Is It Really Cheaper To Live In The Phils

[Jake]

As for Florida / Cebu, you guys are comparing a heavily depressed area of the US with Cebu which doesn't sound like it's depressed. Not a real comparison at all. Here in Raleigh NC a small home with no garage can run 120k... and these condos you speak of... 500$ a month in community fees? Wow. Comparing apples to oranges is true though. A western lifestyle in any area is gonna cost a western amount of $. The idea is that you make trade offs. If you want to move to a place and bring your lifestyle with you, I wouldn't expect a significantly cheaper cost of living. Compare the cost of living of the 2nd biggest US city with the 2nd biggest PH city. Maybe that is an alternate comparison. If you want a western lifestyle on the cheap, I'm not sure where you'll find that. Then again, why come to PH with that intention anyway? My idea is to live life, cut out my crazy materialistic and spoiled ways, and enjoy my time not working. Last night my gf, myself, and another couple went out to eat and dropped 200$ Not planning on doing much of that in Cebu. How often do you spend 4000php on dinner out with friends? Rudderless

Hello Rudderless,Love your style of writing! For example, your statement: "If you want a western lifestyle on the cheap, I'm not sure where you'll find that. Then again, why come to PH with that intention anyway? My idea is to live life, cut out my crazy materialistic and spoiled ways, and enjoy my time not working". That was a bulls eye! Our golden years living in the Philippines should be relatively stress free. I think you're cruising on a solid coursewith sails trimmed and your rudder is feather light. Full speed ahead, my friend! Respectfully -- Jake

[MikeB]

Now when comparing a depressed area of Florida with Cebu, Florida infrastructure puts Cebu to shame and there are no real depressed areas that I was writing about, there are just overbuilt areas where stupid people bought much more than they could afford and lost their condos or homes, or people refinanced and took out the money the unit had gained when the market went crazy. The units that are now selling for under or around $20,000, were around $100,000 or more at one time, and some are still asking that much, so a lot of people are letting them go because they are no longer worth what their payments are costing them. We had one neighbor in Florida (not the same area) who refinanced their home when it was worth about $400,000 and then when it went down to half he got mad at the bank and demanded they cut his mortgage in half and they laughed at him and foreclosed and sold it for $175,000 out of spite. Mind you he did not buy it at the overprice, instead he pulled the money out of it by a refi and then thought the bank owed him something for his own greed or possibly poor planning, and that is the story with lots of the homes and condos that are now on the market in some areas of the states. I am not judging those people, only stating what happened.

And there are a lot of people like me who did all the "right" things (20% down, good job, bought less then what they could afford) that still got screwed because of subprime loans and investor speculation that created an artificial demand. It was the greed and bad decisions of the lenders that caused most of the mess, especially the one who originally held my mortgage. Of course, they got bailed out because they were too big to fail. I didn't fall into that category so I don't get a govt check.

[Mr Lee]

Now when comparing a depressed area of Florida with Cebu, Florida infrastructure puts Cebu to shame and there are no real depressed areas that I was writing about, there are just overbuilt areas where stupid people bought much more than they could afford and lost their condos or homes, or people refinanced and took out the money the unit had gained when the market went crazy. The units that are now selling for under or around $20,000, were around $100,000 or more at one time, and some are still asking that much, so a lot of people are letting them go because they are no longer worth what their payments are costing them. We had one neighbor in Florida (not the same area) who refinanced their home when it was worth about $400,000 and then when it went down to half he got mad at the bank and demanded they cut his mortgage in half and they laughed at him and foreclosed and sold it for $175,000 out of spite. Mind you he did not buy it at the overprice, instead he pulled the money out of it by a refi and then thought the bank owed him something for his own greed or possibly poor planning, and that is the story with lots of the homes and condos that are now on the market in some areas of the states. I am not judging those people, only stating what happened.

And there are a lot of people like me who did all the "right" things (20% down, good job, bought less then what they could afford) that still got screwed because of subprime loans and investor speculation that created an artificial demand. It was the greed and bad decisions of the lenders that caused most of the mess, especially the one who originally held my mortgage. Of course, they got bailed out because they were too big to fail. I didn't fall into that category so I don't get a govt check.

Mike that actually goes no matter where a person lives and I agree that the US govt and their desire to get everyone (even those not qualified, and I am not talking about you) into homes drove the market up and screwed a lot of people, but at the same time I and others saw it coming years before it happened because the market climbed way too fast, in such a short period of time. When we see you again, then ask my wife how long before it happened did I say it was going to happen, it was inevitable at the rate of growth and the speculative buying. I also see a correction coming in the PHL one day, if and when OFW can no longer keep sending such huge amounts of money home due to other factors which may or may not come about, but I already see the writing on the wall that the chances of them coming about are much greater than them not happening, JMHO. It is always about let the buyer beware and in places such as Cebu where our condo had doubled in price in about 4 years, then the same bubble is bound to burst IMHO, since OFW and many visitors are driving that bubble and as long as they can keep it up then it might continue, but will it, and what will happen to the cost of living if it bursts?

[Art2ro]

This topic "Is it really cheaper to live in the Philippines"? IMHO, it's a yes and no answer depending on one's lifstyle and what one's financial status is! My wife and I have lived in the Philippines since 1998 and been here since except for a few vacations back in California every 2 yrs just to visit old friends and family! We don't like the hustle & bustle "rat race" pace in California, I grew up there so I know what it's like! We enjoy our laid back, comfortable and quiet lifestyle here in the Philippines! Anyways, we are some what financially stable and can live in the U.S. if we want to, but we won't since we're already settled down here in the Philippines all these years and set in our ways! We're here to stay through thick or thin!

[Jake]

Now when comparing a depressed area of Florida with Cebu, Florida infrastructure puts Cebu to shame and there are no real depressed areas that I was writing about, there are just overbuilt areas where stupid people bought much more than they could afford and lost their condos or homes, or people refinanced and took out the money the unit had gained when the market went crazy. The units that are now selling for under or around $20,000, were around $100,000 or more at one time, and some are still asking that much, so a lot of people are letting them go because they are no longer worth what their payments are costing them. We had one neighbor in Florida (not the same area) who refinanced their home when it was worth about $400,000 and then when it went down to half he got mad at the bank and demanded they cut his mortgage in half and they laughed at him and foreclosed and sold it for $175,000 out of spite. Mind you he did not buy it at the overprice, instead he pulled the money out of it by a refi and then thought the bank owed him something for his own greed or possibly poor planning, and that is the story with lots of the homes and condos that are now on the market in some areas of the states. I am not judging those people, only stating what happened.

And there are a lot of people like me who did all the "right" things (20% down, good job, bought less then what they could afford) that still got screwed because of subprime loans and investor speculation that created an artificial demand. It was the greed and bad decisions of the lenders that caused most of the mess, especially the one who originally held my mortgage. Of course, they got bailed out because they were too big to fail. I didn't fall into that category so I don't get a govt check.

Mike that actually goes no matter where a person lives and I agree that the US govt and their desire to get everyone (even those not qualified, and I am not talking about you) into homes drove the market up and screwed a lot of people, but at the same time I and others saw it coming years before it happened because the market climbed way too fast, in such a short period of time. When we see you again, then ask my wife how long before it happened did I say it was going to happen, it was inevitable at the rate of growth and the speculative buying. I also see a correction coming in the PHL one day, if and when OFW can no longer keep sending such huge amounts of money home due to other factors which may or may not come about, but I already see the writing on the wall that the chances of them coming about are much greater than them not happening, JMHO. It is always about let the buyer beware and in places such as Cebu where our condo had doubled in price in about 4 years, then the same bubble is bound to burst IMHO, since OFW and many visitors are driving that bubble and as long as they can keep it up then it might continue, but will it, and what will happen to the cost of living if it bursts?

Right on Lee! The remittance from OFW's has been keeping the Philippine government afloat for the last 20-30 years now.I could see that bubble bursting and the government will fall flat on its corrupted face.Jake

[Jollygoodfellow]

Now when comparing a depressed area of Florida with Cebu, Florida infrastructure puts Cebu to shame and there are no real depressed areas that I was writing about, there are just overbuilt areas where stupid people bought much more than they could afford and lost their condos or homes, or people refinanced and took out the money the unit had gained when the market went crazy. The units that are now selling for under or around $20,000, were around $100,000 or more at one time, and some are still asking that much, so a lot of people are letting them go because they are no longer worth what their payments are costing them. We had one neighbor in Florida (not the same area) who refinanced their home when it was worth about $400,000 and then when it went down to half he got mad at the bank and demanded they cut his mortgage in half and they laughed at him and foreclosed and sold it for $175,000 out of spite. Mind you he did not buy it at the overprice, instead he pulled the money out of it by a refi and then thought the bank owed him something for his own greed or possibly poor planning, and that is the story with lots of the homes and condos that are now on the market in some areas of the states. I am not judging those people, only stating what happened.

And there are a lot of people like me who did all the "right" things (20% down, good job, bought less then what they could afford) that still got screwed because of subprime loans and investor speculation that created an artificial demand. It was the greed and bad decisions of the lenders that caused most of the mess, especially the one who originally held my mortgage. Of course, they got bailed out because they were too big to fail. I didn't fall into that category so I don't get a govt check.

Mike that actually goes no matter where a person lives and I agree that the US govt and their desire to get everyone (even those not qualified, and I am not talking about you) into homes drove the market up and screwed a lot of people, but at the same time I and others saw it coming years before it happened because the market climbed way too fast, in such a short period of time. When we see you again, then ask my wife how long before it happened did I say it was going to happen, it was inevitable at the rate of growth and the speculative buying. I also see a correction coming in the PHL one day, if and when OFW can no longer keep sending such huge amounts of money home due to other factors which may or may not come about, but I already see the writing on the wall that the chances of them coming about are much greater than them not happening, JMHO. It is always about let the buyer beware and in places such as Cebu where our condo had doubled in price in about 4 years, then the same bubble is bound to burst IMHO, since OFW and many visitors are driving that bubble and as long as they can keep it up then it might continue, but will it, and what will happen to the cost of living if it bursts?

Right on Lee! The remittance from OFW's has been keeping the Philippine government afloat for the last 20-30 years now.I could see that bubble bursting and the government will fall flat on its corrupted face.Jake

Not sure if this is correct world wide but here in Australia real estate runs in about 7 year cycles,what goes up must come down.

[MikeB]

Well, I don't have 7 years to wait and if I did I wouldn't. I think it's going to be more like 12 - 15 in places like FL and I disagree with the statement the US Govt wanted to get everyone into a home, They had a hand in this but the lenders are mostly to blame although a big part of it is bad luck and timing. If you bought a house in the late 90s and sold it before 2005 you probably made money, if after you probably lost. A lot of the same people who made money in the early part of the decade lost it later, they weren't any smarter or dumber. Of course everyone's an expert in hindsight.

[Jollygoodfellow]

Well, I don't have 7 years to wait and if I did I wouldn't. I think it's going to be more like 12 - 15 in places like FL and I disagree with the statement the US Govt wanted to get everyone into a home, They had a hand in this but the lenders are mostly to blame although a big part of it is bad luck and timing. If you bought a house in the late 90s and sold it before 2005 you probably made money, if after you probably lost. A lot of the same people who made money in the early part of the decade lost it later, they weren't any smarter or dumber. Of course everyone's an expert in hindsight.

Well if it helps there are a lot of people here in Brisbane that are in the same boat now after the floods, houses that would have been worth a million dollars or more are now down to two hundred thousand even if they weren't flooded but in a flooded area.Life can be tough but it gos on and better days are always ahead,except for me

[MikeB]

Well, I don't have 7 years to wait and if I did I wouldn't. I think it's going to be more like 12 - 15 in places like FL and I disagree with the statement the US Govt wanted to get everyone into a home, They had a hand in this but the lenders are mostly to blame although a big part of it is bad luck and timing. If you bought a house in the late 90s and sold it before 2005 you probably made money, if after you probably lost. A lot of the same people who made money in the early part of the decade lost it later, they weren't any smarter or dumber. Of course everyone's an expert in hindsight.

Well if it helps there are a lot of people here in Brisbane that are in the same boat now after the floods, houses that would have been worth a million dollars or more are now down to two hundred thousand even if they weren't flooded but in a flooded area.Life can be tough but it gos on and better days are always ahead,except for me

Right, and we should all count our blessings and realize all we have so no more complaining from me. I hope things go ok over there for you and everyone affected.

[Mr Lee]

I disagree with the statement the US Govt wanted to get everyone into a home, They had a hand in this but the lenders are mostly to blame although a big part of it is bad luck and timing.

Mike, read HERE and maybe that might make a believer out of you.In 1992, President George H.W. Bush signed the Housing and Community Development Act of 1992. The Act amended the charter of Fannie Mae and Freddie Mac to reflect Congress' view that the GSEs "have an affirmative obligation to facilitate the financing of affordable housing for low-income and moderate-income families."^[14] For the first time, the GSEs were required to meet "affordable housing goals" set annually by the Department of Housing and Urban Development (HUD) and approved by Congress. The initial annual goal for low-income and moderate-income mortgage purchases for each GSE was 30% of the total number of dwelling units financed by mortgage purchases^[15] and increased to 55% by 2007.In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers by increasing the ratios of their loan portfolios in distressed inner city areas designated in the CRA of 1977.^[16] Because of the increased ratio requirements, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.^[16]