Don't know where i heard it but I was told always try to live atleast 2 bus rides from your wifes family so they wouldn't be around all the time!! What you think of this is up to the individual we are all different after all.
Personally I don't want to be too close to family (extended or otherwise). I'll help and support where I see fit to but as and when we move to the phils we're going for us first and them second. Liza wants to have one of her nieces in the house when I go to work which I've not got a problem with but I don't want them all hanging round looking for a free lunch.
Basically its up to you both, how close to family do you want to be. After all your going to make friends there aren't you which alot of the time I find you can have more fun with. Why not have a house close ish to the family and a small (cheap) weekend place a few hours away? Best of both worlds