How Foreigners Can FINANCE A House In The Philippines

Ever since we built our house here in the Philippines I’ve been inundated with questions about how I paid for it. And what type of financing is available for foreigners interested in buying or building a house here. In this video I discuss a few of the most common ways to pay for a house in the Philippines. Thanks for watching!

Welcome to my channel sunshine shoulders i’m calvin thank you so much for stopping by today the subject of my vlog today is how foreigners can finance a house in the philippines before i get started let me welcome my viewers and subscribers thank you so much for your candice your generosity and your support of my channel it’s truly been amazing i never take that

For granted this is a subject that i kind of put on the back burner i want to talk about today ever since i built my house people were asking me how did i pay for it are foreign is able to get financing over here but let me make one thing clear financing in my video just means how do they pay for their house in the philippines if you’ve made the decision that

You’re going to put your roots down here and you’re going to build a home i just want to talk about some ways that we pay for it in the first way which is the most risky way and i’m gonna go from the most risky on down to the safest is to pay for the housing cash a lot of foreigners do that but there’s a lot of risk involved in that number one you’re gonna

Already give all the money up front you have to keep honest man honest and when somebody already has the money you have very little leverage you have very little input they can basically do what they want to do they could actually run off with the money and there’s nothing you could do about it you could go to the police uh get your private investigator but it’s

Very very risky to pay for the house up front i would advance against that but another mistake that people make is they pay for the house up front and then they’re not even here to oversee the work which is very very important no matter how you finance your house you have to be boots on the ground don’t send the money to your girlfriend don’t send money to her

Family you be here you oversee the world you make sure the engineer is doing what he’s supposed to do more than likely see when people watch the construction of my house what i didn’t know but i know right now is i had an extraordinary engineer he was honest and by the way he had more money than me but really i was very fortunate but i never once thought about

Paying for the house up front but a lot of foreigners do that and it’s something that i wouldn’t suggest first of all i couldn’t afford to do that so yeah you can pay for it up front but make sure you’re here no matter how you finance your house make sure you’re here to oversee the work because you have to keep honest man honest when you’re not here the work slows

Down maybe they’re using inferior materials okay but that’s one way it’s the riskiest way to do it the second riskiest way to do this is to owner finance you see a house she is on a lot you’re interested in buying it and the owner wants to finance it not only is it one of the most riskiest ways and i’ll tell you why that is it’s also one of the most expensive

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Before we built our home we were just looking around we didn’t really have any idea what we were going to do we wasn’t sure if we wanted to buy an existing home or build our home yet and we saw several houses in one particular house was owner finance he wanted 1.8 million for it and whatever we had he was going to take as a down payment then it’s going to be 2

Interest per month until we paid it off so in the event of two years that would have been 48 interest which is very very expensive and then you just it’s just so risky unless you’re really dealing with a reputable real estate agent with a history of financing owner financing you know you you just put yourself out there to be taken advantage of and you know

Once you miss a payment because the payments are going to be high because you’re trying to pay that off i think at the time we were gonna put down 850 000 or something like that whatever we had and so all of that would have been gone had the money flow stopped coming in had i missed a payment or two they were gonna take the house and you’re not gonna be to get

That back but it’s very expensive but it is a way that you can do it and there are reputable people over here that you can work with so on a financing it’s expensive and it’s risky but it’s something that you can do that way you don’t have to be here if you were in your home country that’s one good thing about it because the house is already built that way you

Know you just send the money to your girlfriend or you could send it to the owner whatever uh when you decide to to pay for it the house is already built so that way you don’t have to worry about inferior materials and people running off with your money and like that now the third way and this is the way that i finance this home i’m in the guest house right

Now is the filipino mortgage that’s what i call a filipino morgan this is something i made up and it’s the way that most filipinos pay for their homes they pay as you go again you can pay as you go and be here and oversee the project or you can pay as you go and send the money to your girlfriend or her family which is very risky you always want to be here but

Pay as you go means you could stretch the project out as far as you want it to are as quick as you wanted to depending on what you your finances so if you run out of budget then it stops until you get more money then they start again this is how most filipinos build their homes and this is the way i decided to do it because it’s a great way and then once you’re

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Done you’re done you don’t owe anybody there’s no monthly bills i’m gonna do a cost of living analysis since we built this house and man our expenses our living expenses went way down was almost cut in half because of our decision to buy a house i mean everybody’s not going to buy a house over here a lot of people don’t want to make that commitment i’m talking

To the people who have either thinking about building a house or who are going to build a house and they want to know what their options are i would say the filipino mortgage when your boots on the ground is the best way listen no matter which way you decide make sure you’re here otherwise trust me if i’ve seen it over and over and over where the hard-working

Ofw or the young lady who’s buried a foreign and went back to his country she’s working sending money over here to build the house she’s not here the money goes up in smoke so if the people would cheat their own they obviously would cheat you you have to keep honest people honest but the filipino mortgage is the way to go as far as i’m concerned because even

If you don’t like the work you can just stop fire them and get somebody else to continue to work like we did on the fence on the wall that we did the last thing i’ll talk about is peggy b they’ve got something called peggy big now that’s an acronym and i i can’t pronounce it but it’s like a government fund sort of like a social security system that you pay into

Voluntarily they’ll take it out of your pay and it’s mainly for filipinos but certain expats under certain conditions if you meet the requirements you can also be a a voluntary member of the if you live here if you work here if you’re eligible for the social security system and it’s take a certain amount out every month or whatever it is i believe it’s 450 that

You can get a loan between 450 000 to 6 million as long as you meet all the requirements i believe one of them is you have to have been in the fund for at least 24 months you can’t be over 65 years or well if you’re 40 you can’t be over 60 years old if you’re filipino you can’t be over 65 at the time of the loan or over 70 uh when the loan matures and they give

You pretty good interest rates the thing about it is a lot of the loans over here the way the financing is set up over here there’s gonna be a balloon payment due at some point in these loans so just keep that in mind and i’m gonna put the link to the peggy big because this is really the least riskiest way to finance a home over here and i want you to look into it

That way you can ask any questions to the officers in the peg ebig but this is some of the ways that i’ve seen foreigners uh pay for their houses over here financing pay for it in cash which is risky don’t do it pay for it in cash when when you’re not here how crazy is that you have to keep honest people honest don’t do that to yourself because now even the

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People with the best intentions they got all that money in their hand they’re gonna take shortcuts it’s not going to be good and you’re not going to be hearing boots on the ground to oversee the work to make sure they’re on schedule because you paying me cash it’s going to run over schedule the budget’s gonna run over the next one is the filipino

Mortgage what i do pay as you go and be boots on the ground here that’s really the best way as far as i’m concerned you pay all the money you have until it’s paid out if you don’t have any money then the work stops you get more money it starts back that way you can look at the work and even if things aren’t going good okay hey look stop let me get somebody else

To finish this in the peggy biss you can actually get a loan from the government 150 000 all the way up to 6 million owner financing there’s a lot of people over here who are selling their homes or selling a home who will finance it themselves it’s very expensive it’s very risky if you miss a payment or two all your investment is gone what a likeness so thank

You so much for stopping by i really appreciate it i encourage you if you decided to build a house are you even thinking about it to look into some of these options it’s the best thing i did especially if you are going to live over here you may have your man you’re going to be here for an extended period of time because your living expenses go way down ours

Have been cut in half i’m gonna show you they’re not the lifestyle but the living expenses have been cut in half i’m gonna do a cost of living analysis of our new bills now that we paid for the house and that’s the big thing about it whether you’re paying cash filipino mortgage you don’t have the stress of the mortgage hanging over your head because the only

Financing in the beginning it’s like in america you still got to pay it’s stressful but over here when you pay for it it’s done it’s yours free and clear you can sleep better at night so if you’re in america’s getting late before you let your head hit the pillow please find somebody to help if you don’t want him late grocery runs beer runs weed runs just getting

Off second ship on your lunch break you see somebody on the street but i’m something to eat down some drink give him a few dollars if you’re in the philippines it’s real early it’s not even seven o’clock yet kept up early because i had to get merlin up she’s going to macaulay to get her passport renewed tonight we’ll have our 1000 peso pandemic giveaway drawing

As we do every friday night at 8 p.m since such a shoulder started it’s just our way of giving back it’s where i help of helping struggling filipinos doing the pandemic because if i don’t know anything else i know this one thing for sure we help other people we help ourselves take care stay safe stay cold and free i’ll see you next time

Transcribed from video
How Foreigners Can FINANCE A House In The Philippines By Sunshine Shoulders