Given the choice, would you own or rent?

[USMC-Retired 10,995]

I think you are in a pickle. First does your wife understand the monetary gain by not cashing in the stocks now? Does she understand by not cashing in you are securing your daughters future and educational needs? Also does she understand you can never build or own a house for the current rent you pay? You are in a pickle because if she is informed the decision to ride out 6 more years is a no brainer. However I feel she does not understand the dynamics and in typical protect me now mentality she wants a house. It is tangible she can touch it and show it off. Your money in stocks do none of that. It is time to sit at the round table. Good luck your heart is right by looking after the child your wife will be fine after you part.

 

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[tomaw 1,341]

 

Pretending I'm in your situation, this is how I look at it. Since the money to be cashed in is going to a house, it won't be literally gone, but just moved to another investment. Your stocks are growing you say, but so does home value. I've never heard of home prices in the Philippines ever decreasing. They might not increase as high as the home prices in the US during a housing boom, but at least you're most likely not going to have to sell it for a fraction of the cost of building it. Plus you can add to your investment the 8,000/month you're paying in rent now once you have the house, which will give you $14,400 in 6 years on a 40-1 exchange rate, assuming it won't go lower than that, and that's before interest. But I agree that you should buy a house not because your wife pressures you to, but because you think it's a good decision. And if you make that decision, make sure the house is under both your names, if possible.

............... Lauie, you make some very good points. I agree house values continuely go up in The Philippines unlike much of The U.S. The one argument people will make though is that houses are hard to re-sell in The Philippines whch is true. So if you buy a house and decide to move don't worry about selling it. Just rent it out to one of the manny people that prefer to rent and make some money!. As far as the house being in both names, I know the land (lot) has to be in the Filipina wife's name only. I'm not sure about the house but I do know a forigner can own a condo by himself. I imagine the same rules apply to a house since it is the structures you are talking about and not the land.

[Mandingo 3,625]

People say what if she does this or does that, it's the same in the west even when your name is on the property. I know guys who married American women, had families only to later to get divorced and guess what? The woman got the kids, the home plus the guy had to pay mortgage payments and child support. Actually your better off in the Philippines if it happens because for every one ex-wife in the Philippines there are 10,000 hotter girlfriends you can have.

 

The key is whether here, there or in Timbuktu is to never put all your eggs in one basket, don't build/buy only something you can't financially just walk away from. Don't put everything you have into one thing so you aren't financially ruined if worst case scenario happens. Also doesn't hurt that you pick a good, honest and sincere woman to get married to.

 

The only way my wife would walk away from our marriage and take everything we have in the Phil is if I do something stupid like go out whoring, become a drunk asshole and become abusive to her. Actually my wife would put up with a lot more stuff from me than any western woman I have ever been with.

Edited May 15, 2013 by Mandingo

[tomaw 1,341]

well, the money will be gone once u buy.

 

u spend 96000 per year on rent (are there utilities?)

 

if you spend 2 million on building, then u spend about the same as 20 years of rent (plus u need to pay insurance, repairs, and utilities)

 

 

personally i'm all for buying, but then..i trust my wife and I have my in laws and family ''under control''.... (If i Might say it like that)

......... I've seen numerous real estate adds on the internet of houses in subdivisions that can be paid off with in-house financing in 5 years. Personally I'd prefer that as opposed to being a slave to some landlord for the rest of my life. Edited May 15, 2013 by tomaw

[tomaw 1,341]

 

The thing is IF YOU ARE MARRIED I believe you are obligated to look beyond your current needs/situation and plan for what is best for your family after your gone, no different than what my dad did for my mom. In the west it's not even a question someone would ask, we are expected to do this so whats the difference just because your in the Philippines? Is your family any less valuable just because your not in the west? Yeah I know we can't own land but if you can't trust your wife then you married the wrong person.

...... I totally agree. If these guys think they have a better chance of keeping the house in The U.S. I think they're in for a rude awakening.

[Sven 1,136]

The money I have invested in oil exploration has grown from $50,000 in 2010 to nearly $200,000 today and the way the U.S. is drilling, it looks like I could have anywhere from $500,000 to $1,000,000 in about six years...

 

Without knowing the details, I feel this logic may be flawed. If we are talking about listed stocks, you are basically saying that you will be an awful lot smarter and/or luckier than other investors in the stock market, for years to come.

 

That may of course happen, but typically it is unlikely.

 

I feel it would be more prudent to assume that those profits over the next years are likely to be equal to the long term trend in the stock market. That is, something more like 10% p.a.

 

Sven

[Brucewayne 3,803]

Excellent idea. Unfortunately, they (Filipinos and other Asians) live for today, not for down the road. So, your wife has no clue. Or, she doesn't truly care about your future together. Either way, I would put my foot down about it right now. It will not be any easier down the road.

 

In fact, you may have given her a little more leeway in the past, which is why she is like this now? (Don't shoot me. I am just speculating here.)

 

 

 

Definitely. I would, as I previously stated, let her know what is going to happen, and that you are only interested in making sure she is in good shape down the road. There again, you are looking into the future. She can only see just past her nose.

I am sure you are right, my wife is a cute little Pinay and it is hard to say no to her at times,but so far I have held out on the house thing.

I mean, the U.S. economy is just now starting to improve and the USD is finally starting to go up, so why waste what I could receive by rushing into anything?

[Brucewayne 3,803]

The thing is IF YOU ARE MARRIED I believe you are obligated to look beyond your current needs/situation and plan for what is best for your family after your gone, no different than what my dad did for my mom. In the west it's not even a question someone would ask, we are expected to do this so whats the difference just because your in the Philippines? Is your family any less valuable just because your not in the west? Yeah I know we can't own land but if you can't trust your wife then you married the wrong person.

 

The graveyards are full of people who trust too much, if it isn't your spouse, it could be your well intentioned in laws or a friend who gets to you.

Even in death, do not flash your money while amongst the locals.

[Brucewayne 3,803]

seems there are two factors at work here...... the one with the gold makes the rules.... and this is a partnership but i am the President and CFO so its my way or the highway    ... is it true the one with the most money when the die wins?

 

You know, you and I were both nearly ruined by women who liked to waste money in the past, I am sure you can relate to what is going on here.

Some of the guys get what I am worried about and a few more who probably haven't had and lost before might not realize what that can do to a person mentally.

Edited May 15, 2013 by Brucewayne

[Brucewayne 3,803]

This is all wrong in so many ways, but the final point he unintentionally makes is right. If you can't trust the woman you have chosen, then you have chosen the wrong woman.

 

We have built. The thing that throws the scale in favor of building rather than renting for me, is that you can do whatever you want on the land. We now have 15 meat goats and 2 beef cows. You can't easily do that at a rental.

I see where you are coming from and I would love for us to own a place here.

The old gal about had me talked into it too, but the excitement of the possibility wore off as soon as I slept on it a while and I realized how much I would actually be losing.

Not just for myself, but my family as well.

I have decided to hold a firm grip on what I have and in 6 years I will be able to relax that grip a bit.

I know you can't take it with you when you die, but I want my daughter to have some help for a number of years after I am gone so she has a good start in life.

I believe we were put on this Earth to procreate and that also includes protecting/providing for our young as long as we possibly can.

[Wolfpack 2,166]

The graveyards are full of people who trust too much, if it isn't your spouse, it could be your well intentioned in laws or a friend who gets to you.

Even in death, do not flash your money while amongst the locals.

 

I think you might be over thinking this a bit...or I am missing something...

 

You do not have to spend every peso on a house...you can buy a simple house for under 500,000 pesos...as someone else said, don't put all your eggs in one basket...

[Brucewayne 3,803]

Without knowing the details, I feel this logic may be flawed. If we are talking about listed stocks, you are basically saying that you will be an awful lot smarter and/or luckier than other investors in the stock market, for years to come.

 

That may of course happen, but typically it is unlikely.

 

I feel it would be more prudent to assume that those profits over the next years are likely to be equal to the long term trend in the stock market. That is, something more like 10% p.a.

 

Sven

I got in before oil stocks were expensive and since the US will be the largest oil exporter in a few more years, my money will only grow (unless someone finds a cheaper source of energy).

Our stocks are set to split sometime this year so more can be sold.

That means we will have twice as many stocks at half value, but as those stocks sell out, ours will rise in value and possibly have to be split again.

I don't play the jump in, jump out game when it comes to my investments (too much like playing poker), I prefer to play the Bear market and wait it out.

I lost a few dollars on other things in '09, but Prudential Life and my oil exploration stocks saved my butt pretty well and even though insurance isn't doing much, the oil fields are booming.

Sure, it could all fall down around my ears, but I have seen a lot of upturns and downturns over the years and the only thing I have seen that brings a boom to the stock market is a near crash.

We had that recently and I hope to ride it to the top this time and jump off as it crests if at all possible.

[Brucewayne 3,803]

......... I've seen numerous real estate adds on the internet of houses in subdivisions that can be paid off with in-house financing in 5 years. Personally I'd prefer that as opposed to being a slave to some landlord for the rest of my life.

I tried a subdivision, just rented and ran for dear life after only 2 months.

I would rather be in a nursing home or dead than to live in another one of those places, no place to stretch, play park your car plus the cars of visitors, television wars with everyone turning up the volume as high as possible to drown out the neighbors, the smell of rotted fish burning on the grill and on and on.

[Brucewayne 3,803]

I think you might be over thinking this a bit...or I am missing something...

 

You do not have to spend every peso on a house...you can buy a simple house for under 500,000 pesos...as someone else said, don't put all your eggs in one basket...

I have been married twice before and survived those.

It was sort of like going to war, you come out a little less trusting, more wary and a bit jumpy/shell shocked.

[goldote 250]

I don't like it when a 'tourist' or immigrant buys up most of my block in Texas and builds a giant house that dwarfs mine.

It motivates me to check with the 'authorities' to see where he got his money and if he's legal.

I'll also start complaining within my tightly knit community about the 'injustice' of it all.  If that doesn't work, then............

Now transpose this to the Philippines.