One thing that we all get caught up in if we are thinking of moving to the Philippines is that everything is cheap! Well, it is not always true.
Two categories of items come to mind when I think of things that are expensive here.
First, any kind of foreign goods. If you like imported foods and such, any of the foods that you were used to in your home country, they are expensive to buy here, if they are available at all. Generally, you can expect to pay almost double for foreign goods compared to the prices you are used to paying. Even very simple things like a box of Kraft Macaroni and Cheese can cost about $2 or so.
The other thing that is very expensive here is electricity. I pay well over $200 per month for my electricity bill, and we conserve in every way we can think of. We run air conditioning in two bedrooms, but only a few hours at a time. On average, electricity here is about 18 to 20 US cents per Kilowatt hour. I remember paying less than 10 cents in the States, although I am sure prices have gone up in the last 6 years.
Another thing that I just thought of is any kind of tech products – computers, ipods, that kind of thing is significantly more here.
Yes, most things are much less expensive here as compared with first world prices, but keep in mind that some things are more. Overall, you will be able to live a better life here and for less money, though.
Hello Bob,
You're talking about the electricity cost, is there any way you can use solar energy for you're needs there? I'm sure there's a way to save if you can develop a good system. What do you think? If it's possible, we're thinking about using it when we'll be there. Take care
Hi Patrice – you are right, solar can be used, and more and more solar is being used around the Philippines. It is particularly being used for heating water. In the house that we previously lived in, we had a solar hot water heater, and it was great.
There are a couple of drawbacks – it is very costly to get set up, although over time you will certainly recover your investment. Secondly, it can be difficult to find the solar supplies here, and also finding somebody with the expertise to do the installation.
I do believe that solar power is a good choice here, though, if you can overcome the obstacles.
One thing I forgot to add for Patrice – for many ex-pats living here, they rent their houses (I do), since they cannot legally own property here. So, if you are renting, it would not be normal to make the major investment of putting in solar power when you may not live in the house too long.
Excellent website for providing information on relocating to and retiring / living in the Philippines — thank you.
Do you have any information concerning retiring in the Cebu / Mactan area — if one were to live a moderate, low-key lifestyle.
Hi Ben – thanks for visiting the LiP Blog! I'm glad to hear that you've found it useful and informative. I would say that pretty much all of the articles posted on the blog can apply to Cebu/Mactan. Was there some sort of specific info about that area that you were looking for. If so, let me know, I'd be happy to answer any questions that I can.
Bob,
Great web site I very happy to have found u. Iam married to a filipino and I'm very interested in living there. On my visits I have spoken with some small business people and talked about starting a business. One recomendation strongly recomended was Lending or Loans with secured with Land, Home. do you know anything about this area of business in the Philippines. I know I would have it ran by filipino's and not myself, I would oversee the financial areas daily.
Love your site.
Scott Peterson
St.Louis Missouri
Hi Scott – Thanks for stopping by! I'm glad you found my blog too.
The money lending business is cut throat, but it can be a good business. I do strongly advise you to keep yourself out of the direct business, and just try to finance the thing and let others do the work. Be cautious about this – people get killed in this business all the time. But, you can make good money at it – or you can lose a fortune. You must be vigilant, and not be soft on people. Be tough – extremely tough, and you can survive.
Thanks for another great post, Bob. In central Luzon I run one aircon virtually 24×7 (either the computer room or the bedroom) and my bills have climbed to about P5,000 per month for a two-person household. I am a big beliver in solar for the future … most US cost estimates are way off becuase the Philippines receives about 5 times the raw solar flux (energy) as most of the US … but as you point out the materials and expertise are lacking .. and bring stuff from the US may be problematical because it is not designed for the Philippines. You can't just "use solar" instead of commercial as if it were an A or B solution.
Gave me good ida for a post on my blog … I have friend in Colorado (high in the mountains where it is cold) who has run his home and retail business on solar and bio-methane for years … he's not handicapped by the government (read big oil) university "knowledge" that it can't be done. But it would be impossible to do what he does on rental property, indeed.
Costs of living for expats is not going to vary much by location. We all tend to buy the same sorts of imported goods, use 5 times the electricity as a Filipino family and so on. I've advised people for years and I'll do so again: Do not make your choice of a place to live based on the perceived low cost of living here.
You must be able to adapt to the Filipino life style and conditions or the "sweetness of low price will swiftly sour". My wife and I live modestly and keep semi-good records. Here in Luzon we spend pretty much exactly what we spent in Colorado Springs last year. If we lived in Metro-Manila we would spend quite a bit more. The house is much cheaper, as are a few items, like hired labor, but electricity, prescription drugs and food costs a lot more.
Hi Dave – Yeah, we are planning to build a house within the next few years, we already bought the land. I am seriously considering going with solar to the greatest extent that I can. We have a very large house, and a large family, and our electricity is more than double what you are paying, so if solar was widely used, it could pay for itself rather quickly, I think. It's something I have to research.
I do think that overall we save money by living here, but it isn't the huge amount that people think they will save by moving here. I have managed to find a nice balance here, though…. some savings, and also the ability to earn more than I did when I lived in the States, so it's a great choice for my circumstances.
That's interesting Bob, It's exactly the opposite for me with electricity. In the states I was running about $70/month for a 2br apartment. Here I have a 3 br townhome and I'm running 1,200 pesos a month or $26. However the big difference is I do not use aircon, the way the house is built even on the hot days it's cooler inside than outside.
Hi bob,
There is a cheap way to produce hot water useing the sun.Build a box about 10 feet long by 4 feet and about 4 inches deep,lay inside it black half inch polypropolean pipe,(must be black)Lay the pipe up and down the length of the box untill the bottom is covered,then connect to one end a small slow speed electric pump and attach to your water tank,the other end of the pipe returns to your water tank.Then cover the box with clear glass or plastic and you will have a constant supply of hot water after a few hours.
Like Louis our experiance is the same with electricity much cheaper than in the UK. Our average bill per month is around 1,000 Pesos.
We also don't have A/C as we don't need it and we cook using gas and only use the water heater ocassionaly.
I think the price of electricity compared with Europe is very different. The average price here in Belgium is 0.1813 EUR = 0.249895 USD / Kwh.
Oh and we cook and heat with gas. Our monthly bill for electricity & gas is 165 EUR. That's about 10000 PHP monthly. And we don't have aircon, it was even a very mild winter.
The price of gasoline is also a lot cheaper in the PI. I just paid yesterday 1.09 EUR / 1 liter diesel. That's more than 63 PHP / Liter.
Don't know about food in the shops. I do know a visit to the restaurant is a lot cheaper in the PI.
Hi Louis – It isn't a proper comparison to just compare the total bill, because your usage is different in the two places (different appliances, etc.). On a per Kilowatt Hour basis, the price here is almost double what I was paying in the USA. I have a big house too, probably about 4,000 square feet, and more than 10 people living here. Our situations are pretty different from each other.
Hi John – Interesting not there about getting cheap hot water!
Hi Jim – Wow! 1,000 Pesos? I'd love to have that bill!
Hi Luc – You're right, the costs of energy in Europe are very high. I have a friend visiting from Australia right now, and he was telling me of the gasoline prices in AU, and they were quite a bit more than here. Gas prices here, though, are higher than the USA.
Food is most certain cheap here!
Bob,
Is this like TV? Summer Reruns? hahahaha
I have an idea for a story, the filipino sense of humor or lack of.
Here is an example.. I told Elenas neices the joke:
Why do you tie the embilical chord when a baby is born. So they do not go zoooom all over the room like a balloon.
The girls just look at me and say, "Oh, you must clamp or tie the chord." See no sense of humor to american jokes.
Hi Bruce – Summer reruns? Ha ha… Actually, you see, in the past couple of months, the traffic on this site has quadrupled, so we have a lot of new folks reading here. I am trying to write at least one new post every weekday, and also re-feature some posts from the past to lay a good groudwork for new readers. Hope you guys don't mind.
Regarding humor – I think every culture has it's own unique humor. For example, a of British humor is not well understood or thought too funny by Americans.
Aw c'mon Bob I love Brit Wit… who doesn't like Monty Python… Nobody expects this Spanish Inquisition! hahahahaha
The powerbill seems to always get my wife a bit wound up. It seems I am not so responsible with conserving electricity. She doesn't seem to see my rational for buying large quantities of Darigold whole milk that is pasturized at P109 a quart either. In Manila your best off traveling via Jeepney and train. Most the time the train is faster, and its very cheap. Just say bayid po and pass the driver seven pesos. BTW, Monty Python is good but I really like Black Adder! Imagine Lord Flashheart in the Philippines, "Well if it isn't Bobbi Parker, saucy than a direct hit on a heinze factory." Woof!
Hi Edward, thanks for sharing your thoughts!
Bob:
I live in Houston which has a climate comparable to that of Davao. My house is about the size of the one you have and is less than 10 years old. My electric bill is usually over $300 a month in the summer. Granted, I like air conditioning. Just this last year electricity prices have skyrocketed in the states due to the high cost of oil and natural gas. Your electric bill would be considered normal or even on the low side by many.
Hi David S. – to accurately make a comparison, we are paying about 20 US Cents per kilowatt hour, plus there is a 12% tax on that, so our rate is over 22cents per KwH. How much in Houston?
I think the rise in business electricity prices is having a terrible effect on all sorts of businesses "along with the credit crunch" but there is still some good deals out there but someone somewhere has to do something.