⌛ Should I Rent or Own a house in the Philippines?

I am on the market for a good rental house at the moment, I am tempted to go and buy one but I have read a lot around the web about problems with ownership of property in the Philippines.

Also some of the houses I have found on the net are so cheap to rent compared to the purchase price that rental makes a lot more sense. One example I pulled from Islandsproperties had a rental price that would take 40+ years to pay the purchase price.

If it is that cheap to rent, then why buy?

VM

 

That is an excellent question. Rental prices are a bargain. We're debating it ourselves. There are certainly some ownership issues around...most people do ok and have no problems...but I've known a couple deals that went very bad...and not just to foreignors. Seen Filipinos get ripped off too....very badly.

Houses can take forever to sell...some of those on islandsproperties have been there a couple years...prices drop (sometimes considerably)...still no takers...Even Bohol has cooled off. They used to get snapped up on Panglao in a month or so...not anymore. I'd say if planning to stay over ten years, then buying is likely the better option. You're covered for inflationary effects on the rent. And in ten years you might even make a few dollars selling if the location is right and the house is good. We intend to stay as long as we can enjoy the place and are fit enough to do the things we like. After that likely to return to Oz. Hard to call at this point if buying or renting is best for us.

 

I'd rent for a couple years first. Dgte gets small after awhile, and real estate can be impossible to sell.

Same is true for anywhere in PI. It's all new and cute at first, but many expats long for home within 5yrs.

 

Yabs ... you make some good points

Yabs , Hello , my name is Kevin . Good advice . I have thought about all of these scenarios and will heed your advice . If I do get married and buy property , I will know full well I will never own it and the perils that come with it . I like getting the real good / bad about RP`s living . Thanks . Kevin

 

I am fili and can own a property .
But ,I would share the same opinion ,if there's no legal way I could own the property with my name in it,I would never buy one.Better to rent .For the foreign spouse ,with one exception unless having children who are partly of filipino descent where the ownership of the property can be transfered when in legal age despite holding diff nationality ,is another given option.

There's a lot of hassles for mixed couples owning property in PI. Even if marraige relationship is going fine but in unexpected time the wife pass away you loose out ownership of the property and you have to dispose it otherwise it will go to the immediate filipino relatives of the wife . One don't need that hassle .

Though i heard of few who get away through loopholes of the law,but there's nothing which can assure you more than doing everything the legal way.

 

Foreign nationals can own a condominium or townhouse outright, if you wish to consider those as an option.

If not, rent.

 

yabs, thats good advice for many people and it certainly is the safest bet, BUT I have broken your rule 1 and 3 and it has worked out for me
... the property in my wife's name goes to my (dumaguete born) children anyway - and the resort allows my wife be the buisnesswoman and stay occupied and intellectually active now that the kids are in school. we dont depend on the buisness for survival, either... it will also serve to keep me more involved after I retire - with a guaranteed pension check every month hey, It works for us

....most of the sad stories I have heard begin with some poor guy breaking your rule #2