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US Economic Crisis effect on real estate

Discussion in '☋ Dumaguete City ☋' started by Ludabi, Oct 8, 2008.

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  1. Ludabi

    Ludabi DI New Member

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    Has the real estate prices in Dumaguete and surrounding areas been down because of the US and maybe global crisis?
     
  2. shadow

    shadow DI Forum Luminary

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    Nothing has come down in price, if that is what you are asking. Inflation is still the dominating effect in most transactions.

    Larry
     
  3. atlargex

    atlargex DI Forum Adept

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    If your capital is in US dollar, I would said yes to that.....based on exchange rate alone versus to what it was less than a year ago (beginning of Feb 2008), cost of goods in Philippines including real estates are now selling at about 15% discount.
     
  4. pecoskid45

    pecoskid45 DI Member

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    We have our house in Dumaguete on the market right now, so this is a concern. The prices here aren't affected, BUT, the buyers have been affected. People worldwide aren't able to sell their homes for a decent
    price so they're not coming here to buy. I think everyone has put buying,
    and selling, on hold to see how the market shakes out.
     
  5. shadow

    shadow DI Forum Luminary

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    Very true. Although prices as yet haven't come down, home and property sales are way down.

    Larry
     
  6. pecoskid45

    pecoskid45 DI Member

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    If the peso should go to 50-1, buying would be much more attractive, at
    least for the dollar buyers. A P5M house at 50-1 is $100K, that same house
    a year ago at 40-1 was $125K. A huge difference. Doesn't make any difference to the seller, as long as he is keeping the pesos.
     
  7. atlargex

    atlargex DI Forum Adept

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    Agreed, if someone's looking to buy a house in Philippines I'd suggest that they wait for Peso to tank some more.....I do however speculate Peso will go beyond 50 to 1 by next summer .
     
  8. barramac

    barramac DI Member

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    foreign property investors/purchasers to wait until peso tanks?

    not all construction financed by external investment is based on dollars.
    the biggest investors in this area are the koreans, they have seen a dramatic 20% slide in the won to the peso value, in the last 10 days alone, the peso is stronger against a basket of western currencies.
    the usa dollar is the only one appreciating broadly against the peso at the moment, due to it's safe harbour status in the current market panic and a near decade long oversell.

    dollar remittances will buoy up a peso collapse, without it the peso would be severely discounted from todays prices
    (re collapses - i have a cousin in thailand who was moving $1m dollars of daddy's, give the inheritance money to the kids while they are still young, fund. he moved the money just after the bhat collapse in the asian financial crisis, well it was worth $5m to him in local assets after the depreciation- sweet deal, he invested it pretty good too)

    can not see anyone being able to sell their house in the usa, uk, ireland, korea or spain for the next 2 years, unless they severely bite the bullet from perceived top of the market valuations. other western markets will be severely effected in the next year.
    i can not see any of current winners (the various emirates and the russians) interested in the philippines

    for the record - i call yesterday the end of the major bear run on stocks. but no major bull run beginning in the next 4-5 years(i.e. pensions for private sector workers much lower).
    will check in next year to see how wrong i was with 20/20 hindsight
     
  9. cj04

    cj04 DI Junior Member

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    No its not affected..Sometimes the dealer over priced the amount... i am planning to buy property in my own home place-dumaguete ( valencia).. but when i look up to the prices in real estate wow that's too high. Maybe dealers think once we are here in U.S or you from U.S or from what states are you... they think that we just pick up the money on the streets.That's why they jack up too much the price.

    As the buyer we have no choice!
     
  10. pecoskid45

    pecoskid45 DI Member

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    I don't know of any seller here who is "jacking up the price". Most houses are being sold at fair market value. In my case, I won't make one single penny over what I have invested in my house. Maybe I paid too much, but at the time I bought it was the best value I could find for my money. I have
    a friend who may double his monetary investment, but he has two years of sweat and hard work invested in his property. Surely he has a right to be compensated for that. If I were to say that it's mostly Filipinos who jack up the prices of property being sold, that would sound racist, so I won't say that. Any property is only worth as much as what someone is willing to pay for it. Right now, buyers have all the choices.
     
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