Surprising Facts about Foreign Housing Costs

Is the Housing Market Different than U.S. Housing Costs?

This winter time of year seems to be a little slower for everyone. I took the opportunity to take my kids to the Philippines over Thanksgiving.

Going there looking for real estate brought a whole new perspective to the trip. I interviewed people about the cost of real estate, the cost of labor and the price of rentals.

It was amazing how different things are there.  Here in the States, a very affordable tile guy will charge about $5 per sq ft to install tile.  One an easy job they can install nearly hundred feet in a day.  That is almost $500!!!  When talking with the construction workers there, a skilled tile man will make about 750 to 1000 pesos per day.  That sounds like a lot until you convert those pesos into dollars.  It is between $15 and $20 per day.

The house I looked at in Metro Manila was about 1800 sq ft with a 1 car carport.  4 bedrooms and 2 bathrooms.  It poor people living in small shacks against the outside of the perimeter wall.

The house was for sale for about $700,000 US.  The vacant lot next to it was for sale for just over $500,000.00. It was completely mind blowing to me how much the houses sale for!!!

That same house that is for sale for $700k would rent for about $1,500.00.  The real estate market there was bizarre and didn’t make sense with the numbers I am used to here in the states.

Further investigation brought out the fact that a non-philippino can own a building but not land.  So, as a non-resident, I could own a condo in a building as long as I didn’t own the land the building was sitting on.  It was fascinating to learn more about the way markets work in places other than my own backyard.

It further proves real estate is location, location, location.