You know how people are always saying the Philippine SRRV “costs too much”. especially in the case of the SRRV, those folks may know the “Price of everything”, but the “Value of nothing”.
I received an important comment/correction from my colleague, the “Subic Sage” regarding this article, so I need to make sure the correction/clarification goes out to as many readers as possible. Please forgive the re-posting so soon after the original article.
I didn’t really say anything ‘wrong” in that article, but the way I said it could leave a very wrong impression in some people’s minds. There are steps to follow, like 1, then 2, then 3 and so forth. As the Sage says, you can’t jump from step one to step three. Thanks, ways for the added information/clarification.
Hi again Dave: as always, love your blogs! However, this one is somewhat misleading. An applicant to PRA MUST invest in the time deposit FIRST, let it sit for a minimum of 30 days THEN apply to PRA to withdraw the funds for a recognized purpose, such as buying a condo. If the applicant uses all that deposit to purchase the condo, PRA will annotate the entire Deed in lieu of the deposit … think of the drawbacks to get that annotation removed if one wants to sell. One cannot go from Step 1 to Step 3. Those who already own condos do not qualify simply by using the condo as collateral .. .just for the record.
More SRRV Fallacies
Recently I wrote and published the story of my single US retiree friend who was getting an SRRV (Special Resident Retiree Visa) by using his 25 year lease of a house and lot instead of a cash deposit in a bank … as many people believe the SRRV program requires.
A 25 year lease (with written option to extend the lease another 25 years is a great solution for many retirees. But many folks don’t want to take that route.
They also don’t want to deposit $10,000 USD in a bank, and let it suit there at perhaps a whole .5% per annum interests, but they do want to avail of the SRRV program.
You Can Buy a Condo
Most people already know that one can always qualify for the SRRV by buying and owning a condominium in the Philippines, but many of you don’t want to live in a condo.
So you’re stuck, right? Maybe not.
You Don’t Have to Live in a Condo, Just Own One
I wonder how many have considered this option?
Buy a qualifying condo and then rent it out … often for a tidy profit, while you live wherever you wish.
You see there is no requirement I know of under the law that an SRRV holder has to LIVE in the condo he or she purchases … merely that s/he remain the owner.
And Renting It Out Is Easy
And here in the Philippines, renting out condos in good quality buildings is pretty easy.
I just looked at a typical rental ad for a medium size condo in an upscale (but not really high end) location.
The agency who is handling this for the owner will rent the unit for as short a term as one night up to and including long-term (with discounts for terms over 6 months).
One of the things many don’t realize here as well is, typically rent is paid via postdated checks at least a year at a time, so there is no such thing as the renter “forgetting” to come by the office with a check .. the rental agent already has at least twelve monthly rental checks (plus a check for first month, last month and a month’s deposit “in hand” before the tenant moves in.
Personally, here’s an example I myself wouldn’t mind owning. It’s just off the C-5 “Circumfrential Road”, near the airport, near Medical City (one of the only two US-accredited hospitals in the Philippines, Accredited Hospitals Philippines , near great shopping at SM Mega Mall, Robinson’s Galleria and the EDSA Shangri-La shopping complex, one of the most high-end ones around.
But I don’t really want to live there now, at my stage of my life. I like living farther out in the provinces.
I like living north of the city do my wife and I can visit our farming operation more conveniently, and where our favorite nephews and nieces live.
Some place Otto the Wonder dog can go on a walk without requiring an elevator ride as well.
So, if I needed an SRRV, my strategy would be to buy a unit in a complex like this, with rental management on site, through the condo company management offices (pretty much a normal arrangement here).
Use the condo to qualify for my SRRV, and just worry about collecting the rental checks, less expenses and the rental agency management fees.
I could live anywhere in the Philippines and not even think about Manila.
And the hidden value in this arrangement … aside from the fact these condos will likely always retain their value and even show modest price “uplifts” over the years is, when I get really old some day, or if my wife or I should develop the sort of health problems where we needed frequent and modern medical care, we could always just cancel the rental arrangement and move back into our own little home, with 24 hour security, every possible service available right in our on building, and a modern, US-standard medical center a very short cab ride away.
Worth Thinking About Before You Just Say “The SRRV IS No Good”
Like all solutions, perhaps this isn’t the one YOU would want, but it’s a sound, legal and very feasible way for a single person, or a foreigner couple or family to live in the Philippines with a life time visa and no further visa hassle. No need to leave your SRRV cash deposit sit. almost idle, in the bank. You can let your condo “buy” your SRRV.