Renting Vs Buying In The Philippines

[Inspector]

Curious what you would do? Personally, I would NEVER buy ANYTHING regarding real estate in this country, even if married. However, renting presents a shetload of it's own problems. A few issues I have had in the 4 years renting here...landlords NOT giving security deposits back, and not fixing anything they feel is your responsibility...or fixing them and telling you that it is your cost. I am a landlord, have a property manager back in the states for my rentals, and doing both ends now. It shocks me the lack of common sense out here. Quick story ...front steel gate coming into the house over here in a davao city guarded community did not shut during the day. The heat expanded the wall and gate, and at the hot points of the day, you could simply not close the gate, or open it if it was closed...as it would hit the wall. So, after a few months of complaining since I have been back, the landlord finally fixes it... after I was so irate needing to CLIMB into a 25 thousand peso place. He was telling me for a few months he was going to fix it, and I am fairly easy going...and not until I was a monkey man did I really let out a small stink. So, the worker of the landlord grinds the wall like 2 inches and it closes, but the lock (night latch) is loose from the hard pushing and pulling when it was tight and needs to be replaced or welded. So, the landlord hires another guy then tells me to buy the latch, in front of landlord...I was to cover the cost (550 pesos) and labor (300 pesos) and he was to come tomorrow to fix it. Not sure at this point if I was to be reimbursed, but I assumed. So, I wait the entire day and nobody shows...or calls. Later I call the landlord, who says his worker can't do the work because his boss does not allow side jobs. Nice, wait the entire day. So the next day another guy shows up, the first guy who grinded... and says he does not need that lock and will weld it. So, he gets his welding machine, and the landlord agrees to pay for the now useless latch from worker two orders and she will keep it, being this country does not allow refunds. The worker begins to weld, and after welding, it does not work due to the metal being brass. So the lock is NOW used...and he finishes replacing it after drilling new holes. That night, the hot water heater in the CR is out, and after review...the electrical outlet was not working, not the heater, which was fine. Seems the welder blew the fuse box welding. Next day, an electrician shows up, worker three....and he fixes it, but that night the sala electric is out. He comes back the next day, and fixes it. 420 pesos for a new box yesterday, and 420 for a new one that is for the sala. Landlord says I need to pay...what? After much arguing that it was their welder that blew your box, and my day wasted, her husband finally tells her it is her responsibility by phone (the actual landlord owner is her brother, but he's going a bit senile). Well, duh. Landlord then says she will talk to her lawyer about who should pay for the 15 dollar lock..haha. I say well, if he says I am responsible, I am out in November when the lease is up, and you can look for a new tenant. She says, alright, she will pay..oh thank you. Is she kidding? This happens all the time out here...lack of common sense with landlord versus tenant. Best thing though about renting is the fact I can move...losing a security deposit ...but able to move at ANY time.

Edited September 27, 2011 by Inspector

[Bundy]

Have heard a few stories similar to this. When we do get to Cebu, we will be renting, the wife says she is going to have it included in the lease contract just exactly who pays for what BEFORE we sign and move in.Whether or not that will make any difference i don't know but worth a try. Definitely a big advantage being able to just pack up and move if you have to. :sign0095:

[Call me bubba]

This happens all the time out here...lack of common sense with landlord versus tenant.

I am just curious of why "landlords" are this way? CHEAP? Genetics ? Iodine deficiency? :hystery: We have a Kano lets Sxxxw him over? at present I have a "new" unit, I discuss this with my landlord about any issues/problems that should occur within the 1st yras this would have been due to the construction/buildinghe agreed that i was to inform him, & i would be able to fix/repair any "unit" issues and to deduct the costs from my rent. I am very grateful to him as he is MUCH more "Open-Minded" than others i have encountered in my past rental units..Been lucky to receive my deposits back in FULLupon my move in I always made detailed notes(photos if needed) for "possible" issues .non working items, etc etc.this has helped upon move out , as sometimes "owners" suffer from the I dont know or You never inform me syndrome . Guess it always pays to "understand" your "new" landlord before he/she is your landlord. I WOULD LIKE FEEDBACK FROM OTHERS :sign0095: Please your advice/postings will be helpful to others JUST curious , if you have an "ISSUE/PROBLEM" with your landlordwould it be to your advantage to seek or obtain helpfrom the local Barangay ?

[sjp52]

Curious what you would do? Personally, I would NEVER buy ANYTHING regarding real estate in this country, even if married. However, renting presents a shetload of it's own problems. A few issues I have had in the 4 years renting here...landlords NOT giving security deposits back, and not fixing anything they feel is your responsibility...or fixing them and telling you that it is your cost. I am a landlord, have a property manager back in the states for my rentals, and doing both ends now. It shocks me the lack of common sense out here. Quick story ...front steel gate coming into the house over here in a davao city guarded community did not shut during the day. The heat expanded the wall and gate, and at the hot points of the day, you could simply not close the gate, or open it if it was closed...as it would hit the wall. So, after a few months of complaining since I have been back, the landlord finally fixes it... after I was so irate needing to CLIMB into a 25 thousand peso place. He was telling me for a few months he was going to fix it, and I am fairly easy going...and not until I was a monkey man did I really let out a small stink. So, the worker of the landlord grinds the wall like 2 inches and it closes, but the lock (night latch) is loose from the hard pushing and pulling when it was tight and needs to be replaced or welded. So, the landlord hires another guy then tells me to buy the latch, in front of landlord...I was to cover the cost (550 pesos) and labor (300 pesos) and he was to come tomorrow to fix it. Not sure at this point if I was to be reimbursed, but I assumed. So, I wait the entire day and nobody shows...or calls. Later I call the landlord, who says his worker can't do the work because his boss does not allow side jobs. Nice, wait the entire day. So the next day another guy shows up, the first guy who grinded... and says he does not need that lock and will weld it. So, he gets his welding machine, and the landlord agrees to pay for the now useless latch from worker two orders and she will keep it, being this country does not allow refunds. The worker begins to weld, and after welding, it does not work due to the metal being brass. So the lock is NOW used...and he finishes replacing it after drilling new holes. That night, the hot water heater in the CR is out, and after review...the electrical outlet was not working, not the heater, which was fine. Seems the welder blew the fuse box welding. Next day, an electrician shows up, worker three....and he fixes it, but that night the sala electric is out. He comes back the next day, and fixes it. 420 pesos for a new box yesterday, and 420 for a new one that is for the sala. Landlord says I need to pay...what? After much arguing that it was their welder that blew your box, and my day wasted, her husband finally tells her it is her responsibility by phone (the actual landlord owner is her brother, but he's going a bit senile). Well, duh. Landlord then says she will talk to her lawyer about who should pay for the 15 dollar lock..haha. I say well, if he says I am responsible, I am out in November when the lease is up, and you can look for a new tenant. She says, alright, she will pay..oh thank you. Is she kidding? This happens all the time out here...lack of common sense with landlord versus tenant. Best thing though about renting is the fact I can move...losing a security deposit ...but able to move at ANY time.

With all due respect those type of things happen every where in the world and so do most of the things we complain about. I am in Canada right now and hear all kinds of rants from people about the incompetence here ( have to call 5 people before some one will finally show up to do work ) ( jobs not done right ) and so on, and we are paying a lot more for their services here.

[Art2ro]

The first 2 yrs since our arrival in the Philippines, my wife and I rented about 3 times and experienced all the crap that anyone has gone through with an a__ hole for a landlord! Our solution, we bought our own home and it's paid in full! Life has been good since then, for us anyways! We're here to stay for the long haul! Hey, we're both Fil/Ams and can handle all the Sh&t & a__holes that may come our way, but haven't yet had to do so ever since moving into a nice and secure community!

[Mr Lee]

Of course it will be different for each of us, so for those of us in long term marriages to a Filipina, we may make different choices. What I did is surely not for everyone, and I tell people to not buy and to just rent for at least a few years of marriage to make sure all issues are worked out, but since my wife and I had been married for about 12 years at the time of our condo purchase, and I knew her totally long before then, I felt totally comfortable buying her some condos to be used for her future income, and to be used in the mean time for us to live in during our yearly stays. I would also not hesitate to buy a home in a gated community such as where Art lives, if we lived in the Philippines full time and could afford to do so, and I also know that anything I bought could be lost in a divorce, but if she has put up with me this long, chances are there will never be a divorce. So for the single guys, those living together, and those just getting married, the choice might be best to rent IMHO, but as Art said, if a person is in it for the long haul, and I will add feels totally comfortable in their marriage, then owning might be a better choice. I guess it all works out partially to economics and personal situations, so in Inspectors scenario, I think he says he pays p25,000 a month, so that works out to p300,000 a year, and over 10 years would pay for an average house, or over 20 years would pay for a nicer house, and then the owner would hopefully have some equity for his wife once he is gone, or some equity to trade up down the road if they wish to change locations, but it would tie them down and would be hard to sell in the first few years without losing money unless they manage to buy it used and at below market, so it is a very hard choice that each of us has to make when all circumstances are taken into account. So once again using Inspector rent scenario, let say a happily married person bought a house and stayed 3 years and then had to sell it for 1 million less than they actually paid, would that be a big loss since they would have spent p900,000 in rent anyway? Yes and no, yes they would have lost the use of the money and no because they would have been able to fix up the house and do whatever they wanted in it, without the landlord giving them any bs, and then would also possibly come the loss of the deposit on a rental. The main thing about buying verses renting, is to make sure you can afford to lose the money if all goes to hell and you have to just leave it, or it gets destroyed by say an act of God. There is no right or wrong answer, the answer is what is good for the person who thinks he is doing the right thing. What do they say, an informed consumer is the best consumer.

[Art2ro]

The majority seems to be in a rental situation, but here's a few info that may help concerning: Rent control laws in the Philippineshttp://www.lawphil.n..._9341_2005.html Foreigners considering on buying a homehttp://real-estate-g.../foreigners.htm For Filipinos & Former Filipino Citizens -"Balikbayans"http://real-estate-g.../balikbayan.htm How to transfer land title in the Philippineshttp://www.ehow.com/...hilippines.html Real Estate Tax Code in the Philippineshttp://www.chanroble...icactno579.html Mortgage Calculatorhttp://www.houseandl...gage_calculator

Edited September 28, 2011 by Art2ro

[Inspector]

I don't know...no insurance, earthquake zone, floods, terrorism, crime all over, terrorism, substandard building supplies and builders, never being in your name (unless it's a condo that can collapse in the first quake)...not able to sell it when you want to. There is no way I build or buy a house, nor a condo in the Philippines. Rents are cheap enough versus buy price to save the money in some stocks or mutual funds ... too many great deals in the USA with so many people who have jobs that foreclosed...that need a place to live. Renting in the US should be healthy for the next 7 or so years....houses here selling for 150 grand us dollar only rent out around 500-600. 100 grand house in the US will fetch around 1200. That said...there ARE times you can get a house already built here, that some anal retentive foreigner spent all the time and headaches getting it built the western and right way...that either dies or needs to sell it ASAP...at these times you can get a smoking deal, as the market for expensive homes is simply brutal here. I've also noticed that many filipino's will keep houses and cars until they are rotted out versus taking less then what they want...guess it's the keeping face aspect of the culture. One house in a province of Cebu...old guy built a huge place for his young ex bargirl GF and her family. She cheated on him, had a baby with her young pinoy stud...he was left out of the picture, and headed off to Thailand with his tail between his legs. She had no money to keep up the place and wanted to sell it...I looked, and it was a great deal, as the place was built great, and western. They spent over 100 grand on this large 3 building compound...she wanted around 30-40 grand. Still, it was 3 hours from Cebu city...and it would not be in my name. No way.

[Art2ro]

Inspector, Seems like you paint a gloomy picture of just one’s POV and it is not necessarily the norm in other parts of the Philippines! No insurance, earthquake zone, floods, terrorism, crime all over, terrorism, substandard building supplies and builders, never being in your name (unless it's a condo that can collapse in the first quake) Who needs insurance when the home was purchased pretty cheap, like our home at P2.5 million? Earthquake zone, floods, terrorism, crime all over, terrorism, substandard building supplies and builders! Not our home or where we live! I've also noticed that many Filipinos will keep houses and cars until they are rotted out versus taking less then what they want...guess it's the keeping face aspect of the culture.Our home is 13 yrs old with a new paint job and I drive a 1979 Toyota Corolla! It has nothing to do with keeping face, but one of pride of ownership when one’s property is taken good care of! One house in a province of Cebu...old guy built a huge place for his young ex bargirl GF and her family. She cheated on him, had a baby with her young Pinoy stud...he was left out of the picture, and headed off to Thailand with his tail between his legs. She had no money to keep up the place and wanted to sell it...I looked, and it was a great deal, as the place was built great, and western. They spent over 100 grand on this large 3 building compound...she wanted around 30-40 grand. Just his dumb luck and why did he build such a huge home for his girlfriend and family in the first place? Not smart! So you see, it all depends on location and one’s circumstances! One size just doesn’t fit all!

[Inspector]

Not really gloom Art...just giving my opinion on why I, a white Kano, would never buy in the Philippines, and what I have seen... and facts. I'm glad you own a cheap place that that you feel as if you don't need insurance if it's destroyed in any way. I simply would not purchase any dwelling without the ability to insure it...and this lack of insurance is not opinion, it is fact in the Philippines. While I am not paranoid by nature, I certainly realize that a "white" kano will be more of a target versus a fil american or local. Apples and oranges. There is no way your isolated incident of care and pride will sway me from the 100 or so cars I have looked at that have had such a lack of oil changes I am surprised they are still running. This goes for the many mid level homes I have looked at for rents, many of those also up for sale. It's a simple fact...pride of ownership is not alive and well in many places here. Yes, I had an uncle who smoked till he was 92...doesn't change the majority numbers of it's dangers. This country is based on OFW...that is their middle class...working in other countries to send back money to too large of families. So you have varying degrees of poor, and a few super rich. As far as the house built for a pinay, by a foreigner...that happens quite often, the break up and foreigner losing out on a house...and the main reason of what is given by many expats as to why they do NOT buy a house here. If you are in love, love the Philippines, and can deal with the lack of ownership that a white kano will encounter...and don't care if it is insured, have at it. Those are simply logical facts as to why I...personally, would NEVER buy a house here. I am happy YOU are happy, and being a fil/am...I am quite certain you do not encounter the same problems many of us pale arsed foreigners deal with, from house ownership to the rest of the long nose crap...but maybe, you being a fil/am, you do take pride in ownership, and more so then the locals. Hey, I see pride in the development I am living now...but most of these residents here are Davao cities elite, and the others are cash supplied by OFW's...while still others have 3-4 maids and house boys per house, cleaning all day long. I can easily suggest owning a house here is a risky move for reasons provided...financial aspects can always be debated with rent vs ownership. These are my last thoughts regarding this topic as nothing will change my personal views, of my personal views...have the last words. :thumbsup: