Make an inventory of how much equity you have in real estate, savings, liquid assets, etc. Compare refinance or cash out options, consolidate present bills and lower monthly bills. Leverage on Reverse Mortgage, 1031 Exchange, Prop 60/90 and, home improvement loans like FHA203b. Contact me to learn more. Review how much in 401K, stocks and options do you have from all your past and present jobs. Consolidate and use SDI(Self Directed IRA) to invest on properties. Become a Private Lender for real estate investors Cash out on a Retirement Package so you can easily and without stress, invest in a new passion? Find out how. The earlier you begin, the more fun and less stress you will have.

Step 2. Determine Your Options – How, where and what do you want to do in the next 20 years

Stay put and baby sit grand kids part of the time. Travel and be a missionary. Discover how Medical Mission participants learn local investing in the Philippines. Start a new career and live your passion. How to own rental properties in the Philippines Find out how to be an expat and live in the Philippines almost for free Simply live your golden years in your present community? How to buy and flip homes while enjoying retirement around friends and family. Learn about REI clubs and become an investor.

Step 3 Describe Your “Retire in Style”

Live as a missionary – Find out how others find new life building an orphanage in the Philippines. Find out how to live as an expat and get free food and lodging. What are the pros and cons of living in several places in US and Asia? Find the best places to retire. Live and travel with close friends and family using monthly income from RE investments? 1031 exchange can help grow your portfolio, we can show you how. Live minimally and write my story?

Step 4: Find out your cost of living

How much does it cost to keep my home and live independently? Analyze own vs rent as a retiree. Locally or in the Philippines. Find out the value of pesos vs. your social security dollars. How much it costs to live outside the US like the Philippines as a couple? How to apply for a visa and senior card privileges. Health insurance etc. outside the United States. How to buy a condo or home and experience urban living in the Philippines partially or full time.

Step 5. Travel to Check Out Your Destination and Retirement Lifestyle

If you plan to live differently, now is the best time to check out, mingle and join groups to check & experience the nostalgia. Join our meetups to mix and mingle with other Filipinos and Americans living full time and part time in the Philippines. Plan to join medical missions and group destinations with local groups like Lions Clubs and Medical Societies.

Step 6. Live the Dream Now !!!

Prepare, Research and Just Do It!

The journey begins with the first step – deciding to do it.

Step 7. Work with an Experienced International Certified Realtor and Team of Professionals

How to buy real estate wisely as a fixer, flipper or developer/investor Partnering and meeting with local investors and distinguished international developers. Learn what it takes to invest and retire in the Philippines with the right communities and agencies. Learn the truth: How local Realtors partner and work with active Certified international Property specialists around the world in exploring other retirement communities.

She was referred to me as a First Time Home Buyer by her nurse associate and past client. Her lease contract was expiring and renewal for another year will increase $500 more.

She wanted to have a 2-3 Bedroom condo but she has only  $45,000 budget. The value of condominiums in Fremont within her desired area range from $48K0-$550K. After several multiple offers and lost, we made an offer on a 2 bedroom unit next to her apartment . There were 9 offers,. Again, we did not get the offer. Two weeks later, the unit went back on the market because the buyer backout due to $6,500 termite work!

We made a lower but “As Is” offer of $492,000. After several negotiations with the Home Owners Association and the lender underwriter, her share of termite work decreased to $2200. The HOA property management agreed to cover the exterior repairs of $4200.

Within 30 days, Celia closed on the sale with a lower cash out from her budget. The lender who worked diligently found a First Time Home Buying Program that  got her additional $9000 rebate that was applied towards her closing cost on a FHA Loan.

First Time Home Buyers can qualify for different incentives, rebates and grants. It takes a team of professionals who has the expertise and time willing to work with you.

Celia saved $4200 termite work, saved $13000 less than her original offer, and $9000 lender rebate, a total of $26,200 savings working with my team.

If you want to find out what Programs are available for you, give me a call at (818) 770-0579 for a private consultation.

Espie Agbayani

Real Estate Broker/Consultant

After listing his single story home in El Dorado Hills for $950,000 and used the exclusion of Free Capital gains to $500K, Tony decided to move in to his rental property that he bought 3 years ago for $255,000.

Meanwhile, with the proceeds on the sale of his home, we found him a huge 5 bedroom newer home in a gated community of Serrano that was vacant and bank owned for $350,000 during the recession in 2008.

Tony did the minor repair and repainted the interior. At the close of escrow, he easily rented the home for $2100/month to a young family of 3 kids because of the high school rating in the area.  This year, Tony took the option of retiring at 56 years old as technical engineer with Intel in Folsom. He then spent more time playing golf, biking with friends on open trails and playing the stock market in early mornings.

This allowed him more time to travel with his wife, 3-4 months of the year with positive cash flow on his rental property and minimal mortgage payment compared to his big home he sold for $950,000! They indeed enjoyed this Retire in Style their own way.

After 4 years, Tony decided to sell the home he moved into and since he lived on it for 4 years, he again took the home owner Free Capital Gains on the home he bought for $255,000 sold to $379,000. He then moved to his 2^nd rental home in the gated subdivision.

Tony and I worked with for over 13 years and we are still working together, this time looking for a fixer upper he can make as a project and fill up some free time.

Over the years, Tony was able to leverage the IRS Section 121 exclusion on Capital Gains Tax see (www.irs.gov/taxtopics/tc701.html) by properly timing the market buying and selling within his community. As his Realtor, listed and sold real estate finding the best deals and effectively negotiating for him. Meanwhile, he works with a local CPA who assisted him on leveraging the IRS tax rules.

Each year, InternationalLiving.com’s Global Retirement Index ranks the top 25 retirement destinations in the world, based on factors like climate, healthcare, fitting in, benefits and discounts, and cost of living. The Philippines – an archipelagic country of 7,000+ islands – made the 2016 list, scoring especially well in the Fitting In and Entertainment & Amenities categories.

Though the Philippines is still a low-cost country, it doesn’t currently rank at the very cheapest level for Cost of Living; that honor belongs to Cambodia, which got 100 of a possible 100 points. For 2016, the Philippines earned 85 – the same score as Portugal and the Dominican Republic. (Nicaragua came in second, at 95.) The country also scored 92 for “Fitting In” (is English spoken, are locals welcoming, is there an expat community, etc.), putting it in the top half of the list. (Only Honduras (Roatan) scored a perfect 100; Belize and Ireland got 98.)

For most people, the decision to retire abroad is a difficult one, and it can be even more of a challenge to decide where to settle down. With the world the way it is, issues of safety are of increasing concern, along with costs. The recent anti-drug violence in the Philippines (see Safety concerns) should be factored in with other issues.

Here, to get your research started, are some of the pros and cons of retiring in what is considered one the world’s best retirement destinations: the Philippines.

Here are the Pros

Low cost of living

Many choose to retire overseas in order to find a lower cost of living. The Philippines doesn’t disappoint, and most expats can live comfortably on about $800 to $1,200 a month – including dining out and in-country travel – according to InternationalLiving.com. The average retired U.S. worker’s Social Security benefit is $1,348.49 per month as of June 2016, which means your monthly benefit alone could be enough to cover your basic living expenses in the Philippines. An added perk: Household help is very affordable, so it’s possible – even on a tight budget – to hire someone to help with the cooking and cleaning. For more, see Retire in the Philippines with $200,000 of Savings?

Expat Incentives

The Philippines welcomes expats, and even has a government agency dedicated to attracting foreign retirees. Expats here receive a number of financial benefits, including discounts for the 60+ crowd, the duty-free import of $7,000 worth of household goods and exemption from airport travel taxes. In addition, expat residents are allowed to work or start a business. Also helpful: Once you have permanent residency, you can stay in the Philippines for as long you like (your retiree visa does not expire), and you can leave and return without reapplying for residency.

Beautiful Setting

The Philippines is known for its tropical climate and natural beauty. From the tops of its lush mountains to its colorful coral reefs – and everywhere in between – it’s easy to be in awe of your surroundings almost anywhere in the country. Its many beaches (remember those more than 7,000 islands) are perhaps the biggest draw: Places like Boracay in Aklan, with its white sand and crystal clear blue water, and El Nido in Palawan, a richly biodiverse area where limestone cliffs rise from the sea, attract people from all over the world.

What are the Cons

Infrastructure Problems

In recent years, the Philippines has been one of Asia’s fastest-growing economies, but problems with infrastructure could hold the country back. According to a recent World Economic Forum Global Competitiveness Report, infrastructure problems are the leading economic obstacles the country faces. What does that mean to expats? Depending on where you live (its 2016 International Living ranking for infrastructure is 89), you could experience power failures, prolonged water shortages, outdated telecommunication systems, and deteriorating bridges and roads.

Healthcare

Although expats have access to excellent and affordable healthcare in Manila, the country’s capital (International Living’s 2016 list ranks the country 88 for healthcare), some areas in the Philippines don’t offer the same level of care, lacking both infrastructure and investment. This can be especially problematic for expats who have chronic conditions that require regular treatment, or who have conditions that would be considered out of the ordinary.

Safety Concerns

The most recent violence issue is the campaign against drugs launched since President Rodrigo Duterte came to office on June 30, 2016, that had resulted in more than 1,900 deaths (about 36 per day, according to Reuters) as of August 23. The Philippine senate is investigating the deaths, and President Duterte has told legislators not to interfere, warning that they could be killed if they blocked actions directed to improving the country, Reuters reports.

Interestingly, the “Security Message for U.S. Citizens: Security Reminder,” dated August 17, 2016, and released by the U.S. Embassy in the Philippines did not mention the drug killings. It cautioned: “Extremists have targeted sporting events, theaters, markets, mass transportation systems – including airlines, and other public venues where large crowds gather. Crowded nightclubs, shopping malls, buses and popular restaurants have also been targets,” and directed Americans “to review the information in the most recent Philippines Travel Warning.”

As that warning (issued on April 21, 2016) notes, some regions of the Philippines pose a greater risk than normal because of continued violence linked to insurgency and terrorism. It specifically cites the Sulu Archipelago, the island of Mindanao and the southern Sulu Sea area. Other regions in the Philippines are generally considered as safe as other places in Southeast Asia (see How Safe Is Traveling in the Philippines?).

Note: U.S. citizens traveling to or residing in the Philippines are encouraged to enroll in the Department of State’s Smart Traveler Enrollment Program (STEP), which provides security updates and makes it easier for the nearest U.S. embassy or consulate to contact you and/or your family in case of an emergency.

The Bottom Line

The Philippines is home to a well-established community of expats who have retired overseas in search of a better climate, change of scenery, new cultural experiences, affordable healthcare and a lower cost of living. The Filipino people are very warm and welcoming to foreigners, and the country offers a number of incentives to retirees.

Making the decision to retire abroad – and figuring out where to go – are difficult steps that take lots of research and planning. Like every other country that might be on your list of potential retirement spots, the Philippines has both its pros and cons. Each should be carefully evaluated before making any decisions.

It’s a good idea to visit the area, preferably more than once, before making any decisions. Try to visit from a resident’s perspective, rather than as a tourist.

Read more: Retiring in the Philippines: Pros & Cons | Investopedia http://www.investopedia.com/articles/personal-finance/041315/retiring-philippines-pros-cons.asp#ixzz4aCrpSk8i

With her as the sole income earner, she only had $40,000 budget to purchase a 2 bedroom condo. After making several offers, she realized that her budget of $350,000 we could not find a decent location close to her job and school. She worked full time form 7-7pm and it was very hard to preview homes with her.

We finally made an offer on a 2 Bedroom condo that I found was just getting back in the market because the buyer was turned down few days prior close of escrow. The lender conditioned a $6,500 termite and repairs the buyer fall short on the pre-approved loan.

After notifying Maria and discussing a strategy, we were able to get our offer accepted. However, because we had to use an FHA loan, the lender requires all Section 1 repairs cleared. We reviewed the existing termite report and requested the inspector to come out and show us the infested areas. This showed that most of the repairs were from the exterior of the condo unit which is the responsibility of the Home Owners Association.

After further investigation and interviews with a couple of newly moved owners, we were able to find out that the whole building had a Section 1 repair due for the next scheduled maintenance. Researching and finding out the Property Management and HOA Officers, we were able to get an acknowledgement for the HOA that these Section 1 repairs were their responsibility. Maria was able to free that repair budget saving her $4000.

Because she was a first time home buyer, the senior loan officer was able to qualify her for a grant to cover $7000 of her closing costs.

Altogether, Maria was able to save $9,500 and found the condo unit close to her work, school and stores Mom and Dad can walk to. Plus they had an underground 2 car garage space for $495,000 with market value when we closed at $520,000.

She was referred to me as a First Time Home Buyer by her nurse associate and past client. Her lease contract was expiring and renewal for another year will increase $500 more.

She wanted to have a 2-3 Bedroom condo but she has only  $45,000 budget. The value of condominiums in Fremont within her desired area range from $48K0-$550K. After several multiple offers and lost, we made an offer on a 2 bedroom unit next to her apartment . There were 9 offers,. Again, we did not get the offer. Two weeks later, the unit went back on the market because the buyer backout due to $6,500 termite work!

We made a lower but “As Is” offer of $492,000. After several negotiations with the Home Owners Association and the lender underwriter, her share of termite work decreased to $2200. The HOA property management agreed to cover the exterior repairs of $4200.

Within 30 days, Maria closed on the sale with a lower cash out from her budget. The lender who worked diligently found a First Time Home Buying Program that  got her additional $9000 rebate that was applied towards her closing cost on a FHA Loan.

First Time Home Buyers can qualify for different incentives, rebates and grants. It takes a team of professionals who has the expertise and time willing to work with you.

Maria saved $4200 termite work, saved $13000 less than her original offer, and $9000 lender rebate, a total of $26,200 savings working with my team.

If you want to find out what Programs are available for you, give me a call at (510) 815-8040 for a private consultation.

Espie Agbayani

Real Estate Broker/Consultant