Will property prices go down due to COVID-19

Will there be house and land bargains to be had in the Philippines because of the world wide economic downturn ?

In 6-8 months if the covid 19 situation is not improving, probably. But not now. Most of the bank are still offering due date extension for their mortgage from Mar.

But once the lockdown is lifted in most parts of the country but no vaccine is found yet --> OFW cannot go back to foreign country to work --> Cannot pay their mortgage --> Gotta sell their property. That's the time price will get lower.

I would think that there will be property deals worldwide once payment forgiveness from banks comes to an end and those that are over leveraged can’t make their payments. Subprime auto loans in the US are already taking a big hit.

Yes.  Not just in the Philippines but also in other countries  (Australia is loosing $4 billion a week)

The banks need to maintain equity, i appreciate that the Ph Government has already under COVID decreased the banks debt equity ratio.  Without repayments of loans (see note below) it will mean that the will be some foreclosure's or forced sales.  (Of course they may turn around and have no choice but to carry there loss on there own books, and wait till there equity increases again, but that is a bit if.)

Bringing on a simply supply and demand situation, over supply and lacking demanded due to lack of faineances.

As kindawn said, and also due to the fact that eventually the saving (& ability of other family members to assist) will be eroded.

Apologies, i did not respond fully to your question.

Where will be the places to buy?

Every where i would think, you will just need to get in before the rich Filipino's, Chinese and Sth Koreans .

Sure they will drop...but so will other properties around the world.
If you are Financing through a local bank borrowing :
a) Interest Rate in Philippines averaged 7.75 percent from 1985 until 2020 (Way too high in a near zero interest environent OMO)
b) Land ownership : Are not as friendly/straightforward as many other countries.
c) Rental yields/Sale : Not very attractive (OMO) unless you have *super prime locations & then collecting rentals if you are a non-local makes it even more difficult to enforce!
d) These among many other condiderations.
The world is your oyster if you have been investing/saving carefully over the years = many bargains to be had worldwide (Keep your options open!)

:D

Yes, unfortunately here in the US more of the middle class will likely lose their homes, as happened in the 2008-9 recession. They will be bought up by wealthy investors and turned into rental properties if history repeats. It doesn't help that so few have savings anymore. Whatever happened to saving for a rainy day, a job loss, etc.

I have read that many wealthy Chinese are already having to sell their expensive homes.

Tim_L :

Subprime auto loans in the US are already taking a big hit.

Subprime auto loans in the states have always taken a hit. Credit risks are the subprime borrowers. Want a car? Dealers will sell no money down, they get a kickback on the subprime interest.

Several things can happen when you can't make the payments, the dealer repos the car and sells it again. If that car was used bought by the dealer through the auction, sometimes the down payment by the new customer purchasing the car was almost the cost of the car I know of one used car salesperson that sold the same car 10 times. (I think the details were, if I remember correctly, the car was bought at the auction for $1500, when the car was sold on the lot, the down payment was $1500. The sub prime buyer could not make the payments and lost the car and this was repeated 10 times with different buyers.)

Another thing can happen, if it was a new car that was repo'd, it can go straight to the auction, the subprime owner is responsible for the balance. If the car dealer owns more than one lot, he could buy the car at auction for his other lot, double dipping.

A true story: I was sitting at a Blackjack table in my old hometown and a player next me said his truck was repo'd. Several days later I saw him again, he said the tow truck operator who repo'd his truck called him and told him where he can get a new truck with  no money down.

pnwcyclist :

Yes, unfortunately here in the US more of the middle class will likely lose their homes, as happened in the 2008-9 recession.

Also what happened prior to the recession, home prices had a great increase providing a lot of
equity. Many home owners refinanced and took out the equity to buy cars or even a down payment on a second home for rental. These people were leveraged beyond hope.

In Las Vegas the banks were paying the foreclosed people to move out instead of a long legal battle or damage to the house. Then the banks slowly released the houses over years as not to flood the market.

How to avert another foreclosure crisis in the covid-19 economic fallout...Read all about it!

https://www.google.com/amp/s/www.washin … utType=amp

manwonder :

How to avert another foreclosure crisis in the covid-19 economic fallout...Read all about it!

https://www.google.com/amp/s/www.washin … utType=amp

We can only hope that socialism does not raise its ugly head, for me there is already to many government hand outs, to many leaches on society.  The home owners to the renter's suck it up.  If you don't save for a rainy day, tough.

I worked hard my whole life, to get ahead, sometime i worked 3 jobs at the same time, other times i had no work, one thing i did was plan.  When i was working hard as a teenager i had enough money left over at the end of the week after paying bills and rent for one GLASS of beer, or a small bottle of soda a week.  I didn't complain, i never asked the government for money.  The new kids, who are now becoming the middle aged are just pussies. 

Even now, as a self funded retiree, (not one single government pay out or hand out i have ever received) and having lost 8% of my investments I know i will not be able to do fly back to Australia and/or go on one holiday every year.  I worked through the bad day's by saving on the good days.

There is already to many signs of socialisms.  The left wing government is already talking about using my invested money to build social housing for the poor in Australia, it makes me sick to the guts.  I have worked hard now the socialist will want to tax my retirement savings even more, they are just socialist pigs.

Look to the future, look what happened to America after the 1st world war.  The future is bright if you have planed and worked hard.

pej1111 :
manwonder :

How to avert another foreclosure crisis in the covid-19 economic fallout...Read all about it!

https://www.google.com/amp/s/www.washin … utType=amp

We can only hope that socialism does not raise its ugly head, for me there is already to many government hand outs, to many leaches on society.  The home owners to the renter's suck it up.  If you don't save for a rainy day, tough.

I worked hard my whole life, to get ahead, sometime i worked 3 jobs at the same time, other times i had no work, one thing i did was plan.  When i was working hard as a teenager i had enough money left over at the end of the week after paying bills and rent for one GLASS of beer, or a small bottle of soda a week.  I didn't complain, i never asked the government for money.  The new kids, who are now becoming the middle aged are just pussies. 

Even now, as a self funded retiree, (not one single government pay out or hand out i have ever received) and having lost 8% of my investments I know i will not be able to do fly back to Australia and/or go on one holiday every year.  I worked through the bad day's by saving on the good days.

There is already to many signs of socialisms.  The left wing government is already talking about using my invested money to build social housing for the poor in Australia, it makes me sick to the guts.  I have worked hard now the socialist will want to tax my retirement savings even more, they are just socialist pigs.

Look to the future, look what happened to America after the 1st world war.  The future is bright if you have planed and worked hard.

Exactly!!...but we were still lucky in a sense!
I am one of the lucky baby boomer cohort born after World War II and before just before the mid-1960s. It is a generation that has never experienced a world war and grew up during the longest sustained period of prosperity the world has ever known....(Personal Responsibility & saving our pennies for a rainny day such as today!)
The younger generation (Many whom live in a 'bubble' economy/over borrow even for daily needs!)  I feel they have NO CLUE what it will be like heading from here & it does NOT look at all good!
But yes...as u say its "shopping time" for us in the months ahead!

:D

TIME for shopping?

https://ph.yahoo.com/news/falling-ofw-r … 03043.html

i never worked more than 1 job
i always had enouhf to have plenty food beer or what ever
even now whit my pension i  am saving money
i realise that i have to say thanks to the very social sistem in my country that made it so.
greets Dirk

Hello everyone,

I hope you are all doing fine :)

Just a friendly reminder about staying on the question of the original poster, we appreciate your answers though ;)

Have a good day

Regards

Loïc
expat.com Team

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