Wise Words on Philippine Property for Foreigners

Got a lot going on this weekend, so little time to write.

I did just see this great article on Philippine real estate from my blogging colleague Bob Hammerslag, and I think it’s very important read for those of you who visit here and are consumed by the “buy (or build) a house on the Philippines” addiction.

Go read Bob’s article, and then come back and read my response. Go ahead, I’ll wait

Iloilo Real Estate Notes and Snapshots

Thank you Bob and Carol, this is an excellent and informative article, one that I would have written myself had I the skills and the perseverance

In general, every word you’ve written is as true in most provincial cites here in Central Luzon, except prices tend to be higher here.

Buying is Always Better Than Renting in the Philippines? Maybe Not!Living in the Philippines. Rent or Buy? Think it Through

People really, really, really need to re-evaluate their idea of moving to the Philippines and ‘buying their dream house’ until they, at least, have several years experience actually living here.

In the US, folks have been trained since elementary school to believe in the maxim “it’s better to buy than rent”.

This is no longer as true in the US as it once was, it most certainly is NOT true in the majority of cases here in the Philippines.

In areas popular with foreigners the land is dotted with unsalable “KanoKastles”, built by foreigners who want to “show the Filipinos how houses ought to be built”, which are pretty much unsalable … or, at best take years and years to sell.

By all means, folks, take your time and learn what you are doing … a single family house in the Philippines is not an “investment”. I liken it more to owning a yacht … if you can afford it, if you want a lifetime hobby, and if you get into with the knowledge it will never be worth what you have invested in it, then buy it … I love yachts myself … but I’m not buying with rose-colored glasses.
Godspeed.

Here are a few articles I have already written on the “Rent Versus Buy” decision in the Philippines.

Be sure to look at the linked NY Times rent or but calculator.  The dollars and cents will amaze a few of you who are always chanting the ‘buying a home in the Philippines is better than renting a home in the Philippines’ mantra.

Related posts:

1. Philippine Rental Property — and US Tax Laws
2. Owning Your Own Home — in the Philippines — Part 5
3. Philippine Business For Foreigners — You Can, You Can Not
4. Questions, Questions, Questions 3
5. You Ain't As Smart As You Think You Are