Rent or Buy?

[Kingpin]

34 minutes ago, OnMyWay said:

To add, you would never let the lease expire or you would lose it.  I think the renewal would be done 1-2 years before expiration.

Can the same tenant renew after 25+25?

[Mike J]

2 minutes ago, Kingpin said:

Can the same tenant renew after 25+25?

Assuming the tenant was still alive, would it even make sense?

[OnMyWay]

12 minutes ago, Kingpin said:

Can the same tenant renew after 25+25?

Yes, but as I said, the rules for renewal at the 50 year mark are vague at this time, because nobody is there.  Leases started in 92 so those still have 20 years left.

[Kingpin]

12 minutes ago, Mike J said:

Assuming the tenant was still alive, would it even make sense?

I can think of two ways it might;

He has kids or grandkids and he wants them to stay there.

Or if he wants to sell, he could get deal on renewal then sell on the market for profit.

1 minute ago, OnMyWay said:

Yes, but as I said, the rules for renewal at the 50 year mark are vague at this time, because nobody is there.  Leases started in 92 so those still have 20 years left.

Same thing with some condos, nobody knows what will happen when they turn 50.

Another question; you said about half the residents are Filipino, why do you think a Filipino would choose this leasehold deal over outright purchasing?

[OnMyWay]

32 minutes ago, Kingpin said:

Another question; you said about half the residents are Filipino, why do you think a Filipino would choose this leasehold deal over outright purchasing?

If you want to live on the base where is is generally more civilized, you don't have a choice.  Leases only.  No jeeps, no trikes on base.  No vendors walking around.  You must have a car.  Very quiet in the neighborhoods.  You can have a nice house in Olongapo, but your neighbor might have a shack with 50 roosters, and 50 mangy dogs running around.

In the 90's, the houses were very run down and the leases were dirt cheap.  Many Filipinos who bought back then have made a ton of money renovating and selling/renting.  You will not find lower class Filipinos as lease owners.

[Lee]

42 minutes ago, Kingpin said:

Another question; you said about half the residents are Filipino, why do you think a Filipino would choose this leasehold deal over outright purchasing?

I was wondering the same thing.

In a nutshell when someone leases one of these homes then they are in affect paying 25 yrs of rent upfront with the buyer responsible for all repairs throughout the lease. Is this correct.

Who actually owns these homes----the PI gov. perhaps. IDK.

[Lee]

1 minute ago, OnMyWay said:

If you want to live on the base where is is generally more civilized, you don't have a choice.  Leases only.  No jeeps, no trikes on base.  No vendors walking around.  You must have a car.  Very quiet in the neighborhoods. 

So who ensures that these negative don't happen? Is there a HOA ?

 

[OnMyWay]

27 minutes ago, Lee said:

So who ensures that these negative don't happen? Is there a HOA ?

 

Subic Bay Metropolitan Authority (SBMA).  The entire ex-Navy base has manned security gates and they prevent jeeps and trikes from entering.  The neighborhoods have additional internal manned security gates that are supposed to limit vehicles to those with resident stickers or school stickers.  We have a couple of high end schools in the neighborhoods.

[hk blues]

2 minutes ago, OnMyWay said:

Subic Bay Metropolitan Authority (SBMA).  The entire ex-Navy base has manned security gates and they prevent jeeps and trikes from entering.  The neighborhoods have additional internal manned security gates that are supposed to limit vehicles to those with resident stickers or school stickers.  We have a couple of high end schools in the neighborhoods.

We have all of those in our very large subdivision.  Unfortunately,  we also have guards who don't apply the rules and an HOA who do not seem to understand their responsibilities. All that said, it's not a bad place to live,  I'm just a stickler for rules being obeyed.

[OnMyWay]

23 minutes ago, hk blues said:

We have all of those in our very large subdivision.  Unfortunately,  we also have guards who don't apply the rules and an HOA who do not seem to understand their responsibilities. All that said, it's not a bad place to live,  I'm just a stickler for rules being obeyed.

It's not perfect here for rule enforcement, but the jeeps and trikes are 100% enforced.  The external gates are manned by SBMA LED whereas the internal neighborhood gates are manned by private hired security.