Dumaguete Goods Prices High

[JJReyes]

I will answer all the posts here. The prices are HIGHER here compared to cheaper USA cities. I am not comparing to NYC or Washington DC or even Minneapolis. I am comparing to medium sized city in AZ, NM, NV,TX, FL, etc.   It's not the brand name, it's that everything is imported and undergoes extortion type customs and shipping fees and it's not made here. Even local mfg and processed products are frequently higher because they are priced in relation to imported.   I am spending and estimated 30-75% depending on the item more for most things that I can buy in the USA more cheaply, even more cheaper online (and I don't have to worry about shipping problems as much back home compared to here).   And rents are a little cheaper but not that much. A fully furnished apartment I rent for $400 USD, for the EXACT same apartment and ameneties here cost me minimum $300 here and often higher, so you're talking maybe 25% lower in R.P. And in the US I do not have to pay multi-month deposits as many landlords ask for here. Also there are renter protection laws in the USA that are enforced, not so here.   Really the only thing consistently cheaper here is the labor. In looking at wages vs COL here, it's hard to understand how the average Filipino doesn't just dry up and die. But when you see the standard of living they endure, easy to see how they can do it.

 

The prices can be higher in the Philippines if you use foreign corporate executive living standards. If the HQ is in Makati, the residence could be a rental mansion in Dasmarinas Village, Forbes Park, Salcedo, Legaspi, etc. with multiple bedrooms and a swimming pool. Children attend the International School and the wives meet for lunch at a private club or luxury hotel dining facility. If that's what you want, it is available at prices equal to or greater than the United States. Makati is still much cheaper compared to Tokyo, Hong Kong and Singapore. We had dinner at a friend's house in the Setagaya district in Tokyo, which is the most expensive housing area. The homes and gardens look similar to what you will find in a Dallas or Los Angeles upper middle class neighborhood. His company pays $22,000 a month rental, compared to $8,000 a month when he was stationed in the Philippines with a furnished home, including service personnel, in Dasmarinas Village.

 

Most of the forum members don't have that kind of financial resources. Hello! Any multi-millionaires in the group? Actually, millionaires and multi-millionaires are now a dime a dozen. You have to be a centi-millionaire to catch someone's attention.

Edited July 6, 2013 by JJReyes

[KanoJoe]

 

I have been in the PI for the last 3 weeks doing price comparisons between the US and the Phils. I have been in Manila, Subic and Clark. I have also talked to several expats living in each place and the takeaway is that they are spending the same or more than I am living in the US.

That's the most expensive region in the Philippines, followed by Cebu. Davao I believe is third.

 

I wonder if you do a fair comparation. 

1. Big city to big city?

I don't like big cities, so I don't go there volontaringly   :)   so I don't know, but according to official information (a bit old) it's a huge difference between Manila and provinces with Cebu in between. E g the minimum salaries are almost double. (E g I know a mall saleslady from province but working in Manila, (when she work some extra) she earn similar as an university examed high school teacher do in province.) 

I asume it's a big difference in costs for a living place in the capital city and rural in your country too. In Sweden the cost for my rural 6 room villa is similar to a 1 room appartment in Stockholm...)

 

2. What are you comparing? 

To be fair you can't compare same products, if they don't have production of it in RP. Because of high RP custom fees, you need to count things they are good at making in RP, which it's common FILIPINS use. It's OK to compare with things Americans use instead in USA, because otherwice it wouldn't be fair to USA   :)

 

3. Are you paying "kano prices"?  

If so it isn't odd it's expensive in RP   :)

(Hard to avoid, if you don't have a Filipina doing the deals for you. Yes you can shop in malls, who has static prices, but you can't get everything there.)

 

 

I have compared big city to big city, big city to small city and vice versa. 

 

My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.  Property prices, retail goods, services and utilities are all quite low in Texas. Still, when comparing Houston to Clark/ Subic / Davao, there should be no comparison as in my mind the PI should be cheaper, when in fact it is higher. Prices in Manila were double that in the US. This is comparing housing / food / goods / services of like kind either on base in Clark / Subic or near in a secure community in Davao. The only thing cheaper in the PI is labor. I have no desire to live in an area that is not secure and will never go native, so your mileage may vary. 

 

Hell, south Florida is starting to look good again and I already speak Spanish. I can't believe I just said that, but them's the facts. 

[Call me bubba]

i am glad that some one else has NOTICED that prices here on some items are much HIGHER than back in the

us ,

I too have been aware in the past 24 months of a slow creep of "higher"prices on many of the routine items Ibuy

for myself and my children, even when I substitute for same or like items, the costs are still high tho still a few pesos less..

 

Could our members from AUS?UK? or Canada. give comment

:1 (235):

[Mike S]

WOW thanks for all that good news ..... now there is no reason for anyone from the US to move here so just stay where you are ..... you can live at Walmart  where the quality of goods is much better than here (as we know nothing in WallyWorld comes from China) .... your healthcare insurance is much cheaper than here in the Phils ..... you don't need other insurance there in the US to cover your car .... house and personal belongings because your housing is cheaper .... your cars are cheaper and you buy all your personal belongings at WallyWorld .....

 

If you are trying to tell me the only reason you come here is for the little brown women then your in luck .... find one and take her back to the US ..... should take to long only a month or two .... then the rest of us living here and enjoying it and living cheaper  won't have to hear all the complaining about the Phils and about how much better and cheaper you can live in the US ..... it's a no brainer .... I see no reason for anyone to move here permanently from the land of the great PX in the sky ..... as I said I already solved the little brown women problem for you .....

 

So please let me know when you are all going back cause I want to go to the airport and watch all the heavily laden aircraft take off and head for a country with a much cheaper and better life ..... then I can come back home here kick back in my expensive easy chair .... sip my expensive fruit drink and watch a magnificent sunset while living only on my $1200 a month SS ..... ahhhhhhhh ... this is the life ...... :mocking:  :mocking: 

:cheersty:  

[JJReyes]

My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.

 

In your opinion, would it make sense to purchase property in Houston as rental units? Hawaii has the highest state income tax. Since our plan is to travel extensively during our retirement years, why pay exorbitant taxes if you receive no benefits?  I am studying the possibility of relocating to a no-tax state like Nevada or Texas. We will look at properties in Henderson and Boulder City near Las Vegas in September, but I was also considering either San Antonio or Houston as an alternative. 

[robert k]

 

 

I have been in the PI for the last 3 weeks doing price comparisons between the US and the Phils. I have been in Manila, Subic and Clark. I have also talked to several expats living in each place and the takeaway is that they are spending the same or more than I am living in the US.

That's the most expensive region in the Philippines, followed by Cebu. Davao I believe is third.

 

I wonder if you do a fair comparation. 

1. Big city to big city?

I don't like big cities, so I don't go there volontaringly   :)   so I don't know, but according to official information (a bit old) it's a huge difference between Manila and provinces with Cebu in between. E g the minimum salaries are almost double. (E g I know a mall saleslady from province but working in Manila, (when she work some extra) she earn similar as an university examed high school teacher do in province.) 

I asume it's a big difference in costs for a living place in the capital city and rural in your country too. In Sweden the cost for my rural 6 room villa is similar to a 1 room appartment in Stockholm...)

 

2. What are you comparing? 

To be fair you can't compare same products, if they don't have production of it in RP. Because of high RP custom fees, you need to count things they are good at making in RP, which it's common FILIPINS use. It's OK to compare with things Americans use instead in USA, because otherwice it wouldn't be fair to USA   :)

 

3. Are you paying "kano prices"?  

If so it isn't odd it's expensive in RP   :)

(Hard to avoid, if you don't have a Filipina doing the deals for you. Yes you can shop in malls, who has static prices, but you can't get everything there.)

 

 

I have compared big city to big city, big city to small city and vice versa. 

 

My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.  Property prices, retail goods, services and utilities are all quite low in Texas. Still, when comparing Houston to Clark/ Subic / Davao, there should be no comparison as in my mind the PI should be cheaper, when in fact it is higher. Prices in Manila were double that in the US. This is comparing housing / food / goods / services of like kind either on base in Clark / Subic or near in a secure community in Davao. The only thing cheaper in the PI is labor. I have no desire to live in an area that is not secure and will never go native, so your mileage may vary. 

 

Hell, south Florida is starting to look good again and I already speak Spanish. I can't believe I just said that, but them's the facts. 

 

You can't compare island prices to mainland prices. For a fair comparison, compare the RP with Hawaii price wise. :)

[Mike S]

They are also trying to compare a country with a population of 313 million vs 94 million ..... much more buying power and the fact that the US produces much more consumables and other products than the Phils so the cost to manufacture doesn't cost as much ..... add to that the average Pinoy's ability to buy stuff on a salary of around "205 pesos ($4.85) per day in nonplantation agricultural sector in the Ilocos Region to 456 ($10.80) pesos per day in the nonagricultural sector in the National Capital Region". vs that of the US "The federal minimum wage is US$7.25 per hour. States may also set a minimum, in which case the higher of the two is controlling;^[96] some territories are exempt and have lower rates (seeMinimum wage in the United States)." ...... at $7.25 per hour thats almost p315 per hour or p2523 per day for an 8 hour day .....

 

Now I have to admit if I lived exactly like I did in the US it would be cheaper than here but taken into consideration that I now only make $1300 per month vs $5040 per month with no overtime figured on that monthly amount it would stand to reason that my way of living would have to change ...... but I also couldn't live in the US the way I did before on my now salary of $1300 per month ...... so all things are relevant ......

 

I still maintain that I can live here in the Phils on $1300 per month a lot better than I can live in the US for the same amount  ..... and still maintain my standard of living that I have here .... :thumbsup:

:cheersty:

[Thomas]

I have compared big city to big city, big city to small city and vice versa.    My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.  Property prices, retail goods, services and utilities are all quite low in Texas. Still, when comparing Houston to Clark/ Subic / Davao, there should be no comparison as in my mind the PI should be cheaper, when in fact it is higher. Prices in Manila were double that in the US. This is comparing housing / food / goods / services of like kind either on base in Clark / Subic or near in a secure community in Davao. The only thing cheaper in the PI is labor. I have no desire to live in an area that is not secure and will never go native, so your mileage may vary. 

Well. To be fair to compare with Manila, you need to compare to Washington or New York  :)  You say yourself costs in Texas are quite low compared to the rest of USA.

 

I suppouse in such places you surely pay "kano prices" (can be 3 times higher than "Filipin prices").

 

I suppouse mango too are cheaper :) at  e g Mindanao than in Huston.  They are transported all the way from south Mindanao to Manila, if they don't go on export, so not odd they cost more there.

 

Concerning property it's short of (farm-)land in RP, so I suppouse land prices will go up, although estates are hard to sell, because of few have money enough to buy them for.

(If I can sell my estate in Sweden for a decent price - it's hard to sell here too  :)   - I plan to buy land in RP to start business - and later build house at. Some complicated by foreigners can't owe more than 40 % of land (through company) in own name.) I knew in advance it would be hard to sell, because the earlier owner had hard to sell  :)   but I didn't bother, because I did plan to stay here for ever. But after 23 years I have got tired of the cold part of the year reaching even -30 C sometimes, although yesterday it was +30 C here  :)   But because of my injury, now I have changed my mind to move to a warmer country and stay there for ever :) (But it will take a while before I decide where that spot will be. Probably somewhere in Visayas. Surely not the places you checked, and I will let my future wife do the shoping to avoid "kano prices"  :)

[KanoJoe]

 

My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.

 

In your opinion, would it make sense to purchase property in Houston as rental units? Hawaii has the highest state income tax. Since our plan is to travel extensively during our retirement years, why pay exorbitant taxes if you receive no benefits?  I am studying the possibility of relocating to a no-tax state like Nevada or Texas. We will look at properties in Henderson and Boulder City near Las Vegas in September, but I was also considering either San Antonio or Houston as an alternative. 

 

 

The no state income tax in Texas and Florida is a double-edged sword. The state has to raise tax revenue from someplace, so it is through sales tax 8.25% and though property and school taxes, which in my corner of Houston are the highest in the state as it has the best school systems in the state. 

 

There has been little or no devaluation of property prices in Texas since 2008. Why? Because everyone is flocking to Texas from other states that were the hardest hit when the property bubble burst (California) and employment is strong.

 

The reason (for me) that it is a zero-sum game is that once you allow for property appreciation, it is gobbled up by property tax, school tax, mud tax, mortgage interest, insurance and maintenance costs. I tracked this for years and I barely broke even when you factor in total out of pocket. The fact that I have no children and I was being charged thousands a year in school taxes really galled my ass. This is the primary reason I sold up and now rent.

[jon1]

 

My prices used for comparison are from Houston Texas. As compared to the rest of the US, cost of living is quite low in Houston. I liquidated all my real estate holdings in early 2008 and now rent, so I am comparing like costs as I will never own property again, anywhere.

 

In your opinion, would it make sense to purchase property in Houston as rental units? Hawaii has the highest state income tax. Since our plan is to travel extensively during our retirement years, why pay exorbitant taxes if you receive no benefits?  I am studying the possibility of relocating to a no-tax state like Nevada or Texas. We will look at properties in Henderson and Boulder City near Las Vegas in September, but I was also considering either San Antonio or Houston as an alternative. 

 

In Florida, rental income is taxed. http://www.jwbrealestatecapital.com/are-florida-rental-properties-subject-to-sales-and-use-tax/ You also are taxed on the full value of the property (not eligible for the $50,000 homestead exemption as you are not residing there).

 

 I am not sure about Texas. You also might want to look into Arizona. They also do not have State Income tax.