Today was a bit of an odd day as we decided to stay at home and look at getting the apartment built on top of the internet cafe. This year we have decided to look at buying two homes to rent out if we can get find the right properties. After scouring the net and being in realtor hell for a few hours it has become very apparent I need to put my shoes on and go and look myself. There are also private sellers and crazy prices online as they are always trying to rip people off for a profit and where better than online.
So I came across a couple of small deca houses which are small to say the least with a price of P600,000 and loan available through PagIbig so I thought great as we could transfer the loans over could be easier than trying to get a direct mortgage as well as the fact we could actually pay P300,000 up front giving us P300,000 to pay. So started doing the maths….
Ok something seriously wrong here they actually want you to GIVE THEM P600,000 for the 5 years they have lived at the property and take on the remaining 25 years of the loan. I sat and done the maths on what they are asking :-
P600,000 up front
Monthly loan of 4,625.00 for 25 yrs = P1.387m
Total = P1.987m just shy of P2m for a house that is worth P750,000
So for them having the property for 5yrs they have paid P277,500 and want a P322,500 golden handshake and I get dumped with their debt of a loan. I really cant understand the logic behind this although speaking to April she said they expect to make a profit for having a property.. Im still scratching my head.