WARNING: Buyers of units to rent beware
See Gramercy rental ad from Manila Bulletin this past Sunday, December 15, 2013. Yes, the market in rentals is in decline as far as return on investment. See the left column 13th ad down. "2BD Furn GRAMERCY Makati P25K+DUES..." Now how much did the condo unit cost? I know all the advertising from many developers talk about price and many sales reps and others talked about speculation and renting. It is time to think.
Click here for a .pdf of the above image.
(Use browsers other than IE if not working to view.)
Once again...
I was told that approx. 700 units are for rent and less than half of these are currently rented at Gramercy. Is this true? If there are 1,400 units then that is 50%.
BEWARE OF RENTALS: Investment decline
From Guide to Homeownership – Condominiums and Townhouses (chapter) by Armando Ang
Owners, be careful since your investment and for many your home may decline in value due to too many with plans to rent....
Page 372: “Condominiums with too many empty units for rent or for sale or rented out do not appreciate in value very much. It is axiomatic for lenders not finance mortgages for complexes with higher number of rental units. In fact, when a complex drops to less than 60 or 70 percent owner occupancy, lenders believe the values in the complex may start to decline. ”…
Page 373: “ A high ratio (renter) is a sign that the cost of the unit may not be worth the asking price. Rental revenue is very miniscule compared to the invested cost of the condo.”...
Page 373: “The ratio of tenant to owner should not be more than 25 percent.”…
BEWARE OF RENTALS: Investment decline
From Guide to Homeownership – Condominiums and Townhouses (chapter) by Armando Ang
Owners, be careful since your investment and for many your home may decline in value due to too many with plans to rent....
Page 372: “Condominiums with too many empty units for rent or for sale or rented out do not appreciate in value very much. It is axiomatic for lenders not finance mortgages for complexes with higher number of rental units. In fact, when a complex drops to less than 60 or 70 percent owner occupancy, lenders believe the values in the complex may start to decline. ”…
Page 373: “ A high ratio (renter) is a sign that the cost of the unit may not be worth the asking price. Rental revenue is very miniscule compared to the invested cost of the condo.”...
Page 373: “The ratio of tenant to owner should not be more than 25 percent.”…
No comments:
Post a Comment