Asia Expats Forum

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

Hi there
need an advice from people permanently living in philippines.
my parents are retiring next year and they are thinking of buying a small house in philippines. sounds silly i know but none of us ever been to that country. they just want to live in a place with a nicer climat and lower prices than in Russia where they live now. so they could spend there 2/3 of year while its cold in the RF. so could anybody give us some tips about the places to buy a house. just a nice clean location with all infrasctructure. i pressume Manila suburbs are going to be expensive. my parents want to buy a 1 or 2 storey and 3 to 5 bedroom house with a small garden within 50,000-60,000 usd. think its all real. so more simply the question is where retired not rich foreigners prefer to live in Philippines? do you know the places?
thnaks in advance.,
Lena

Alan Stepney · Centurion Joined: 05 Nov 2004 Posts: 853 Location:

Whilst I dont live in the Philippines, I have made some 50 trips there over the past 16 or so years, some for extended periods of time.

In addition, I plan to move there, probably early next year.

There are many delightful places one can choose.
The climate everywhere is MUCH warmer than Russia!!

Most foreigners prefer the larger towns where there are the usual "western" facilities such as hospitals, shopping malls, and western goods / foods are available.

Manila is, for me, too crowded.
My choice, and that of many foreigners, is Cebu.

The one thing is that foreigners are not allowed to own property, but rental is VERY cheap.

Take a look at, http://www.cebuliving.com/forums/

where you will find all the information you need.
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The Middle Eastern states aren't nations; they're quarrels with borders.- P. J. O'Rourke

Alan Stepney · Centurion Joined: 05 Nov 2004 Posts: 853 Location:

Before anyone corrects my statement on property ownership, I will add that foreigners CAN own apartments provided that the majority (60%) of the block is Filipino owned.

They cannot own land or houses.
The law does allow for very long (25+) year leases, but these are very rare.

The majority of foreigners rent, and, depending upon area and type, a nice house can be found for anywhere between US$ 200 and up to, say, US$ 500 (or more) per month. Some for less than $200.
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The Middle Eastern states aren't nations; they're quarrels with borders.- P. J. O'Rourke

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

thanks for reply but what a let down. i already tried to figure out which air company we would fly to the philippines. Smile

older people in russia are not used to rent accommodation. so the idea itself gives me kind of uneasy feeling:) but on the other hand rental in Russia is much more expensive. so probbaly in the philippines it does make sense. a friend of mine is building a house somewhere in the philippines, how come then?
can i ask you a couple more questions - do you normally rent a house or apartment while you are there? im just wondering how long it takes to find a nice small house with a garden to live in or how much an agent fee and things like that (in cebu for example). the problem is my parents of course dont speak any other languages but russian and the philippines are definitely not like thailand or turkey where lots of locals can speak russian due to our tourists. so there will be certain problems every time they come there and will have to connect realtors and travel from one place to another before find a proper house. i wouldnt like to book and prepay online either when i actually didnt see the house. so if search of a house doesnt take long and it s not a problem we i think could try next autumn.
thanks again.

toopeekaa 1 · Scribe Joined: 18 Jan 2005 Posts: 1934 Location:

Alan Stepney · Centurion Joined: 05 Nov 2004 Posts: 853 Location:

In the UK, rental is not popular. In fact, until recently, a rented house was a sign that you were on welfare, and although that is changing, most of the older people dont like rentals.

However, that is the rules in the Philippines, and given that, plus the fact that land titles are not as well defined as in many countries, it makes sense to rent anyway.
Some people do try to get round it and buy. If one is married to a Filipino / Filipina, then the property can be in their name.

Some people buy using a corporation, with the Filipino shareholders being nominees and having pre-signed transfer documents to the actual owner.
The risk, and it has happened, is that one of the nominees might go to the courts, and they would refuse to enforce an illegal contract, with the result that the "owner", would lose the property.

I have rented houses when I have been there for an extended time, or used hotels, particularly the smaller ones, when I was only there for a month or so. Some are geared to the longer stay tourists and make life easy for them.

I would DEFINATELY go for a visit before deciding to move there. It is a big step and one needs to be sure that it is the right one.

I dont know about Russian, but certainly English is common, plus I have met Filipinas who spoke German, Polish, French and Japanese, so it is quite possible that somene will speak Russian.
However, a small amount of English will get one through most situations.

As for timescale, once one has picked an area, it shouldnt take more than a couple of weeks to find a place one likes, and then one can move in almost right away.
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The Middle Eastern states aren't nations; they're quarrels with borders.- P. J. O'Rourke

sibbick1 · Novice Joined: 05 Nov 2004 Posts: 23 Location:

Hello Lena

I agree with everything the other posters have said.

My suggestion is to come to the Philippines for a long visit before committing to anything.

The Philippines is not for everyone.

Now that you know you can't buy, except for a condominium, I will give you some examples of monthly rentals in Cebu that friends of mine have checked out or arranged this year:

Here is a website where you can convert Philippine pesos to your currency of choice:
http://www.xe.com/ucc/

If you do decide you want to rent, you can stay in a hotel, pensione house or apartelle while looking for a place.

I come and go between Australia and Philippines so I haven't yet bothered to rent a place. I just live permanently in a family room at a hotel for P18,000 per month. It suits me because there is no more money to pay for utilities, cable tv etc and someone comes and cleans the room every day.

Regards: Jim Sibbick
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Free Philippines videos, Philippines pictures and my blog can all be accessed from my website http://www.bigjimsphilippinesexperience.com

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

Lena · Joined: 09 Nov 2005 Posts: 6 Location:

to prevent further discussion about how reasonable it would be to go for a visit first.
my parents did travel around se asia a bit (and loved it) and thats why they got an idea to buy a house in one of those countries. originally thailand was the plan. but people begin to travel to the philippines too and they all say its even cheaper than thailand (my parents are not very wealthy people so its important for them), its not that touristy and still very nice.
so i asked where to settle down in the philippines just to know where to head for first to have a look and also to know the prices and possible problems.. just to get general information.
but its all just details i didnt want to go into in my first post. its not like my parents intended to go to asia with bags full of cash for a first time in their whole life and buy the first house they would see.

Alan Stepney · Centurion Joined: 05 Nov 2004 Posts: 853 Location:

The Philippines has the lowest living costs for expatriates, according to a survey of 32 countries and territories released Monday.

The Philippines, which placed at the bottom of the survey, was the cheapest country to live in followed by Argentina, Thailand and Malaysia, said an annual cost of living study by human resources organization ECA International.

The survey also showed that Asia has generally become less expensive for expats when compared to Western Europe and North America due to the region's steady inflation rates and currencies.

Countries ranked by cost of living (2005)

1. NORWAY (Most expensive)

2. DENMARK

3. JAPAN

4. SWITZERLAND

5. FINLAND

6. SOUTH KOREA

7. IRELAND

8. FRANCE

9. SWEDEN

10. UNITED KINGDOM

11. GERMANY

12. BELGIUM

13. ITALY

14. NETHERLANDS

15. UNITED STATES

16. CANADA

17. AUSTRALIA

18. HONG KONG

19. SPAIN

20. NEW ZEALAND

21. HUNGARY

22. CZECH REPUBLIC

23. SINGAPORE

24. POLAND

25. MEXICO

26. BRAZIL

27. CHILE

28. SOUTH AFRICA

29. MALAYSIA

30. THAILAND

31. ARGENTINA

32. PHILIPPINES (Least expensive)
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The Middle Eastern states aren't nations; they're quarrels with borders.- P. J. O'Rourke

soulwolf · Joined: 21 Dec 2005 Posts: 1 Location:

I am getting married to a wonderful philippine woman that I have known for quite a while.
Unfortunately I have only visited the philippines 1 time (for 2 weeks) to meet the family and see the area.
She worked in Taiwan until last month for 7 years where I have visited her every month.
I found a house that the both of us love and I am considering buying it (in her name....we will be married in Batangas next month).
I want to find out how different is the mortgage process and/or credit check than in america.
I am not worried about my credit but since I don't have credit in the Philippines and she doesn't work anymore (until we are together again permanently) do credit reporting agencies in the philippines share the information with the agencies in america?
Or do I need written documents?
I am also not rich,so I can't afford 2 houses (1 in the states and 1 in Batangas while traveling back and forth) but after spending that time there and meeting everyone (basically the entire city of Batangas...lol) and seeing the area with her and by myself I love it there.
Even though the mortgage is around the same there in Batangas as it is here the cost of the house is cheaper but isn't for the maximum that usa mortgages are for so that is one reason for the cost being somewhat equal.
This was for a house valued at 4.5 million pesos fully furnished when the basic house in Michigan is around 150,000 usd and not as nice.

Alan Stepney · Centurion Joined: 05 Nov 2004 Posts: 853 Location:

4.5 million Pesos? Sheesh !!! That should be a palace!

Before doing anything, I would make some careful checks.

Take a look at, http://www.cebuliving.com where there is lots of info on buying, and building, houses in the Visayas.

As for credit checks, they should take the usual precautions, but... being the Philippines, they rarely do.

I would advise renting for 6 months, or even a similar time in an aprtment-hotel, while you look round.
Also, keep out of sight when looking at property.
White face=American=rich=price doubles !
_________________
The Middle Eastern states aren't nations; they're quarrels with borders.- P. J. O'Rourke

AsiaBill · Joined: 28 Jun 2005 Posts: 18 Location:

First - most lands in the Philippines are registered Heirs' ownership meaning you need for ALL or almost ALL family members (even gandchildren over 18 y.o. ) to sign the absolute deed of sale. If not a couple of the "black sheep" in the family will take your money and later everyone else will complain and nullify your deal. So check with the provincial capital's land office YOURSELF about the particular piece of land you are interested in. ALSO MOST lands like these have NEVER been surveyed so "from that tree to that rock to that tree" type of land borders are often slightly off so you need to pay for the survey. Get someone from the city or if possible get the surveyor that court appoints in case of land disputes. YOU pay for it then deduct it later .

Okay now for ownership - it's beter to form a Philippine Corporation which you own 40% of and an embassy recommended law firm organizes the other 60% who gives you SIGNED but UNDATED VOTING rights of their shares BECAUSE these can be passed to your heirs. Thereby nobody stands to gain from your death should the land become valuable later. This incorporation can cost $1000 to $5000 when a Manila law firm does the work but it's possible you can find a legal aid org. that will do it much cheaper.

If the land you're buying is so cheap you do not want to bother then NEVER build a REALLY NICE house on it because it might cause the locals that you bought it from to commit one of the common sins of coveting another's possessions. But if that's cool with you to live in a bamboo / nipa house then you can sign a 25 year lease with a compensation clause, peaceful living clause, and have them sign a SPECIAL Power of Attorney that allows you to sign on their behalf & sell the land portion of the property in the future. The reason this is NOT as secure as the corporate form is the SPA is revokable.

If you are buying ONLY a part of an heirs' land then YOU NEED a "EXTRA JUDICIAL PARTITION OF REAL PROPERTY" so you are LEGALLY separate from the rest of the land.

That's about it - ALWAYS think of the WORST SCENARIO and you will always be pleasantly surprised about what the future holds.
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