Moving to the Philippines is not the same as moving to live on the other side of the City where you are now. That statement, and this entire post is meant for people from overseas, of course. Moving to live in the Philippines means going to a new country, a place that is, by definition, not the same as the place where you are coming from. It is important to give yourself time, upon your arrival, to learn how things work here.
Don’t make rash decisions about your life in the Philippines until you have taken the time to learn how things work here, and how you like the way these things work.
Last week, I got an e-mail from a fellow who is planning to move here in the near future. His prime concern that he was asking me about was how to move a large sum of money to the Philippines, from his accounts in his home country. The mechanics of moving money are fairly easy, and there are a number of methods to choose from. However, I wrote back and told that guy that I felt that his prime concern should be more than just the mechanics of moving the money. In my opinion, for somebody setting out on a new life, as I did, the main worry should be how to preserve that money. Further, it is my opinion that you cannot make a decision on how to preserve your nestegg until after you have been here for a while.
Now, I know there are people out there reading this who are thinking to themselves:
Bob thinks that he is so smart, and he knows everything…..
No, I don’t. Rather, I am advising you to avoid the mistakes that I made! I blew a ton of money when I moved here because I didn’t know anything about the place, even though I thought I did. I am just trying to share my experiences so that you can learn from a person who made mistakes and is willing to show you how to avoid the same experiences!
A few of the things that people tell me are on their priority list when they move here:
- Build a house. In general, I would advise against doing this. Come here and rent a house for a year or two before you lay down money to build. There are a number of reasons why this is more practical. First, as a newcomer, you will likely be taken advantage of by the people building the house. The longer you are here, the better you will be able to control “overcharging” on the construction, padding of the bill and such. Secondly, it is my contention that when moving to a new country, you really don’t know for sure where you would like to live (even though you think you do). If you put off house construction for a couple of years you can work all these questions out before dropping a large sum of money on the house. Put your money somewhere that will pay you some interest, and that can cover the rent that you will be paying.
- Starting a business. This is where I learned a lot when I moved here. I had a wad of money, and wanted to start some businesses that would ensure me an income over the years. The problem is that I started a number of businesses serving the local economy, but I didn’t know anything about the people that I was serving! As I learned more and more about my new home, I could see the mistakes that I had made, and the money I had wasted. Take time to learn about the place before you start a business here. Don’t take the attitude that “back home, they did it differently, and if I do my business the way it was back home, it will take off.” It won’t happen in most cases. The people here want to do things the way they do it here. It is you who must adjust, not them.
Of course, there are other areas where you should take time to get educated before spending money, but I feel that these are the primary areas where a lot of people drop large sums of money too quickly.
The next thing that some people are thinking is this:
I’ve been to the Philippines for a vacation 6 times, so I already know the answers.
I am sorry, my friend, but living here is not the same as having a holiday or vacation here. You will learn that after you’ve lived here for a while. I vacationed here around 6 times or so before moving here. I have now lived here for 8 1/2 years too. You know what? I am still learning new things about the place all the time. There are still frustrations that pop up. The difference is that these frustrations and new bits of information come to me only from time to time now, but they still come. So, if you have been here on vacation before, don’t consider yourself an expert yet… if you are like me, you probably will never be an expert, just a little better educated.
Believe me, those early years of living here in the Philippines are the times when it is so easy to waste your money, let your nestegg dwindle, etc. Be vigilant!
Hi Bob
Great post my friend. Have you ever heard of anyone moving to the Philippines before they even visited?
Morning Bob,
That’s all excellent advice Bob. What’s more, it also applies to moving anywhere even remotely unfamiliar. From what I have seen of rents over there, the funds you preserve from not purchasing (if they are well invested) would generate sufficient enough return to cover the rent anyway. If you have lots of dollars, there seems to be some real mansions you can rent. I have made a few moves over the years that I though could be permanent ones, yet I only moved a four or five years after that. Best to keep your powder dry my friends. Flexibility is great. Don’t tie yourself down anymore than you ever have to. You’re dead a long time so try to make as few big mistakes as possible by listening to people in the know. Whether you fully follow the advice or not is another matter, however, you have been warned!
Hi Dan Mihaliak – Yes, I have heard of several such instances. I think that any level of common sense would tell a person to at least visit the place before making a move! 😯
Hi AussieLee – Thanks for your support. Especially with the financial uncertainty that we are experiencing these days, it makes a lot of sense to remain unattached along those lines.
Hello Bob,
An excellent article and a very good piece of advice.
Steven
…”nice 3 bedroom house built 2 years ago by expat with european kitchen and bathroom designs located in Cebu Banilad area…”
I CAN’T COUNT HOW MANY TIMES I HAVE READ THAT IN THE RP REAL ESTATE SITES…( i.e. found out he did’nt like it there and was moving on..)
Hi Bob,
Good comments about building (or buying), owning a house in Ph.
I always wonder why so many people want to own a house whenever they move to any new location? Especially abroad.
Generally owning a house anywhwere is a sort of liability, costs lots of money and limits one’s freedom for sure. If it’s a monetary value then it’s often illiquid, pretty hard to sell quickly when you need.
In my life I lost a very good job opportunity and couldn’t move to much nicer city to live because I was stuck with a house which just wouldn’t sell. When again I couldn’t get a good transfer because of that house I sold it eventually with a loss and promised myself never buy a house till I retire.
Lately I met a friend whom I havn’t seen for a while and he told me that he is divorcing his Filipino wife. It was shocking because they were together for over 10 years here in Canada. I asked him about the house he built on Romblon island in Ph. years ago. He said it’s gone, her family lives there now. So it was sad news becouse I know how hard he was working all his life. He was my co-worker years ago.
We don’t plan some dramatic life changes but they do happen once in a while. I live with my Filipino life companion, we even think about moving there one day, but I’d never build or own a house or apartment there.
I would give away my freedom for sure and pay lots of money on top.
It would make me feeling quite stupid for sure.
But some folks have maybe different situation, more stable lives.
Good for them but not for me.
If this comment can stop somebody from making a big, costly mistake in life then I’ll be happy for that fellow. For others who know better, well, they’ll learn a lesson but can blame only themselves. 😉
Bob, as always your advice is spot on!
Most of us have seen foreigners come to the Philippines, and create such a mess for themselves, and then blame everyone but themselves.
If I may point your readers to a guest post I did on my friend’s blog about this very topic: http://tinyurl.com/3lb4mc
I have only 7 years of living in the Philippines, but have seen things that I would never imagine someone doing back in the USA. The big question is why do people do things while in the Philippines, that they would never dream of doing back in their home country?
Bob, your blog paints a realistic picture of the Philippines, and prepares us all for what to expect. Keep telling it like it really is.
Well even though our business is frustrating at times I am still happy that we started it. If I had built a house last year I would have had a place to live, true, but I wouldn’t have had the house I really want. Waiting has allowed me to research things and figure out a house design etc.
Hi Steven – Thank you!
Hi brian – some variation on that line seems to pop up often, doesn’t it? And, the problem is that expats build these fancy houses, then when they want to go back “home” the house is very hard to sell, because there are not many who can afford it.
Maayong buntag Bob
My story sounds all too familiar. A friend of a friend of my wife and I wanting to retire in Cebu decided to build a house in the city before she retired. She had her brother make sure everything was built right and watch the house for her. When she arrived in the Philippines she was expecting to move into her new house. Instead her brother claimed the house and she ended up renting an apartment.
Another story. My wife and I decided to buy a piece of land so her family could build a small house, have a few crops, and raise some live stock. After buying a piece of land we decided we should have the land titled. We asked a friend to help us with the filing for the title. The attorney fee he said we needed seemed very high but we had no way of checking and our friend had helped us before and was always honest. We sent money to him and then were told he needed more. We finally found some one who could do some checking for us and learned lawyers could be hired for less than 1/3 of what we paid our friend. As it turns out he had only given the lawyer a small portion of the money we sent him to the attorney as a retainer. Now we are unable to contact him and have heard he is leaving the country. 😡 The friend who stole from us was Joseph Wong Yit. Please be very careful if you do any business with him. I am hoping I learned some of my lessons while still in the states.
Hi ted – I think that building or owning a house here is not such a bad idea – but only after you’ve had time to adjust and decide if this is the place where you really want to live out your life. For example, Feyma and I will be building a house on Samal Island, we already bought the land. But, we’ve been here for over 8 years already and pretty well know what our future plans are.
Hi Lloyd Cromer – Thanks for sharing your comment, and the link to your article. I haven’t fully read the article yet, but what I did see so far sounds a lot like the way I feel too.
Thanks for your kind words.
Hi Bob, If people don’t want to live life like rolling dice it is best to analyze things before you make your move! I rolled the dice though. I am not a gambler, but in life I do things that make me think I should be one.
Hi BrSpiritus – Regarding the business – I don’t know your business, but from what I do know about it, I don’t think you put a huge amount of money into it, and that is more what I am talking about. For example, I had businesses in GenSan that I put more than P1M into just to get them started. Putting up something smaller is not as troublesome.
Hi Larry – Yes, I hear a lot of these stories about using the wife’s family to do the building or supervise the building, and there are a lot of horror stories out there, no doubt. I think that it’s best to be on-site yourself when it is your money being spent.
I am sorry to hear about the situation with the attorney too!
Hi John – I think we all roll the dice from time to time. Hopefully, we come out on the winning end, but it doesn’t always happen!
Bob,
A lot of the comments posted mirror my feelings. I thought with my abilities I would be in demand here for employment. I did not realize the legalities to work here and also all the trained Filipinos here.
There are many things I love here but also many things I still have trouble getting used to.
I love my family, and friends I have made, both foreigners and Filipinos. I enjoy meeting people here and getting to know them.
For me life is difficult and I wonder at times, if it would have been more or less difficult if I stayed in America and brought Elena there.
Well, I guess I will never know and just need to keep plugging on.
Hi Bruce – It took me years of living here before I became adjusted to a lot of things. You’ve only been here a short time, so you still have adjustments to make. Hang in there, you will do it.
Don’t need to worry about that bob My wife makes sure that no money is waisted at our place …When we were building our house She went to the mountains were they were cutting bamboo for the fence around the house for 3 day to make sure they were working ..and she made sure the carpenters did there jobs ..and she fed them at breaks and lunch ..no matter what they were doing she was there watching them ..they said she was a slave driver . jokingly of course .. Phil R.
Hi Bob,Once again sound advice.From my limited knowledge, some people rush in to buy property,thinking they will achieve the same returns as they would in the West.Property values rise very slowly in Phils,and can take a very long time to sell.The online real estate brokers pages are littered with properties that have been reduced many times,and as a last resort are up for rent,some have even had to reduce the rent.I feel that if you must buy,buy as a home and not just as a financial investment,and spend only what you can afford to leave behind should it all go wrong,regards Chas.
Hi Phil R. – That’s a good lady that you have there! Better hang on!
Hi CHAS – your comment is spot on. Unfortunately, a lot of people don’t learn from reading, they have to try it themselves before they find out! 😆
Hi BOB Your advise is right on the money. We built a coupel of houses in Kidapawan city. We are very luckey, to have NO FAMLEY members doing busness for us. We have good pepole that are totaley dependent on us. We keep on top by useing the inter-net and tet mesages. It can be a headace but well worth it. YOU ACN FIRE AN EMPLOYE BUT NOT THE FAMLY
Hi jim m – yes, I totally agree with the things that you mention. It’s best not to get tied in with family on these situations. Unfortunate, but true.
Hi Bob…i’ve become a regular reader of your site since you gave me some advice on retiring to Davao some months back.I appreciate all the advice I get from your site and your readers experiences. I am 58 and still work in Saudi for the next 9 months at least. 2 years ago I decided to buy a house in Maa,a car and 5 hectares of ricefield near Tagum.My plan is to take care of all the major expenditures before i retire leaving what capital I have to support me thru until my pension from UK kicks in at 65.I am antisipating to live on 50,000 a month and will try to avoid overspending as you say you did when you first arrived.As such you could say I’ve pretty much decided that i will make it work.I will follow your advice and start visa requirements while i am still in Jeddah but can you or any UK people advise how I get police clearance…not as if I can walk into a police station here in Saudi?Anyway I am to active to sleep the rest of my life and hope that I can find a small business interest to keep my brain alive….so im looking for a gem of an idea to keep me busy from you or your readers.
PS is your book available in a lending library as I am trying to preserve what money I have …just following your advice Bob. 😀
Hi David – It sounds like you have a decent plan there, and having a good plan is the first step toward success.
I am sorry, I don’t have any advice on getting the UK police clearance.
Book loan program? I do sort of have that! If you read all of my blogs, you won’t get all the info from the books, but you’ll get a good idea of the things on my mind, and be able to garner a lot of information that way! And, that’s free! 😆
I’ve been getting a lot of inquiries lately from people who want to move here but have not even visited the country before. Strange!
hello bob! nice blogs, nice advices! i think it is a general concern that when you live in a place not your native land you will probably face difficulties in adjustments to your new place, should that be the lifestyle, foods, culture, transports, language, people etc., etc.
for the last ten years, i spent my life living in the foreign land because of my job so i know the hardship in adjustments… moving from one country to another and another… but when i retire, i still prefer to spent the rest of my life in my home country no matter how hard life it is there but i feel better when at home…
so here is my question, what is your reason for living the rest of your life in a foreign land?
Hi rickman – I don’t consider the Philippines a foreign land anymore. I’ve lived here nearly 12 years and this is my home. My wife is from here, and I have roots here. It is no longer an adjustment for me, I am comfortable here.
I am a Filipina nurse working in a foreign country… I am so empressed for those who love to settle down for the rest of their life in the Philippines (their foreign land). Yes it is a nice place but BE VIGILANT… and spend your hard-earned money wisely… then, you’ll have a very good life there.
HI BOB I stumbled upon your site while looking for a hotel in Davao for our office event, since then I got hooked… so fascinating to read your post and the comments of other expat who live in the Philippines.. well if its any consolation I’ve live all 34 years of my life in this country, there were times I wanted to pack my bags and go overseas but ( had a relationship with an American from Washington state for 6 years) as I grow older and even if in some ways our own culture drives me nuts, i guess i’ve come to realize my roots are planted so deep in this land that at the end of the day this where i belong…..
Good job….for all the wonderful information and God Bless you and your family!
Thank you, Freespiritime. Welcome to my site!
Good job Bob, much interest and comments about your article. Yes my son and I are two people planning to move to the Philippines without ever visiting there. we dont have the funds to visit first and our relocation there depends totally on the sale of what little we own back here in missouri. we have not had, by far, an easy life here in America and we feel our adjustment there will not be as hard for us as it may be for some others. I can see the stepping stones we have crossed over already that have led us to our desire to live in the RP. Everyday I learn something new about someone or something in your country. Most are charming and encouraging but some are heartbreaking and discouraging but my son and I never doubt our decision to move there just as soon as we can. There is a driving force in our hearts to bring us there. It is almost like we have been chosen to live on one of your islands. And when the time is right we will leave here to come there with no regrets or doubts. And as we learn and adjust to our new lives there, we will smile and laugh most days but somedays we will frown and even shed a tear or two. but that is life and life is full of experiences and adjustments and acceptance and the Philippines is where I will be for the rest of my life.
this article would definitely educate and inform those foreigners who plan of moving to the Philippines. so that at least they would have a better view and set their own limitations most importantly on their finances. while it is true that their money way back home goes a long way here in the Philippines, there’s a tremendous need to see for themselves how things would be in the long run…
Thanks, Coi, I am happy that you found the article to be helpful!
Thanks Bob for that sound advice, i am coming to the philippines in august for 7 months to be with my fiancee, and being on a pension i have to be very careful with my money, i have been twice before, but only for a holiday, the information that you share is a really great help, the last thing i want to do is avoid making any costly mistakes..
Thank you Mel, I am glad you found the article helpful. Enjoy your trip!