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Thinking of relocating to cebu for up to 4 years need advise


Faktor

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Headshot

yaa i have lived in calubian and ormoc for close to 2 years hehe i know i might take a loss, but renting is taking the full loss. u ain getting anything back

 

While that is true, you also have more options when you rent. You can just pick up and move to another island or another country if things get bad where you are. If you own real estate, then you will probably need to sell it before you can move...unless you are like Smokey or Lee and can afford more than one place. Having to sell real estate could delay your move by years unless you are willing to lose what you have invested.

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arentol

Many words of wisdom here from Headshot, all of which should probably be heeded.

 

I just want to add that bank loans in the Philippines work a bit differently than loans in other countries. Banks here are prohibitively conservative and you can expect to lay out a good deal of cash upfront. The reason for this is that banks provide a loan based on their appraised value of a property, which is typically much lower than the sales price (e.g., variable, but often 50% - 70% of sales price). The loan is then 70% - 80% of that appraised value.

 

For example, a home selling for 4 million may be appraised by the bank at 3 million. Assuming 70%, the bank would then loan you 2.1 million. In short, your out-of-pocket "down payment" would be 1.9 million (4m - 2.1m loan); effectively, you'd be paying nearly 50% of the selling price upfront.

 

I don't know if this would be an issue for you or not, but I wanted to mention this. When my wife and I started looking for a house & lot and also lots, we naively expected the system to work like it does in other countries... where mortgages for 90% of the selling price are not uncommon. We were shocked, to say the least, to discover that it's absolutely not the case here. We're at a crossroads now... save up money and buy land? Forget the whole thing and move to another country? A difficult decision for us, but that's a conversation for another time. :)

 

Best of luck!

 

 

Regards,

Aren

 

 

 

Faktor, if you decide to move to Cebu, then move to Cebu...but don't even think about buying property until you know for sure that you want to spend a LONG time here. I take it your GF is a Filipina, and is able to still buy land in the Philippines. Otherwise, you can't buy property here at all. Foreigners can't own real estate in the Philippines...with the exception of condominiums. Condos here are WAY overpriced, and you will never be able to buy the living space you want for the money you want to pay. It is also not all that easy for foreigners to get credit at all to buy real estate in the Philippines.

 

If you do manage to buy real estate in the Philippines, then it will be very difficult to sell it in the future without taking a huge loss...if you decide at some point that the Philippines isn't the place for you. Properties stay on the market for years here before they sell. Pretty much the only exception to that is if you decide to take the loss early on, and basically give the property away. And even if you sell at a huge loss, expect to pay capital gains tax on the sale. The Philippine government doesn't understand the concept of capital gains any more than they understand value added. Capital gains tax and value added tax (VAT) are, in reality, just sales taxes.

 

Therefore, my advice is to just rent...for at least a couple of years. By then, you will know better if this is the place for you. However, even then, the advice I just gave you will still hold true if you ever decide to leave the Philippines. Don't come here thinking that you will ever make money on real estate. It seldom happens.

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Many words of wisdom here from Headshot, all of which should probably be heeded.

 

I just want to add that bank loans in the Philippines work a bit differently than loans in other countries. Banks here are prohibitively conservative and you can expect to lay out a good deal of cash upfront. The reason for this is that banks provide a loan based on their appraised value of a property, which is typically much lower than the sales price (e.g., variable, but often 50% - 70% of sales price). The loan is then 70% - 80% of that appraised value.

 

For example, a home selling for 4 million may be appraised by the bank at 3 million. Assuming 70%, the bank would then loan you 2.1 million. In short, your out-of-pocket "down payment" would be 1.9 million (4m - 2.1m loan); effectively, you'd be paying nearly 50% of the selling price upfront.

 

I don't know if this would be an issue for you or not, but I wanted to mention this. When my wife and I started looking for a house & lot and also lots, we naively expected the system to work like it does in other countries... where mortgages for 90% of the selling price are not uncommon. We were shocked, to say the least, to discover that it's absolutely not the case here. We're at a crossroads now... save up money and buy land? Forget the whole thing and move to another country? A difficult decision for us, but that's a conversation for another time. :)

 

Best of luck!

 

 

Regards,

Aren

that is the kinda info i need. thank u

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that is the kinda info i need. thank u

looks like i will be staying in ormoc and her in palompon

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While that is true, you also have more options when you rent. You can just pick up and move to another island or another country if things get bad where you are. If you own real estate, then you will probably need to sell it before you can move...unless you are like Smokey or Lee and can afford more than one place. Having to sell real estate could delay your move by years unless you are willing to lose what you have invested.

Since my name was mentioned, I would have to agree with Headshot on this, rent don't own unless you are in it for the long haul or are going to keep it for a vacation condo. 

 

Also since condos are usually in the city and prices in the city are pretty high, for what you seek I believe you are looking at way over p4million. The going rate in our building is usually around p60,000 per sq meter to buy or around p12,000 and up to rent an unfurnished place less than half the size you seek and our building is middle of the road but good enough for us. Should you still decide to buy a condo, then some developments offer in house financing such as 5 years no interest with a decent down-stroke but even then I would say rent first in any development to see if you like it. 

 

If anyone is wondering, I bought our condos for my wife's future and for us to go back and forth to with the idea of moving full time to Cebu when I was 65 but now that I am 65 things changed in my health and financial situation which have even made me think that I probably should have just bought a very small place instead of buying two units and putting them together. Now that we have the two units, my wife never wishes to sell them even when an expat offered us a pretty good price a couple of years ago for them. If it were not for my wife for her future and us going back and forth yearly and I had it to do now with prices now much higher than we paid (we bought before the prices went crazy), then I too probably would have just rented or at the very least bought only one unit.

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u dont really move to ph to make money, u move there so he money u have last longer and u can lead a semi decent life

making money in ph is really not an option

Go faster you mean

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Go faster you mean

actually no. but then i dont go out much, and i rally drink alcohol i dont do drugs. i have adhd, so that stuff dont really work for me, i am more the being at home guy or sit drinking coffee playing games with my friends, and usually to bed around 8 pm and up again at 3 am talking on skype with denmark, so i dont really use money for more than food and treatments and of course the gf, and she has a brain, i made a budget with her, and told her if we help your family more than we do now, we have to lower some of these amounts, wich do u want to lower, i think u know the answar. they like to help when they can still get what they want. but show them how much u have, and if u help more than a certain amount, u have to cut some of the budgets, they dont want that so right after that until her childhood home blew away last month she did not ask for ekstra as such

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