Continuing on from here ….
My wife and I gradually reached a mutual understanding in terms of what we were looking for in a house. As close as reasonably possible to my office in Ortigas. A minimum of 4 bedrooms, one of which had to be on the ground floor since I’m trying to get my mother to live with us (or, even if she doesn’t join us, my wife reminded me that I’m getting old and might not be able to walk stairs much longer. Thanks dear.)
After a lot of web searching and some initial viewings of properties, we decided to concentrate on a place called Greenwoods Executive Village. This sits on the border straddling Pasig and Cainta. The main entry gate is 8.9 kilometers from my office according to Google – the drive can take anywhere from 20 to 60 minutes depending on route and time of day; a taxi ride is under 150 pesos (around US$3).
I’m told that Greenwoods is the second largest residential development in Manila (the first being BF Paranaque, southeast of the airport). It’s 20 years old, there are ten “phases” and the later phases are just starting to get built out now. No one could tell me how many houses are in the development – 500? 1,000? Could be. There’s a club house with a pool and a small commercial district with an odd but useful selection of shops inside the development.
You can buy a plot of land and build a house, for yourself or just to try and flip it in a year and make a decent profit. If there are any restrictions on design, I couldn’t tell. Every house is different, which is a good thing in my opinion. The price range on houses seems to run from 4 or 5 million pesos up to around 15. The 15 million peso places, few and far between, might have up to 5,000 square feet of floor space and a pool.
We must have looked at at least 30 houses. At the end of my first trip, I saw one that I really liked. So the following week my wife came back with me and we met with the owner to make an offer. The problem was that our agent was a total idiot – a woman in her 40s (or 50s?) who picked me up with her husband in a broken down heap of a car with no air conditioning.
When we asked her how much of a discount over the asking price we might be able to negotiate, she said that we might be able to get 10%. She had never talked to the owner though. So when we met him and tried to get him down from his 6.8 million asking price, he told us the biggest discount he would be willing to consider would be 25,000.
During the negotiation, the agent just sat there looking at her mobile phone. She never tried to intercede on our behalf or offer any advice. I thought the owner was taking the piss, figuring I must be some rich white guy. (I would much later find out that discounts above 200,000 are rare there and this guy had already come down that 200k.) So we exchanged business cards, shook hands and I waited for him to call me and tell me he’d come down a bit. Instead, two days later, he emailed me to let me know the house was already sold.
Meanwhile the agent kept sending me messages that I needed to send her 4,500 pesos so that the bank could do a pre-appraisal on the property. What property? We had no agreement to buy it. And she asked for that money again even after the owner told us the place was sold.
Another month down the line, I was ready to put in an offer on another house (using a different agent, of course). This one had a different problem. Someone had already put in an offer on the house and paid down 50%, but they were unable to come up with all of the papers the bank wanted for the mortgage after 4 months, and so the owner started advertising again. I could understand this – she wanted another buyer locked in before kicking out the first one. So she assured me that the contract stipulated 60 days to close the deal, it was now 120 days, and so she was ready to inform the first buyer that the contract was cancelled, refund the money and sell to us.
You can probably guess what happened here. She used my offer as leverage to get the first buyer to finally come up with all the paperwork. Less than one week after making our offer, and after being assured that the house was ours, the house was not ours. I told the owner in an email that she had lied to me and used me. She responded, “I’m sorry you feel that way.” Meanwhile this agent on this deal never once reached out to me, never said “sorry the deal didn’t go through,” never said “let’s work together and I’ll find you another house.” Crickets.
So, more trips. And finally a third house, with a third agent. Someone else had put in an offer on this house. But, as I later found out, they didn’t have the 20% down payment and they were trying to negotiate terms on that with the owner, who wasn’t inclined to go down that road. So I came along, I had the 20% down payment in cash for them, and within a week I had verbal approval from the bank for the mortgage. So finally the deal was done.
Here’s what we got:
The plot is 150 square meters, roughly 1600 square feet. The floor space is 270 square meters, roughly 2900 square feet. Four bedrooms, 3 bathrooms, living room, dining room, kitchen, family room, separate maid’s quarters. Parking for two cars. Small garden areas front and back of the house. A view straight to Ortigas from the balcony.
The master bedroom alone is 220 square feet (not including the walk-in closet and a bathroom with two sinks, separate tub and shower). Large kitchen? How does this look?
The price was roughly 90% cheaper than a village house in Hong Kong (probably 95% cheaper than a village house in Sai Kung). So yeah, we’re extremely happy.
Last week we signed all of the papers and paid the full down payment and closing costs. It will take a few weeks for everything to go through and for the title to be in our names. So, from the time we started seriously looking until we had a deal, a mortgage and all of the papers signed was under six months. I’m glad it’s done.
The plan now is to leave Hong Kong at the end of January and stay in a service apartment near my office until our stuff arrives. That 2-to-4 week waiting period should give us enough time to get the place set up with air conditioners, water heaters and most of the other stuff we plan to buy locally rather than ship over.