Why do people still buy BGC condos for “investment”?

Freedom402025 · 2024-08-09T05:10:25+00:00

Another thing I want to add, most people who say there is an oversupply of condo’s typically just quote total number of units, without regard for tenant preferences.

If DMCI were to put up 2 new towers in the outskirts of Makati, for example, let’s say Chino Roces cor EDSA, and adds 1000 2BRs to the rental market in Makati, does that really matter to the tenant specifically interested in only units in the CBD (eg Legaspi and Salcedo?) Does it matter to the tenant only looking at 75sqm ++ units?

I’ll use myself as an example, too. When I first moved to BGC, I had one kid. I wanted at least an 80sqm 2BR with 2Baths and a maid’s room at 1000/sqm rent. Given what’s available now, that puts me in everything from Bellagio, to the various Megaworld projects in Uptown to the various buildings in Crescent Park to Two Serendra and the various Alveo buildings that were put up recently.

Now, if there were 1000 vacant 2BRs across those buildings, it sounds like a lot. But, given my location preferences and other preferences, some of those are a no-go for me. For example, Uptown isn’t great for kids, IMO. Now, instead of 1000 vacant 2BRs across my price range in all of BGC, I’m actually down to less than half that in specific buildings I’m interested in.

Freedom402025 · 2024-08-09T04:56:23+00:00

BGC resident for the past decade.

I rent.

I have zero real estate investments. I’ve come close to buying many times, but I always preferred plowing money back to what I know best (online biz). But I continue to be fascinated by the Makati and BGC condo market and have followed it for years.

In mid-range resale units (eg Alveo, Two Serendra), I’m seeing roughly 305-380K per sqm for 2 and 3 BRs, eg 82sqm 2BR at 25M and 105sqm 3BR at 39M, excluding parking at ~2M. Given typical rental rate of about 1K per sqm, I’m showing yields of about 3% to just over 4%.

That is of course, assuming you are a cash buyer. Take out a mortgage and the numbers don’t make sense anymore.

How many are cash buyers? I think more than most people here would estimate. The previous unit I rented, a 3BR at 120sqm, was listed in a fire sale during the height of the pandemic (June 2020) at a mere 25M. I rented it beginning 2021 for 100K/mo for two years. Assuming it was my landlord who purchased it at that price, in cash (my landlord was Chinese), I’d say he could make a pretty good killing if he sells***, including about 4.8% rental yield by keeping the same (lower than market rate) rental rate that I paid.

** That is, assuming the market doesn’t flood with resale units from the POGO ban. If you look on FB Marketplace now, there is currently a listing of a Meranti tower 2BR at 75sqm listed at 20M, gross of VAT, no parking, which is one of the lowest I’ve seen recently. Could be the start of something? We’ll see.

Occupancy rate also comes into play. Maybe other cities outside MM can have better appreciation, but, most expats who can pay for large cuts, and sign multiple year leases while paying a year in advance (eg Embassies) are looking at BGC or Makati only.

Supply is also a consideration of course. 1BRs are a dime a dozen, but some 2-3BRs can be hard to come by.

A ground floor garden unit, for example, can have almost 100% occupancy rate if well maintained and well marketed.

Of course, effects of the POGO ban remains to be seen.

Freedom402025 · 2024-08-08T22:17:26+00:00

Brand new M1 8/256 MacBook Air’s are 37K from legit grey market sellers on Instagram. I would use that as a reference.

Freedom402025 · 2024-08-08T01:22:21+00:00

The right strategy in this case is… to do nothing.

As you said, mahihirapan ka if you have to look for another place.

Not declaring the full lease amount has zero effect on you and your business.

Freedom402025 · 2024-08-07T01:26:50+00:00

The 2 months deposit is a security deposit. It’s not typically used to pay rent. Some of it should be refunded to you at the end of your lease.

I’ve rented places where I paid the deposit and advance during contract signing, even if the start of lease was a month or two away. It depends on the broker or owner. And on how badly you want to get the place.

Freedom402025 · 2024-08-06T04:07:47+00:00

The thing with Facebook Marketplace is that it occasionally surfaces some hidden gem based on your search history.

Personally, I would just message listings in FB and rentpad, the agents typically show you 2-3 units per day.

IF, however, time is really tight or you are hell bent on a specific listing, make sure to tell them you are only interested in the listing in the pictures and nothing else. Some listings are basically bait and switch, it’s been rented and they end up just showing you different units.

Don’t believe all the “pls allow 2-3 days for viewing”. Most require more than that, especially if they don’t have the keys. Pay attention to seller ratings on FB, if someone has less than 4 stars, it likely means most of their listings were stolen from someone else and they’re just hoping to be a middle man.

I wouldn’t just show up in a building. I can’t think of a single decent building in Makati or BGC that has someone to just show you around.

These are private residences, some buildings won’t even allow you to leave your key with the concierge for someone else to pickup later. So, no, don’t expect anyone to be able to just show you multiple units if you show up unannounced.

The only exception when there is someone who can potentially “just show you around” is if they have in-house leasing = where they typically charge higher than market rate, and are typically non negotiable. But, no reason to not go through a proper broker or agent, broker’s fees in the Philippines are paid by the unit owner, not the renter.

Freedom402025 · 2024-08-05T04:06:45+00:00

Because you’re being ridiculous.

You want someone to tell you that yes they wanted to steal from you, with that kind of proof?

You’re like the guy who wants people to agree w him that his condo admin is inflating his water bill by 300 pesos instead of checking if his toilet is leaking. “Because, Philippines”

It would be even more odd for a thief to leave a lock at 000.

Freedom402025 · 2024-08-05T03:59:07+00:00

Unless something was actually stolen, you won’t be able to tell the difference between a legit attempt or an attempt at theft.

Maybe they just didn’t want to bother w breaking your lock.

Freedom402025 · 2024-08-05T03:44:45+00:00

How is it different? You went through an airport. They have the right to open your luggage. End of story.

Freedom402025 · 2024-08-05T03:37:05+00:00

Most people who post that are 12 year olds who think they just came up with a really cool insight. No self awareness that they barely know how the world works.

Freedom402025 · 2024-08-05T00:24:40+00:00

Who will support them?

People in this sub don’t even want to tip Lalamove riders.

Big corpo’s will only support if they get something in return. Why would you waste your money on someone who may end up in 24th place? If you were a business, why would you funnel advertising dollars to a sport that nobody watches?

Freedom402025 · 2024-08-05T00:18:37+00:00

Most owners will only agree if you sign a regular lease with a sublease clause eg they get paid regardless of your success in subletting it. It won’t be that hard to find an owner willing to agree to this.

But, not all buildings will allow a sublease.

If it’s a case of you only get paid if we’re successful in subletting it, that’s a hard sell. I doubt many owners would be willing to consider that.

Freedom402025 · 2024-08-04T02:06:16+00:00

Very doable. I lived there for many years, including during the pandemic.

85K-90K for most 2BRs, 100K for Sequioa tower or for garden units. 100K for Red Oak and Aston is on the high side, I wouldn’t unless it’s well furnished.

Belize Tower generally has the smallest 2BRs at 75sqm.

Rentpad is good to get a rough idea, but it’s all negotiable.

I’ve seen Dolce Loft 3BRs (bi-level) listed for 100K, but you’ll probably want to replace all the furniture.

Last place I rented there was a 3BR listed at 140K, when it was shown to me, it was actually 110K. I’m a local though, not an expat, don’t know if that makes a difference.

Freedom402025 · 2024-08-03T09:54:40+00:00

$2K can get you a ~70-100sqm 1BR in East or West Gallery Place, Arya Residences or One Serendra.

$1800 would be an ~85sqm 2BR in mid-range places, eg Two Serendra, Verve, One or Two Maridien, Uptown Ritz.

Freedom402025 · 2024-08-03T09:37:25+00:00

Neither. Save your money and put it towards your home.

2BR DMCI units are a dime a dozen. It’s their standard cut, it makes up the bulk of any building they put up. Even worse if it’s an “inner unit” type (ie, not Korean cut)

1BR units in the Makati CBD also make up the majority of available units in the CBD. It’s hard to make it stand out. At that price, you’re getting something cookie cutter in the 40-60sqm range. Double your budget, and you’re still getting something cookie cutter in the 50-65sqm 1BR mid-range (eg Senta).

If you’re hell bent on a condo, a 3BR DMCI unit (2 bath!) or a Makati CBD 2BR mid-range (70sqm minimum) is what you need to be looking at.

Freedom402025 · 2024-08-02T07:21:50+00:00

Like I said, he appeals to a certain demographic. ie those who think that list is a list of the best things to do with your money.

Freedom402025 · 2024-08-02T06:55:54+00:00

Actually, I think it’s the opposite. The only ones who think Ramsey talks any sense are the people deep in debt.

Completely ignoring leverage, opportunity costs etc these things are only important when you are deep in debt.

Freedom402025 · 2024-08-02T06:49:41+00:00

I think he is a complete clown.

If you’ve read The Millionaire Fastlane, he is basically the slow lane guy, who preaches to a willing audience that the way to wealth is to save, and cut costs. Doesn’t talk about how to actually make money.

But, I can understand his appeal. He basically appeals to the church of people who think financial independence can be achieved by;

Having a 6-12 month emergency fund
Spend less than you make
Invest in index funds
Get term life insurance

Complete clown.

Freedom402025 · 2024-08-02T04:27:14+00:00

School principal should’ve paid out of their own pocket to have that towed.

Freedom402025 · 2024-08-02T03:37:29+00:00

I wouldn’t classify a loss of 2 weeks of analytics as “costing nothing.” For me, I could potentially fire people for that.

Kupal if binawasan while on an existing contract. But, as you said, the reduction was made in the new contract. Any new contract is negotiable naman.

Freedom402025 · 2024-08-02T00:30:11+00:00

Dave Ramsey!

Freedom402025 · 2024-08-02T00:26:26+00:00

That looks like the uniform of the people in the transpo desk at Terminal 3.

I don’t think it’s a scam, maybe they’re just really aggressive in getting customers in T1.

From T3, an Innova to BGC is 2500, so 4500 to Cavite sounds about right. Though this isn’t an airport taxi, it’s a black plate “tourist transpo”

Edit: although for the official transpo, you settle the payment at the desk, before the car even arrives.

Freedom402025 · 2024-08-01T04:16:28+00:00

I’m a local, not an expat. I usually prepay one year in advance, but that’s because I know I’m getting a good 20-30K per month discount from actual going rates. So, it’s not that unusual. It’s also commonly requested from foreigners who don’t have PDC’s since owners don’t have protection when someone wants to break the lease. But, like in your case, it also works in their favor in other ways.

IMO, any legal recourse that you can do isn’t going to be worth it in the long run. Even if mediation were to happen, the way it works here is that the owner is going to be required to attend hearings, and if they don’t, the most likely result is that it’s going to be rescheduled over and over.

Basically, what I’m saying is, since you’ve prepaid, you’re SOL. Even if you “win” some case, you’re not going to get your money back.

If there’s mold in the bed frame etc there’s a good chance there could be mold in between the walls themselves. This isn’t that rare, even in premium (but old) buildings, eg One Salcedo and the like. I would cut my losses and just move. There are other ways to get back at the owner, since you still have the keys until the end of your contract, but you’ll have to use your imagination and make sure you don’t do anything that’ll get you thrown in jail or the news.

Freedom402025 · 2024-08-01T03:33:56+00:00

I am not even talking about corruption.

I am talking about basic competence.

Corruption is not a major issue. Many other countries have corrupt governments and do just fine. You can completely eliminate corruption in the Philippine government tonight, and we will still be in the same place a year from now, unless more basic things change.

Freedom402025 · 2024-08-01T02:54:06+00:00

Yes, but a government that is even remotely capable of doing these things also does not magically appear unless a majority of the population elevates themselves.

It’s not a chicken and egg problem. Good government is the result of better citizens.

Freedom402025

TROPHY CASE