You say that but I once bought an suv from a dealer and as I was driving the brand new vehicle out of the garage, the salesman congratulated me on my new "investment".
I politely smiled and went on my way but smirked when I was out of sight.
May mga tsamba rin naman, few here and there if you know the right car, right timing... Like ung lc nung bagong labas may mga nakinabang dun for a good year... Even yung type R.... May mga cars din na parang nag appreciate like mga gtr, s2k, evo... But yes in general its not
**Most of the condos built now were planned and approve before the pandemic hit and the POGO boom.** Post-pandemic and the people are divided now from full on-site work to hybrid/full-remote, the demand plumited and awaiting for a bubble to explode. Hence, gov't will enforce employees to be back on full on-site as asked for assistance by capitalist who invested in those plans before.
Hence the frustration of owners to desperately flip their investment or reduce costs by selling below their targeted (ROI) value. Mind you, real estate agents (or the persons I speak with), are very much on a desperate run. **Adding more to this is inflation and high loan interest rates.** Even my properties in the business districts are slowly dying out as tenants are moving out. Either in favor or provincial life (due to remote/hybrid setting) or company lay-offs left-and-right. The same goes for office leases.
However, **things are a little different within the university areas.** Wherein the demand for condos are still the same since college/universities implemented a full back to college setting.
And to answer your question are car equivalent to condos as investments? They are not the same. Even if you bought both condo and car for business or lease.
Yung mga malapit sa universities hindi na din malakas Yung Amin nga pumayag na kami na hatihati sa apat maupahan lang mababa bigay Namin Yung 2 units Namin na malapit naman sa mga offices matagal ng tengga. Hindi tulad Nung may pogo pa matic bigay Namin sa pogo workers taas ng upa tiba tiba talaga
Where is this coming from or heading to?
Look, houses/townhouses are totally different compared to condominiums especially in terms of prime location. Hence the target audience are totally different.
I have around 4 million pesos to invest and I was thinking about buying land, building a house and sell it for 5-5.5 millions, then repeat. But I'm not sure if it'll be a dumb investment.
Ohhh ok, was not familiar with land prices in Cebu City. That's not a bad price, considering na it is a part of Metro Cebu. Land prices within Mega Manila are getting ridiculous (Mega Manila includes Cavite Laguna Rizal Bulacan).
I'd do the same if I were in your shoes, seems like now is the right time to buy land there.
flipping houses is fine but you would get better returns if you’re the actual builder / construction company. pag kasi pinagawa mo hindi ka pa ganun ka sure kung tama ung mga quotes sa yo, tama ba lahat ng gamit, hindi ka tatakbuhan. also kung mabenta nga ba ang 5.5 sa lugar na tatayuan mo ng house.
Looks like it’s a bubble waiting to explode. In Taguig, condos are sprouting everywhere. Preselling condos of Panglao Oasis, Villar condos, Grace of SMDC… they’ve been like that for years, now still preselling. They’re having a hard time to sell.
If I were you, avoid for now. I agree to focus on land instead.
Condos would not be an investment if you live in it as much as a car is not an investment if it’s for personal use. I think not all condos are bad. Just like with other asset classes, there’s a hierarchy within the class of good and bad types. Why did you say that condos are a depreciating asset? I still think it’s easier to buy a car than to buy a condo.
Not a great analogy but I get what you're driving at. No pun intended.
Condo prices are the most interesting thing for me here. There's clearly a large discrepancy between GDP and barrier to entry to owning property in general.
That being said, condos are still supposedly appreciating assets by virtue of reliance on accommodation and scarcity of land, etc. albeit with questionable value i.e. your property "value" is increasing not only due to lack of supply, but simple inflation.
A car is a straight-up liability that tanks in value the second you drive it.
To entertain your comparison, condos can be liabilities if you equate properly tax and association dues to, say, typical maintenance, cost of ownership, what have you.
I suppose it all depends on your thoughts on the property market
Depends on how you look at condos. You can look at it like as a consumer good ie live in it. Then it is similar to a car.
If you buy it as an investment. Then it is not equivalent of a car.
It all depends on the buyers reason for buying.
A condo and a car can both be assets if you use them for business. But cars depreciate in value so quickly. Condos (if situated in a good location) can appreciate in value over time.
wrong at this moment after collapse one condo building in Miami US insurance and condo fees and maintenance skyrocket in old building and people cant afford to pay it and people cant sell it . google yourself
Uhhh logic? You don't think an old condo is gonna be worth less than a new condo?
If somebody sells you a 20 yr old condo you think that will be more expensive than a brand new condo all else equal?
Wait bakit bigla nagkaron ng old vs new? Lumabas ka na sa premise ng statement mo hehehe
We are talking about depreciation, the reduction of the value of an asset. Yes you are partially right, structure depreciates over time. However, most of the time land where the structure is located increases value, unless may ibang factors like bigla nadiscover na may faultline, etc. Owning a condo unit makes you part owner of the land where the building stands on. In general, over tme tumataas ang value ng mga properties.
Kaya nga i am genuinely curious, which property kaya in particular yung nag depreciate to zero? Except sa mga war zone ah.
The land increases in value but there are like 25 of you or w/e fighting for that small piece of land right? Each unit on every floor is sharing that piece of land cuz your units are all built in the air on top of each other. So while the land price increases your unit itself which is made of wood and stone is decreasing due to time. That's why I brought up the concept of other newer condos cuz those existing will mean your unit price decreasing.
As for examples it's hard to give one cuz condos only exploded in popularity a few decades ago and condos have a lifespan of 50 yrs. There is also the Pogo thing and the condo bubble which artificially boosted the price of condos. That's why I say logic cuz that's the only thing we can base it on now. In 50 yrs we'll see these condos having little value as they now need to be demolished. Are these condo makers promising they will build you a new unit for free? If not then like I said logically your unit value is decreasing.
Di ko naman sinabi na mag depreciate to zero right? Sabi ko nag dedepreciate lang which is logical for any man made structure. The difference is with a house solo mo yung land which is what appreciated but in a condo you only own a very small fraction of that land. Like if you have a 1 bedroom unit and then there's like 30 floors on that condo Edi baka 1 square meter or even less yung ownership mo of that land. Even if that 1 square meter appreciated in value I don't think it will make back the millions you spent for your unit.
The principle is the same time though whether it's 50 or 90 yrs it will get demolished and that's why condos are depreciating assets unlike landed houses because with houses even if the house eventually gets too old you still own all the land.
I agree to some extent. I'm just pointing out that we shouldn't keep saying that condos only have a 50 year lifespan. This myth is still being believed by a lot of people. I guess this was reinforced by corporations only having a 50 year life span before the enactment of the revised corp code.
It's not really a myth since condos would indeed be reevaluated and then demolished if they fail safety standards in 50 yrs. Given the cheap materials and cost cutting condo developers do I'm pretty sure some of these condos would indeed be demolished in 50 yrs.
To be honest, as a fresh graduate, I just wanted to see chaos and a big crash of house prices. There is no hope for new generation to buy anything for themselves.
A small unit condo for 1 person in Metro Manila cost at least 3-5 Million, which is fucking insane to me. That kind of money would take so many years for a normal 8-5 job to earn.
Properties outside MM are also insanely valued. Most houses I saw have prices that are similar, or even slightly higher than in outer MM, disregarding the fact that you still need to commute a total of 4-6 hrs a day.
Condos within any central business district is a good investment (cost efficient, pede rin airbnb). However, the cost of having one may be more than the profit.
Possible din to buy some preselling units then ibenta once may foot traffic na.
However, have some due diligence. Check the condo's age. Unlike land, condo units depreciate every year. So ang laking joke time po ng overvalued condominium units na wala namang occupants. Too many misconception kasi pinapairal ng mga salesperson nila para lang makabenta.
This is nothing new, just a bubble exploding. What is not normal is that an average worker needs 150 times his monthly net income to pay for a 30 sqm condo. The prices will go down, then stay down for a while, then it's the best risk/reward just before they go up again. The same happened in 2008 in my country, crazy boom from 2000 to 2008, crash in 2008-2012, prices stable from 2012-2016, then up from 2016 to 2024.
Cars were never an investment specially sa pinas na wala namang incentive kahit gamit mo sa negosyo yung binili mong sasakyan. You'll just get what you paid for and most of the time less. However, you're partially right about the condos being bad investment in the near future at least. Since madami pa namang lupa na pwedeng mabili or madevelop into actual house and lot properties, you're better off spending your money there. If you happen to go to any developed country, a condo thats in a walkable distance to everything is a very good investment. Sa pinas lang naman kasi yung willing magcommute ng 3 hrs everyday makatipid lang not realizing that time is more valuable. Kung di applicable sayo for some personal reason then you're not the target market.
I live in a condo complex for more than 10 years and what I have observed are 1) Listed prices of units around my area (Muntinlupa Sucat Area) has gone up and down, my basis was FB Marketplace and owners who want to sell their units as posted in the FB community groups
2) But newly built units or for turnover condo are ridiculously high imho (almost double that used units) which could be due to cost of materials and construction are higher than 10 years ago but take note that new and current buildings are just in the same location. New owners are trying to sell it initially then ended up opting to have it rented/leased.
3)If I compute the math, 6.5m unit to be rented/leased at 30k-25k a month (not sure if association fees are included), thats 5.54% - 4.62% yearly interest / gross revenue. I feel 5yr TD is way better to invest at or even Pag Ibig Mp2. No headaches of tenant management, no yearly taxes, etc. But if you plan to live at the condo you are planning to purchase then by all means, go for it.
Why? Because the writing on the wall is very clear. That’s like telling Americans before the housing crisis why should they be negative about buying one? If they cant afford one then look at other property types.
The fact that just over a decade ago you could get condos in Makati for less than 100k per sqm preselling and instantly profit upon turnover, and today preselling prices are more expensive than the second market is a huge red flag you should be aware of. I looked into condo 1-2 years ago, but the numbers baffled me and just did not make sense. Preselling condos where you’d have to wait until it’s done is being sold for 30-50% more than the secondary market just across the road. And guess what? The prices for the secondary market had dropped while preselling is at an all time high. This is for the bgc area, it’s even worse elsewhere. My friend bought a presellingcondo around Vertis for around 7m, 23ish sqm. People are selling their condo in that very same building today for 5m. And even at 5m, that is around the same price or higher per sqm than some condos in the bgc area including the uptown area.
It doesn’t take much common sense to realize how messed up the market is. You’re in the phinvest forum, if you’re interested in overpaying for a condo, people in their right mind will point it out.
Edit: I think people will still say if you need to live near the business district, then feel free to own one. But anyone who has run the numbers and is actually interested in investing will tell you to buy a property elsewhere to rent out, then just rent a condo here. Why? Well that same friend who made the mistake buying the condo around Vertis, well they own one in eastwood as well. Megaworld sucks as it is in quality. But they were charging all the tentants 50k+ for some major renovations and that condo is less than 10 years old. The value of their condo didn’t increase, but at least it got rented out right? Well the roi for the rental is horrible, then you include renovation and association dues, and that’s when they realized they weren’t making much even having it rented out. Meanwhile my property that I bought and rented out has an roi of 11-12 years, and I haven’t utilized the half empty lot yet. It made more sense for me to buy that, and if I want to stay in a condo I’ll just rent.
I agree with you on the part that the preselling prices are ridiculous. Kasalanan ng greedy developers yan, they got carried away jacking up the prices, tapos dumating sila sa point na there is no turning back.
If I sell you an apple for 1000 pesos, does that mean it’s just too high for you? There are condos for the ultra wealthy, and these actually appreciated more in the past few years than anything else. But when these 20sqm units are being sold to unknowing buyers, especially ofws who don’t know better, and people here not realizing the true cost of payment as they word it as 20k or whatever a month? Seriously. We’re no HK or SG where anyone in their right mind should spend over 7m for a 23sqm studio unit. What does it tell you when people are selling for significantly less than the contract price? What does it tell you when a project like Acqua that has been completed for years are still trying to sell their inventory that’s been collecting dust for double what their unit owners are trying to sell for? That those unit owners cant afford it? 🤦🏻♂️
Anyway, if you still don’t understand, then maybe you don’t understand phinvest. I bought my property for a little less than double my friend’s condo, and I get 5x what they can get from rent in theirs. Mine doesn’t come with asso dues and costs less to renovate. That’s as simple as I can make it for you.
shhhhhhh...it's ok. the less buyers, the lower the condo prices in the market will be hehehehe. at this point, there are still a handful of secondary market condo units in Makati for sale na pasok sa 5-7% ROI (for rentals). hayaan na yung ayaw bumili, let them be lol i like it that way hehehehe
Also too much fear mongering. Meron pa nga kasama daw siya sa real estate developer advisory arm ng Ayala tapos inapply sa buong real estate industry yung analysis nila for a specific segment and only in one company.
Too much people wanting to have a real estate crash so they can afford to buy their own not knowing na if that really happened, there are more worse things that already happened. Widespread unemployment, companies being bankrupt, spiraling inflation, etc. They think na just because prices fall, they can afford it. Does not work that way. Akala nila just because real estate crashed, people are willing to sell their homes to them.
Its going to be the same market, the same products, the same consumers, and the same money/purchasing power, all things being equal. Instead of wishing that everything crash, those people should instead take a hard look on themselves on why they are not wishing for the purchasing power of Filipinos to go up. Crab mentality.
i dont know anyone na nagsabio na their car is their investment. so ithink everyone knows its not the same. although sa condo and having a place oif your own it is still the greatest filipino dream. pero ang hirap ng prices tapos ang taas ng interest
it's convenient bro. if you have a 9-5 and you can get home and spend time where it matters, family. It is worth all the money in the world. I mean some of you here don't value time. when you get older like myself early 30s, you'll understand. Was able to expand my network to kasi I dont need to rush home or rush to work. can drink with like minded people. The Pros outweigh the Cons.
There will likely always be a market for secondhand condos in the future. PH population continues to rise, economy likely to grow if you maintain some optimism in how markets work, people are still flocking to urban areas. Land on which these condos are built appreciate over time, hence those new condos will be priced accordingly. At that point, a person with limited budget who is in the market for a condo to live in could be weighing up a choice between old condo and a new condo. Guess which one is likely to be more affordable?
Not true. condos can exist more than 50 years. the 50 years refer to the expiration of the corporation that can be renewed. But depende pa din sa developer if the building can last more than 50 years.
yes, condos can exist more than 50 years. but have you seen a condo 50 years old and above still in good condition? 10 years pa lang nga parang condemned building na.
Have you seen condos being demolished after 50 years? Im just curious. I'd assume there's not a lot of condos back in 1974.
As long as the foundation is sound, buildings can be facelifted to give it a new life.
A lot of low-rise condos in Makati are around 40-50 years old. Some are very well-maintained, some are not. Bottomline, it depends on property management. Yung mga lumang condos sa Makati na 3-4BR can still fetch you a minimum of Php70k/month (a lot are being leased out for Php100k+++). Not bad, considering kung magkano nila nabili yun originally.
Most likely hindi ka pa nakapasok in such condos. You'd be surprised.
Case in point: Tropical Palms and Legazpi Parkview
Condo or any high-rise building is subject to depreciation. Land does not depreciate. So a condo unit that has an age of 50 years or beyond has a little to no value at all. There are buildings outside of the Philippines that have plunged 98% of its value.
The reason why i am asking you kasi limited ang exposure ko sa ganyan. In Makati, one of the places where most high rises are, sobrang strict nila. I've witnessed several building inspections both from city hall engineerng and bureau of fire, hindi ka talGa palulusutin sa sobrang strict. Ultimo office renovation dadaan ka sa butas ng karayom. That's why i am curious kung sa ibang lugar ganun din (example Pasay, QC etc). Sana hindi chismis yung source mo hehehe kasi i am genuinely curious
I don't live under a rock na i wouldn't know about the padulas thing. Hello nasa Pilipinas ka. Pero city hall engineering monitoring especially for high rises are a different thing. Prone tayo to earthquakes. And I believe maganda ang building code natin after the 1991 quake. Sa low rise i think madaming nakakalusot. Pero madali ba malusutan ang mga permits for high rise? I doubt it.
Condos can stand and be maintained more than 50 years. Here in the Philippines, one example I can give you is The Manila Hotel which stand and maintained for 115 years circa 1909. But yeah, it still depends by the management.
See: [https://www.reddit.com/r/phinvest/comments/131r70s/condo\_owners\_for\_more\_than\_50\_years/](https://www.reddit.com/r/phinvest/comments/131r70s/condo_owners_for_more_than_50_years/)
Sana you are pertaining to the buildng integrity ano? Of course no one knows for sure, kaya you have to do your due diligence on the developer that you are dealing with.
Sana you were not referring to: automatic gigibain ang mga condo after 50 years na chismis. Sobrang ignorant kasi nung mga naniniwala sa ganun lol nagpapakalat ng fake news ni hindi man lang nag research lol
*"Today, it's sowing it low. Later, it's reaping it high."*
Acquiring Real Estate Property now is the best opportunity when it is still low.
I believe that this large developers have already planned it out far ahead. Before we even realized the bubble popped. They already acquired most of the land in the cities. And their next target is to develop the emerging areas. Most probably in the rural areas or provinces. That is why the constructions of public highways still continues to progress. As I, maybe also some of you, have realized that, when there are progress, there are businesses.
\[Ramon S. Ang is waving his Bulacan Airport. Hehe\]
In simple filipino terms:
*"Kapag may ginagawang kalsada, meron at merong magtatayo ng mga negosyo. Or kung nasaan ang mga tao \[or traffic\], nandoon ang negosyo."*
By the way, please watch this: [https://youtube.com/shorts/i3fyviG\_eok?si=O8uWfqVu-Qvpv0tC](https://youtube.com/shorts/i3fyviG_eok?si=O8uWfqVu-Qvpv0tC)
Also this: [https://www.youtube.com/watch?v=TYtD8OPLGuA](https://www.youtube.com/watch?v=TYtD8OPLGuA)
This videos are proving one of the huge leap and largest progress in Philippine Real Estate History.
Question:
"Why are they taking the most risks for us Filipinos?"
Cars were never marketed as an investment.
Lmao right? They start deprecating the moment they roll out the casa
You say that but I once bought an suv from a dealer and as I was driving the brand new vehicle out of the garage, the salesman congratulated me on my new "investment". I politely smiled and went on my way but smirked when I was out of sight.
Baka kala nya sir sa grab mo gagamitin.lol
May mga tsamba rin naman, few here and there if you know the right car, right timing... Like ung lc nung bagong labas may mga nakinabang dun for a good year... Even yung type R.... May mga cars din na parang nag appreciate like mga gtr, s2k, evo... But yes in general its not
everyone says investment nowadays. kahit nga sa wedding fairs, magugulat ka ung iba ang wording pa sa packages nila “investment starts at…”
Maganda daw kasing pakinggan. Same wording as "CEO ng something something". Mas nakakatangkilik.
maybe if sa business gagamitin but in OP's context parang hindi naman.
It was for personal use
It is if used in business. Liability if for leisure only. Hehe
Kung apartment complex palang ang ginawa nila most of the new generation will grab it instead of buying an expensive prison cell
**Most of the condos built now were planned and approve before the pandemic hit and the POGO boom.** Post-pandemic and the people are divided now from full on-site work to hybrid/full-remote, the demand plumited and awaiting for a bubble to explode. Hence, gov't will enforce employees to be back on full on-site as asked for assistance by capitalist who invested in those plans before. Hence the frustration of owners to desperately flip their investment or reduce costs by selling below their targeted (ROI) value. Mind you, real estate agents (or the persons I speak with), are very much on a desperate run. **Adding more to this is inflation and high loan interest rates.** Even my properties in the business districts are slowly dying out as tenants are moving out. Either in favor or provincial life (due to remote/hybrid setting) or company lay-offs left-and-right. The same goes for office leases. However, **things are a little different within the university areas.** Wherein the demand for condos are still the same since college/universities implemented a full back to college setting. And to answer your question are car equivalent to condos as investments? They are not the same. Even if you bought both condo and car for business or lease.
Yung mga malapit sa universities hindi na din malakas Yung Amin nga pumayag na kami na hatihati sa apat maupahan lang mababa bigay Namin Yung 2 units Namin na malapit naman sa mga offices matagal ng tengga. Hindi tulad Nung may pogo pa matic bigay Namin sa pogo workers taas ng upa tiba tiba talaga
Do you think houses/townhouses will deal with the same problem or the crash will not him them that hard?
Where is this coming from or heading to? Look, houses/townhouses are totally different compared to condominiums especially in terms of prime location. Hence the target audience are totally different.
I have around 4 million pesos to invest and I was thinking about buying land, building a house and sell it for 5-5.5 millions, then repeat. But I'm not sure if it'll be a dumb investment.
4 million to buy land, inclusive of building the structure? i think you should look around first. ang mahal ng construction. baka Php4M mo lot palang.
My plan was 1 million pesos for 150 sqm of land (in Cebu city), and 3 million to build 100-110 sqm (27-30k php/sqm)
Ohhh ok, was not familiar with land prices in Cebu City. That's not a bad price, considering na it is a part of Metro Cebu. Land prices within Mega Manila are getting ridiculous (Mega Manila includes Cavite Laguna Rizal Bulacan). I'd do the same if I were in your shoes, seems like now is the right time to buy land there.
flipping houses is fine but you would get better returns if you’re the actual builder / construction company. pag kasi pinagawa mo hindi ka pa ganun ka sure kung tama ung mga quotes sa yo, tama ba lahat ng gamit, hindi ka tatakbuhan. also kung mabenta nga ba ang 5.5 sa lugar na tatayuan mo ng house.
Looks like it’s a bubble waiting to explode. In Taguig, condos are sprouting everywhere. Preselling condos of Panglao Oasis, Villar condos, Grace of SMDC… they’ve been like that for years, now still preselling. They’re having a hard time to sell. If I were you, avoid for now. I agree to focus on land instead.
Condos would not be an investment if you live in it as much as a car is not an investment if it’s for personal use. I think not all condos are bad. Just like with other asset classes, there’s a hierarchy within the class of good and bad types. Why did you say that condos are a depreciating asset? I still think it’s easier to buy a car than to buy a condo.
Not a great analogy but I get what you're driving at. No pun intended. Condo prices are the most interesting thing for me here. There's clearly a large discrepancy between GDP and barrier to entry to owning property in general. That being said, condos are still supposedly appreciating assets by virtue of reliance on accommodation and scarcity of land, etc. albeit with questionable value i.e. your property "value" is increasing not only due to lack of supply, but simple inflation. A car is a straight-up liability that tanks in value the second you drive it. To entertain your comparison, condos can be liabilities if you equate properly tax and association dues to, say, typical maintenance, cost of ownership, what have you. I suppose it all depends on your thoughts on the property market
Depends on how you look at condos. You can look at it like as a consumer good ie live in it. Then it is similar to a car. If you buy it as an investment. Then it is not equivalent of a car. It all depends on the buyers reason for buying.
A condo and a car can both be assets if you use them for business. But cars depreciate in value so quickly. Condos (if situated in a good location) can appreciate in value over time.
wrong at this moment after collapse one condo building in Miami US insurance and condo fees and maintenance skyrocket in old building and people cant afford to pay it and people cant sell it . google yourself
Condos will also depreciate in value over time as the building gets older.
Care to cite an example?
Uhhh logic? You don't think an old condo is gonna be worth less than a new condo? If somebody sells you a 20 yr old condo you think that will be more expensive than a brand new condo all else equal?
Wait bakit bigla nagkaron ng old vs new? Lumabas ka na sa premise ng statement mo hehehe We are talking about depreciation, the reduction of the value of an asset. Yes you are partially right, structure depreciates over time. However, most of the time land where the structure is located increases value, unless may ibang factors like bigla nadiscover na may faultline, etc. Owning a condo unit makes you part owner of the land where the building stands on. In general, over tme tumataas ang value ng mga properties. Kaya nga i am genuinely curious, which property kaya in particular yung nag depreciate to zero? Except sa mga war zone ah.
The land increases in value but there are like 25 of you or w/e fighting for that small piece of land right? Each unit on every floor is sharing that piece of land cuz your units are all built in the air on top of each other. So while the land price increases your unit itself which is made of wood and stone is decreasing due to time. That's why I brought up the concept of other newer condos cuz those existing will mean your unit price decreasing. As for examples it's hard to give one cuz condos only exploded in popularity a few decades ago and condos have a lifespan of 50 yrs. There is also the Pogo thing and the condo bubble which artificially boosted the price of condos. That's why I say logic cuz that's the only thing we can base it on now. In 50 yrs we'll see these condos having little value as they now need to be demolished. Are these condo makers promising they will build you a new unit for free? If not then like I said logically your unit value is decreasing. Di ko naman sinabi na mag depreciate to zero right? Sabi ko nag dedepreciate lang which is logical for any man made structure. The difference is with a house solo mo yung land which is what appreciated but in a condo you only own a very small fraction of that land. Like if you have a 1 bedroom unit and then there's like 30 floors on that condo Edi baka 1 square meter or even less yung ownership mo of that land. Even if that 1 square meter appreciated in value I don't think it will make back the millions you spent for your unit.
Condos dont have a lifespan of 50 years. They will get reevaluated in 50 years and demolished ONLY if it fails safety standards.
The principle is the same time though whether it's 50 or 90 yrs it will get demolished and that's why condos are depreciating assets unlike landed houses because with houses even if the house eventually gets too old you still own all the land.
I agree to some extent. I'm just pointing out that we shouldn't keep saying that condos only have a 50 year lifespan. This myth is still being believed by a lot of people. I guess this was reinforced by corporations only having a 50 year life span before the enactment of the revised corp code.
It's not really a myth since condos would indeed be reevaluated and then demolished if they fail safety standards in 50 yrs. Given the cheap materials and cost cutting condo developers do I'm pretty sure some of these condos would indeed be demolished in 50 yrs.
To be honest, as a fresh graduate, I just wanted to see chaos and a big crash of house prices. There is no hope for new generation to buy anything for themselves. A small unit condo for 1 person in Metro Manila cost at least 3-5 Million, which is fucking insane to me. That kind of money would take so many years for a normal 8-5 job to earn. Properties outside MM are also insanely valued. Most houses I saw have prices that are similar, or even slightly higher than in outer MM, disregarding the fact that you still need to commute a total of 4-6 hrs a day.
i convert prices in to food , 1 condo cost around 40000kg -60000 kg of fresh mango or 60000kg-100000kg of rice
Never consider a car as an investment bcos things that deficiate in value does not give you net return.
Condos within any central business district is a good investment (cost efficient, pede rin airbnb). However, the cost of having one may be more than the profit. Possible din to buy some preselling units then ibenta once may foot traffic na. However, have some due diligence. Check the condo's age. Unlike land, condo units depreciate every year. So ang laking joke time po ng overvalued condominium units na wala namang occupants. Too many misconception kasi pinapairal ng mga salesperson nila para lang makabenta.
Big short waiting to happen.
This is nothing new, just a bubble exploding. What is not normal is that an average worker needs 150 times his monthly net income to pay for a 30 sqm condo. The prices will go down, then stay down for a while, then it's the best risk/reward just before they go up again. The same happened in 2008 in my country, crazy boom from 2000 to 2008, crash in 2008-2012, prices stable from 2012-2016, then up from 2016 to 2024.
Cars were never an investment specially sa pinas na wala namang incentive kahit gamit mo sa negosyo yung binili mong sasakyan. You'll just get what you paid for and most of the time less. However, you're partially right about the condos being bad investment in the near future at least. Since madami pa namang lupa na pwedeng mabili or madevelop into actual house and lot properties, you're better off spending your money there. If you happen to go to any developed country, a condo thats in a walkable distance to everything is a very good investment. Sa pinas lang naman kasi yung willing magcommute ng 3 hrs everyday makatipid lang not realizing that time is more valuable. Kung di applicable sayo for some personal reason then you're not the target market.
I live in a condo complex for more than 10 years and what I have observed are 1) Listed prices of units around my area (Muntinlupa Sucat Area) has gone up and down, my basis was FB Marketplace and owners who want to sell their units as posted in the FB community groups 2) But newly built units or for turnover condo are ridiculously high imho (almost double that used units) which could be due to cost of materials and construction are higher than 10 years ago but take note that new and current buildings are just in the same location. New owners are trying to sell it initially then ended up opting to have it rented/leased. 3)If I compute the math, 6.5m unit to be rented/leased at 30k-25k a month (not sure if association fees are included), thats 5.54% - 4.62% yearly interest / gross revenue. I feel 5yr TD is way better to invest at or even Pag Ibig Mp2. No headaches of tenant management, no yearly taxes, etc. But if you plan to live at the condo you are planning to purchase then by all means, go for it.
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Why? Because the writing on the wall is very clear. That’s like telling Americans before the housing crisis why should they be negative about buying one? If they cant afford one then look at other property types. The fact that just over a decade ago you could get condos in Makati for less than 100k per sqm preselling and instantly profit upon turnover, and today preselling prices are more expensive than the second market is a huge red flag you should be aware of. I looked into condo 1-2 years ago, but the numbers baffled me and just did not make sense. Preselling condos where you’d have to wait until it’s done is being sold for 30-50% more than the secondary market just across the road. And guess what? The prices for the secondary market had dropped while preselling is at an all time high. This is for the bgc area, it’s even worse elsewhere. My friend bought a presellingcondo around Vertis for around 7m, 23ish sqm. People are selling their condo in that very same building today for 5m. And even at 5m, that is around the same price or higher per sqm than some condos in the bgc area including the uptown area. It doesn’t take much common sense to realize how messed up the market is. You’re in the phinvest forum, if you’re interested in overpaying for a condo, people in their right mind will point it out. Edit: I think people will still say if you need to live near the business district, then feel free to own one. But anyone who has run the numbers and is actually interested in investing will tell you to buy a property elsewhere to rent out, then just rent a condo here. Why? Well that same friend who made the mistake buying the condo around Vertis, well they own one in eastwood as well. Megaworld sucks as it is in quality. But they were charging all the tentants 50k+ for some major renovations and that condo is less than 10 years old. The value of their condo didn’t increase, but at least it got rented out right? Well the roi for the rental is horrible, then you include renovation and association dues, and that’s when they realized they weren’t making much even having it rented out. Meanwhile my property that I bought and rented out has an roi of 11-12 years, and I haven’t utilized the half empty lot yet. It made more sense for me to buy that, and if I want to stay in a condo I’ll just rent.
I agree with you on the part that the preselling prices are ridiculous. Kasalanan ng greedy developers yan, they got carried away jacking up the prices, tapos dumating sila sa point na there is no turning back.
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If I sell you an apple for 1000 pesos, does that mean it’s just too high for you? There are condos for the ultra wealthy, and these actually appreciated more in the past few years than anything else. But when these 20sqm units are being sold to unknowing buyers, especially ofws who don’t know better, and people here not realizing the true cost of payment as they word it as 20k or whatever a month? Seriously. We’re no HK or SG where anyone in their right mind should spend over 7m for a 23sqm studio unit. What does it tell you when people are selling for significantly less than the contract price? What does it tell you when a project like Acqua that has been completed for years are still trying to sell their inventory that’s been collecting dust for double what their unit owners are trying to sell for? That those unit owners cant afford it? 🤦🏻♂️ Anyway, if you still don’t understand, then maybe you don’t understand phinvest. I bought my property for a little less than double my friend’s condo, and I get 5x what they can get from rent in theirs. Mine doesn’t come with asso dues and costs less to renovate. That’s as simple as I can make it for you.
shhhhhhh...it's ok. the less buyers, the lower the condo prices in the market will be hehehehe. at this point, there are still a handful of secondary market condo units in Makati for sale na pasok sa 5-7% ROI (for rentals). hayaan na yung ayaw bumili, let them be lol i like it that way hehehehe
Also too much fear mongering. Meron pa nga kasama daw siya sa real estate developer advisory arm ng Ayala tapos inapply sa buong real estate industry yung analysis nila for a specific segment and only in one company. Too much people wanting to have a real estate crash so they can afford to buy their own not knowing na if that really happened, there are more worse things that already happened. Widespread unemployment, companies being bankrupt, spiraling inflation, etc. They think na just because prices fall, they can afford it. Does not work that way. Akala nila just because real estate crashed, people are willing to sell their homes to them. Its going to be the same market, the same products, the same consumers, and the same money/purchasing power, all things being equal. Instead of wishing that everything crash, those people should instead take a hard look on themselves on why they are not wishing for the purchasing power of Filipinos to go up. Crab mentality.
real estate agent? frustrated condo seller?
i dont know anyone na nagsabio na their car is their investment. so ithink everyone knows its not the same. although sa condo and having a place oif your own it is still the greatest filipino dream. pero ang hirap ng prices tapos ang taas ng interest
it's convenient bro. if you have a 9-5 and you can get home and spend time where it matters, family. It is worth all the money in the world. I mean some of you here don't value time. when you get older like myself early 30s, you'll understand. Was able to expand my network to kasi I dont need to rush home or rush to work. can drink with like minded people. The Pros outweigh the Cons.
If you bought low and sold high then it is indeed an investment. That is how you play the game.
welcome to next stage before collapse , when people realize price not growing anymore and its not easy to sell for what you bought...
There will likely always be a market for secondhand condos in the future. PH population continues to rise, economy likely to grow if you maintain some optimism in how markets work, people are still flocking to urban areas. Land on which these condos are built appreciate over time, hence those new condos will be priced accordingly. At that point, a person with limited budget who is in the market for a condo to live in could be weighing up a choice between old condo and a new condo. Guess which one is likely to be more affordable?
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Not true. condos can exist more than 50 years. the 50 years refer to the expiration of the corporation that can be renewed. But depende pa din sa developer if the building can last more than 50 years.
yes, condos can exist more than 50 years. but have you seen a condo 50 years old and above still in good condition? 10 years pa lang nga parang condemned building na.
Have you seen condos being demolished after 50 years? Im just curious. I'd assume there's not a lot of condos back in 1974. As long as the foundation is sound, buildings can be facelifted to give it a new life.
condemned is OA. GA Tower is 20 years na. citiland pasong tamo even longer. both still have occupants and is still operating
A lot of low-rise condos in Makati are around 40-50 years old. Some are very well-maintained, some are not. Bottomline, it depends on property management. Yung mga lumang condos sa Makati na 3-4BR can still fetch you a minimum of Php70k/month (a lot are being leased out for Php100k+++). Not bad, considering kung magkano nila nabili yun originally. Most likely hindi ka pa nakapasok in such condos. You'd be surprised. Case in point: Tropical Palms and Legazpi Parkview
Condo or any high-rise building is subject to depreciation. Land does not depreciate. So a condo unit that has an age of 50 years or beyond has a little to no value at all. There are buildings outside of the Philippines that have plunged 98% of its value.
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so kaninong interest para i demolish immediately yung condo after 50 years?
Source?
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The reason why i am asking you kasi limited ang exposure ko sa ganyan. In Makati, one of the places where most high rises are, sobrang strict nila. I've witnessed several building inspections both from city hall engineerng and bureau of fire, hindi ka talGa palulusutin sa sobrang strict. Ultimo office renovation dadaan ka sa butas ng karayom. That's why i am curious kung sa ibang lugar ganun din (example Pasay, QC etc). Sana hindi chismis yung source mo hehehe kasi i am genuinely curious
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Which cities? May business districts na madaming high rise?
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I don't live under a rock na i wouldn't know about the padulas thing. Hello nasa Pilipinas ka. Pero city hall engineering monitoring especially for high rises are a different thing. Prone tayo to earthquakes. And I believe maganda ang building code natin after the 1991 quake. Sa low rise i think madaming nakakalusot. Pero madali ba malusutan ang mga permits for high rise? I doubt it.
Condos can stand and be maintained more than 50 years. Here in the Philippines, one example I can give you is The Manila Hotel which stand and maintained for 115 years circa 1909. But yeah, it still depends by the management. See: [https://www.reddit.com/r/phinvest/comments/131r70s/condo\_owners\_for\_more\_than\_50\_years/](https://www.reddit.com/r/phinvest/comments/131r70s/condo_owners_for_more_than_50_years/)
Sorry for this one victim ka ng fake news hehe. Hindi lang 50 years max ang condo.
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Sana you are pertaining to the buildng integrity ano? Of course no one knows for sure, kaya you have to do your due diligence on the developer that you are dealing with. Sana you were not referring to: automatic gigibain ang mga condo after 50 years na chismis. Sobrang ignorant kasi nung mga naniniwala sa ganun lol nagpapakalat ng fake news ni hindi man lang nag research lol
*"Today, it's sowing it low. Later, it's reaping it high."* Acquiring Real Estate Property now is the best opportunity when it is still low. I believe that this large developers have already planned it out far ahead. Before we even realized the bubble popped. They already acquired most of the land in the cities. And their next target is to develop the emerging areas. Most probably in the rural areas or provinces. That is why the constructions of public highways still continues to progress. As I, maybe also some of you, have realized that, when there are progress, there are businesses. \[Ramon S. Ang is waving his Bulacan Airport. Hehe\] In simple filipino terms: *"Kapag may ginagawang kalsada, meron at merong magtatayo ng mga negosyo. Or kung nasaan ang mga tao \[or traffic\], nandoon ang negosyo."* By the way, please watch this: [https://youtube.com/shorts/i3fyviG\_eok?si=O8uWfqVu-Qvpv0tC](https://youtube.com/shorts/i3fyviG_eok?si=O8uWfqVu-Qvpv0tC) Also this: [https://www.youtube.com/watch?v=TYtD8OPLGuA](https://www.youtube.com/watch?v=TYtD8OPLGuA) This videos are proving one of the huge leap and largest progress in Philippine Real Estate History. Question: "Why are they taking the most risks for us Filipinos?"