condos, a new trend?

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Posted

Yesterday we went to a mall in the upscale area of Alabang. As usual there was a vendor stall there advertising condos. This one was different though, its pitch was as an investment with returns of up to 9%. I went and talked to the guy for fun. Turns out that the bottom line they are selling them as apartments, but instead of one owner, each unit will be owned by individuals and run by a property management company. I know this sounds like how resorts are run, rent out the units when not in use. But this would be for long term rentals. 

I always held that sooner or later there would be a glut of condos on the market, it seems that this might be the latest way to handle it.

 

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5 minutes ago, scott h said:

, rent out the units when not in use.

Sounds like a "Timeshare" Gimmick, Had one once in Malta, Lost the lot in the end, Management Company went bust and Government moved in to repossess due to unpaid Taxes , Utilities and stuff no one knew about :56da632e94212_1(60): 

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2 minutes ago, Jack Peterson said:

"Timeshare" Gimmick

my thought also, but actually being advertised at "Invest in Rental Properties", words right off the pamphlet. It also shows Unit sales price, suggested unit rental price and potential return on investment. Believe me, I am not saying its a good idea, or even above board, just that it is a marketing approach that I have not seen before and leads me to believe that the Metro Manila condo market is reaching saturation point. 

 

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25 minutes ago, scott h said:

Yesterday we went to a mall in the upscale area of Alabang. As usual there was a vendor stall there advertising condos. This one was different though, its pitch was as an investment with returns of up to 9%. I went and talked to the guy for fun. Turns out that the bottom line they are selling them as apartments, but instead of one owner, each unit will be owned by individuals and run by a property management company. I know this sounds like how resorts are run, rent out the units when not in use. But this would be for long term rentals. 

I always held that sooner or later there would be a glut of condos on the market, it seems that this might be the latest way to handle it.

 

Google Joint Tenancy Philippines and Tenancy in Common Philippines. It's likely one or the other.

https://www.property24.com.ph/articles/the-2-types-of-real-estate-co-ownership/1388

 

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2 minutes ago, scott h said:

leads me to believe that the Metro Manila condo market is reaching saturation point. 

Exactly, a point I made some time ago with this issue, Spain, Italy and Southern France went the same way, with Malta, it was all tied to Banks and they just put up the shutters, Now that Block of Apartments is a Ghetto, now rented out as Government housing. But not to muddy waters you have hit it on the Head, Advertising Propaganda that can lead buyers into unknown and hidden depths. I will just Add that in those countries I mentioned Developers used Cash to build, when the "EURO was borne and developers had to spend Vast amounts of Money that they could not account for. That could/may be food for another Topic as with this new President it could be a similar story on transparency  :wink:

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Posted
1 hour ago, scott h said:

Believe me, I am not saying its a good idea, or even above board, just that it is a marketing approach that I have not seen before and leads me to believe that the Metro Manila condo market is reaching saturation point. 

I see your point, there is another side.

With transportation in Manila being a nightmare, condos close to where a person works become a necessity.  So perhaps it is not a saturation point so much as poor choice of location.  If the condos were in the right spot then the demand would remain high, in my opinion.  But developers may not be choosing the right locations to build and that would lead to a glut of condos in the wrong location.  I mean who wants to buy a condo in an area where they still have to drive to work or to do their daily routine?  Isn't the idea of a condo to have convenience and location?

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My money is on the saturation point of view. I lived in Taguig for 3 months directly next door to the Venice Mall. There was a good half a dozen apartment blocks with about 300 apartments in each one. They had been finished for a good year with new ones sprouting up yet on a good night you could see less than ten lights on in the whole block. I think the Filipinos working overseas have been targeted by salesmen and bought over the internet and are now no doubt realising they will have to ensure they are making the same wages for a good 15 years. As most are on 2 or 3 year contracts there could be some serious headaches around the corner.

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