Discussion in 'COVID-19' started by Stockhomlyn, May 29, 2020.
Yes includes lot, this ( proposed) house and last house about the same, 10 yrs later.
Thanks for the quick reply - I know that we all are so busy at the moment!
So based on a 200 sq m house at P27,000 per sq m = P8 million in all.
Obviously the whole equation is affected by the lot size and location (lots varying from P500 to P10,000 per sq m generally and location is a big factor in that price) plus quality of materials (I have seen CR sanitary ware at P8,ooo and at P16,000 and note that roofs come in metal of various types or clay tiles).
Based on a generous monthly rent of 30000, I could rent a quite fancy place for over 20 years before coming even close to 8 million. And that does not even factor in all the stress that comes with the whole process, necessary repairs and renovations over the years or the fact that I don't have to finance that sum upfront. Doesn't work from a financial point of view.
I think one must really value the added privacy, the ability to have everything "exactly" as you wish, and having a garden etc in order to go this route. Obviously having a nice piece of land already available would help as well. On the other hand, there goes your privacy if the wife's family lives next door
I agree with everything you have said when comparing owning with renting - except you did not include 'stability'. Landlords can vary so much that one can never be certain of staying in the same place for a long time. Cases of VERY bad landlords turn up on this Forum from time to time. Some renters are lucky and find a good one, so stay there forever. But my wife is a bit fed up with moving and I need to give her stability before I go - that to me is the ONLY reason to buy rather than rent, but it is not for my own needs.
I have warned her that an owner could find a neighbourhood annoying (again, many cases of that reported here) and then has the difficult job of selling and moving and that in an earthquake or other disaster an owner is not able to relocate almost immediately - but being an optimistic Filipino she thinks these things don't matter as they will probably never happen.
I agree with both Jens and Notmy. House is long term for wife and boy. I am able to do this for them because I can and want to. If I die how long would the money I left them last if not invested in a house.
Most definately buying or building is mostly for our family... a roof over their heads lasting long after I am gone is my ultimate goal....
Transportation to and from Luzon, housing and feeding for the time taken to do the project, just wondering if it would be cheaper or not?
I get your point, it is cheaper up there, was just an attempt at humor and maybe someone's reality if they decide to bring someone in.
For us we are still working. We are building now so that when we retire everything will be paid off and our expenses are as low as they can be. If we waited until SS age to retire it would be a bit easier, but we are working hard to build and save money so we can retire at 58/59 years of age. We don't want to wait until our 60's (full retirement for both of us is at 67 1/2). By having everything paid for allows us to take the reduced benefits at 62 and just paying out of pocket until then.
Family is of course important, both in the Philippines and our kids and future grandkids here in the USA. Giving everyone a safe place is important to us, and reducing future costs for the kids to visit is important. My wife had built a house in Dauin before we met that part of her family lives in, and she started a house in Bacong for us that we are still making it our own. It has 3 bedrooms 2 baths plus a dirty kitchen that has another 2 bedrooms and a bath. Another part of the family lives in the dirty kitchen with a niece and nephew inside the main house that we are paying their college for.
The initial plot of land was just shy of 700 sqm, and was enough for what we started. But since we decided we wanted more land for a pool and a few other amenities we have bought the surrounding land and are extending the wall around a portion of it, leaving a portion of it with just a wire fence for gardening.
As this pandemic has shown, there could be future times where quarantines could happen, and having everything we want inside our walls helps assure the quality of life we want in retirement regardless of the circumstances. This could not be attained if we were renting a place. So for us, the upfront cost of building is worth the price for our longer term security and financial goals.
Will the house add value in ten years
As he said and I concur, the purpose is not to make money but to give stability and know that loved ones are sheltered and not under someone else's roof...