Cost of Living In The Philippines

[phildiver]

PLEASE MULTIPLE US DOLLARS X 42 TO GET PHILIPPINE PESOS

While this is probably one of the most commonly asked questions on moving to the Philippines it is also one of the easiest to answer. Some of the considerations are:

[How Many: Single, Couple or Family Where: City or Provincial Town

Aside from influences such as a relationship, job, health needs, interests, etc. your budget is certainly a very important if not the major factor in where and how you live. There are many individuals living on less than $1,000 a month and some I hear living on $500 a month (personally never met anyone here doing this) while others live without any regard for budget. For the purpose of this article I will first focus on the actual expenses and costs people will encounter living in both urban and suburban areas. Second, I conducted a survey of people living in various areas and will show what their actual expenses are as they relayed them to me.

Whether you are single, a couple or have a family there are basically three types of places expats tend to live. In a major city like Manila, in a Provincial City like Davao or Cebu or a Provincial Town or Small City like Dumaguete, Bacolod or Iloilo. Of course there are some that live in the middle of nowhere and mostly off the grid. We hear about these folks but rarely if ever see them (but they do exist). However, we won’t address that demographic for this study.

After conducting the survey, I found there was not a tremendous deviation in expenses from one living area to another EXCEPT for Housing Costs and for those with children, a Private School Education.

Housing Costs was a major expense variable and was especially relevant to those living in a city like Manila where rent can be at least two to three times as much as anywhere else. This impacted overall expenses by $1,000 - $3,000 plus. There are of course many expats that own their own housing so we will show that cost but, we will also show the rent they would be paying in the same building for the benefit of those that won’t be buying and only renting.

For those families sending their children to International Private Schools in the Manila area would be shocked to learn that tuition averages $10,000 annually and can go up to $20,000 after all fees.

MONTHLY EXPENSE BREAKDOWN

Housing – This obviously depends on the kind and size of the place you will stay. Following is based on a central location close to Shopping, Schools and Hospitals.

Place 1BR 2BR Small House (1 - 2 BR) Large House (4 BR)

Major City $600 - $3,000 $1,000 - $3,000 $1,500 - $3,000 $4,000 - $10,000

Provincial City $300 - $2,000 $500 - $1,000 $500 - $1,000 $1,000 – $2,000

Provincial Town $200 average $300 average $400 - $600 $500 - $1,000

Internet – Most of the providers are fairly competitive in pricing. Generally you will pay more for higher bandwidth but figure on spending for all carriers about $31 for up to 2mbps. $100 for up to 10mbps monthly

Cable –Like Internet, provider pricing is competitive so for all the channels figure on about $25 monthly. There are specialty packages available that can push the pricing up

Schools – $100 - $2,000 monthly for a Private School based on ten months when you factor in all fees. Following are Annual Tuitions for Pre-School through High School for some of the Best Schools in the Philippines. Most of these schools are non-sectarian. The Schools in the Provinces tend to be lowest in Tuition and Fees.

School Location Tuition

British Manila $6,390 – $16,697

Chinese Manila $4,852 - $8,994

Brent Manila $5,651 - $16,297

Kings Manila $8,603 - $17,573

Singapore Cebu $1,817 - $3,313

Ateneo Davao $1,108 - $1,525

Electricity – is very expensive in the Philippines. The price is a whopping .25 cents per KWh. Depending on residence size, monthly bills can range between $50 for a small apartment to well over $500 and higher for a larger house and that is by not using the Air Con 24/7 but only when at home and in occupied rooms. I made the mistake a little while back of running my air con most of the time (even when we were out) and found our bill was more than twice our $500 monthly house rental cost. Ouch!!!

Manual Labor – Almost any skilled labor needs you may have (plumbing, electrical & carpentry) will run between $8 - $12 (plus materials) for the job assuming it can be done the same day. Anything longer will require some discussion.

Help – This also depends on where you live (Major City versus Provincial Town) but will range as follows:

Helper - $40 - $70

Yaya (Nanny) - $40 - $85

Driver - $100 - $300

Gardener - $50 - $100

Gasoline - $5.10 a gallon. Fortunately, in the Provincial Cities and Towns the distances are not that great and fuel consumption not that drastic. Remember most Expats are retired and use their vehicles mostly to go shopping, on trips or taking their children to school. Many opt for Public Transportation.

Public Transportation

Taxi - .95 Drop and .08 per km

Jeepney - .19 Drop and .03 per km

Pedicab - .16 per trip

Dry Good Shopping – You will find clothing and shoe prices are very reasonable here, but electronics very expensive as most are imported and subject to high customs duties. LCD prices can be more than double than in the U.S.A. Cigarettes and Alcohol are very, very cheap.

Movies – $2.35 - $3.55 Digital 3D - $6.00 - $7.10 Popcorn - $.95 - $2.13

Building Construction – When it comes to building your own house figure on between $28sqf (low end) to $60sqf (high end) for construction. Therefore a very high quality 2000 sqf house will cost you about $120,000. These higher end or more expensive houses usually reflect better indoor fixtures and treatments i.e. tiles, cabinetry, lighting, windows, doors, bathroom fixtures, etc.

Club Membership – Fitness - $20 - $40 Golf - $120

Restaurant Food – For the most part I find restaurant food to be quite affordable in the Philippines. I know a number of guys that eat out 2-3x daily at good restaurants for less than $15. Most Full Dinners in quality restaurants (regardless of location) will run about $12.00. This includes an appetizer (soup or salad), the main entrée and a Drink. Entrees alone will cost about $5.00 to $8.00. A whole pizza for example is about $5.50. Meat or Chicken Entrée dishes were about the same. Soft Drinks $1.00.

Sample Restaurant Prices

Moon Café – Baby Back Ribs - $3.66

Canvas – Cream Dory – $5.53

Gustavian – Ceasar Salad – $2.84

Gustavian – Beef Stroganoff – $7.81

Pizzeria Michelangelo – Pizza Margarita -$5.90

Home Food - Much of your expense will revolve around how much imported food you eat. If you sick to local foods it will save lots of money. For example a pound of Sushi quality Sword Fish or White Marlin is only $4.00 a pound. Boneless Chicken is $2.15 a pound. Vegetables are pretty anemic here but are fairly cheap and local fruits are very, very cheap and incredibly delicious. I recommend Mango, Papaya and Banana.

Here is a sampling of Supermarket item pricing as of 5/12/2012 with the dollar exchange rate of 42.25p/$

Item Quantity Price

Apples - Fuji 1 lb. $1.42

Beef - Ground 1 lb. $2.36

Beer - Local Can .71

Beer - Heiniken Bottle $1.37

Bread - White Loaf $1.32

Butter 8 oz. $3.26

Cereal 12 oz. $3.79

Cheese - Cheddar 8 oz. $4.73

Cheese - Cream 8 oz. $3.10

Chicken Boneless 1 lb. $2.15

Chicken Breast 1 lb. $1.53

Chicken Thigh 1 lb. $1.42

Coffee - Folgers Bean 1 lb. $9.46

Coca Cola 1.5 Quart $1.08

Cream Cheese 8 oz. $3.10

Eggs 12 $1.42

Ice Cream - Local 1.5 Quart $5.08

Ice Cream - Haagen-Dazs1 Pint $11.33

Lettuce 1 lb. .95

Marlin Filet 1 lb. $4.00

Milk Fresh or Uht 1 Quart $1.60

Mustard 8 oz. $2.72

Olive Oil 1 Quart $11.57

Onion 1 lb. $1.06

Oranges 1 lb. $1.42

Peanut Butter 16 oz. $3.78

Pear 1 lb. $1.42

Pepsi 1 Quart $1.08

Pork - Chops 1 lb. $2.13

Pork - Ground 1 lb. $1.89

Ragu Spaghetti Sauce 26 oz. $2.17

Red Grapes 1 lb. $2.83

Rice 10.5 lb. $4.73

Rum - 12yr. Old 700 ml. $2.95

Spaghetti 1 lb. $1.60

Steak 1 lb. $4.25

Steak Sauce - A 1 15 oz. $5.72

Sugar 1 lb. .55

Swordfish - Filet 1 lb. $4.00

Tomato 1 lb. .71

Toothpaste lrge $2.13

Tuna - Yellowfin Filet 1 lb. $2.60

Tuna Fish - in Oil 6 oz. . 73

Water 1 Quart .55

Survey of Actual Expats Living in the Philippines

Single Man (in Dumaguete)

Rent – $289 (furnished and includes cable, internet, electricity)

Food – $402 (eating out 3x day at places like Moon Café)

Gas – $29 (motorcycle)

Cell Phone Load – $29

Entertainment – $118 (your imagination)

Misc. - $118 (medical, travel, etc.)

$985 give or take

Single Woman (in Makati)

Owned - $165,000 (150 sqf 2 Bedroom Condo in Mid Range Makati Building)

Condo Fee - $142

Internet and Phone Landline –$24

Electricity – $60

Cable - $24

Home Food - $237

Helper - $85

Transportation – $24

Entertainment - $36

Misc - $200 (medical, restaurant, cell, etc.)

Rent - $700

$832 (actual out-of-pocket expense give or take)

$1,532 (with rent expense if no-condo ownership)

Single Man (in Makati)

Rent - $800 (Studio)

Internet – $20

Cable TV - $20

Electricity – $100

Home Food - $100

Restaurant - $200

Helper - $50

Transportation – $100 (if you live near work and walk)

Entertainment - $300 (dating, theater, events, etc.)

Misc - $100 (wine, club memberships, etc.)

$1,790 (actual out-of-pocket expense give or take)

Couple (in Dumaguete)

Owned - $142,000 (3500 sqf 5 Bedroom House on 2.5 acre lot)

Electricity – $50

Cable – $25

Internet – $50

House Food – $300

Helper Food – $60

Motorcycle Gas – $40

His Spending – $200

Her Spending – $200

Helper – $40

Gardener - $70

Dining Out – $200

Misc – $400 +/- (shopping, repairs, medical, travel, etc..)

Rent – $950 (you can also find nice house to rent for less than half)

$1,635 (actual out-of-pocket expense give or take)

$2,585 (with rent expense if no-house ownership)

Family of 4 (in Dumaguete)

Rent – $473 (furnished 4 bedroom house plus helpers area)

Electricity – $260

Cable – $24

Internet – $47

House Food – $473

Helper Food – $118

Car Gas – $24

Motorcycle Gas – $14

Other Transportation – $36

Daughter Pre-School – $83

Son College – $76

Son Spending – $71

His Spending – $118

Her Spending – $118

Helper 1 – $36

Helper 2 – $36

Yaya – $47

Dining Out – $118

Misc – $237 +/- (laundry, clothing, load, medical, travel, etc..)

$2,400 give or take

Family of 3 (in Makati)

Owned - $426,000 (2850 sqf 3 Bedroom Condo in High End Makati Building)

Condo Fee - $675

Electricity – $300

Cable – $25

Internet – $50

House Food – $500

Helper Food – $150

Car Gas – $200

Other Transportation – $30

Daughter School – $1,150

Husband Spending – $400

Wife Spending – $200

Helper 1 – $70

Helper 2 – $70

Driver - $150

Dining Out – $400

Misc – $1,500 +/- (clothing, golf club, medical, travel, etc..)

Rent – $3,500

$5,870 (actual out-of-pocket expense give or take)

$8,770 (with rent expense if no-condo ownership)

As high as the cost of living in parts of Manila (Makati and Fort Bonifacio) as reflected in my example of a family living there, it is still about 1/4 to 1/3 of what the same lifestyle would cost living in a Major U.S.A. City like New York. Still, the costs for a family living in Manila are high and it is important to note that many of the Expats living in Manila are retired executives and those currently working for companies with high net worth or incomes. On the surface it sure seems better to own in Manila (if you can afford it) than rent as renting increases monthly costs dramatically. I will certainly be interested to see what the actual expenses will be for my family once we move there next year. I anticipate (since we will own) that they will fall in the $3,500 - $4,000 range due to the added expense for our daughter’s school and the need for a driver.

What I am seeing is a dramatic rise of expats making the move to the Provincial cities and towns where costs are more affordable. I would highly recommend this as well.

In Conclusion: I have no doubts that some of you reading this may have differing experiences with the cost of living here. Of course we all have different priorities in our spending. It would be great if you could share yours as well. My overall conclusion based on my own experiences and with those of people I interviewed is: in the overall scheme of things it is far, far cheaper to live in the Philippines than in the States especially if you take advantage of the labor factor. In the Philippines you can have maids, nannies, chauffeurs, gardeners, masseuses and entertainment for a fraction of the cost in the U.S.A.

Single Man/Woman - $1,000 - $2,000

Couple - $1,200 - $3,200

Family (3-4) - $2,000 - $10,000

I hope this article and any follow-up comments will help those of you looking for answers about the cost of living in the Philippines.

PLEASE MULTIPLE US DOLLARS X 42 TO GET PHILIPPINE PESOS

You can read this at my site http://mylifeinthephilippines.com

Link approved by one tired Jollygoodfellow

Edited May 16, 2012 by Jake
added conversion from US dollar to Philippine pesos

[Dave Hounddriver]

The cost of living in the Philippines is a topic which I suspect every member here has had their say on in different threads. It is a very interesting topic and seldom do we find more than a handful of members actually agreeing about what it costs to live here.

The opening post here is full of valuable information. Thanks to PhilDiver for all the time and research he put into the post. I will mention here that I changed the title of the thread just a bit as the original title was in the form of a question and the post is actually more of an informative post. We do have members who check in only to help answer questions so we try to keep the thread titles reflective of the thread content.

[Curley]

An excellent post, it seems to me that the biggest difference between the cost of living for expats and Fillipinos is accommodation. Fillipinos on reasonable salaries will have good clothes, own transport, phones, laptops etc but will happily live in unfinished houses or grotty rooms whereas we place importance on a comfortable home even if it's a studio.

[Jim Sibbick]

Sorry, but I found the post insulting.

This board is not just for people from your country.

Why didn't you post the information in currencies and units of measure used in the Philippines?

Also, what currency were you giving examples in? Is that Afghanistan dollars?

Regards: Jim

[phildiver]

Sorry, but I found the post insulting.

This board is not just for people from your country.

Why didn't you post the information in currencies and units of measure used in the Philippines?

Also, what currency were you giving examples in? Is that Afghanistan dollars?

Regards: Jim

Hi Jim. This post was mostly for people who do not live in the Philippines and interested in costs so using Philippine Peso would not have been practical. And it would have looked ridiculous to have have a dozen currencies in the examples. I used US Dollars. I know people from Canada and Australia probaly wouldn't mind as their currencies are practically at parity with the US Dollar. LOL. You can't please everyone. I just noticed the Afgan thing (maybe it defaults to that if you don't do anything) and I just changed it to Dumaguete. Philippines. Peace.

[JJReyes]

This is an excellent post. It allows someone planning to relocate to the Philppines to pick & choose what is most relevant based on personal circumstances. Stating prices in US dollars is likewise a good idea because it is still a universal currency. I probably won't read the information in detail if the currency selected was Euro. Thank you phildriver.

[KanoJoe]

Sorry, but I found the post insulting.

This board is not just for people from your country.

Why didn't you post the information in currencies and units of measure used in the Philippines?

Also, what currency were you giving examples in? Is that Afghanistan dollars?

Regards: Jim

Funny, but the last time I checked, the little "$" indicates USD.

Great synopsis by the OP, although as obtuse as any post I've seen on the topic. So I can live on between $2,000 - $10,000 per month in the PI. Tell me something I didn't know already.

[MikeB]

Are you including all the associated visa renewal costs in the Misc category? Not just the actual fees but the additional costs of traveling to/from a BI office if you live in a "provincial town" or getting an agent to do it?

[Higg-num]

PhilDiver, Thanks for your effort. I am attempting to gain all the info I can before I land. I had the impression that one would have to do without American type movies ( Spoken in english at least ) yogurt, good cheese, milk and decent grade beef. Guess it depends on where you are, what is available and what part of the P.I., of course how much one is willing to spend as well.

I'm glad I seen this thread.

[Jim Sibbick]

[Funny, but the last time I checked, the little "$" indicates USD.

Thankyou but last time I checked, that symbol was also being used to indicate the currency for Canada, Australia, New Zealand, Singapore and Hong Kong.

Regards: Jim