Nov 5 2020, 07:04 PM
QUOTE(Zicoras1 @ Nov 3 2020, 08:40 AM)
Back in 2014 I invested in Anchorland property near Manila Bay. It was considered cheap. Paid 5k down payment and 20k every year for 3 years. You only had to apply for a loan 3 months before property completion. Sounds good but there was a few things I did not understand about Phillipines.
Foreigners cannot get loan but the developers can give your a loan it was offered to me at 9%! I did not understand how the rental game is played there. For the shoe box unit I bought they can fit 8 people in it. As it was close to casinos so you rent to people working there, they take turns sleeping there. As the rental game was too complex for me and I am not in Manila to oversee it I finally sold it before completion, something which you can do there. I did not understand why many agents approached me to sell it so I sold it with a 5% overall profit. Agent fees over there is 3 to 5%. I was charged 5%. What I did not understand I could have made 20% profit as these condos were bought by China people to clean their money.
Play in these markets only if you understand the game.
on
That is exactly what most foreign investors do in the Philippines, units that are owned by foreigners can only be sold to foreigners. I do not suggest to go for rentals unless you are considering to take loans from the bank.Foreigners cannot get loan but the developers can give your a loan it was offered to me at 9%! I did not understand how the rental game is played there. For the shoe box unit I bought they can fit 8 people in it. As it was close to casinos so you rent to people working there, they take turns sleeping there. As the rental game was too complex for me and I am not in Manila to oversee it I finally sold it before completion, something which you can do there. I did not understand why many agents approached me to sell it so I sold it with a 5% overall profit. Agent fees over there is 3 to 5%. I was charged 5%. What I did not understand I could have made 20% profit as these condos were bought by China people to clean their money.
Play in these markets only if you understand the game.
on
What Ive been doing for the past 6 years is to go for flipping. (still working in the Philippines since 2012 though lol)
You pay for the reservation fees, and continue paying for the monthly amortization for 3 years (this is actually the downpayment to the developer). 1 year before the property completion (turn over) , we sell it to the Chinese people who will later use the unit for their staff. As simple as that.
There is no need to take for loans from the bank in the Philippines as you are not going to pay for the remaining balance, leave that to the Chinese buyer - your job is to pay until 30th - 36th month, then sell it off. If we have a spare of RM1200-1300 a month, it is wise to invest. Plus all the payments are made via the developer official website. No agents no third party involved.
Sorry to hear your loss - 5% was too little for a unit within Manila Bay area, especially with SMDC projects. Not really sure about Anchorland or other developers there, as Ive had no experience flipping with them.
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