I keep reading about a glut of condo developments in Southeast Asia, even as fewer and fewer people seem to be buying. I get buying a condo there as a home, but is anyone really buying these as an investment? It doesn't look like a smart move. What am I missing? By the way, this was before the Iran war. Now, with oil prices pushing inflation up, it seems like an even worse idea.
A lot of locals don't understand stocks, so what else can they do? And condo ads are right in your face everywhere, every day
I'd thought about buying a condo in the Cebu area and renting it out until I move there full-time for retirement. All my research told me not to, so I didn't. I talked to expats who currently rent out their condos, and they make very little for the time and upkeep involved. Then I found a brand-new, top-floor one-bedroom for the price of a new car here in the US (about $40k). I bought it in cash (title in hand), furnished it, and I live there a few months a year. I don't rent it out, but I let family and close friends use it on vacation. I don't see it as a financial investment. I see it as an investment in my peace of mind. I'll have a place to move straight into when I retire to the Philippines full-time. Basically, I prepaid my rent by buying it while I'm still working. That takes one of the bigger items out of my retirement budget. I plan to travel around and explore the country by renting short-term places a few months at a time. As my home base, I'll always have my condo to fall back on. I fully expect to take a loss on it, or at best break even, if I ever sell it down the road.
It feels like a lot of condos aren't fully rented or sold. Go to BGC at night and check how many lights are on in the condos you're thinking of buying or investing in. Some are under 30%, which is really low..
Generally, the only people buying them as an investment are the ones ‘encouraged’ to because of the SRRV visa. By my analysis, buying a condo in the current market doesn't make sense. They're overvalued, and I wouldn't be surprised if prices crashed in the near or medium term.
If you buy from Rockwell or Ayala Land Premier, it makes sense, since they usually appreciate more percentage-wise than other developers. Avoid SMDC, DMCI, Federal Land, and the like.
Oh yes. We were missing this week's condo thread!!!!
Please log into write a comment.
196
122
58
16Oct
3
Oct
11
Oct
16
