how the exchange rate affects plans

[sussexrob]

Glad you guys are getting more pesos for your bucks.   As I am from the UK, I deal in GBP so it's a different thing entirely, but the exchange rate is very important to me .   I am currently having a new house built in Davao, and after paying a 30% deposit, am now getting a monthly billing till it's completed.   Recently the rate has been up and down like a yo-yo, but the difference of a couple of pesos to the £ can make a very big difference to the total at the end of the day.  Hopefully it can stay as it is at present ( maybe even go up a bit ), as this is likely to save me about the equivalent of 5k dollars on the build costs.

[iamjames]

I have been lucky with the Euro. Its gain of 16% over the dollar in the past year had meant an equivalent gain against the Peso. Over the past two years the highest is now  61+ and the lowest 48 (24 months ago). The gain has been considerable. I expect the peso to fall more. 

[Art, just a re(tired) Fil-Am]

As long as our monthly grocery budget doesn't take a big hit in our pocketbook, we'll be fine. COLAs just will never make up for inflation unless the U.S. tax laws change in a few years as proposed.

[David690]

I have been lucky with the Euro. Its gain of 16% over the dollar in the past year had meant an equivalent gain against the Peso. Over the past two years the highest is now  61+ and the lowest 48 (24 months ago). The gain has been considerable. I expect the peso to fall more.

Hi Rob
I'm also from UK but live in Dubai where our currency is pegged to the US$.  I too built a house in Davao.  Over the course of the construction the exchange rate shifted by about 10%, so we were gaining as we went along as I was also making stage payments but not monthly.
Just transferred Php2m for my new truck and the ER shift has saved me Php200k over the original price we were quoted a year ago.  However, car prices increased this month by about Php30k to offset the fall in the peso.

[sussexrob]

Hi David690.
To be honest I was already hoping to have moved there permanently by now, due to my wife's commitments here unfortunately cannot fly out until February.  With regards to the construction of my house, I would have preferred to be there to keep an eye on things, but decided in the end to trust a building company in Davao to get things moving for me.  Told them what I wanted, e.mailed them my own drawings as to size etc,  I agreed to pay a design fee which included them obtaining the building permit, signed a contract with them after haggling over the total costs.   After paying the deposit, the work started late in September and have had family members there to check on progress, and the company are billing me monthly and updating me with a progress report.  So  far I am very happy with what is going on, just have to hope it carries on in the same way???

[David690]

Hi David690.
To be honest I was already hoping to have moved there permanently by now, due to my wife's commitments here unfortunately cannot fly out until February.  With regards to the construction of my house, I would have preferred to be there to keep an eye on things, but decided in the end to trust a building company in Davao to get things moving for me.  Told them what I wanted, e.mailed them my own drawings as to size etc,  I agreed to pay a design fee which included them obtaining the building permit, signed a contract with them after haggling over the total costs.   After paying the deposit, the work started late in September and have had family members there to check on progress, and the company are billing me monthly and updating me with a progress report.  So  far I am very happy with what is going on, just have to hope it carries on in the same way???

Hi Rob

Know how you feel, I have ben trying to retire for the past 5 years.  Finally set a date of July earlier this year, but couldn't do it too many projects at work to finish, so extended to October, now its gonna be end of December.......
I was very fortunate with my builder.  I checked out several houses that he had built including his own which he lives in.  All good and I am absolutely chuffed with the end product, surpassed my expectations by a mile.  Which considering all the negative stories you read about, was a real result.
Our stage payments were tied to actual progress rather than a time scale, so once all foundations were finished a payment, etc, etc.

Wish you all the best and hope we can meet up once we're both settled in.