Quote:
Originally Posted by xoxoxoBruce
Is the excitement caused by the hope that rich people in the neighborhood will attract better services from the government, to the area?
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That certainly makes sense Bruce but that's not my original thought.
The rich area, like the Global City, will surely bring in more money and jobs and the foreigners will also demand better services and be able to provide them too. That's a good point.
What I see most often though is that the surrounding areas of the GC that are owned by the pinoys are now for sale. It's understandable that they would like to sell these small lots on the outskirts.
Of course, those lots have appreciated in value since the development of GC.
The trouble that I have with them now is that they honestly believe that their lots are worth much more than they truly are. The lots are small but they quote prices in comparison of much larger lots.
For example.
The lots are selling in Bonifacio Triangle for about P50k per sq m. They are expected to rise to about 80-100 in the next few years.
Many of the pinoy land owners here believe that their property is a bargain at say P25k per meter because it's so much less expensive than the other premuim lots while still being very close.
What they refuse to understand is that the potential for a lot that is small is infintely less than big tracks of land.
From my experience here if a pinoy has even the smallest bit of land in the areas surrounding the GC, they believe that they have hit the lottery.
Even with the underdeveloped roads and utilities they insist that these postage stamp size lots are worth a fortune.
They are often annoyed with me when they show these lots when I ask "Ok, now how many stories can I build here....do I have right of way access to the mainroad here...and how much would you estimate that the excavation of making this lot flat might be?"
They are often in the mindset that these lots will make the family a fortune and they will not hear anything counter to that notion.
In addition to the high costs they do not have financing details available. Time and time again I go to look at these pinoy properties and they show the house and the land. They show how much work is actually needed to make a reasonable home there and then they tell you the price for cash.
Some have even been upset when I don't reach into my pocket and pay that full (inflated) price upon the completion of the house showing.
I'm sorry I didnt bring $85k cash with me today, can I bring it tomorrow?"
In addtion to the high expectation of profit from these lots and houses, they often do not have their titles in order. Maybe there is a lean on the land or possibly the property is in dispute in court over the true ownership.
It's amazing to experience firsthand.
"You want how much for this little sliver of land that there is effectively no title for?"
"Yeah I want a 12 inch cock too, we cant all get what we want"
In certain cases I've been able to explain a deal that might give them money upfront for something urgent now and still hold the land for payments over say, one or two years.
As "urgent" as their need is to sell the lot ( for the inflated price) they truly do not understand why no one is buying it.
In the end the value of most of these places for sale is of limited value due to the size. If someone was able to negotiate several lots into one price, that might be workable but what do you think the perceived value of one tiny slice of land would be next to another that is selling NOW?
Chances are they would hold out for more money because someone bought the slice for "big money" and they should be able to get "bigger money" because of that sale in their neighborhood.
Isn't that how it works in the US?
"Yeah, but this isn't the US. Take a look around here man."
There are people that I'm dealing with now that are starting to understand the market of their land and that financing is almost a certainty.
They are very hesitant that someone might take advantage of them in selling their land but as I've said many times before,
"How much risk are you taking if you hold the title for payments for a year. If the seller doesnt pay...you have the title, sell the land again. There is NO risk for you to do so."