Rent or Buy?

[Graywulf]

Hi,

Sorry this is a bit 'long winded'  but I'm starting to make some plans to move to the Philippines to live.

I'm looking to do a 'look see' visit next year 2-3 months hopefully. This should give me time to look round a few cities/provinces I want to investigate.  As far as Baguio down to Iloilo/Cebu island. Part of this exercise will be to look at accommodation options.   The intention will be to sell up here, Use what I need to to set up, and leave the rest in a term deposit as a backstop/emergency fund.

      I'm retired and on a pension, with some savings. Not interested really in renting my home out,, Been down the landlord road once before.  I can't buy a house there obviously but can rent.  My question is advice on

1)buying a Condo. I know they say legally it must be 40% foreign, 60% nationals per complex. But, has anyone bought a condo and can offer insight to living in a complex? I'm not looking to live in a massive one, more along the lines of what are recently being advertised in Antipolo (3 storey, 6x50 sq mtr to a block) Are there hidden problems with condo buying? IE: resistance to foreigners buying in some complexes? Are foreigners 'pushed' towards certain areas/types?  If buying a modern Condo, are there still the noise issues (music etc) as people mention in subdivisions?

    2) Would I actually be better off just renting a house, than buying a Condo?  I'm a bit hesitant with renting as I don't want the hassle of maybe having to move every few years as I age.

 Any insights would be greatly appreciated

[hk blues]

11 minutes ago, Graywulf said:

Hi,

Sorry this is a bit 'long winded'  but I'm starting to make some plans to move to the Philippines to live.

I'm looking to do a 'look see' visit next year 2-3 months hopefully. This should give me time to look round a few cities/provinces I want to investigate.  As far as Baguio down to Iloilo/Cebu island. Part of this exercise will be to look at accommodation options.   The intention will be to sell up here, Use what I need to to set up, and leave the rest in a term deposit as a backstop/emergency fund.

      I'm retired and on a pension, with some savings. Not interested really in renting my home out,, Been down the landlord road once before.  I can't buy a house there obviously but can rent.  My question is advice on

1)buying a Condo. I know they say legally it must be 40% foreign, 60% nationals per complex. But, has anyone bought a condo and can offer insight to living in a complex? I'm not looking to live in a massive one, more along the lines of what are recently being advertised in Antipolo (3 storey, 6x50 sq mtr to a block) Are there hidden problems with condo buying? IE: resistance to foreigners buying in some complexes? Are foreigners 'pushed' towards certain areas/types?  If buying a modern Condo, are there still the noise issues (music etc) as people mention in subdivisions?

    2) Would I actually be better off just renting a house, than buying a Condo?  I'm a bit hesitant with renting as I don't want the hassle of maybe having to move every few years as I age.

 Any insights would be greatly appreciated

It's a very individual choice as to which is best - on this forum there are the "never buy, always rent" folks and those who prefer to buy with all the stability that can bring.  

Whichever route you go down do your due diligence as not all condo or house HOA/management firms are equal. Choosing the right one will make or break you here.

[fillipino_wannabe]

Personally wouldn't buy a condo here, normally around 5 mil and 5k per month in fees/tax for something you could rent for 15-20k per month. Having to move wouldn't be as much hassle as it in the UK, you could probably tip the guards to do everything and move you into another one in the same building.

[Graywulf]

6 minutes ago, hk blues said:

It's a very individual choice as to which is best - on this forum there are the "never buy, always rent" folks and those who prefer to buy with all the stability that can bring.  

Whichever route you go down do your due diligence as not all condo or house HOA/management firms are equal. Choosing the right one will make or break you here.

I am becoming aware of that, and it being a minefield. I more likely to look at a new build, by hopefully one of the reputable companies.  I have already been reading of a 'problem'? complex in Manila that seems to have been erected hastily and has service problems.  So can understand the make/break aspect of purchasing.

   I tend to the stability side, as a retiree, I'd rather put down the roots and stay put as a base of operations.

[Graywulf]

7 minutes ago, fillipino_wannabe said:

Personally wouldn't buy a condo here, normally around 5 mil and 5k per month in fees/tax for something you could rent for 15-20k per month. Having to move wouldn't be as much hassle as it in the UK, you could probably tip the guards to do everything and move you into another one in the same building.

Hmmmm I get your point, but at 20k  a month? You're looking at paying close to 5 mill' in 20 years, and are you still liable for 'condo/subdivision' fees? In which case there's no real saving? I'd rather a house, but as a single expat I am restricted to one purchase option.

[Kingpin]

3 hours ago, Graywulf said:

Would I actually be better off just renting a house, than buying a Condo?

Yes, if you prioritize space and comfort. A nice large condo is about 20 mil and 20k per month dues. A nice large rental house is three times bigger,  but doesn't cost three times as much per month...and you also saved 20 million php. You can scale down those numbers but they always work out in favor of renting. The condo business here is overpriced, shady and targets foreigners because we can't buy houses, I'd avoid that trap.

 

Edited October 21, 2023 by Kingpin

[manofthecoldland]

Rent.  The buy & own , or rental experiences here are nothing like what exist in the western countries.  I would not have long term nesting as a priority concern until you have lived here a while and understand what you will be facing in that area, despite shelter being a major factor in retirement here.

When you buy and own, you are anchoring yourself, which is fine, if you have viewed and experienced many of the options first..... of which there are many. Place, neighborhood, activities available and other factors will determine your future lifestyle here, the people you meet, your travel needs, in short, your future contentment or discontentment levels with the choices you will be making.

6 or 12 months from now, you will have a very different understanding of what it is like to live here to help make important, or long term decisions re your personal future here.

[Clermont]

1 hour ago, Graywulf said:

I'd rather a house, but as a single expat I am restricted to one purchase option.

Hi welcome to the forum, plenty of advice here, but like you said you'll be staying for a few months first, Id take the time to sort yourself out HERE first before you heed anyone's opinion. Plenty of partners to get involved with, but take your time their all lovely and promise the world but make sure she can cook as you soon get sick of take aways and restaurant food becomes expensive. I'm not a condo man myself, but when my wife and I decided for her to come back home we settled on a subdivision, yes there's Fors and against subdivisions, most have good hospitals, malls, transport around them and I know you've said you don't like renting but I'm afraid that's your only optune because there was no mention of a wife. Don't be afraid of renting a bit out of the cities, treat people around as you'd like to be treated. The family can become a bit of a problem, NEVER offer money to any of them, I always loan them a few hundred Peso and when they want more, " Sorry you still owe me," works for me. You'll soon get into the swing of things, the climate suits me, some it doesn't, there's a thousand and one things that you could complain about, just take your time, everything will be new to you, and you'll love it all at first then that home sickness sets in for a little bit. We live out of Manila, plenty of subdivisions, all are guarded, and most are self-policed for noise and petty theft is minimal. Our subdivision, children still run around by themselves, don't be put off by posts on subdivision behavior, the newer subdivisions are acceptable to most westerners. We are only an hour from the airport an hour and a bit from Mall of Asia, plenty of transport, Grab, buses, jeeps and most have private cars that fill in for Grab. Good luck.

[OnMyWay]

2 hours ago, Graywulf said:

I'd rather a house, but as a single expat I am restricted to one purchase option.

Not exactly.  An expat can buy a long term lease on a house.  I live in Subic Bay Freeport (former U.S. Navy Base) but there are other places too.  I bought my first one in 2015 and just sold it.  The leases are bought and sold on the free market.  Now I bought another.  Originally SBMA (Subic Bay Metropolitan Authority) sold the leases on the old U.S. Navy base as a 25 year lease, with option for 25 more.  The first ones were just after the base closed in 1992, so they have about 20 years left.  Others were sold later so have more years left.  The one I just bought has 35 years left.  There is a way to extend after 50 years.

The 3 big factors in determining market value are condition of the house (has it been fully renovated), the # of years left on the lease, and of course demand.  Prices have gone up a lot here in the last 10 years.  For an old crappy small house that needs rebuilding, you might find 3-5 mil.  For like new renovated and upgraded houses, 7-20 mil.  Even more for a few.

I think you can buy a long term lease on any property if the owner wants it, but I am not sure.  On the old U.S. military bases, they are all leases.

[Kingpin]

3 minutes ago, OnMyWay said:

SBMA (Subic Bay Metropolitan Authority) sold the leases on the old U.S. Navy base as a 25 year lease, with option for 25 more.  The first ones were just after the base closed in 1992, so they have about 20 years left.  Others were sold later so have more years left.  The one I just bought has 35 years left.  There is a way to extend after 50 years.

Is the house bought or part of the lease? Those 25+25 lease options for land are great, if only they weren't so hard to find.