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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. Herbalizer

    Herbalizer DI Junior Member

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    When the smart baby boomers that were able to salvage their 401's and get the f*** outta Dodge start showing up in the Visayas....

    You can expect property prices here to skyrocket.

    Especially when social unrest hits to big US cities hard.
     
  2. fourcats

    fourcats DI New Member

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    Start Growing Food

    Permaculture and self reliance and cooperation is needed
    To get through this time period.

    Even if you only have small yard or porch.
    GROW whatever you can and get others to Grow.

    This might help to keep the impact down here a bit.

    As the The End Game always boils down to food supply.

    Pre-empt it by preparing and taking action.

    God Bless [however u define god]

    GOOGLE PERMACULTURE and put into practice.
     
  3. hill topper

    hill topper DI Member

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    Hello, where is your house that is forsale located in Dumaguete? do you have a price, pictures and info you could e-mail me? dragonheart1855@aol.com

    Thanks, Maryann
     
  4. atlargex

    atlargex DI Forum Adept

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    Philippines is not immuned

    I wouldn't go rushing to buy real estates in Philippines right now. The Philippine stock market tanked another 12% today (biggest one day decline in over twenty years) as foreign investors hastened in pulling their money out of the country. With the peso now pushing 49.5 to 1 verses USD, nothing there is going to sky rocket (unlike what others on this board may tell you). These two factors has already severely impacted the real estate prices in the Philippines & until such time the world economies and the stock markets starts to recover, prices will only continue to erode here and abroad. If you stay patient and wait awhile you'll save a bundle of :greedy: on that house/lot you want.
     
  5. shadow

    shadow DI Forum Luminary

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    I'm not so sure. The trend of the last ten years shows a steady increase in property values throughout the fall and rise of the peso. In 1998, with the peso at 26 to $1, property values were incresing. As the peso grew weaker against the dollar, property values increased. During last years strengthening peso, property values continued to increase. OFWs sent record amounts into the country, and foriengners continued to bring in record amounts. Everything went up in price. Now with the current fall of the peso, still nothing is coming down in price (except fuel). I look for this new drop in the peso and the weakened economy overseas to bring in a whole new influx of foriegners to the Philippines, getting out of the US and other effected countries while the getting is good.

    The result of that will be more inflated land values in the Philippines, especially prime real estate, as those new arrivals buy up the prime land at ever inflated prices.

    Nobody knows what will really happen, but from my years in this country, this is what I predict.

    Prime land in Valencia has tripled in value in the last 5 years. I look for that trend to continue for at least the next 5 years. Other areas may or may not be similarly effected, depending on their desirability to the new influx of foreigners.

    Larry
     
  6. atlargex

    atlargex DI Forum Adept

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    I disagree. Regardless of the world economy, I think very few sensible intelligent retiree would rush to a foreign country far from family, friends, modern health facility & recklessly spent their life savings on real estate knowing they cannot legally own it. And more so now that monies are tight as most have lost large percentage of their savings and or investments. Unless Philippines change their real estate law and allow foreign ownership, those that are willing to leave people, places, and things they known all their lives & take the Philippine plunge will continue to be too few to have any significant impact on the market nationally. Now, if you're talking location specific like Boracay with high concentration of foreigners, then perhaps prices there will continue to hold, but I do not think the likes of Valencia or Dumaguete are comparable.
     
  7. Herbalizer

    Herbalizer DI Junior Member

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    Hammer meets nail, Larry's got his thumb on the pulse.
     
  8. shadow

    shadow DI Forum Luminary

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    If you were active in many of the Philippine related forums, you would know that as of now there are many who are liquidating what they have left in western countries, and foolishly spending their money here on property that they can never own. The consensus seems to be, they believe if they don't get it out now, it won't be there to get out next year. They may be right, only time will tell.

    We dabble in real estate brokering, as do 60% of everyone else here. This year was very slow compared to the last 3, until about a month ago. Now, we have several new clients from overseas who are very proactive in their search for their piece of paradise. There are many who would much rather live in Valencia than Boracay, for various and obvious reasons.

    In fact, since this "economic depression", we have been busier than ever before.

    Larry
     
  9. logicwings

    logicwings DI Member

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    If local brokers artificially drive up prices on land in Valencia no one will risk investing here..
     
  10. atlargex

    atlargex DI Forum Adept

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    I don't think you can take one month as an indication of a long term trend, on the other hand, your past 3 years of experience should be more indicative of what's happening. Though I do wish yours a very prosperous business.
     
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