Budget of p72,000 pm. Enough?

[Snowy79]

I think the property budget you have for purchasing is quite low for a decent condo if things went belly up. I've been all around the rules and regulations for property as I wanted to take accommodation charges out of my equation. The way I see it rental money is dead money but if you invest in the wrong property you're tied to it or you have to walk away. Even 2m php could get you a decent rental for at least 10yrs. An average place for maybe 15yrs.

I'm looking at spending the max of 8m php on a great apartment in a top holiday resort, and to live off of my pension and additional savings. Worst case scenario rentals as I've checked using a few sites on this property are up to 8,000 php per night. Even if I have to move away I'll get far more return than I would by investing in shares etc. I could even just rent it out and use a chunk of the rental return on a decent sized house.

[popeye72 ]

I agree its not big. I could have more however id like to keep my home here in Ireland as a fall back in case things go pear shaped.

Im only 44 now. So i could come back to work if i need to. 

 

I have seen one earlier in the year that sold for p1,450,000. That would suit my needs perfectly. 35m studio. Im prepared to rent until i get something like that again. I could also invest the p2,000,000 and take a loan for the remainder. But id rather not. 

 

 

Edited June 2, 2017 by topcat72m

[Snowy79]

12 minutes ago, topcat72m said:

I agree its not big. I could have more however id like to keep my home here in Ireland as a fall back in case things go pear shaped.

Im only 44 now. So i could come back to work if i need to. 

 

I have seen one earlier in the year that sold for p1,450,000. That would suit my needs perfectly. 35m studio. Im prepared to rent until i get something like that again. I could also invest the p2,000,000 and take a loan for the remainder. But id rather not. 

 

 

You've got to weigh up the tax implications and possible property values of anything left in the UK. I played around with the idea of keeping my home in Scotland but after tax, maintenance, management fees etc it was a no brainer. Cash is king in my books. What with Brexit on the horizon property values could plummet. I also changed my Sterling into Peso at a rate of 64.4 php to the pound which is the best it's been for a while. I figured the Peso is more stable than the pound.

[Dave Hounddriver]

27 minutes ago, topcat72m said:

Im only 44 now. So i could come back to work if i need to. 

I came here at 52.  I thought I could go back to work if needed.  The more time passes the lazier I become.  I learned to live with less money rather than go back to work, although the option is always there so long as I am healthy.

There are some here who make passive income off hobbies.  One guy who likes to BS a lot is doing great sitting home on his computer teaching English a couple hours a day online.  It suits him and adds upwards from 20K pesos a month to his budget.  Others who are good at videoing everything and blogging it can also do well but the ones making any money are small in number.  You gotta be good and you gotta do it because you love doing it.

Still, there are ways to supplement.  Some play the foreign exchange market.  Others play online poker (I made a whole $100 over the course of a year doing that but others do much better).  And then there is the option of marrying a filipina and working legitimately at a job like a call center.  We have members here who have done that and do well at it.  At 44 you could do that but you'd have to lose the ( some nationality ) accent   Not really kidding.  Call centers for English speakers want a very neutral accent.

[AlwaysRt]

38 minutes ago, Snowy79 said:

I'm looking at spending the max of 8m php on a great apartment in a top holiday resort, and to live off of my pension and additional savings. Worst case scenario rentals as I've checked using a few sites on this property are up to 8,000 php per night. Even if I have to move away I'll get far more return than I would by investing in shares etc. I could even just rent it out and use a chunk of the rental return on a decent sized house.

Aren't you still paying 'rent' (maintenance fees, management fees, property tax...) on a property you own? Rent amount - fees = true 'monthly savings'.

p8,000/night sounds great until you find out your place is rented 2 nights a month and after management fee, cleaning fee, etc, your 'cut' is p8,000/month

[Snowy79]

30 minutes ago, AlwaysRt said:

Aren't you still paying 'rent' (maintenance fees, management fees, property tax...) on a property you own? Rent amount - fees = true 'monthly savings'.

p8,000/night sounds great until you find out your place is rented 2 nights a month and after management fee, cleaning fee, etc, your 'cut' is p8,000/month

If I purchase it I'll be paying dues of about 5,000 php per month. I've been following the property on booking.com etc for a good 5 months and on average it rents out about 17 days per month. Some months more than others. Even if it worked out at 50,000 php per month that's a lot more than I'd get in interest. Even 8,000 php is about 8 times the interest I'd get in a basic bank account.

I'm looking at it from a UK perspective. Our property prices have been artificially high for too long and I'm seeing them stagnate and at times drop in my area where I used to live. Another big one for me is the pound sterling. I'm sure those that have been here years have seen it drop in value already and that's without the uncertainty of Brexit. I'd like to think if my money is in the local currency it'll be more stable. A peso today will pretty much buy me the same thing for the next few months without inflation where as two months ago the pound dropped from 69 php to 58 php overnight. Luckily it hovered around the 62 php mark an has now been steady around the 64 php mark for a few weeks. Something that a lot of people living on pensions will be paying a lot of attention to.

[AlwaysRt]

1 hour ago, Snowy79 said:

If I purchase it I'll be paying dues of about 5,000 php per month. I've been following the property on booking.com etc for a good 5 months and on average it rents out about 17 days per month. Some months more than others. Even if it worked out at 50,000 php per month that's a lot more than I'd get in interest. Even 8,000 php is about 8 times the interest I'd get in a basic bank account.

I'm looking at it from a UK perspective. Our property prices have been artificially high for too long and I'm seeing them stagnate and at times drop in my area where I used to live. Another big one for me is the pound sterling. I'm sure those that have been here years have seen it drop in value already and that's without the uncertainty of Brexit. I'd like to think if my money is in the local currency it'll be more stable. A peso today will pretty much buy me the same thing for the next few months without inflation where as two months ago the pound dropped from 69 php to 58 php overnight. Luckily it hovered around the 62 php mark an has now been steady around the 64 php mark for a few weeks. Something that a lot of people living on pensions will be paying a lot of attention to.

Good, unlike many (who think they will save their entire p15,000 or whatever rent or multiply 8,000 x 30 for monthly income) it looks like you have taken into account what I was talking about. Also looks like you found a pretty decent property.

[popeye72 ]

2 hours ago, Snowy79 said:

You've got to weigh up the tax implications and possible property values of anything left in the UK. I played around with the idea of keeping my home in Scotland but after tax, maintenance, management fees etc it was a no brainer. Cash is king in my books. What with Brexit on the horizon property values could plummet. I also changed my Sterling into Peso at a rate of 64.4 php to the pound which is the best it's been for a while. I figured the Peso is more stable than the pound.

Yes again i agree. Im in euro zone so should be a bit more stable than pound in the near future. 

Also im in an area which is in high demand for rent. I do have a mortgage that would have to be paid from any rent so its not straight forward. But for a year or two until i am fully committed to living there i think its best to do it that way. If i sold id have approx another p5,000,000. But that will still be the case in two or three years. 

 

 

[Jack Peterson]

7 minutes ago, topcat72m said:

Im in euro zone so should be a bit more stable than pound in the near future. 

 I would not be too sure about that just yet. My last two (2) Pensions have come in at 67+ peso to the Pound so Please don't discount this

[popeye72 ]

4 minutes ago, Jack Peterson said:

 I would not be too sure about that just yet. My last two (2) Pensions have come in at 67+ peso to the Pound so Please don't discount this

Im not saying worth more. But as its a larger union it should fluctuate less. But only time will tell. The UK could and probably will do really well after Brexit and if ireland wasn't part of EU im sure it would be severely effected. 

 

We cannot afford to leave the EU.