• Expat Retirement
• Overseas Retirement Information

There are many reasons why existing as well as potential investors would like to establish a presence here in the Philippine market. For one, the country enjoys a strategic location in Asia, which is why the United States military bases were here. Further, the country's transportation and communication are good, which is important for investment. Despite being classified as a third world country, the Philippines has technology enabling companies operating in the country to compete effectively with the other players.

The available labor force in the Philippines is very affordable and manageable to the point of being cheap. When calculated based on the US dollars, the salaries granted to Filipino employees are extremely low. Studies have shown that the average American earns a higher hourly rate than a Filipino’s daily minimum wage. This has encouraged multinational companies to earn higher profits in theirPhilippine operations.

IWhile other Asian countries offer low labor costs, the Philippines capitalize on is their fluency in English compared to their Asian peers. This key element encourages foreign corporations to set up regional operations here. International banks and financial institutions are more than willing to expand and open offshore offices in the Philippines knowing that capable and highly educated individuals are looking for work.

The Philippines with its citizens’ ability to speak grammatically correct English has become the hub for call center services and other business process outsourcing. Executive levels tend to be limited to expat transfers of those foreign companies.

While staying in the Philippines, these expatriates are provided with housing accommodations by the parent company. These multinational corporations implement most investments under long-term plans so arrangements must be made to ensure that a foreign executive ’s stay is as comfortable as possible. That means long-term rentals for houses where they could live comfortably.

Apartments, Condos or Houses
An expatriate basically has three options for housing in the Philippines – apartments, condominiums, or houses. Each hasadvantages and disadvantages in terms of cost, living conditions and security. It would be normal for the foreign company itself to do the searching for available slots or houses that can be rented out. If such company has been operating in the Philippines for quite some time now, then it is already familiar with what is available and where to look for that matches an expatriate’s need.

Although the Philippines real estate market experienced a tremendous slump in property a few years back, it has slowly recovered and started to implement new construction projects.

A majority of condominium projects are advertised in the financial business districts of Makati and Ortigas. Expatriates can pick a condominium on a long-term basis and be nearer to work.

Apartment buildings are competing with the condominiums for the same target market. However, it is rare to see apartments that are available in the heart of Makati or Ortigas.

Renting a house on a long-term arrangement is usually the best alternative. This is particularly true if the expatriate is relocating to the Philippines with the rest of his family. Many Filipino families who have immigrated to other countries choose to rent to expatriates instead leaving their homesvacant. This is a win-win scenario, as both parties benefit. The expatriate can enjoy the comforts that a real home can bring while the original owner can earn from his home and know that someone else is taking care of it.

What to Expect
For condominiums, the first thing you will be concerned about would be the available space. This depends on how much you are willing to spend or how much your company’s budget for housing allocations is. Numerous condominium units are fully furnished and are ready for occupation. Space will be limited though as project plans often try to maximize the area. A lot of projects are owned by Filipino real estate firms.

Apartments offer more room to move and are usually privately owned, so the landlord sets rules and regulations. Some apartments are furnished, some not. If an expatriate prefers to decorate his own home to make it as comfortable as possible, he has the freedom to do so.

Houses for long-term rentals have more room and are ideal for foreign families. Staying in the Philippines for more than 5 years certainly calls for a more permanent abode, which a house can provide.

How to Find Them
Available apartments, condominium units and houses that cater exclusively to expatriates can be found through from advertisements. Look through the classified ads section of newspapers, browse the Internet or make inquiries of different local real estate developers.

Referrals are often the most effective way to find housing deals. An expatriate would surely be willing to help a fellow foreigner that is staying here for the first time. Previous experiences will be invaluable to assist an expatriate and his family in finding where the safest and best quality residential dwellings are in the Philippines.

It is easy to identify typical expatriate living areas. If a large population of foreigners are visible in a particular community then it is probably a safe location. Makati and Ortigas have successfully combined office structures and residential buildings.

If you have been assigned outside Metro Manila or the National Capital Region, then Cebu or Davao are ideal places to be assigned. Housing accommodations in these localities tend to be cheaper than in the metro areas. Cebu has numerous expatriates that are either working or simply enjoying their retirement years.

What They Cost
Location has a significant influence on the cost of lodging; proximity to the schools, supermarkets, churches, plus the quality of construction. The rental cost for small condominium units with simple amenities like a bedroom, kitchen and living room will be at least P15,000 a month (or approximately US$333 at the current average exchange rate of US$1:P45.00). The price charged may be different for expatriates.

Apartment costs will fall into the same range of minimum P20,000 per month (or approximately US$444). Prices will definitely vary depending on the requirements of the expatriate, as bigger rooms will merit a higher rental fee. The length of stay will likewise determine the rent.

Houses rented out on a long-term basis can rent for as much as P100,000 per month (or approximately US$2,222). The majority of the houses being rented out to expatriates are located in posh villages where only the affluent reside.

Owners impose a fixed number of months that have to be paid in advance before an expatriate can move in. Even if you pre-terminate your contract, advance deposits can no longer be recovered.

Problems and Caveats
An expatriate is not expected to be well versed withPhilippine law. A rental contract may often have clauses that are disadvantageous to the foreigner. Signing an agreement impulsively should be avoided. What may be verbally agreed upon can be changed in the written agreement so you must take time to read what you are signing.

As a precautionary measure, seek advice from a competent lawyer before signing an agreement for long-term rental. A counsel familiar with local laws and statutes is required so that the interest of the foreigner will be protected. You may be spared direct dealings with the landlord if your company has already made the necessary arrangements.

A common problem with long-term rentalsis the security deposit. This deposit is made to ensure that the tenant has not damaged the premises. The amount is returned back to the tenant after determining that everything is in place and upon turnover to the original owner. There have been reported cases of landlords who delay or refuse to return these amounts as they may have already spent the money on something else. Your only recourse is through threat of legal action.

Security during the duration of your stay is a principal concern for expatriates. The locals have a notion that any foreign looking individual that travels to this country has excess cash. That makes the expat a target for criminals. It is crucial that an expatriate look for a home where he need not be afraid that something might happen to him or his family.

Condominiums normally provide ample safety measures forresidents. Security cameras are in place to monitor people going in and out of the place. An expatriate should rent a unit from a reputable real estate developer/owner to guarantee that he is safe and secure while inside the premises.

The security equipment installed in apartments would depend on the owner. One who charges a high rental fee is more likely to offer better measures for renter security.

Expatriates that live in houses located inside exclusive villages can depend on the security protection extended by the village or association itself. Strict regulations are observed as to the people who are allowed entry to such communities. Clearance from the resident must be received before anyone can go directly to anybody’s home.

In Conclusion
An expatriate will not find it difficult to secure long-term housing that suits his preferences and his family situation. The Philippines has plenty of housing projects that are under development. One just needs to be resourceful in researching and asking for referrals from other foreigners who have stayed in this country longer.

What to expect when searching for - long term rentals in the Philippines