FOREIGNER IN THE PHILIPPINES -CREATING A FUTURE FOR HIS WIFE AND DAUGHTER

UPDATE - FOREIGNER IN THE PHILIPPINES – CREATING A FUTURE FOR WIFE AND DAUGHTER
We have started to develop the approximate 2 hectares of land I purchased for my wife and young daughter. The land was cleared by hand and ploughed twice. There is a guy in this village who contracts out ploughing at 500 peso/hour.
So we have planted 1500 plants of string beans. As the plants start to grow they need stakes and need to be tied up. This is manual labor where bamboo is cut and stakes implanted.

The rest of the vegetable land has another green vegetable planted Okra and some pumpkin. There is also approximately 4000 square meters planted with rice.

1200 STRING BEAN PLANTS IN

SOME PUMKIN- GROWING QUICK

Foreigner flying blind

I am not sure what profit we will make from this venture as it is all a learning curve. Allot depends on the weather and as it is known we are in a typhoon area although the season is not quite here yet.
When the crop is ready to harvest then I have to find out who will buy the produce at what price.
This is something that will not make allot of money but if so not too much lost. The worst scenario is we will have a surplus of green vegetable.

Have a nice day

Robbie in Tacloban

See below the original story

I have my wife and young daughter and my concentration is on them and their future. I have deposited money in a trust for my daughter’s future education and some investments for my wife. If something happened to me there are no social security benefits in the Philippines. Yes good to have money in the bank but if there is no income coming in then then the bank account in time will deplete to zero.

It is hard for a foreigner to make any sort of living in the Philippines.  I read articles of ways a foreigner can make a living in the Philippines. It sounds good on paper but I do not believe it is that easy.

To leave money in the bank is safe but the interest’s rates in the Philippines are low. You get only .5% on a daily savings account. You can earn more on your savings in fixed accounts but still the interest rates are not too high.

I have been thinking of purchasing 2 hectares of land with .5 hectare for rice and the other 1.5 hectare not sure at this time what to grow. I am no farmer but do realize the basics. In a good season or with good conditions you can harvest 100 sacks per hectare. With .5 hectare that would be 100 sacks per year with two crops.

YOU CAN SEE THE PORTION OF LAND FOR RICE IN THE DISTANCE

The other part of the land I am seeking advice on the best way to proceed. The land is good for vegetables but long term coconut is another alternative. There are about 20 mature coconut trees and 30 young trees planted after typhoon Yolanda. The problem with coconut trees from what I have been told it takes about 7 years before you have fruit. So 50 trees x 6 fruit x 4 times a year is not that but would be a gross income of 12000 peso. /year

THE OTHER PORTION OF THE LAND SUITABLE TO GROW VEGETABLE

I will keep accurate records on the cost to plant rice and vegetable and see what the profit is. You have the preparation of land, fertilizer and seed as well as labor for crop maintenance. It is like any business what you make is clear of all expenses.

I have an advantage that the wife’s father is a farmer and can keep an eye on things. At the end of the day it appears 100,000 peso per year profit is a possibility. That is if conditions are favorable including good rain fall and no severe typhoons. Like farming anywhere in the world there is risk involved

In this area the cost of the 2 hectares of farm land is 400,000 peso. If you can make 100,000 peso/year profit that is a return on investment of 25%. Sounds good but will look into it in more detail. This equates to about 8000 /month. To the foreigner it does not sound like too much but let’s put it into perspective. I know guy working at a hotel in Tacloban City and has a degree in information technology. His salary is 7500 peso/month and he has a wife and one child.

The Zari Zari Store

I call this type of business a general store. In any barangay (village) or where ever you go in the Philippines you will see the Zari Zari store. It is the easiest business to start up. They sell washing powder, candy, soda drinks, fruit, vegetables beer and some frozen meat.

You should be able to generate some income but not always the case. I have a Filipino friend and actually he is an architect who designed and built my house. Still to this day I do not know his name just call him the architect. He explained most zari zari stores in most cases just feeds families and the proceeds are consumed daily and not run like a business. That is ok and understandable as people in many parts of the country live day by day. The architect has a zari zari store in a different barangay  run by his wife and run like a real business. He told me he makes 20,000 peso a month clear of expenses. That in itself is a good salary in the Philippines.

My Zari Zari Store Experience

When I built my house in this barangay (village) I also erected a building on the main road for the purpose of a zari zari store. The barangay is now 1200 people and we are on the main road so why not! The building cost me at the time 500,000 peso.

This was not run like a business and with family and continual credit from customers the business had to close.

ZARI ZARI STORE BUILING FACING THE MAIN ROAD NOW USED AS A STORE ROOM

What next

The building just sits there and just waiting for the right opportunity. One idea was an internet café but we have no land line and the wifi signal is poor. The building could be rented out but that is an option not under consideration.

Conclusion.

If a foreigner is looking to open any business to generate any income proceed with caution.  If there is commitment from family to operate as a proper business then there is a possibility the venture will succeed. This is advice from personal experience!