Subic Bay Condos

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OnMyWay
Posted
Posted
1 minute ago, Jack Peterson said:

Don't you just love that word "Thought" anywhere else we would go to Town/City planning and ask but I guess no one 'Thought' of that

Maybe better wording was "assumed" no new lots were allowed, but nobody bothered to ask.  I think it was an easy assumption to make because we are in a protected forest and you can't easily cut trees.  So someone with a lot of money comes along and proves that assumption wrong.

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Jack Peterson
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1 minute ago, OnMyWay said:

So someone with a lot of money comes along and proves that assumption wrong.

 Well Don you know what we say about Assumptions :wink: It's life but here :whistling: anything goes as Cash is King.:smile:

 

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Dr. Shiva
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Posted
7 hours ago, OnMyWay said:

Here is another place in my neighborhood that just finished their first unit and has it for sale, nicely furnished, for 17 mil.

https://www.olx.ph/item/house-and-lot-for-sale-kalayaan-subic-bay-freeport-zone-olongapo-city-ID8a7dO.html?h=fe45cab1f8

This place was a bit controversial because all the neighbors thought that no new lots were allowed, then all of a sudden they carved this lot out of a hillside, destroying all of the trees that were thought to be protected.  It is 6 units and each one is sold as a 50 year lease.

You pay 17M for these units and do not even own the lot after buying. You have only 49 years leasehold rights. I can vaguely remember that the complete SBMA area is a sort of a lease and lease back. It seems that nobody (not even pinoys) can really own lot in that area. Worst thing is that your kids will not be able to inherit or will not get much out of such units after inheritage due the limited lease time.

Calculating this unit as like being a rental it would be 28.8k per month for the complete 50 years. But with every year gone without selling these would increase the rental per month equivalence.

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OnMyWay
Posted
Posted
3 hours ago, Dr. Shiva said:

You pay 17M for these units and do not even own the lot after buying. You have only 49 years leasehold rights. I can vaguely remember that the complete SBMA area is a sort of a lease and lease back. It seems that nobody (not even pinoys) can really own lot in that area. Worst thing is that your kids will not be able to inherit or will not get much out of such units after inheritage due the limited lease time.

Calculating this unit as like being a rental it would be 28.8k per month for the complete 50 years. But with every year gone without selling these would increase the rental per month equivalence.

I didn't mean to insinuate that these are a good deal or that I was recommending them.

Yes, everything in the Freeport is a long term lease, even if you are a citizen.  As far as I know, these are the first new units ever built in the old U.S. Navy base residential areas.  All other residential units are re-furbished U.S. Navy buildings, mostly duplexes and 4-plexes.  Lately the old units seem to be selling for 5 to 10 million, dependent on condition.  The seller of this one was somewhat honest on the pricing.  The price is actually 16 mil + 8% fee to SBMA.  I never heard of this 8% fee before but I guess it is for new units.  When you transfer (sell) an existing lease, there is a 5% fee.

These leases can be passed to your heirs.  If you give them a copy of your will, you don't have to pay the 5% transfer fee.  You can refresh a lease when it goes down to 25 years by purchasing a 25 year top up for a reasonable price (I hope!)

As I explained in another topic, these leases have a market value comprised of time value + intrinsic value + market value.  Advertised prices have been going up rapidly so I assume actual prices have also risen.  I am very happy with my lease purchase and I suspect that if I sold it now, after only 1.5 years, I could make a decent profit.  We are not in the market to sell and have a lot of plans to expand our unit.  I was lucky to find a duplex unit that has a lot of extra property on the side.

I think these units will sell at close to the asking price.  There are a lot of wealthy Filipinos that would like this type of turnkey weekend house with a pool, and soon their Porches and BMW's will be parked in the driveways. 

I think my Finnish neighbor built the cabinets you see in the kitchen.  He showed me one of the doors, finished in white pearl paint, and it was very nice.  He may have done only the paint; I'm not sure.

Here is another example of overbuilt and overpriced.  These were completely rebuilt by a European.  These two units are attached.  He started them for sale at 35 mil for both a few years ago and now he is down to 11.5 and 13.5 each.  They are gorgeous but the big turnoff for me is there is no off street parking.  Just park your Mercedes down the 15-20 slope on the street.  I never saw the original units, but they were probably tear downs and he probably got the leases for 1-3 mil each, a few years back.

https://www.olx.ph/item/house-and-lot-for-sale-kalayaan-subic-bay-freeport-zone-olongapo-city-ID86BsT.html?h=fe45cab1f8

https://www.olx.ph/item/house-and-lot-for-sale-kalayaan-subic-bay-freeport-zone-olongapo-city-ID89Nt2.html?h=fe45cab1f8

 

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Jake
Posted
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This was the typical navy housing as I grew up in Subic Bay Naval Station and San Miguel CommSta in the mid 1960's:

 

Navy housing.jpg

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OnMyWay
Posted
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1 hour ago, Jake said:

This was the typical navy housing as I grew up in Subic Bay Naval Station and San Miguel CommSta in the mid 1960's:

Navy housing.jpg

We call those spider house duplexes.  There are a lot of those in Binictican and Cubi; not so many in Kalayaan.  I would bet that one is in Cubi and the back looks out over the airport and the bay.  As in most places in the world, and ocean view is worth a lot and those are expensive now.  Most have been fixed up really nice.  Some of them that are not fully renovated still have working central air with a giant old AC unit sitting in that carport area, and giant ducts going into the house.  Very expensive though and they usually remove the entire system during a full renovation.  I'm surprised to see those window types in this pic (that I assume is old) so I'll bet even back in the day they shut down the giant central systems and used more economical window types.

In the SBMA office they have a poster that shows all the house designs the Navy had, and I think there are around 13.  Here is a video of some old farts, maybe ex-military, cruising around Binictican, and you can see some of the styles.

 

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Reboot
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Is it just me our are PH real estate prices going to the moon?

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OnMyWay
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Posted
2 minutes ago, Reboot said:

Is it just me our are PH real estate prices going to the moon?

Don't use Subic Bay Freeport prices.  They are a unique situation.

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Reboot
Posted
Posted
Just now, OnMyWay said:

Don't use Subic Bay Freeport prices.  They are a unique situation.

Yeah but, anecdotally, that seems to be what's going on in some other places. It's hard to say for sure, since there doesn't seem to be a way to track price trends overall, as in the US.

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OnMyWay
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4 minutes ago, Reboot said:

Yeah but, anecdotally, that seems to be what's going on in some other places. It's hard to say for sure, since there doesn't seem to be a way to track price trends overall, as in the US.

Yes, and sellers tend to ask outrageous starting prices but drop it a lot during negotiations.  Hard to tell what the actual prices are.

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