So I am currently considering purchasing property in the Philippines, which certainly would have some advantages, but their are a few disadvantages I have to consider. I am looking at a few options.
I could purchase a condo for $25,000 – $40,000 USD in Davao City but I could also rent a place for as low as $200 per month! Although the place I am looking to purchase would probably cost 20,000PhP to 25,000PhP to rent, which is about $460 – $570 AUD & USD (as of today). Still lets do the maths on that one …
I could buy a condo for $34,000 or rent the same place for $570 per month. 34,000 / 570 = thats approximately 59 months I could rent the condo for, or 5 yrs!
So for many the conundrum would be whether to rent or buy and everyone’s circumstances and preferences will be different, but here are some things to think about when deciding …
Advantages To Buying Property In The Philippines
- Would lower monthly expenses for the long term.
- Would provide me with a haven to stay at if things get tough. (always have shelter to go back to)
- Would provide me with an asset that could be sold in the future.
Disadvantages To Buying Property In The Philippines
- Renting is super cheap in the Philippines and it may not be worth buying, especially if you only plan on staying in the Philippines a few years.
- A lot less capital available for my business
Some hard figures ….
If you take a look at a previous post I did, where I discuss the cost of living in the Philippines, you can see some figures that will allow you to get a better picture of the cost savings. Essentially though, you would of course minus rent from the expenses list and add 1000 Pesos per month for levi fees. So for example if your rent was 25,000 and you brought the place, then you will be saving 24,000 per month.
This is quite of specific topic, but hopefully it is helpful to someone, one day.