Building a Home in Davao

[hk blues]

22 minutes ago, Snowy79 said:

I learned the hard way about the plumbers that work inside the resort where I have an apartment. My sink drainage started leaking so as I was near figured I'd repair what should be a 5 minute job.  I'd previously paid for new pipe work, all simple screw compression fittings.  Looking under the sink I was met by different sized pipe work joined with a mass of what looked like concrete. I checked the other sinks out and sure enough he'd got a job lot of cement. 

I tried to explain to my caretaker who supervised it that the pipework paid for had simple joints that pushed together, then by tightening the screwthreads compressed a rubber seal which prevented leaks. If the sink got blocked just unscrew them, pull them apart, clear the blockage and rescrew them together again. I was met by a blank look. Lots of chiselling later I got the pipes apart and there were no screw fittings to be seen. I asked the caretaker where they were and she produced a bag of bits from a tool cupboard. The plumber had told her he never needed them as the cement will stop leaks. 

They were carrying out repairs in all the apartments so I had a quick look inside a few, sure enough every sink was cemented. 

It's one of the numerous mysteries of things here - there is an easy and effective way to do things and then there is the way they do it here - grrrr!

[Tommy T.]

Nighttime at home. The sparky is about done with the outside lighting and is still working on the electric gate and lots of little projects.

The new hanging lamp. The light is actually more reddish looking than the photo shows and moderately bright - good for when in the mood...

And today was final move-out day including extra car, motorcycle, washing machine. It was a very busy morning signing out of the apartment and preparing so much "last minute" stuff to send in a hired truck.

The library/office has a new desk, my chair and a nice view of orchard. I hooked up the stereo a couple days back and so am enjoying some mellow jazz and about to tap into the Tanduay stock to ease my sore back. Jimi Hendrix entertained us first but now just chillin' tunes...

Cheers all!

Edited November 3, 2020 by Tommy T.

[Gandang Smile]

@Tommy T. congratulations! It looks like a wonderful house!

Judging from the photos, it's firmly at the top-end of the quality of "expat houses" one can find in Davao. Lots of touches of class, like the abundant lightning, the motorised gates.

I have honestly had a hard time chasing up 83 pages of text and I am sure this piece of info is buried somewhere in the thread, so I hope you don't mind me asking: in what part of Davao City is it?

My legacy in Davao is one condo I bought back in 2015, with the idea of making it my own home. That's when I was still young and naive and, just as naively, believed that I would be able to settle in Davao for good. Given the condo project (infamous Aeon Towers) amassed a 4 year delay, that is 100% more of the projected project duration. That's the time to build 2 or 3 houses 

 

 

Edited November 3, 2020 by Gandang Smile

[Tommy T.]

8 hours ago, Gandang Smile said:

I have honestly had a hard time chasing up 83 pages of text and I am sure this piece of info is buried somewhere in the thread, so I hope you don't mind me asking: in what part of Davao City is it?

 

Thanks for your comments, Gandang.

Yeah... I never expected to run such a long topic nor take well over a year to have a home built... It really is nice to get out of the city proper and out into the country. I was always a suburb or country boy. It is much quieter most of the time (except for some loud radio or music from time to time, but this is the Philippines).

No problem it is between Mintal and Calinan and up at about 300 meters elevation.

I see the Aeon construction whenever driving by or to Abreeza. I am still not sure if it is finished yet?

[Gandang Smile]

4 hours ago, Tommy T. said:

Thanks for your comments, Gandang.

Yeah... I never expected to run such a long topic nor take well over a year to have a home built... It really is nice to get out of the city proper and out into the country. I was always a suburb or country boy. It is much quieter most of the time (except for some loud radio or music from time to time, but this is the Philippines).

No problem it is between Mintal and Calinan and up at about 300 meters elevation.

I see the Aeon construction whenever driving by or to Abreeza. I am still not sure if it is finished yet?

Oh, that's a beautiful area, you chose! The elevated position means it's going to be less humid and fresher?

As of today, the residential part of Aeon Towers is 100% finished, thanks Heavens! That includes all the units, the lobby and elevators and the 6th floor amenities (swimming pool, gym, communal lounge etc.). They purposely left the areas designed to host a 4 or 5-star hotel unfinished, hoping that their host (a luxury brand of the Accor family) will not pull out of the deal because of the prolonged lockdown.

My personal view is that, if and when this Covid insanity is over, since the only arguably luxury hotel, Marco Polo, has closed down permanently, the Aeon Towers hotel might take over as the place to be for luxury accomodation, weddings and conferences etc, which might increase the value of the entire building. So far anything I have ever hoped for for Davao turned out over-optimistic, so we'll see 

 

[hk blues]

1 hour ago, Gandang Smile said:

So far anything I have ever hoped for for Davao turned out over-optimistic, so we'll see 

 

I think that holds true for many parts of the country - the "build it and they will come" philosophy doesn't really seem to be coming true.  Where I am, a significant number of condo units remain either unsold or Air BnB units with not a huge demand as far as I can see.  

I wouldn't buy real estate here as an investment - I believe there are better options.

[Gandang Smile]

14 minutes ago, hk blues said:

I think that holds true for many parts of the country - the "build it and they will come" philosophy doesn't really seem to be coming true.  Where I am, a significant number of condo units remain either unsold or Air BnB units with not a huge demand as far as I can see.  

I wouldn't buy real estate here as an investment - I believe there are better options.

 

I am painfully aware of that. My unit is a relatively large 2BR and it would have been perfect as my residence. Master bedroom, spare bedroom used as home office with a sofa bed for the occasional guest. Unfortunately, as a property to rent or sell, it becomes a very different prospect.

All brokers insist that the property is worth at least 24M, including a parking lot. I bought it for less than 10M so, on paper, I have made a killing. Too bad that, in this kind of market, finding a buyer who will want to shell out 24M is impossible and, if I ever wanted to rent it, I will have to 1) spend money to furnish it to decent standards (as it's a high-end unit) and 2) rent it at a price that can attract a Filipino family. In better times Abreeza Place/Residences, the Ayala condos right in front, would rent for 65/70K for a 1BR and 90/100K for the 2BR. As it stands now, I don't think anybody Filipino would rent it for more than 50K. With more than that, they can rent an entire house in a good subdivision.  

 

[hk blues]

10 minutes ago, Gandang Smile said:

 

I am painfully aware of that. My unit is a relatively large 2BR and it would have been perfect as my residence. Master bedroom, spare bedroom used as home office with a sofa bed for the occasional guest. Unfortunately, as a property to rent or sell, it becomes a very different prospect.

All brokers insist that the property is worth at least 24M, including a parking lot. I bought it for less than 10M so, on paper, I have made a killing. Too bad that, in this kind of market, finding a buyer who will want to shell out 24M is impossible and, if I ever wanted to rent it, I will have to 1) spend money to furnish it to decent standards (as it's a high-end unit) and 2) rent it at a price that can attract a Filipino family. In better times Abreeza Place/Residences, the Ayala condos right in front, would rent for 65/70K for a 1BR and 90/100K for the 2BR. As it stands now, I don't think anybody Filipino would rent it for more than 50K. With more than that, they can rent an entire house in a good subdivision.  

 

As they say in property - it's worth what someone is willing to pay for it!  You could always tell the brokers you will let them have it for 20M and they can sell it for the 24M and pocket a nice sum for doing next to nothing - that will test the reality of the 24M value.  We both know what the answer will be. 

I hope you can find a way to make it work for you.

[Gandang Smile]

6 minutes ago, hk blues said:

As they say in property - it's worth what someone is willing to pay for it!  You could always tell the brokers you will let them have it for 20M and they can sell it for the 24M and pocket a nice sum for doing next to nothing - that will test the reality of the 24M value.  We both know what the answer will be. 

I hope you can find a way to make it work for you.

Thanks @hk blues, you nailed it. The developer of Aeon Towers, FTC, is going around proclaiming that the value of the property is now P350K/sqm, which is higher than Ayala's Azuela Cove, which is an Ayala property and attracts that kind of valuation...because it's Ayala! 

I would actually be very happy to find someone who can buy it at 20M, if he wants to live in there or hold on to it and sell it into a better market, if and when it will come.

The best, if not the only, thing I can do is just leave it empty and idle and wait until the market recovers. Which, even to the best estimates, might not happen until 2022.

Even wanting to use it as a posh pied-a-terre while I am in Davao...I don't really see much of a reason to be in Davao. My only Filipino client (I am a software developer) is Aboitiz Power, which owns Davao Light. However, all the management is based in Cebu, so little excuse to be in Davao even on business trips.

 

 

 

Edited November 4, 2020 by Gandang Smile

[hk blues]

2 hours ago, Gandang Smile said:

Thanks @hk blues, you nailed it. The developer of Aeon Towers, FTC, is going around proclaiming that the value of the property is now P350K/sqm, which is higher than Ayala's Azuela Cove, which is an Ayala property and attracts that kind of valuation...because it's Ayala! 

I would actually be very happy to find someone who can buy it at 20M, if he wants to live in there or hold on to it and sell it into a better market, if and when it will come.

The best, if not the only, thing I can do is just leave it empty and idle and wait until the market recovers. Which, even to the best estimates, might not happen until 2022.

Even wanting to use it as a posh pied-a-terre while I am in Davao...I don't really see much of a reason to be in Davao. My only Filipino client (I am a software developer) is Aboitiz Power, which owns Davao Light. However, all the management is based in Cebu, so little excuse to be in Davao even on business trips.

 

 

 

My only concern with the sit tight strategy is that if and when the market recovers, will it ever achieve close to 20M anyway?  You paid 10M, maybe 4 years ago I'm guesstimating, so where is the justification for 20M?  Even with a good wind behind you a 100% R.O.I.in 5 or 6 years is extremely good. And as we know there will be no good wind behind us here anytime soon. I don't mean to be disrespectful b.t.w. just realistic.  

Good luck with making the best of what you have - at least at 10M investment you have some chance to get out with something to show for it.