Renting a cheap house in the rural area for retirement

Discussion in 'Landlord & Rental Property Questions' started by Corzhens, Sep 9, 2015.

  1. Corzhens

    Corzhens Senior Investor

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    There is a saying here that if you want a simple life then go to the province (that means rural). A middle class house in Metro Manila costs around 5 million pesos and renting it would costs around 10,000 to 20,000 depending on the make and location. In the province, there are houses being rented for 500 to 1,000 pesos that can be comparative to that example house in the city. Now, this makes me think if we just sell our house and get a place to rent in the rural area where life is simple and cheap.
     
  2. pwarbi

    pwarbi Senior Investor

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    While it might sound like you'll be saving a lot of money, I think there's probably other issues to consider. Personally for me I couldn't live in a quiet part of a country no matter how much I saved, and I know that mine and the rest of my families quality of life would be affected.

    Living in a town or city with everything on your doorstep is totally different than living in the middle of nowhere, and what you save on one thing, in this case the actual price or rent of the house, your expenses will rise in other areas such as transport and maybe even utilities.
     
  3. Corzhens

    Corzhens Senior Investor

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    Traffic in Metro Manila is the main fare of news reports nowadays. It is being blown out of proportion such that that government seems to admit that they are helpless. So many suggestions are being evaluated for a week now but the government still has to come up with something. The 30 minutes of travel is now 2 hours so you can imagine the losses caused by the heavy traffic every day. Now we are considering getting a house in a rural area for retirement whether for renting or purchase.
     
  4. Rainman

    Rainman Senior Investor

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    Small towns can be great, pwarbi. There are many small towns which have everything you'll find in any city but life in those towns is sooo much cheaper. I live in such a town and I'm certain it could be a perfect place to retire in [for anyone].
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    That is one simple way to save a lot of cash. However consider other costs and factors, like distance. For example, when you are old then you might need healthcare services... it's going to be a pain in the butt if you have to travel an hour each way when you need treatment. Also as you have more time (retired) you will need some activities to pass the time: for some people the rural areas are good for this, others prefer city activities etc.

    In the end it shouldn't be a financial decision but a decision about where you want to live.
     
  6. Corzhens

    Corzhens Senior Investor

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    You are right on the healthcare but we don't want to think about it. However, there are rural areas where they have big hospitals. And with that extra hour of travel in the rural area to go to the hospital, that is just about less time we travel here in the city. Right now it takes me 2 hours to travel the 15 kilometers of distance from our house to my place of work. So that 1 hour travel is not really that much. What we are considering in this thread is the hustle and bustle of the city life, none of that anymore.
     
  7. L_B

    L_B Well-Known Member

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    When it comes time to travel I definitely want to find a small town or village away from all the hustle and bustle of the city. I have lived in both places and I do prefer the rural areas. I am just not a city girl. I live here now because it is close to my work but when the time comes to retire I would definitely consider moving to a quieter and yes cheaper place to live.
     
  8. Penny

    Penny Well-Known Member

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    For me retirement is going to be a time to reconnect with family and helping with the kids etc. So the idea of being in some location away from them just sounds a it sad. Most elderly people start to face issues of vulnerability and isolation at some point, so I think price becomes a secondary consideration as much as possible--being part of a close social network, having ways to pass on what I have learned, these are my main considerations. While I like natural settings I think a nice suburb can provide this.
     
  9. missbishi

    missbishi Well-Known Member

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    I can certainly see the sense in renting during retirement. Maintenance and repairs are no longer your responsibility and this could prove very useful for those in ill health or with restricted mobility. However, whilst the idea of living somewhere remote might be appealing at first, you really need to consider what will happen in the long term. Your licence might be revoked due to failing eyesight. Your kids (if you have them) might emigrate or move to the other side of the country. Your partner might die first. How are you going to manage by yourself without an adequate support structure in place?
     
  10. Corzhens

    Corzhens Senior Investor

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    You are right on the failing eyesight and other health problems in the future. We had been to Batanes, the northernmost province of the country where everything is green, lots of space with the small population, no traffic, and most of all... cheap. A caregiver in Metro Manila costs 8,000 monthly on the average, that's a little less than $200. But in Batanes, you can get a caregiver for half the price. Although imported goods (from Manila like canned goods, soda, etc) are expensive, local products are cheap. The only problem we cannot retire there is we are aliens to that place - we do not know anyone from there.
     

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