Rent or Buy?

[OnMyWay]

2 hours ago, Kingpin said:

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

Or a young wife!  If you are married, the lease should be in both names.  If it is only in the husband's name, there will be 5% transfer fee to put it in the wife's name.

Every time a lease is sold, SBMA gets a 5% fee.

[Kingpin]

13 hours ago, OnMyWay said:

The entire ex-Navy base has manned security gates and they prevent jeeps and trikes from entering.

But taxis and motors for deliveries are ok, so a car may be helpful but isn't needed?

[Tommy T.]

I am going to add my 2 centavos worth here.

Some values we have in our custom built home:

We have an underlying lease on the land for 50 years. When it expires, I will be long expired.

We were able to mostly keep an eye on the construction. I am sure there is no way it was constructed to USA standards....but the home is sound and most of the time everything works. Currently we are having the roof-top water tank repaired. It was not properly installed. But for a few thousand pesos, it will be re-installed better than new. Try hiring a plumber or electrician in USA or many other countries and you will pay lots more and not always for better quality.

We don't own the underlying land, but a trustworthy relative does, so the land rental is fairly cheap.

But we do own the house and all improvements. We have insurance for all of that, including earthquake coverage and even for insurrection or vandalism. If we ever wished, we could bulldoze the place to a table top.

It is not the quietest part of the Davao area, but is certainly much better than the city and is very quiet every night with few exceptions.

L has talked (she is good at that) to the few neighbours around and they have told her they watch out for me, especially when she is not around. Any strangers (there have been few) in the area are noted. And even the people who I have introduced to the "guard" dog are afraid of him.... Even the few stay dogs keep their distance so we feel fairly secure. With a policeman living one block away on one side and another on the other side, we feel added security.

No, it is not perfect, but it works well for us. Just some stray thoughts for Graywulf as he begins to seek his possible place of abode here in Philippines.....

Edited October 23, 2023 by Tommy T.

[OnMyWay]

8 hours ago, Kingpin said:

But taxis and motors for deliveries are ok, so a car may be helpful but isn't needed?

Deliveries of all kinds are not an issue.

Freeport taxis are not good, but some people find 1 or 2 good taxi drivers that they can call as needed.  The freeport taxis have no meters and often try to rip off people, but if you find a few good ones to call, it might be ok.

Olongapo started a new taxi service a few years ago.  They are metered and fair priced.  The problem is, they are not allowed to pickup in the freeport.  Only drop off.

Here is an example from neighbors.  Harbor Point mall is in the freeport, and SM Olongapo Downtown is just a short walk across the river.  If you take an unmetered Freeport taxi from Harbor Point to my neighborhood, it might cost p250.  If you walk across the bridge to SM Olongapo, the metered taxis there might charge only 125.  Around 5-6 km.

We used to have a shuttle type service from CBD to the neighborhoods, but it ceased 4 years ago.  Then there was a small bus service, and they stopped 6 months ago.  The current chairman has an electric bus system in mind.  Good luck.

Most people need a vehicle.

[Graywulf]

On 10/22/2023 at 1:21 AM, Snowy79 said:

I spent a few years doing research both inside and outside of the Philippines before buying a condo. It's one of the best decisions I've made to-date but you must do your homework and also know what you can live with and live without.

My research showed me that the majority of condos in cities are expensive, hard to sell and have various build quality issues and certainly only buy off plan if it's one of the major players in the Philippines, DCMI, Ayala, Megaworld etc.

I narrowed mine down to Boracay, the reasons being first of all I got a bargain as the previous owner was returning to the UK and just wanted shot of it, hunt down these type of properties as you can offer way below the asking price. I calculated rent on Boracay was about 25k peso to be on one of the World's top holiday destinations with access to every type of restaurant, Western style delis, medical centres, immigration office, sea port, airport, live music, stunning beaches etc.

I looked at the advice or renting but figured it's dead money, a great idea if you are in a city or subdivision that turns out to be a nightmare as you can just up sticks at the end of your term and go elsewhere but if you've bought you are left with a hard to sell property which if lucky you can only rent out for a max of 25k per month unless you've bought a mansion. 

On Boracay I calculated I could do short term, daily rentals at up to 4.5k per day if I tired of the place, plus it's way easier to sell as there's a limit to titled land on Boracay. The island was closed down for about 8 months then covid struck but as I was living in it I calculated I'd saved easily 3/4m on dead rent. 

Another added bonus which is overlooked is it has allowed me to find a hard working and honest partner that isn't with me just because I fund her lifestyle whilst she became a lady that lunches like quite a few of the expat partners here. As sure as eggs are eggs if you move here you will have females after you and not all have good intentions, many have been talked into buying land and building a home for their partner, you as a foreigner can not own the land so you are at the mercy of your partner, you have only one retirement fund remember. In such a case renting until you see the real person is certainly a bonus.

Being Scottish and almost as tight as a Yorkshire man I don't believe in paying my partner to live with me but I give her free rent and food. I found an identical condo inside the same resort for long term rent at 30k per month and agreed with my partner if she was to set a business up she could manage my condo and I'll have zero to do with it, any profit is her wage but she will clean it, meet the guests and do all the chores plus pay my rent. She turns over at times 100k plus gross per month and after taxes, expenses and my rent is left with a very tidy sum. She has proven to be a diamond, respects hard work and has gained pride in being a wage earner off her own back. My condo in the mean time has doubled in value judging by the selling prices here now and if my realtionship goes South she has no claims on my condo. We aren't married but if I do marry her it isn't matrimonial property.  

You are basically talking what I am already thinking, I'd buy from one of the known building companies, or a condo built by them. DCMI etc. I in tend to do the renting thing for the first year, so I am sure of my location decision, or, if I'm buying new and not yet completed.. (I've been reading on condo's being cheaper in various stages before actual 'ready to move in'. That time period will give me time to look around. I've already realised as commented from Dot property, several adverts for the sdame units can give different prices, or, advertise a price, that when you read is a deposit price for 30/40 million peso units. It'll also give me time to learn from others who are the reliable 'expat friendly' realty agents, and who will try on the 'skin tax' I already know is going to happen.  The other obvious would be to find a plot of 'leaseable land'  have a legal agreement made up, and build a house for the same price or less of a condo.  I'm not sure I want to start a business, or renting out a couple of condo's for income. I'll really have to see the lie of the land to decide that. As you say. if purchased pre relationship a condo is secure regardless of what happens in the future. My biggest concern condo wise would be the possible noise factor.

[Graywulf]

On 10/21/2023 at 8:33 PM, Lee said:

If you do go the condo route, buy one that is already completed and ready to go.

Pretty girls at the malls often hand out flyers advertising for condos to be built well into the future. Some are built way past the times promised and some aren't built at all. You could have your deposit monies tied up forever or perhaps forfeited.

i already 'know' to look at builders like DCMI to be safe.

[hk blues]

56 minutes ago, Graywulf said:

It'll also give me time to learn from others who are the reliable 'expat friendly' realty agents, and who will try on the 'skin tax' I already know is going to happen.  

I wonder if a "long nose" or "skin tax" would exist when buying a condo, or indeed house, on a new development?  The prices are fixed are they not, and any commission would be paid by the seller rather than you, the buyer. I am talking from my own experience when I bought - everything was fixed and there were really no variables that could attract a "long nose" or "skin tax."  

[Graywulf]

2 minutes ago, hk blues said:

I wonder if a "long nose" or "skin tax" would exist when buying a condo, or indeed house, on a new development?  The prices are fixed are they not, and any commission would be paid by the seller rather than you, the buyer. I am talking from my own experience when I bought - everything was fixed and there were really no variables that could attract a "long nose" or "skin tax."  

I've seen a few adverts where sellers want the tax paid by the purchaser, or they are 'desperation'? selling, and want to sell out for XXXX and you take over the mortgage.... Until I get there and can really look into buying, and where. I will view with suspicion, as they say. As I'm single, I can afford to move around renting for a bit till I make the decision.

[OnMyWay]

2 hours ago, Graywulf said:

It'll also give me time to learn from others who are the reliable 'expat friendly' realty agents, and who will try on the 'skin tax' I already know is going to happen.

I would now recommend a realtor who I am using, here is Subic Bay Freeport.  She is married to an expat and recommended by all the neighbors.  Over the past years I thought she was kinda responsible for helping to jack up local prices, but now, not so much.  She told me today about some sellers that she said are asking way to much, but she starts out with what they want, and goes from there.

She sold me the house (lease) we are buying and also found us a short term rental that is perfect.

[usa32]

only reason to buy a condo, is if you stole it. Even then, I would just rent.

Too many issues with real estate in the Philippines.