Housing: Buy, Build or Rent?
I got a question in my e-mail box this morning, and it is one that really fits in with this blog. Let’s take a look and see what the e-mail said:
Hi Bob – my wife and I were planning to move to the Philippines and rent a house there, maybe buy one later. A Filipina friend here in the States recently told us that we should build a place instead. What do you think?
Well, this is an interesting question, and like many questions, everybody’s answer may be a little different. Let me tell you my thoughts, though.
Firstly, I believe strongly that when you first move here you should rent. A significant number of foreigners who move here end up leaving, probably the majority. Why do they leave? Well, they find that they can’t handle the lifestyle here, and they go home after a few months or a few years. Those who can live here long enough to make the adjustment, say maybe 3 to 5 years – usually end up staying permanently. But, if you come here and dump big money on a house, then decide that you really want to go home, it can be difficult to sell the house! This is especially true if you build a very high end home that is similar to the standards of the country you came from. Those kind of homes are very expensive, and it can be quite difficult to find a buyer in the local market who is willing to spend that kind of money on a house. Because of these factors, I believe that it’s best to rent when you first move here, and to do so for at least 2 to 3 years. Rent is cheap here anyway, so that is not a worry.
After you are established here, comfortable with the lifestyle, and have decided this is the place for you, it’s time to decide what to do with your housing situation. Should you buy a place, or build a place?
I have noticed in my time here that houses that go up for sale are usually way overpriced. Because of this, it is usually cheaper to build a brand new house. Of course, you might come across a deal where people really need to sell or something like that, and you can snatch up something for a very reasonable price.
My choice would be to build a place, though. When you do this, you can really get it built just the way you want. You can design it to fit your needs and desires to a tee. Building can be a hassle, and you will have to keep an eagle eye on the contractor, but if you can handle that, I believe that building is the way to go.
Remember, your situation may vary from what I’ve written here. There is nothing wrong with that. No single piece of advice can fit every person, so use your best judgment to decide what is the best route for you!
Hi Bob, Im glad I am the first to comment on this subject – probably because its 01.10am in the morning and i am up to my old tricks of browsing endlessly, you make some valid points, everyones reasons for building or buying will be different, motivating factors come into the decision, in my case, the factors are, investment in retirement, the fact that my Filipino citizen wife will benefit, and thirdly the cost of land is increasing.
Renting though is excellent advice, and if you dont like the lifestyle, you can always head west again, there is nothing better it seems than a try before you buy package, as always Bob you have it spot on.
the one thing that appeals to me is the option of building a home with your own design preference. i agree, after finally deciding that the country is right for you, maybe see if you can build. i would. instead of the usual cookie cutter homes here in the states, you get to play with your own floorplan.
Hi Bob,
We are at present working on plans to settle in Davao, if it all works out we could be over there with you quite soon.
I recently spent six weeks living in Sto.Totomas with my inlaws, wandering the streets, in the markets, drinking in the bars etc. to see if I could live in Mindanao without any great culture shock. As it turned out I no real problems and it did not dissuade me from moving to Mindanao. Perhaps I have an advantage in that I once lived in Madagascar before.
Could you tell us some of the precise reasons that foreigners give when they decide to return to the West after coming to Mindanao to settle ? What is it that they generally cannot cope with ?
Thanks in advance,
Scott [ and Rhodora ]
Bob I will second Scott on that, as I thought of a similar reply after making the first reply, can you expand and tell individual stories as you saw them, in why foreigners decided to come back to their native lands, it would be of great help to many of us, you are there so you get to see the ones who throw in the towel as we would say.
Hi Peter – the investment part of the argument is one that I didn’t include in the article, and I should have. It’s certainly a good thing to consider.
Hi Macky – I agree with you. For somebody like you or me, who works at home, it’s even more important. We are not only designing our living space, but our work space too, and that makes it all the more important for it to be “just right”.
Hi Scott and Peter – Good points. I will soon try to make a post about why people can’t make it here, and why they leave.
Hi Bob, another great article! Once before my wife and I (we’re both Filipinos) talked about buying land in the PI were we plan to retire. Although retirement is still years away we thought it’s a good idea to purchase just the land for now and have a house built when we retire. As Peter B. said, land is getting pricier so if we’re 100% sure in retiring in the PI we might as well invest in buying the land now. Anyway, our little conversation did not go very far because if I remember correctly, PI has problems with squatters. How do you keep squatters from living in your land when you are not around?
My parents currently have these issues with squatters. They have quit a bit of land in Cagayan de Oro and every 2-3 years they fly to PI to check the land for “trespassers”. Several times they encountered people living in there land with “bahay kubo” or make shift houses. They usually have to spend money for lawyers and bulldozers just to get them out. They eventually would come back after a month after my parents head back to the states. This seems to be a big hassle especially if we don’t have any relatives in the PI that we can count on. Any ideas on how this issues are usually dealt with? By the way, my parents land is somewhere in the boodocks so local enforcement is zero.
Bob,
I’ve been reading your Blog for a while now and it’s really good. Really looking forward to an answer on Joe’s question about squatters. Me and my wife (she’s Philipina), have land in Cavite, no squatters yet, but it is a constant worry. She’s going over this fall to pay taxes on the land and to make sure there are no squatters, possiblly build apartments on it. Any suggestions or comments?
Hi Joe and Ed – Thanks for stopping by my blog! The issue of squatters is an interesting one. I will address it on a post on the blog sometime this week. Thanks for the suggestion.
I will be looking forward to your post on squatters. When I was visiting my fiancee’s family in Samar last month, her uncle and I looked at some nice ocean front property as I had expressed an interest in buying some land – yes, I know I can’t own the land but I trust my fiancee and her family. Ultimately we will build a home there but that is several years down the road -see your other post about leasing, owning, or building.
Anyways, there were lots of squatters on the land. It was wall to wall “bahay kubo”. I asked the uncle about it and he told me not to worry because they would have to move. I said – sorry, but that is a good way to get a “shiver in the dark”.
note the Dire Straits reference 
Forcing these poor people out of their homes is not how I want to begin life in Samar. Yes, legally I could do it and my fiancee’s family would make sure it stayed squatter free but my personal morals will not allow me to do it.
Now, they have found some ocean front property in another barangay that is squatter free for only 600P per square meter. My sweet Lord, 600P per square meter?
:roll:
Another consideration is to ensure any land you are buying is lean free and that you are purchasing from the actual owner. This usually takes a lawyer (not as expensive as you would think). Possible check twice so some time later someone doesn’t appear from nowhere claiming your land is theirs and evicting YOU as the squatter!
Hi Ray – Good thought! Checking for a clear title is always important in any real estate transaction here!