A few years ago, with hopes of retiring early, I started to
explore the possibilities of doing so in the Philippines due to the lower cost
of living in that country. There were townhomes with two bedrooms in good areas
that were selling for as little as $15,000, with three bedrooms costing not too
much more. Fast forward about five years later and those same townhomes are now
selling at more than double the original prices.
One of the places I considered was Zamboanga City to be
close to my mother, however she has passed away since. I also wanted to live
there to have closer access to SATTI, hahaha! I still have plenty of relatives
and friends in that city but there are problems with electricity and an ongoing
turmoil with certain groups trying to take over the area.
Another place I checked out was Cagayan de Oro city, but I
hardly know anyone there other than a cousin and an elementary school classmate
who said that area was much more peaceful than Zamboanga. Other property values
I’ve looked into were in Davao and Cebu.
Currently, a main consideration is to live close to my
brother in Quezon City since he is my only immediate family left. Checking
properties for sale near his location showed prices ranging from 1.4 million Philippine
pesos for a tiny bachelor’s pad condominium all the way to 3 million to combine
2 bachelor’s pads into one, or a one bedroom place. There’s no way I could
afford those prices if I wanted to pay for the whole amount all at once. I just
paid off my mortgage in the U.S. and I’m not ready to start another one in
another country. The only way I could afford to buy a decent home in the
Philippines is if I sell my condo here in the U.S., then move to the
Philippines. Mentally and financially, I’m not ready to do that. By the way, I
am qualified to buy property in the Philippines because I have dual
citizenship.
It has often been suggested that before packing everything
up and moving, one should try living in the area you want to move to for a
couple of months or more to see if you would like it. It would not be possible
for me to be off work for a couple of months but it may be possible to visit a
week or two every couple of years. In fact instead of retiring in the
Philippines as a backup plan, staying where I am now will be the backup plan
since my mortgage is already paid off. That takes early retirement off the
table though since I won’t qualify for Medicare until I’m 65 (I’m currently 58).
If medical insurance was not a consideration, I would be able to retire when
I’m 60 and use my retirement plans until I need to collect from Social
Security. Medicaid (Medi-Cal in California) could be a possibility except when
I die, California has to be reimbursed for whatever expenses they used on me
from my assets, before any heirs get to collect their share.
There remain other options or sacrifices if I still want to
retire in the Philippines, and that is to buy a home in the suburbs, if you can
call it that. Two to three bedroom townhomes in Bulacan and some parts of Cavite
remain affordable but they are much farther away from my relatives in the Metro
Manila area. However, I may have to buy it now or else they may no longer be
affordable in a couple of years.
Another consideration with moving is having to buy a vehicle
and getting a driver’s license. It would also be a major adjustment in learning
how to drive in the Philippines which I hear has a lot more traffic jams
nowadays and driving techniques are way more different than what I’m used to in
California.
Let’s also not forget that if I buy a home there, there are
start up costs of new furniture, appliances, and utilities.
As far as health insurance, since I’m a dual citizen, I will
be able to avail of Philhealth, the universal health insurance of the country,
although I will have to pay a certain amount up front to catch up since I have
never contributed to the system.
Yet another possibility would be to rent out my condo if I
decide to move to the Philippines, become a remote landlord, and use the money
to pay for the new mortgage, but that would entail hiring a property management
company to maintain the condo, which would decrease my proceeds.
It is due to the recent economic successes in the
Philippines that property values and the cost of living have spiked, even
though the poorer Filipinos have not seemed to have fared better due to this.
And then there's the politics of the country…
Oh my goodness, how can I neglect to say that one of the most positive things I can say about possibly retiring in the Philippines is the hospitality of the people.
Oh my goodness, how can I neglect to say that one of the most positive things I can say about possibly retiring in the Philippines is the hospitality of the people.