Budget of p72,000 pm. Enough?

[popeye72 ]

3 hours ago, Jack Peterson said:

What is not perfect? it would be nice if members actually posted the Post they are relating to

Yes some days and today is one of them I can be a little exact. I think we should be letting everyone know just what we mean 

Sorry jack. I was referring to the post immediately before mine. 

[Jack Peterson]

9 hours ago, topcat72m said:

Sorry jack. I was referring to the post immediately before mine. 

 Nay problem all has been explained but sometimes the Post above actually appears in another place if someone quotes after it and before Yours But good you get the Picture

[jpbago]

On 6/2/2017 at 11:52 AM, bob1965 said:

The concern about spending all the lump sum of cash is certainly valid. What about looking at an anuity. You'll get a monthly income, and once you buy it the cash in out of your control. It's not the best time to buy bc interest rates are low, but it does provide reliable income.

Interest rates are way too low for annuities. You can't even keep up to inflation. Look into REITs that pay between 4 and 10%.

[jpbago]

On 6/2/2017 at 4:39 PM, Snowy79 said:

Cash is king in my books.

 

On 6/2/2017 at 4:10 PM, Snowy79 said:

I'm looking at spending the max of 8m php on a great apartment in a top holiday resort

Looks like the cash is tied up in the apartment.

Long term currency valuations are simply guessing. 10 years ago, the rate was 95.5 GBP to the peso, now it is 63.6. It could go down to 50 or up to 100 with a large calamity or many other causes in this ever changing world.

http://www.xe.com/currencycharts/?from=GBP&to=PHP&view=10Y

Edited June 4, 2017 by jpbago
added chart

[Snowy79]

2 minutes ago, jpbago said:

 

Looks like the cash is tied up in the apartment.

Long term currency valuations are simply guessing. 10 years ago, the rate was 95.5 GBP to the peso, now it is 63.6. It could go down to 50 or up to 100 with a large calamity or many other causes in this ever changing world.

http://www.xe.com/currencycharts/?from=GBP&to=PHP&view=10Y

I'm working on the principle that once the money is spent the fluctuation in currency won't affect me as the property is already mine. If I decide to rent it out it'll be reflected in the going rate for rentals in the area.

I was fortunate enough to have the cash in the bank and was watching the rate to exchange it into Peso. I had set a limit of 63 php to jump ship when it was lower than that. I held out and got 64.4 php and made a decent amount of money. I can't see it going higher than say 65 php any time soon and with the way the West is going I think the Peso will get stronger. At least if it becomes very strong I've already bought. If it had dropped to the 50s I couldn't have afforded the property.

I think I've chosen wisely as it's a high rental property on a major tourist island so even if I have to jump ship the rental potential is there.

[Gary D]

The exchange rate is just short term noise in the system, inflation is the real killer. We have had near zero inflation in the west for the best part of a decade whilst the Philippines has been 5-6% year on year. The cost advantage between the Philippines and the west has been diminishing to the point that in about 10 year will approach parity.

[jpbago]

17 hours ago, Gary D said:

The exchange rate is just short term noise in the system, inflation is the real killer. We have had near zero inflation in the west for the best part of a decade whilst the Philippines has been 5-6% year on year. The cost advantage between the Philippines and the west has been diminishing to the point that in about 10 year will approach parity.

Already, not in 10 years, the cost advantage is not there anymore. Look at OMW's purchase of a lap top in USA. There is no savings in good clothes or food or other quality items. Sure, some things are cheap but they are no good and do not last. The girls can buy shoes here for 400PH but they last for 6 months. My wife has Sketchers from 2013, and we do not have a car nor m/c, we walk. I have seen prices go up fast here in 6 years. I find that living in Canada is less expensive than here. In Canada, there are many sales every week at all of the stores from groceries to shoes/clothes to electronics (like Best Buy) if you shop around in the flyers. http://www.flyermall.com/ Gas is the same price ~ but I can go for 2 hours on a buck (35PH) bus ticket stopping 2 or 3 times on the same ticket from city to city. In 2 hours I can travel 10 times the distance than I can here. And the buses are on schedule.

[Dave Hounddriver]

36 minutes ago, jpbago said:

I find that living in Canada is less expensive than here.

If I owned my own home in Canada, in a city like Victoria, BC and did not go out to fancy restaurants or tourist traps.  And if I used public transportation or walked, I could live on the same budget I live on here.  It would actually help me out that BC stands for Bloody Communists because I would have income below the poverty line there and qualify for some social benefits. 

[jpbago]

1 hour ago, Dave Hounddriver said:

If I owned my own home in Canada, in a city like Victoria, BC and did not go out to fancy restaurants or tourist traps.  And if I used public transportation or walked, I could live on the same budget I live on here.  It would actually help me out that BC stands for Bloody Communists because I would have income below the poverty line there and qualify for some social benefits. 

If you bought your house in Victoria before you had come to the PI, then sold it now, you would be able to rent anywhere and live very well on the tax free capital gain. In 15 years, from $350,000 up to $1,500,000. http://www.chpc.biz/vancouver-housing.html I look back and wish that I had of moved to Vancouver when I retired both for the increases in real estate and the closer to Manila than Toronto aspect. But that is all hindsight. Did you own property in BC? My condo value has went up by 50% just in the past few years but it went sideways for 10 years.

[Dave Hounddriver]

16 minutes ago, jpbago said:

Did you own property in BC?

Yes and No.  I owned lots of property in Dawson Creek, Northern BC but in the 10 years I owned it the real estate was flat and did not go up in value until I sold (of course)  I "almost" bought in Pitt Meadows near Vancouver in 1974 but I thought the $100,000 price tag was way out of line so I offered $20,000 and was turned down without even a counter offer.  Thats when I moved to Dawson Creek and easily bought a nice place for $20,000.  But Oh how I wish I still owned that property in Pitt Meadows.  Hind sight.

Victoria is just a dream.  It would be nice but richer than I can afford, however there are condos/apartment for sale just north of the pass, in the smaller towns, that can be purchased for $100,000 so there are options