Living part time every year in Philippines rent own or?

[JJReyes]

Rent a furnished condo or stay in a hotel. It might be different if you are residing on a full-time basis. Owning a property for a part time stay is problematic. Relatives will want to occupy it during your absence. Hard to get rid of them when you need it.  You have no control as to expenses because you need a property manager during your absence.  There is an honesty issue. 

When you sell, Philippine capital gains is 6%. Sounds cheap, but that's on the entire price. The taxing authorities don't care what you paid, whether or not you made money. It is not based on selling price less purchase price. 

[Lou49]

14 minutes ago, stevewool said:

What happens if the shares go down, Plus if everyone really has enough to retire for our there needs why risk your money , just asking

Dividend paying blue chips on the major stock exchanges ie Dow or Tsx are very stable. Share price might fluctuate a bit but the dividend stay the same. If you are in for the long term dividend cash flow minor fluctuations are not a problem. EG: TSX:BNS  has not missed a dividend payment since 1832.

[stevewool]

1 hour ago, Lou49 said:

Dividend paying blue chips on the major stock exchanges ie Dow or Tsx are very stable. Share price might fluctuate a bit but the dividend stay the same. If you are in for the long term dividend cash flow minor fluctuations are not a problem. EG: TSX:BNS  has not missed a dividend payment since 1832.

Thanks for the reply, still none the wiser really.

Cash in the bank making very very little, but other income coming in, well i am happy where the cash is .

[Lou49]

2 minutes ago, stevewool said:

Thanks for the reply, still none the wiser really.

Cash in the bank making very very little, but other income coming in, well i am happy where the cash is .

Cash sitting in the bank becomes worth less and less each year due to inflation. Holding safe dividend paying blue chips gives u say 4-5 % dividend plus say 2% capital appreciation each year.

[stevewool]

1 hour ago, Lou49 said:

Cash sitting in the bank becomes worth less and less each year due to inflation. Holding safe dividend paying blue chips gives u say 4-5 % dividend plus say 2% capital appreciation each year.

Still have no idea about dividends so i will stick with what i know , yes the cash can go down with inflation , but for now i am happy where my stash is kept.

[sonjack2847]

6 hours ago, Lou49 said:

Cash sitting in the bank becomes worth less and less each year due to inflation. Holding safe dividend paying blue chips gives u say 4-5 % dividend plus say 2% capital appreciation each year.

Maybe you should start a thread on investments so we can read more.

[Dave Hounddriver]

7 hours ago, Lou49 said:

Cash sitting in the bank becomes worth less and less each year due to inflation.

That is the general rule of thumb but let me put it to you this way:

Suppose I had CDN$100,000 sitting in the bank in Canada 1 year ago and decided to bring it to Philippines and buy a condo, to keep up with inflation in Philippines.  I would have had 3.4 million pesos to work with as the exchange rate was 34:1

By leaving that cash in the bank earning ZERO interest, it is now worth 4 million pesos as the exchange rate is 40:1

I am thankful I left my money in a Canadian bank last year.  However, many know I did buy a tiny row house here in Philippines 3 years ago.  The exchange rate at that time was 42:1 so I got the timing right (through pure luck) and it worked for me.  There is no guarantee that buying property in Philippines is a better investment than leaving your cash in a foreign bank.

(I was just talking to an American friend on Wednesday who was expressing his misfortune of building a block of apartments last year when he got 46 pesos for each US$ and now he would have got 51 so he has already lost a years worth of rent by not leaving his money in the bank.

Bottom line:  Anything you do with your money is a risk and just because the people who did it before you made money does not mean you will.  That logic is what made Bernie Madoff rich.

[Lou49]

27 minutes ago, Dave Hounddriver said:

That is the general rule of thumb but let me put it to you this way:

Suppose I had CDN$100,000 sitting in the bank in Canada 1 year ago and decided to bring it to Philippines and buy a condo, to keep up with inflation in Philippines.  I would have had 3.4 million pesos to work with as the exchange rate was 34:1

By leaving that cash in the bank earning ZERO interest, it is now worth 4 million pesos as the exchange rate is 40:1

I am thankful I left my money in a Canadian bank last year.  However, many know I did buy a tiny row house here in Philippines 3 years ago.  The exchange rate at that time was 42:1 so I got the timing right (through pure luck) and it worked for me.  There is no guarantee that buying property in Philippines is a better investment than leaving your cash in a foreign bank.

(I was just talking to an American friend on Wednesday who was expressing his misfortune of building a block of apartments last year when he got 46 pesos for each US$ and now he would have got 51 so he has already lost a years worth of rent by not leaving his money in the bank.

Bottom line:  Anything you do with your money is a risk and just because the people who did it before you made money does not mean you will.  That logic is what made Bernie Madoff rich.

Foreign exchange trading is very risky for the little guys. The most important factor to successful investing is time. If you start when you are twenty or thirty you will do ok. 

[Snowy79]

As Dave says the exchange rate is a big influence. Probably more so than inflation at times. My mate tells me the rate was almost 100 peso to the pound, when he arrived in country now it's hovering around the 65 mark and a few months back it was at 58. A bit of a kick in the Gonads if you're living off of a monthly pension and your income has now reduced by a third. 

His condo when he bought it was just over 7m peso. Its huge and in Makati, at todays price per sqm he thinks its worth about 20m. Each bedroom is bigger than a lot of condos I've been in. 

He also says his overheads have more than doubled to maintain the same standard of life. He's fortunate in that he's working here and making serious money but he's seen his fair share of friends return home to build their nest egg up again. 

Stick your money in a bank if you think it's safe but at the end of the day as prices increase way beyond your interest rate your money will soon become less and less valuable. 

I can only see the Philippines growing in the next ten years and it's currency becoming more valuable. 5m peso in the bank will make you about 5,000 peso interest per year. That can easily be wiped out by the current exchange rate changing by 50 centavo or a small increase in utility bills. Just look at the latest increase in Phil Health. That's wiped all interest out over night. 

To me if you don't have at least twice the money you think you'll need I'd look at an investment, as you can bet in 20 years time when everything costs a lot more and your health will have deteriorated costing you more money. 

[Dave Hounddriver]

37 minutes ago, Lou49 said:

If you start when you are twenty or thirty you will do ok.