⌛ Property Prices

My house in the UK has taken a huge hit, price-wise, and at this precise moment is probably unsaleable. I know the same is true across the US and to a lesser extent, Europe. My question is this, will the wave of falling property prices hit Duma as the financial crises spreads eastwards? My hunch is that nowhere is immune, and that it is probably wiser to bide my time before buying - of course, the reality is that, until I can sell my house in the UK, I won't have much choice except to wait.

 

this will be an interesting one. the credit squeeze is effecting banks, lending is going to tighten up so much. canada and japan both experiences huge decade long deflation periods in property valuations on the back of credit restrictions and low consumer confidence

alot of countries experienced a 15 year bull run on property, that has to be categorized as a bubble that is deflating and could burst dramatically.

saigon has experienced 50%+ devaluation so far this year, so u are luckier than some

u probably bought your house a long time ago, so u are still sitting on a really nice roi, but a good few analysis are stating that the uk market has still to fall more that double digits, especially if the bank of england can not control inflation and interest rates remain at their current levels (the slide in oil prices - will help central banks ).
i am guessing u are fine - it is the ones on huge morgages and negative equity that are suffering

dumaguete is a sort of special case, there are a huge amount of vacant houses purchased by ofw and there are few buyers of second hand houses. you could have a house on the market for years and then only have one potential customer that you negotiate a price with. so market valuations are difficult except in terms of land area

well anyway - when the dust settles more first time buyers will be able to move out of their flat shares and parents houses and just have the same opportunity as previous generations, without been morgaged to the hilt for up to 40 years.


i am looking forward to the next bubble, i hope that it is something new - tech, stock and property bubbles are old news. if it can't be something new, lets get back old school, a tulip or ostrich egg bubble.

 

from my short experience here, what i've seen is loads for sale and nobody to buy it, the fact that one person sells for x peso/mtr, the adjoining property/land owner expects the same or greater, whatever the time frame between sales and whatever is happening in the world outside Dumaguete, it's a buyers market here from what i see, but it all don't quiet add up lol i'm no financial consultant or property tycoon, but i can see a lemon without having to suck it first, land without a "real" access route my as well be on the moon, if sum1 buys that land and builds a brick wall in your way, as a foreigner here, i reckon you have 2 hopes in getting to your land, no hope and Bob!! or am i bringing european law here, don't mean to...sorry

 

Market forces apply nearly everywhere. Supply and demand. As noted, the supply outweighs the demand in the Philippines. To answer the question; yes, prices most likely will drop or have already.
The trouble is; most Westerners get excited about the prospect of cheap view property and pay more than they should. Additionally, they expect Western type consumer protections which don't exist in PI.
(Negotiating a selling price is an art in Asia. I like to ask my bilas to intercede for me. He's a master.)

 

In the philippines prices for land are not normally geared from out side, people say what they want and its normal twice the real value or more. You have to barter a deal. But the problem is who owns the lot and property and who can claim after you buy it. Its normaly straight forward if you buy a house from a house managent group. But buying land can be one hell of a problem without good legal backing. Your get a far relative or relatives make claim on the property you have bought if your not careful.

Forget the norm with the world market it does not normally effect the prices here to much.

 

That's another thing I am worried about - problems with conveyancing. Presumably a good lawyer will ensure you get good title to the land. Has anybody any advice on this matter?

 

Grand Pain Alaska (not to be confused with Sarah Pain Alaska) has posted some cheery accolades for a lawyer in PI.
http://www.dumagueteinfo.com/board/expat-section/he-saved-us-once-more-3184.html

 

hehe.. i thought i was the only one who was thinking about it (i meant the accolade thing). hehe! no prob with it though. :D

Good day!

 

Be deeply involve, seek advice from others and check the i and the t's. The survey is very important and checking out the owner/s and land registration etc. I am sure someone on this forum will recommend a good lawyer. Never buy any thing that has not been legally registered, titles are very important.

Legal land access is very important one must have legal assess from the main road to the property. Many an owner has been blackmailed to buy access at extremely high rates after buy property.

I heard a guy was sold land at low tide and then visited his new plot at high tide of course he had a big problem, lol This is funny but happens.