavily relying on “potential” appreciation
I agree with you on this! Buying a condo cash on the spot is much profitable.
I hope I'm first my idol and crush... ☺️🥰😍
Thailand or Vietnam
One thing I v seen in Philippines new condos u buy in 5 years.They don't keep them up.Because they don't put money back into the condos and they get nasty and depreciate and ur stuck and lose ur ass.My thinking is u can keep moving into a new development nice with updated stuff.at 50,000 a month and save money in your saving.plus if anything happens ur not stuck.Just a thought.Thanks for ur thoughts.
Your not stuck because you can sell the condo, and as far as upkeep, some property managers do it better than others so it pays to research and get reliable information
@@itsJustinSpencer I'd rather save my cash and I'm not stuck. im saying location I can move and renting out sux because ur not making much money a month.id rather save my 300,000 us and have a condo in us and go back and forth.im retired notblike you still young and investing.
Condos are super expensive in the Philippines. I would much rather own a house if I was retired. The space of a condo is so tiny. You can live 10 miles outside of Cebu for much cheaper, and have much more land. Also have a swimming pool and garden. No way to condo for me. My wife is Filipino, and we are planning to retire in the Philippines.
As long as your wife never leaves you, you are good.
Personally, I absolutely, positively would not purchase a condo. Countless issues. Here are a few:
1. I think you are misunderstanding an asset vs liability. According to Kiyosaki (who I admit is a total nutcase), if you purchase a condo to live in, you've bought yourself a huge liability, This liability includes taxes, insurance, maintenance, HOA fees, etc.
2. In addition, while it is nice to have a place you can call home, you are also trapped there. You are unmovable. Lose your freedom. You are tied to the hip to the unit. And. you cannot leave or make any cash, unless of course you rent it out / AirB&B it. In order to do either, you must, must, must get HOA approval for this. If HOA does not approve, for whatever reason, or those rules change, you're done for.
3. Speaking of HOA, do these units allow AirB&B? In the US, HOAs I personally deal with do not. And, rules are changing where counties / cities are limiting AirB&Bs.
4. AirB&Bs are profitable. However, these are not passive income .... at all. They're are a lot of work. They cost a lot to maintain. You must keep your high standards or get poor reviews. Also, those who stay in AirB&Bs may trash your property. Afterall, theyre on vacation, and don't care. It's not their property. If you own five or six AirB&Bs, it's a full time job, granted you can hire people for cheap in Manila, it'll still a lot of work. No going around it.
5. Will Philippine banks give foreigners a mortgage? Will they give interest only loans? What is needed to qualify? What are interest rates there? I have no idea. I know that no US bank would ever ..... ever give a mortgage for a condo unit in Philippines.
6. Here is the biggest threat, as I see it, and I could be wrong here. The places are nice. Looks great. While you think this is wonderful, I see a disaster. What if those elevators going to the 45th floor break? What is there's a tornado / other natural disaster (as you mentioned). Who will pay for the pool that gets a hole in it and the HOA president forgot to make insurance payments (yes, this happened to my condo up Flagstaff). Yes, the place looks amazing. But who will pay for maintenance of yard, trees, pool, saunas, gym, and everything else ..... look in the mirror. Perhaps HOA fees are low today. However, once the unit gets filled you can watch HOA fees double, triple, or 4 or 5 times the price over night. Also, HOAs in Philippines have a horrible reputation of letting their units go while overcharging their "owners" of the units.
There was a case in Bahamas / Jamaica where a bunch of time shares (yea, I know, time shares) got destroyed due to hurricane. It was not only the units, but also all amenities as the outdoor pool, sauna, trees down, mud, roofs, and everything else, destroyed. HOA fees went from say $200/month to $5000 and more over night. The hurricane was real. And owners were in a panic. Owners could not give the units away. Lawyers got involved .... whole thing a mess. Those HOAs are often completely unregulated in foreign countries.
For me, my plan is retirement there, February, 2024. I will purchase my units in the US as "assets" (Ref: Kiyosaki) and use those assets to pay for my rentals (and other expenses) in Philippines. And no, I will not spend my time while living in RP managing an AirB&B unit or renting a unit out. I'd do this in the US, only where I am familiar with US laws and US protections on rental units.
And, oh yeah, I read that Japan will build their trains for Philippines. Being in Tokyo, yes trains all run like clockwork. However, I noticed that the trains did not run with any regularity. Was random when they would arrive. This, vs Tokyo where the train will arrive every five minutes on time, and leave at exactly the correct time.
Hi Jon, I understand each and every point you are saying, however, “what you can do” with a condo, especially here in Manila, is largely based on your skill set and however you choose to do what you are doing.
There are many people here crushing it with Airbnb. And I think you are are for some reason forgetting it’s absolutely not impossible or a high level of difficulty to someone with average marketing skill to re-sell the condo later or rent it at higher rates, and yes when you ask enough people you will always find solutions for bank loans. Because I have so many previous marketing successes (100s) to me it feels like it’d be easy.
That being said, if I were an older man, and let’s say in my 50s I would not dabble in any of this - being that I’m young, I have the mind and energy for solving problems and having unique execution.
If I were planning my retirement from the USA coming to Manila I’d already expect myself to have a considerably high net worth with no need to invest more or work more.
But thank you for adding to the conversation, i always like hearing perspectives from like minded investors and business owners.
@@itsJustinSpencer I guess just three questions.
1. Will that place allow for AirB&Bs. And, what assurances do you have that the HOA rules will not change.
2. Can you as a foreigner get a mortgage from a Phil Bank?
3. What reassurances do you have the HOA fees will not skyrocket in the near future? I mean, there are just so many niceties there. And these do come at a cost, obviously.
In my judgement, I would rather keep investing in the Tempe / Mesa / Chandler areas.
@@jonb3189 I’m not an expert, but from what I’ve seen. It’s safer and cheaper to invest in condos in the Philippines. The HOA fees in the US are more likely to go up and have more restrictions. As far as getting a mortgage from a Philippine bank. Most, if not all of the new condos are sold and financed by the builder. SMDC is one of the biggest, and there’s other big developers. Just do some research.
@@Amen.22 The builders are actually the banks .... I find that extremely difficult to believe. Next time I'm in Manila I will check this.
Look over those units in BGC. HOA must cover like everything. The gym. Elevators (going to the 50th floor). Landscape. Kids rooms. Massage rooms. Business rooms. Pools. I mean, those places are run like 5 star hotels. And, who will pay for all that work ... look in the mirror.
... as said, renting is cheap.
I own three condos in Arizona. HOA pays for insurance on the external of units. They may pay for a small pool, and mail boxes. That's all. And, of course the HOA there drives me nuts with endless nonsense (my tenant's dog pooped on the grass, and I have to deal with it). Regardless, certainly HOAs are difficult to deal with in the US, and everywhere else. However, in the US, there is far less the HOA must cover.
@@jonb3189 Hi John! I'm Carmella one of the International Marketing Partner for RLC of Gokongwei group. Just to give you a little info.
To some people condos are a huge liability but if you know how to properly manage it you can make it an asset.
You're not trapped in your condo unit especially if there's amenities to keep you entertained or the residence, you're in have good surroundings like Arcade, Park, Malls, Resto & many more in which high end developer usually consider in the location of their condo units. If you prefer to Airbnb your unit, I suggest buying a condo unit in where the HOA give easy approval for it, you may ask your real estate agent to get that info for you. I've been selling condo units for a while now and I let my clients know all the necessary details before buying a condo unit.
Major Banks in the Philippines allow foreigners a mortgage with 0% interest that's why as a realtor we have our own loan officer to help foreigners all through out and make it easier for them to own a condo here in the Philippines.
I know you have a lot of concern in mind, and we understand it as a developer. That's why we regularly have a maintenance and make sure all our structure can withstand natural causes. HOA Fees are low today, and it definitely will rise due to inflation but if you have a dependable sales agent to give you the tips on how to avoid stress over those fees and outsmart paying extra it will be easier for you. That's why it's very important to have a sales agent that can help you as a foreigner in the Philippines.
I hope this ease your mind and have a wonderful time in the Philippines should you plan to visit anytime soon!
Just buy one unit if you can. Easier to manage.
Agreed. You can also buy a few units & have someone manage it. Nowadays foreigners hire caretaker for managing their condominiums or airbnb much cheaper and less hassle.
Security shit is why
You missed the fact of the huge rock in space with the earth date on it
Overpriced😂😂😂😂😂
Hello Justin, Great video...its very informative, I wanted to know that BGC are one of the prestige place in Philippines. I wanted to know or someone you know wants cheaper place to purchase a condo here in North Quezon, This condo community are mostly foreigners living near 3 Malls and Skytrain soon...If you need more info...Please let me know your email. I can give you the details.... (Mgen)