Condo Purchase Negotiating and Who Does the Broker Work For

[KenM]

I’m hoping for confirmation of condo loan duration and banks that were used by our members. To confirm loan duration longer than 5 years but up to the normal 10-15 years on a condo.

Edited October 5, 2022 by KenM

[Kingpin]

20 hours ago, KenM said:

 It's a three bedroom

Did you get the monthly association dues amount?

[KenM]

Yes. I know the dues. But this varies a bit by condo building. The amount is normal. 

My biggest concern right now is confirming that the realtor is wrong about the duration of condo loans for foreigners. This will impact any loan. 5 years is not enough. He means well but I think he’s wrong. 

[Jollygoodfellow]

14 minutes ago, KenM said:

My biggest concern right now is confirming that the realtor is wrong about the duration of condo loans for foreigners. This will impact any loan. 5 years is not enough. He means well but I think he’s wrong. 

In the many years this forum has been around I dont recall anyone ever mentioning getting a loan to buy a condo. I dont know how long loans are for but I bet it takes into account the lenders age as they dont want you dead before its paid. Most here are retired so so I'm sure it would be difficult getting a loan as one needs to prove an income to cover it.

Just to add I see the loans are only if its paid off before the age of 65 years of the lender otherwise most likely wont get one from banks. 

[Mike J]

28 minutes ago, KenM said:

My biggest concern right now is confirming that the realtor is wrong about the duration of condo loans for foreigners. This will impact any loan. 5 years is not enough. He means well but I think he’s wrong. 

Maybe another option is to rent/lease a condo.  If you find it not to your liking you are not locked in and hoping to sell and recoup your investment.

[KenM]

If folks look at the link I provided, the maximum age is 65 to take out, not complete the loan. The loan terms for condos are shorter than home loans and vary. https://www.retalkasia.com/news/2017/02/11/obtaining-finance-philippines/1486796520

The realtor is now admitting the client who was restricted to 5 years was not on a. Permanent visa. 

I have emailed the loan departments at BPI and BDO. 

I have 20K U.S. in the Philippines Land Bank that I can use for a condo purchase. It’s earning only 1 percent there. So I think buying can be a good option. I’m 52 and don’t plan to return to the states.

I’m leasing now. I’ve been here for 10 months now. Lease renewal coming up in Feb. 

 

Edited October 5, 2022 by KenM

[Dave Hounddriver]

8 hours ago, Jollygoodfellow said:

In the many years this forum has been around I dont recall anyone ever mentioning getting a loan to buy a condo.

Total agreement from me.  I do know of many expats getting "terms" from the developer for new condos but never a loan for an existing condo.  IMHO if you have to borrow for it you would be better off getting a personal loan from your home country before coming . .  or just rent.

[Kingpin]

8 hours ago, KenM said:

I have 20K U.S. in the Philippines Land Bank that I can use for a condo purchase. It’s earning only 1 percent there. So I think buying can be a good option.

1% is not enough, but you don't mind paying 4% on a loan?

 

1 hour ago, Dave Hounddriver said:

 I do know of many expats getting "terms" from the developer for new condos

And they're very clear, simple, and fair, though not just for expats. Pay 100% up front and you get a big discount, if possible this is the better option. If not possible, the longer you need to pay, the higher the interest rate you'll pay. This is the financially preferable option, for the lender, not the buyer.

 

 

[Dave Hounddriver]

28 minutes ago, Kingpin said:

you don't mind paying 4% on a loan?

I would like one of those.  Where are you getting loans at 4% on Philippine condos these days?

[Kingpin]

9 hours ago, Dave Hounddriver said:

Where are you getting loans at 4% on Philippine condos these days?

These days I haven't checked, at one time it was an option but as I said only for a short term 12 month deal. Even at 4% it doesn't make sense when the APY is only 1%.