I just returned this week from a several week visit to Florida, USA, to lend family support to a very ill relative, and I have a very fresh perspective about life in the USA, as opposed to life in the Philippines. It is fabulous being back in Sweet Home Philippines!
For those who say they can live as cheaply in the USA as in the Philippines, this certainly isn’t true anywhere in the Sunshine State. I was in rural NE Florida and the cost of living there is three times more as it is in the Bacolod Area and I can only imagine how expensive it is in such Florida cities as Miami, Orlando and Tampa!
The cheapest rental in NE Florida is $400 per month and that is for a studio or, if you are lucky, for a 1 BR apartment. In Bacolod City, you can rent a townhouse for less than $200 per month and you can rent an 80 sq m home in a gated subdivision for only $125 per month. It doesn’t get any better than that does it?
We pay $300 annually in Bacolod for full coverage newer car insurance, including 24/7 road service, yet the cheapest car insurance in NE Florida is $700 annually. My brother, in that area, pays $105 per month for satellite TV but I only pay $14 per month for Dream Satellite. Verizon Jet Pack Internet is $75 per month, yet I only pay $22 per month for Globe internet service, which is unlimited. To get unlimited Verizon Jet Pack Internet, it is $100 per month!
Does retiring to the Philippines sound more attractive to you?
Almost everyone has a home phone in Florida but in our area of the Philippines, this expensive land line is not required due to the inexpensive cost of new cell phones and the “pay as you use” system in the Philippines, which does not require a monthly bill or a contract. You just saved another $61 per month by living in the Philippines and not requiring a land line!
Depending on which county you own your home in NE Florida, the quarterly property tax can be as much as $400! We pay $67 annually for our property tax in Bacolod City for our house and lot, located in a nice gated subdivision. Our farmhouse is built on agriculture land and the property tax does not cost us one penny! There isn’t property tax on a house built on agriculture land. We pay $46 annually in property taxes for our two rice farms!
In comparison, electricity can be more expensive in the Philippines, however, there are legal ways to cut the cost. One way is buying a split type air con with an inverter, which is what we have in both our homes. On average, we use our air con 15 hours everyday when at home the full day. Our electric bill is consistently $51 per month and has been for all of 2014. We have 3 laptops, a TV, DVD player, security lights at night, an electric fan we use daily, a toaster oven and several other appliances, which we use on a regular basis.
Food is an international language! I do not personally know one person who does not enjoy eating. Everyday, we enjoy eating the food we like and we can afford it. If we lived in Florida, unless we had a lot more money coming in every month, this would not happen! We could not afford it. Every Sunday, 4 of us dine out in a nice restaurant and I rarely spend more than $20 total and this includes a few beers, soft drinks and/or iced tea. While I was in Florida, it was not uncommon to spend $14-$20 for a decent meal and this did not include beer. I did not find one restaurant in NE Florida that did not have their beer priced $4-$5 each bottle or draft mug! In Bacolod, I do not pay more than $1.25 for San Miguel Beer in any of the nice restaurants that we frequent. When we dine out in a restaurant, I am not referring to native Filipino food but we order dishes such as baby back ribs, 1/2 fried chicken, pork chops, local steak, grilled blue marlin or tangigue fish, other sea food and such dishes. We are not talking pancit canton or fried rice here! That would even be much cheaper than $20 for 4 diners!
There is never a valid answer to the frequently asked question, “How much money do I need to live in the Philippines?” It depends on your lifestyle and where you life in the Philippines. However, I can assure you that you can get more bang from your bucks while retiring to the Philippines and living here full time!
I live in the Philippines and it is my sweet home. I hope to see you here one day!
Awesome write up…ill be there soon.. its hot though hehe
Thanks for this
Doug
You are welcome, Doug, and thank you for your compliments.
Have a great day!
Gary
Gary, you are right about that. I live in NE Floidia now, which over all the south is generally cheaper to live in than any other part of the US. I just returned back from my annual trip to PI. My trip was about 1 month. I had a wonderful time as usual.
I planning to quit work early In 2 years at 54 , God willing. I am planning for around 1000 per month, to quit work and ride it out till i collect some retirement from my present work at 57 and then ride that out till 62 for social security.
I could live like a king for sure, if I was in the US I could not quit work at 54 and with my current income stream in the coming years would almost be living homeless in US.
After just finishing my 7 th trip to PI, I am planning to come home to PI in 2 years. All the best to you.
Hi Rick, It is nice hearing from you again. That is great you had another wonderful time in the Philippines!
If you are in the right location in the Philippines, your $1,000 per month will be fine for you to live comfortably. Once your pensions kick in, you will really have it made in the shade! Hopefully, the next two years will fly by for you. That will be about the time I can receive my early Social Security and while not trying to get old quicker, it will be nice having more money to play with in the Baoclod Area!
Take care and have a great day!
Welcome home, Gary. Nice article. Bet you are glad to be back. 🙂
Thanks, Thom. Yes, I am sure glad to be back in Sweet Home Philippines, the land I love so well.
Take care and have a great day!
Gary
Those prices you’re quoting for Florida are so much cheaper than what we have in the Chicagoland area…
I agree, Raymond, about the prices being much higher in the Chicago area than in NE Florida. That was exactly the point I wanted to make in my article. As Rick posted earlier, NE Florida has a cheaper cost of living than many other areas of the USA. However, the prices in NE Florida compared to prices in the Bacolod Area, are about three times higher on average, concerning the overall cost of living for an expat.
Take care,
Gary
Dear GARY MC MURRAIN
I read your book once “awsome its Great” loved it,I plan to reread it on the plane to Iloilo, i”ll be leaving California LAX this week May 8th. My arrival will be the 10th .I expect jet lag for me.I’ll be staying at Harbor Town Hotel.I’d very much like to pay for your servces and there was a part in your book that you said you’d walk us through the services for a certain price.I thought it was quite low so I have no objection in paying a higher amount,I would like to invite you and your significant other and or those nice children you look after to a meal on me.My two projects there are looking for a place to live and hospital care..
Hi Steven,
Thank you very much for reading one of my books and I am happy you enjoyed it. Bacolod is my favorite place in all the Philippines and Iloilo is my second favorite. Nice city.
I will contact you later today via your email address concerning your trip and stay in Iloilo. Thank you for your nice invitation.
Have a Happy Trip!
Gary
Hi I’m in Cebu and I’m astonished at your electricity bill, I use my aircon a lot less I must say but my bill is usually around 5k, what am I doing wrong., lol!
Hi Terry,
You may not be doing anything wrong and the amount of your electric bill is probably reflected higher by living in Cebu, where the overall cost of living is much higher than in Bacolod City.
We have been to Cebu City two times and we noticed the higher prices in the grocery stores there in comparison to Bacolod City. An American friend moved from Cebu City to Bacolod last year and he says he and his wife save more money by living here in our area, including the price of renting. They rented a brand new two story townhouse for only P7,500 per month in Barangay Tangub, Bacolod.
Just to note, at our farmhouse in the province, we also use a split type air con with inverter and our bill there is less than P1,000 most months and never over P1,200 the months we spend more time there. Also window unit air cons cost a lot more to operate than the split type air cons.
Have a great day!
Gary
Gary,
I’m probably guilty of having said I can live as cheaply in the U.S. as I do in the Philippines. A better way to have expressed myself on those occasions would have been to say that I live an equally enjoyable life when I’m in the U.S. for about the same amount of money I spend to enjoy life without lowering my expectation and standards to also maintain a residence in the Philippines.
HI XPAT,
It would be nice to know which state you live in and is it a rural area, mid-size city or large city?
Thanks!
Gary
Hi Gary. I live near Sarasota, Fla. What you said about your brother pretty much applies to me. The cost of living in Cebu is much lower then here. That’s why I’m moving! I will check out Bacolod based on your information. Very interesting. Thanks!
Hi Gary. I really enjoy your newsletter. I retired recently with SS and a VA pension. I’m moving to the Cebu area soon. My girlfriend lives in Cebu. I like Cebu but I’m going to check out Bacolod based on your info. I found your info about electricity interesting. Do you have a large refridgerator? Thanks.
Hi Terry,
Thank you and I am glad you like Retiring to the Philippines. That is a great idea checking out Bacolod and you can see first hand.
We have a Whirlpool refrigerator and freezer combo but it is not the largest model. It is large enough for our family of three and plenty of space for us.
Have a great day!
Gary
I’m glad you’re back home in the Philippines, Gary. Just to let you know that all of us in my family here in Florida truly appreciate your generous, deft, and wise mentoring of expats in my native country, including those from various countries who are still planning to follow suit. I advised my loved ones, especially those who were born here in the States, to read your blogs. I purchased your Expat Tales e-book and added it to their reading lists. They surely would learn a great deal about the Philippines through your impartial and objective eyes, and from your non-judgmental perspective. Like them, I found your reading of Philippine culture and the Filipino people truly fresh, dispassionate, and riveting all at once. You have not allowed your passionate devotion to your beloved wife, a Filipina, and your decades of fully embracing the Philippines to cloud your judgment, promptly calling a spade for what it is, a spade, especially when it involves the safety and well-being of expats who should do well taking heed of your precautionary advice, warnings, and counsel. A psychologist, you do write with such clarity and simplicity, with a style that is easily accessible and engaging no less (English majors, wake up!). My wife and I are planning to return and retire there in a few more years, and since we’ve been away from our native Philippines for so long, we’d do very well to re-acquaint ourselves with what’s happening there now, especially those cultural aspects that have considerably changed since we left, and obviously your blogs and e-books are resources we should be grateful for.
Hi Ed, it is great hearing from you and thank you so much for reading my books and for enjoying my articles on Retiring to the Philippines. I appreciate your wonderful compliments very much.
I wish you and your wife all the best and a very happy life when you can retire to the Philippines in a few more years. Maybe I will see you around, somewhere in the Philippines.
Take care,
Gary
interesting article – Is it mainly americans who retire to the phillipines, we are from scotland and interested we have 5 years to go – lyn
Hi Lyn,
While there are more than 300,000 Americans living in the Philippines, there are also many expats from UK who have retired to the Philippines. One couple we know retired here from England and they love being in the Philippines. The hubby bought a small fishing boat very cheaply for hobby fishing and crabbing.
There are a number of expats from Scotland in Manila and I met one guy who plays bagpipes at funerals and other special occasions. It is a sideline business for him.
Have a great day!
Gary
Hi Gary,
I was in Manila for the first time back in March. I went to actually meet in person the woman I’ve been talking to for the past 2 years. One week there and I’m ready to move and not look back. The people were more than friendly, the food is great and you just can’t beat an ice cold bottle for San Miguel for less than a dollar on a warm night.
I’m ready to return ASAP, much nicer than Houston.
I’ll be reading everything you have here so far and looking forward to more.
RobertW
Hi RobertW,
I hear ya and I am glad that your trip to Manila went so well. Those San Migs are also good on a hot afternoon! I’ve never been to Houston but Bacolod City beats everywhere I ever lived in the USA.
Thank you for enjoying the articles on Retiring to the Philippines.
I hope you are able to make it back to the Philippines very soon.
Take care,
Gary
Hi Gary,
Any good websites for apartment or condo rentals in Bacolod city? I am looking for a month to month to start until my Retirement visa is approved. Then longer term rental. My budget for rent is up to $1000 month. I am retired Army officer with pension of about 5k month. Don’t want to have a car. Would like to be near a good gym as I am into staying in shape. I am single and 52 years old, so being near some night life might also be good.
Hi Jeff,
The only month to month furnished rentals that I can personally recommend is CRA Apartments and they have a website. The apartments are very conveniently located and you can walk to a number of good restaurants and 2 supermarkets, all very near. There was a gym nearby as well. We lived there two months while waiting on the completion of our house in Bacolod City. There are many jeepneys, trikes and taxis in that area, which is Lopues East Shopping District.
I wish you the best!
Gary
Hi Gary,
I currently live in the outskirts of Bangkok, but have been a total of 8 weeks in the Manila area this year (Makati, Ortigas, etc).
I can say for a fact that the Manila area is more expensive than Bangkok, including the hotels, food, internet, taxis and even massages.
Also, the quality of almost everything is better in Bangkok:
Food choices, apartments, public transport, roads, noise level, supermarkets, cinemas, shopping centers, even the air quality.
Not familiar with smaller towns like Bacolod, but if comparing Metro Manila to Metro Bangkok, Metro Manila has only one (big) advantage:
People speak English.
For all the rest – Bangkok takes the lead big time.
Hi Udi,
Manila is not a fair comparison with the entire Philippines and Manila hasn’t been the Grand Old Lady of Asia since the 1990s. I spent a lot of time in Metro Manila from 1986-2000 and Manila went to hell in a handbag by the late 1990s. I lived in Metro Manila in the year 2000, before going to China, and I did not like what I saw. I have not spent any quality time in Manila during the last 14 years but we have relatives there.
I would suggest checking out Bacolod, Iloilo and some other cities in the Philippines when you have time. Even on the island of Luzon, there are still many nice places that are nothing like Metro Manila. One expat told me recently that most of Manila is not much more than one crime infested, over-crowded, polluted Slum. He lives in Metro Manila. Makati is still nice, evidently.
~ Gary ~
Hi folks…during my visit i found even in Manila people were friendly towards me. Filipinos showed much respect for me. I dont get it here at home.. Im not sure of other countries but layovers tell me its not ideal . I really liked Laguna.
Need to know if there are building codes Gary…I have my plan…typhoon proof…will lease some land next visit.. Doug
I’m glad foreign nationals like you guys still find the Philippines a lovely place to live in and retire for good. Thank you for seeing the beauty in our Country 🙂
Hi Jen,
You are welcome. I’ve had a love affair with the Philippines, Filipinos and the vibrant Filipino Culture for 28 years now. Everyday still unfolds a new adventure for me!
Take care,
~ Gary ~
Nice write up. WOW, Florida is pretty cheap for Property tax! I live in California and I pay over 6000.00 per year! And that’s on a single family home. But I’ll tax the tax bill you have (67 annually) any day!! I just turned 50 and been planning my escape from America for the last 10 years. Thanks for encouraging us to keep our dreams alive 🙂
Michael,
You are welcome.
There are some areas of Florida, which have high property tax. Miami, Orlando and Tampa come to mind. There are still many small towns and rural areas in Florida with low property tax.
In our area of the Philippines, it is really amazing how low the property tax is. Also, land zoned as Agricultural Land is not taxed in most areas.
~ Gary ~
Hi,
I’m curious about banking. Suppose I have an account in the US with $300k and a monthly pension income of $2k.
Now, I’m in the Philippines and want say-$3k/month to live on. How does it work?
Thank you.
Scott – There are various ways you can get money over here. Depending on the amount, I sometimes write a check to myself and wait the 45 days for it to clear. I’m not old enough to receive a pension but I know a lot of guys who have their pension paid directly into their Philippine bank account.
Hope that helps
Steve
Scott, If there’s a PNB in the US city that you are from, they can assist you in setting up wire transfers to do those deposits from your US account to yours or your spouse Philippine bank accounts. If you have a PNB account in thew Philippines then your funds will be available the same day of the deposit.
Thank you for your advice. Our plan is – I’m retiring in June. We have been in the states since 1989. We’re selling the house and stuff, looking at realizing 200k or perhaps more. We’ll have 400k outside of that. Plus I’ll have a 2k/month pension.
We’re going to drive around America for a while, maybe a year. I want to settle in South Dakota long enough to establish domicile and avoid state income tax on my pension before we leave the states for good.
So, I can find a PNB branch at some point during the next year. That’s easy.
What am I missing?
Thanks, again.
Hi Gary, do you know of a safe way to look for property in the Philippines without being scalped? I have looked at Internet real estate guides for Philippine properties and often the prices are higher than they are for properties in the U.S. Of course it would be good to steer away from those agents and to find more honest people. How does one go about this? Thank you, Bob.