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Monsoon

So I have to return to the Philippines for about a year. The housing I own there is all currently under lease. So back into the rental market I go...

 

. If I try to look at the equivalent (as close as possible) to what we have been residing in here in the states I would have to spend about $4000 per month in the Philippines to rent something close to it. OK, so cut it down to $1000 a month - and yet still what a gross disparity. 

 

I would rather not buy a bunch of furnishings as I already own 2 households of furnishings there. Rent a furnished house? Junk.

 

I wonder when the market will adjust in the Philippines. Will it ever adjust? The real estate market in some areas is like walking into the twilight zone. 

 

The funniest thing is how many will let a place sit for another 6 months instead of making a deal and getting the cash flowing. I wonder if they teach these techniques in the top business schools of the Philippines? 

 

I cant resign myself to paying platinum prices for scrap metal. I don't envy anyone looking for rental property for a family in the PHilippines. 

 

 

 

 

 

 

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yes it is a nightmare.       only when you are here full time does sense come into it and the opportunities are valued sensibly, the fiscal 'rape and escape' mentality is alive and well

. Doubtful that there are any top business schools in the Philippines. That's why their customer service, management sills and human resources practices are lacking.

So I have to return to the Philippines for about a year. The housing I own there is all currently under lease. So back into the rental market I go...   . If I try to look at the equivalent (as close

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yes it is a nightmare.  

 

 

only when you are here full time does sense come into it and the opportunities are valued sensibly, the fiscal 'rape and escape' mentality is alive and well

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So I have to return to the Philippines for about a year. The housing I own there is all currently under lease. So back into the rental market I go...

 

. If I try to look at the equivalent (as close as possible) to what we have been residing in here in the states I would have to spend about $4000 per month in the Philippines to rent something close to it. OK, so cut it down to $1000 a month - and yet still what a gross disparity. 

 

I would rather not buy a bunch of furnishings as I already own 2 households of furnishings there. Rent a furnished house? Junk.

 

I wonder when the market will adjust in the Philippines. Will it ever adjust? The real estate market in some areas is like walking into the twilight zone. 

 

The funniest thing is how many will let a place sit for another 6 months instead of making a deal and getting the cash flowing. I wonder if they teach these techniques in the top business schools of the Philippines? 

 

I cant resign myself to paying platinum prices for scrap metal. I don't envy anyone looking for rental property for a family in the PHilippines. 

Doubtful that there are any top business schools in the Philippines. That's why their customer service, management sills and human resources practices are lacking.

Edited by Reynaldo
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If I try to look at the equivalent (as close as possible) to what we have been residing in here in the states I would have to spend about $4000 per month in the Philippines to rent something close to it.



A little meaningless without knowing what you pay in the USA, especially for non-Americans like myself.

I guess the take-away is: housing rental is a bum deal compared to back home. Why is this? Tax on imports to ph? Lazy ph workers? Lack of competition at the upper end of the market? Most filipinos build extensions to their own homes themselves. Maybe that also has something to do with it. Just bouncing suggestions around, I don't know the real answer.


EDIT: Is $1,000 /month what you pay in the U.S.? Sorry, your post wasn't clear. Edited by mrlondon
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MattFromGA

Isn't one of the reasons why xpats move to the Philippines is so that they can get a cheaper rental?  The fact that you could rent one of your houses in the Philippines for $4k in the USA means nothing.  Filipinos certainly don't get paid the same.  I've noticed that Filipinos make about 1/5th to 1/10th or less of what the equal person earning in the USA.  Your rental price was only 1/4th different from the USA, which means it is over priced for the local income relative to the US income and prices.

 

When you ask?  When the average person makes near the same as that in the USA, then you can expect rental rates to be more like that of Hawaii, not tim-buk-too USA with tons of land.

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Skywalker

 

I guess the take-away is: housing rental is a bum deal compared to back home. Why is this? Tax on imports to ph? Lazy ph workers? Lack of competition at the upper end of the market? Most filipinos build extensions to their own homes themselves. Maybe that also has something to do with it. Just bouncing suggestions around, I don't know the real answer.

 

Gosh!

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MattFromGA

Also, why do people who are selling or renting try to hold on to their higher rate?  Well, it might have something to do with being tired of getting screwed.  They have some hope they can get a better rate so they hold out for it, maybe longer than they should or would want.  I'm sure you would feel the same way in their shoes.

 

However, in the end it would seem dangerous to compare markets that much.  Different markets have different dynamics and have to be treated differently too.

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blaze pontaine

The funniest thing is how many will let a place sit for another 6 months instead of making a deal and getting the cash flowing. I wonder if they teach these techniques in the top business schools of the Philippines? 

 

I've seen a condo sit empty for 5 years....and every year the owner raised the rent. 

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Skywalker

 

I wonder if they teach these techniques in the top business schools of the Philippines? 

 

What techniques are those?  I guess you are talking about real business rather than 'face' business?  Therein lies the economic problem.  

 

Business people here have 2 problems - the economic problem, which is making money....the rest, as they say is "if you have to ask, you don't know".

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i think its because basically people dont want to rent their house to anyone , just like a car you loan a friend will be driving with a lot less care a house you rent will be shall we say not loved as you love it .... So you tell yourself if i get this much i will rent it but any less no thanks.. When a person buys a house to rent he does just enough to get it rented ,, but when its his house there are lots of extras . there are some houses in the subdivision i live for rent at 50,000 mt if the op is so inclined but then thats cebu 

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Monsoon

Isn't one of the reasons why xpats move to the Philippines is so that they can get a cheaper rental?  The fact that you could rent one of your houses in the Philippines for $4k in the USA means nothing.  Filipinos certainly don't get paid the same.  I've noticed that Filipinos make about 1/5th to 1/10th or less of what the equal person earning in the USA.  Your rental price was only 1/4th different from the USA, which means it is over priced for the local income relative to the US income and prices.

 

When you ask?  When the average person makes near the same as that in the USA, then you can expect rental rates to be more like that of Hawaii, not tim-buk-too USA with tons of land.

 

I think you have it a little bass ackwards.... 

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we own several rental  units around the compostela area and I still am not sure how it is to work .finally gave up and and just  leave my wife handle it .

one thing that I don't understand is : it seems like what ever happens it seems to be my responsibility.renters text yesterday and said they had left frying pan and kettle on porch and someone stole it

now im wondering how is that my problem,they think I should replace them .

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the.lone.gunman

There was a house for rent near my apartment in Banilad. My gf inquired about the price and the owner told her that the foreigner rent was 80,000p and filipino rent was 40,000p. It was vacant for at least a year that i know of, maybe longer.......

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MattFromGA

 

I think you have it a little bass ackwards.... 

 

I was able to rent a 3 bedroom 3 bath townhouse in a nicer area of Guadalupe for 15k pesos.  At the time that was about $300 to $350 a month as the exchange rate went.  That same rental in Atlanta would be $1500 a month during that time period and even more in other major cities in the USA.  I paid more to be a roommate with someone in the USA.

 

So, I don't see it as backwards.  Maybe you refer to premium rentals, which I believe are driven by different market forces.  You'll pay a much higher rate for premium rentals, but then again nothing like premium rentals in major US cities.  I've not heard of rentals in the area of $30k to $50k a month in the Philippines.

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