Traffic In Manila - Who Contributes The Most?

[Miles_on]

Malaki binagsak ng interest rates simula nung time na yun kaya a lot of people were able to afford loans.

Ang problema diyan is a lot of people, don't know how to properly use credit.

When I ask about the price of some expensive item at a store, almost automatic na follow through kaagad nung promo/sales clerk:

"pwedeng zero interest installment yan, up to 3 yrs etc."

Too many people are buying things they can't really afford (or even need!) Then when the bills come, ayun they realize they bit off a little more than they could chew...

Kaya nga daming MC and cars on the roads because the DPs are so low... they don't realize that with financing, they're actually paying sometimes more than 150% of the straight/cash price

[jut703]

Bakit nga ba nung 2000s bigla na lang dumami cars and condos?

Up until the 90s hindi sobrang dami cars and condo space is decent pa, yung mga old condos I think nasa 100 sq m siguro ang average? Ngayon marami ako nakikita sa youtube na 22 sq m. Every time I see a condo being built near us, my heart sinks talaga.

I am NOT against condos pero wag naman yung parang kabute

Rapid urbanization, growing population. For the past decade, construction has not been able to keep up with demand. Nakahabol lang when demand dropped because of the pandemic.

People flock to Manila because opportunities are here. Hindi naman makikipagsiksikan mga tao dito kung kikita sila ng kapareho sa probinsya.

Much more competitive financing now vs before as well. 6-7% interest vs 15+% in the past.

Smaller cuts because that’s all that people can afford. Look at condo prices now and tell me how many people can realistically afford 100 sqm condos, much less actual land.

Ang problema diyan is a lot of people, don't know how to properly use credit.

When I ask about the price of some expensive item at a store, almost automatic na follow through kaagad nung promo/sales clerk:

"pwedeng zero interest installment yan, up to 3 yrs etc."

Too many people are buying things they can't really afford (or even need!) Then when the bills come, ayun they realize they bit off a little more than they could chew...

Kaya nga daming MC and cars on the roads because the DPs are so low... they don't realize that with financing, they're actually paying sometimes more than 150% of the straight/cash price

I agree there’s a certain demographic that loan beyond their capacities, and end up as bad debts. But total NPL ratio is only at 5-6% now, with peak forecasted at 8%.

People know that they’re paying more by purchasing via installment vs cash, but they’re willing to pay that premium to get the benefit now vs saving for 5 years and having to endure 5 more years of commuting.

A car with a 5 year loan will cost about 35-40% more vs paying straight cash. But many people do not have the money to pay the car in cash. They’re willing to pay the higher price because suddenly the car is now affordable within their 5-year cash flow and budget. The interest is a worthy tradeoff for the benefit of car ownership - a few examples:

1. If your wife is pregnant; hindi ka na mahihirapang maghanap ng taxi sa madaling araw when her water breaks.

2. Kung yung tatay mo may preexisting condition, pwede mo dalhin sa ospital anytime kung mahirapang huminga.

3. Yung anak mo na nagtatrabaho sa Makati, pwede mo sunduin kung sobrang lakas ng ulan at wala siyang masakyan na bus pauwi.

Alternative is to buy a depreciated pre-owned car in cash, or with a much higher DP to minimize interest. But many first-time car owners are intimidated with the possibility of buying a car with hidden defects; even relatively new ones, if not maintained properly, can quickly become headaches.

Not everyone is car-savvy or knows someone who is. As per my car dealer friends - roughly half of used car dealers are shady (doesn’t disclose damage, rewinded odometers, etc). So the fear isn’t really unfounded. And again many people would just pay for the peace of mind of a brand new unit.


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[Miles_on]

I agree there’s a certain demographic that loan beyond their capacities, and end up as bad debts. But total NPL ratio is only at 5-6% now, with peak forecasted at 8%.

People know that they’re paying more by purchasing via installment vs cash, but they’re willing to pay that premium to get the benefit now vs saving for 5 years and having to endure 5 more years of commuting.

A car with a 5 year loan will cost about 35-40% more vs paying straight cash. But many people do not have the money to pay the car in cash. They’re willing to pay the higher price because suddenly the car is now affordable within their 5-year cash flow and budget. The interest is a worthy tradeoff for the benefit of car ownership - a few examples:

1. If your wife is pregnant; hindi ka na mahihirapang maghanap ng taxi sa madaling araw when her water breaks.
2. Kung yung tatay mo may preexisting condition, pwede mo dalhin sa ospital anytime kung mahirapang huminga.
3. Yung anak mo na nagtatrabaho sa Makati, pwede mo sunduin kung sobrang lakas ng ulan at wala siyang masakyan na bus pauwi.

Jut. What you’ve mentioned are perfectly valid reasons to buy a vehicle on terms.

Those of us who know better, know that you (generally) buy things on credit:

1. For those matters that you need but cannot wait (urgent na), or would be of greater benefit now, than if you saved up for it to buy it later; AND
2. Have the means, or at least a SOUND plan on how to pay the installments as they fall due.

Hindi yung dahil keeping up with the Joneses lang... and yes, maraming ganun.

[viper888]

Its also the banks and other financing companies being irresponsible in handing out loans. I've heard of cases of people declaring just 50k a month being granted loans that cost 28k per month. A rule for financing property is that the monthly payment should not exceed 30% of the borrower's net income. Perhaps for cars, it should be 20% or less.

Every city experiencing rapid urbanization has the same issue. Jakarta, Kuala Lumpur, Mumbai, and Bangkok all have terrible traffic for the same reasons as Manila: infrastructure is unable to cope with the current population. Our public transportation system is also one of the worst, especially when compared to other large metropolitan areas. It takes decades to build infrastructure such as MRT lines.

Metro Manila

Greater Kuala Lumpur

Bangkok

[dr. d]

... you mean,
buying a car so's you and your family can go malling on a whim, buy till you drop, then bring home the haul in your car?
yes!

an auto journalist once wrote,
"bringing the car home from the dealer's is the easiest part of owning a car. it's the daily grind of maintenance and tolls, and the monthly hulogs, that do the owner in."

[papi smith]

Meron naman taga lakad (fixer), yan ung ginawa nung bumili ng bahay namin, ewan ko lang kung mas mura sa licensed professional, pero mabilis, in less than a month na transfer na at lahat sa name ng Pag-ibig.

[shadow]

Ewan ko lang, paulit-ulit bibili kuno ng properties sa antipolo ngayon naman sa Fairview dati condo na iniwan ng mga POGO.

mag deposit kung saan-saan.

Give me a break. It’s been 2.5 years hanggang ngayon puro satsat pa rin.


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[dr. d]

Ewan ko lang, paulit-ulit bibili kuno ng properties sa antipolo ngayon naman sa Fairview dati condo na iniwan ng mga POGO.

mag deposit kung saan-saan.

Give me a break. It’s been 2.5 years hanggang ngayon puro satsat pa rin.


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now that you mention it,
i'm still waiting for developments on that seiko watch he brandished around here.
as i recall, he claimed that if he was going to buy one, he would buy it from the plusher store with aircon, even as it is more expensive there...

[kagalingan]

shaider,

pinost ko na yung sa pagibig mp2.

bukas naman metrobank corporate bonds.

ilan beses mo na ako dinare = una wuhan mug akala mo nagiimbento eh nasoplak ka. TApos recently may bago ka naman quinestion nakita mo yung kuko ko as evidence hahahah.

wag mo ako minadalai sa lote kasi hinid ako pwede magkamali. Meron shift ang new normal sa mga properties. Im mesmerizing the air.

Mga pinopost ko dito reality. Taeh ko nga may kilala ba kayo araw-araw ganyan kaganda form. Tsikoteer puhhleease dont me, im unvaccinated

[_Cathy_]

Ewan ko lang, paulit-ulit bibili kuno ng properties sa antipolo ngayon naman sa Fairview dati condo na iniwan ng mga POGO.

mag deposit kung saan-saan.

Give me a break. It’s been 2.5 years hanggang ngayon puro satsat pa rin.


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Baka kasi may amount lang binigay parents niya kaya yun lang talaga pambili niya

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[dr. d]

Baka kasi may amount lang binigay parents niya kaya yun lang talaga pambili niya

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kayu naman!
kags is an adult, with gainful employment!

[_Cathy_]

kayu naman!
kags is an adult, with gainful employment!

Where? Sa parents niya? [emoji23]

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[dr. d]

Where? Sa parents niya? [emoji23]

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working in the family business can be an honorable employ as any.