If you are going to buy, what's the sweet spot?

Something PatO said got me thinking about this. If you have decided to buy is there a sweet spot price wise that give you some of the comforts you are used to, but also allows you to sell in a reasonable amount of time (a couple of months). I've seen some $500k USD homes and my thought is how many people can be in the market for something like that.

 

3.0-4.0 million php would be the highest range I would be comfortable. I was lucky enough to sell my home for 3 million php (at a loss) within 3 months time, but it was a nail-biter.

 

If you are ever going to sell a property you will want to have the largest possible market, and that would be the 100 million filipinos rather than the few foreigners.

So ask how much an average filipino can pay. The answer is simple when you realize that the vast majority of filipino home buyers finance through pag-ibig. What is the average house price financed through them and what is the maximum?

Aha! Mr Google provided those answers for me here How Much Is The Maximum Loan Amount?| Pagibig Housing Loan Amount

But I was already well aware that the average middle class filipino (call center agent, teacher, police officer etc) can comfortably afford a 1 to 2 million peso house using pag-ibig financing so that is the price of house I own. When I sell it later this year I will try to remember to come back to this thread and reply if my theory turned out to be correct :-)

Actually, its not much of a theory as a given. I have known more than a few foreigners who make a living here building new houses in that price range to sell to filipinos. And before you ask, no these foreigners never actually own the property. Many buy the property through a corporation and the odd one I know who bought everything in his filipina wife's name got horribly burned when she left him and took all the money.

 

My approach was always buying a houses with the intent I was going to make my money on the house purchase price (trying to buy wisely below market) , not hoping for an inflated sales prices someday in the future, or hanging on to a piece of property for years till it raises to your sales price expectations. It worked well for me in most cases, in a very cyclic housing market

 

Yes! if there was a Cycle But I Remember getting caught in a sales Chain of 8+ sales all dependent on someone in the Chain but here, I bet the chain would never get beyond 2 To me Private sales are the Only way you will I think, recoup what you have spent but as someone has already said it won't be at Foreigners Prices. My Place Cost me about 6.5 m in all but I Doubt I would get 4 m. in reality and I am sure that would not be Bought by a Local You know the First question a Local would Ak is "How Much did it cost to build.
No I am not thinking of Moving just keeping my ears and eyes Open

 

The sweet spot for me is not as described, it is how much money do I want to donate (plan on zero return/recovery) vs amenities I want. Once the house is built I will live there until I am gone, whether that is 6 feet under or just walking away. Looking to live here, not invest here.

 

In the main that is what the Local does he Lives in a House he built for the family. Nothing like we would do in the west. Unless he was a Builder Building for Others and maybe Keeping one for himself, This I have seen and we have one Local Doing that right Now just down the Road a way Building 4, all much the same, 3 to sell and one for him, very Low Cost and I am not sure I would be Happy in One. But That's Life EH?

 

That's not a lot of house, even for the Philippines, from what I have seen online. Might only be the land.