Is there a consistent return on real estate/condos in Philippines?

Any Realtors or anyone who has bought and sold a home or condo several years later??  I am looking at pros and cons to renting and buying (probably a condo).  The really important thing to know is, is there a REASONABLE expectation that (excluding economic collapse or natural disaster) real property goes up over time in Philippines as it does in most places?  If I buy a condo for say $70,000, can I expect to make at least a 1% return per year?  Or at the VERY least, sell if 5-7 years later for the same price I paid for it?

Or, do the gouge foreigners and you end up selling your $70,000 condo for $40,000 5-7 years later??  Thanks for the advice. 

PS:  If you respond, please state what you base your info on (ie experience, being a Realtor or just rumor).  Thanks.

Rob

70k USD is less than 3 million pesos, you barely can get a 30 sqm unit, that its rent cannot be over 15k in anyway, which means 300 USD , the only way to earn more is :
- to get a foreigner who wants to pay more if you can provide an improved unit ( like fully furnished, with high end furniture, with parking ( at least 10k USD)
- to make a commercial rent, like bed space or shared accommodation, which will destroy your unit and make it reselling value dropped.
The only houses with increasing prices are those in the business districts, and where your 70k USD cannot even effort a studio, or house and lot style, because the price of the land would increase, but you are not eligible as a foreigner to buy a land at all
The average life of a building in the Philippines is 20-30 years, so if you will make 0.5 % monthly, you need 200 months or 17 years to get back your money, while you can also get 10% deposit interest yearly in a bank
- your only hope is that the rent will increase with the inflation which would give you a higher rent in the coming years
- if you will live in the Philippines, it is better to buy than to rent, since you will live in your unit, without the Hussle of the unit owners who will double the rent just because you a canadian, but if you want to invest while you are abroad, that is a very bad idea,  because everyone who will help you to manage the unit will get his benefit before yours.

Actually, I am not looking to invest, I am looking to buy a condo to live in.  However, I want to know if, when I go to sell it 5-7 years later, will it be worth more, the same or less than what I paid for it.  Even if I can sell it for the same amount I paid for it, that would give me money to buy a new home when I return to USA.  However, If I pay $4,000,000 php and am forced to sell for $2,000,000 php 7 years later, I have to take that into account in my budget. 

Thank you for your response!

Rob

I know this post is old but what your saying is not entirely accurate. You can rent and it will take you 12 years to spend say 100k US dollars n rent money.

That same 100k say in an investment account will make you 36k in that same 12 years if that’s all you have at 3 percent....  so renting long term will save you tons of cash. That’s all based on 700 a month for rent which you can find much much cheaper if you are frugal.

I now live in Philippines permanently and unless you just have say an extra 100k I would not buy. For a property here to increase in value you need a beach lot and house and in a good area you can’t touch a 500 square meter or bigger for less than 200k let’s say on bohol.

Your looking at 80k for a 200 square meter lot only which is barely big enough to build a decent house on. I hear property and houses are cheap on Mindanao!! 
Lol. Don’t go there!

Over all I agree with your post.  Some of your calculation are conservative.

Many people buy properties for there wife's security when they pass away.  It is the only reason I would buy.  Then without the wife of having benefits of investing in your country of origin then property may be a good investment in the Philippines.

If I was single why would I buy at all, if something dramatic was to change in the PI, and it can (just look at HK) then it is good to have the option to pack the bags and go to another country.

Agree with above statements.

I will never buy property in the Philippines when I can rent so inexpensively and invest securely with good returns in my home country. My Filipina GF will get a percentage of my estate in the event I die and the executor has instructions on how to get it to her, so I don't need to complicate my life and buy property for her now.

I have observed that it can take a long time to sell real estate in the PI and there are many impediments to transparent real estate transactions such as title issues, etc.  Everyone wants a piece of the pie. Not to mention, as PEJ stated, having the flexibility to move on if it becomes necessary is priceless.

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