I want to buy land in the philippines, but...

[Economist 0]

Hi Everyone. I am an American married to a filipina. I wanted to ask a question about real estate in the philippines. I want to know why most people in the philippines ask for way too much money for their properties? Every place i look online 99% are asking for prices that are higher than I would pay in the united states. Case in point...I was on craigslist and one guy was trying to sell a 17 hectare farm for "ONLY" 220php per sqm. When i did the math, that came to about $20k per acre(that was one of the cheaper ones by the way. Some people ask for 800php or $70k per acre!!!). Farmland in the midwest is 1/5th the price and generally goes for about $4k per acre. So i dont understand how a country where the majority of people are poor can ask for so much. Are people that try to sell on the internet just not interested in selling and they are hoping for a rich sucker to come along? I would think that land should be cheaper. Also I'm seeing alot of houses where people are asking higher than the median price of a home here. Some people asking $400k dollars(18 million pesos) for a normal western style house that would only cost about $150k in Texas. Where do I go to find the "filipino deals" as i know there HAS to be cheaper prices out there. I remember seeing on GMA that manny pacquiaos mother lived in a big house that cost 7 million pesos. When I try to find a place for 7 million, i find tiny places that are about 150 sqm or so. Do filipinos EXPECT to negotiate the asking price down 70 or 80%? Seems crazy if thats so.

Thanks in advance for any help.

[Markieboy 104]

Hi Economist,

It really depends on what type of real estate you're looking for. P220/sqm for farming property sounds about right. I've seen properties in Pangasinan, La Union, and Ilocos. And most of them start at P200/sqm. However, some beach-side properties in La Union and Ilocos go for P10,000/sqm! So, it really depends.

I'm not sure why there is such a large difference between the fair market values of Philippines and U.S. It does seem that real estate prices would be lower in a developing country. However, if 99% of people are asking that price, there must definitely be a demand.

It is true, there are many scammers out there just waiting for an unsuspecting sucker. And this comes to a very good point. Are you the one making the inquiries? Or is it your wife? I ask this mainly because Filipinos know how to deal with Filipinos. There is an art in the bargain game. And it depends on who is negotiating.

If you're interested in comparing other real estate asking prices, Sulit has a Real Estate section. There are some registration questions in Tagalog, so you may need to have your wife answer them.

I hope this helps some.

[rosallas32 0]

Hi,

Also a Texan married to a filipina. We bought 500sq.M and built a beautiful 4br/ 3CR

Western house to my specs with a 3meter high wall around the whole property. The construction was all first class. We built in San Pascual

Batangas in the province not in town. Maybe we spent 4m PhP for everything, land, house, furniture, landscaping, wall and steel gates. We already turned down 6M Php. Its all in where you want to live and how far you will travel to town!

We LOVE our house and the neighbors ore like FAMILY! Thank God!! Good Luck but be careful, for 18m you can build on the best golf courses.Totoo..

Dallas

[-B&T- 1]

Hi,

Also a Texan married to a filipina. We bought 500sq.M and built a beautiful 4br/ 3CR

Western house to my specs with a 3meter high wall around the whole property. The construction was all first class. We built in San Pascual

Batangas in the province not in town. Maybe we spent 4m PhP for everything, land, house, furniture, landscaping, wall and steel gates. We already turned down 6M Php. Its all in where you want to live and how far you will travel to town!

We LOVE our house and the neighbors ore like FAMILY! Thank God!! Good Luck but be careful, for 18m you can build on the best golf courses.Totoo..

Dallas

Pics or it didn't happen

[oliver-chris 3]

Pics or it didn't happen

[oliver-chris 3]

Hi,

Also a Texan married to a filipina. We bought 500sq.M and built a beautiful 4br/ 3CR

Western house to my specs with a 3meter high wall around the whole property. The construction was all first class. We built in San Pascual

Batangas in the province not in town. Maybe we spent 4m PhP for everything, land, house, furniture, landscaping, wall and steel gates. We already turned down 6M Php. Its all in where you want to live and how far you will travel to town!

We LOVE our house and the neighbors ore like FAMILY! Thank God!! Good Luck but be careful, for 18m you can build on the best golf courses.Totoo..

Dallas

[charlie&pam 1]

Me personally I think your problem is that you are looking on line....They know the people online would have more money then the people living in the Philippines.....If you want to live near your wifes family I am sure the family knows people that they can talk to for you or get you in contact with (of coarse there will be the little mark up so they can make some money) but I personally think it is cheaper for her family and their "friend" to get a kick back instead of the brokers online just looking to get as much as possible

[Economist 0]

Hi Economist,

It really depends on what type of real estate you're looking for. P220/sqm for farming property sounds about right. I've seen properties in Pangasinan, La Union, and Ilocos. And most of them start at P200/sqm. However, some beach-side properties in La Union and Ilocos go for P10,000/sqm! So, it really depends.

I'm not sure why there is such a large difference between the fair market values of Philippines and U.S. It does seem that real estate prices would be lower in a developing country. However, if 99% of people are asking that price, there must definitely be a demand.

The problem is that I have seen a few properties that had decent prices. I've seen farmland where they were asking 15-20php per sqm. I saw a 30 door apartment complex asking 500,000 php. I know these are the filipino prices. When you look at farmland or rental properties, it has to make financial sense. Interest rates are high in philippines. The ones that charge low interest only give about 3 years amortization so payments are very high. If you can make more money investing in government bonds than real estate, that means the real estate prices are too high. The fact that foriegners cant own land is another reason that prices shouldnt be so high and demand shouldnt be that much. Of course if I am in the philippines and I get land for 15-20php I would immediately put it back on the market for 200 php per sqm hoping to get a bite, but not really be serious about selling unless someone offered close to that amount. This is what I believe filipinos are doing, but its very annoying because its hard to find the real deals.

[eros_EX_Plumber 0]

Pics or it didn't happen

:rofl: I remember this from before :rofl:

we need the DEED of the property too.... :bonk: Just joking

[oliver-chris 3]

I

we need the DEED of the property too.... Just joking

Edited April 14, 2010 by oliver-chris

[Dakine 26]

I/we bought land in La Union. Paid P200,000 for a small lot with a fixer upper. If you are puti. DON'T let the sellers see you or know you are American. The price will triple.

[Kevin-n-Merlaine 14]

Yeh, the stuff you're finding online is being sold by an investor most likely (American, Chinese, etc.). There was a nice size piece of beach front where my wife lives that was offered to her last year for P250,000. I love looking online but it's not the place to shop.

[eros_EX_Plumber 0]

I

we need the DEED of the property too....

Pictures can be RE_TOUCHED....you can do amazing thing with ADOBE PHOTO SHOP....

that is why the DEED is necessary....... :rofl:

[oliver-chris 3]

Pictures can be RE_TOUCHED....you can do amazing thing with ADOBE PHOTO SHOP....

that is why the DEED is necessary.......

Alright !