Working overseas comes with rewards and challenges. For most OFWs, the better pay is the top benefit. Whether or not this is the reason you went abroad, don’t let your earnings go to waste. Make the most out of your money by searching for an OFW investment opportunity.
Some OFWs opt to set up businesses that their loved ones in the Philippines will operate. By doing so, they’re helping their relatives become less dependent. This is also advantageous in case they’re unable to send money.
OFW investments also cover bonds, stocks, mutual funds, forex and even insurance plans. The tech-savvy ones dip their toes into cryptocurrencies. Each of these investments has edge over the other; each one comes with certain risks, too.
Then there’s real estate. There are different ways for you to invest in this industry. You can buy stocks of developers. You can finance a rental property business and serve as a business partner. The simplest way, however, is to buy a property.
As an OFW investment opportunity, the ideal time to purchase a property is now. It’s doable with the help of Pag-IBIG housing loan or a bank loan. Below are the advantages of becoming a property-owner while working you’re overseas (or while on vacation in the Philippines).
A Possible Source of Passive Income
When you’re deciding which OFW investment opportunity to pursue, think of how you can manage it. You have to work smart, not hard, as the saying goes. One way to do so is to have sources of passive income. By doing so, you’re letting your money for you.
Passive income refers to the money you can earn without being actively involved in managing the investment. Dividends and interests from bonds, stocks, mutual funds and bank savings are notable examples. For these types of investment opportunity, the financial institutions like brokers and banks are the one handling your money and giving returns.
Royalties are another form of passive income. Artists and inventors earn these when they creations are mass produced and sold. Musicians, filmmakers and other creative professionals also get royalties when they sell rights to use their works.
Property-owners may be offered with mineral royalties. However, their lands should be free from infrastructures and rich in minerals. Instead of aiming for this though, go after the rental income you can get from a house-and-lot, condominium unit, or even a lot-only property.
If you wish to get a tenant sooner, narrow down your search to ready-for-occupancy properties. With an RFO, your tenant can move in right away after paying deposit. In contrast, they still have to build before they can use a lot-only property. Unless your lot is in an ideal business location, lessees aren’t likely to make a deal with you.
Another advantage of leasing is that your tenant can look after your property while you’re still away. Furthermore, you don’t have to send money for property taxes or maintenance costs. You can simply use the rental income you’ve collected.
An Investment That’s Easy to Understand
Due to several reports of scams being shared online, it’s not surprising if you’re being cautious. Don’t let fear stop you from investing though.
If you’re just starting out or if you’ve failed before, it’s best to invest first in something that you fully understand. For the meantime, don’t obsess over finding the OFW investments that can give you hundreds of thousands or millions within a few months.
Small-scale retailing, reselling, and lending are some of the go-to options for budding entrepreneurs. However, these may be hard to manage when you’re abroad while your target market is in the Philippines. Moreover, the returns aren’t that significant.
What you can consider, instead, is a house and lot for sale in the Philippines for OFWs. It’s clear how you can make money out of this asset: Either rent it out or sell it at a higher value after some time.
If you buy a lot, you can develop it as soon as you like or you can wait for a few more years. You have the option to build a bungalow. If you have a big property, you may have your own resort or farm. In case it’s near the business district or along the highway, you may construct a multi-storey building. The rooms in the lowest level may be for commercial purposes while the upper rooms are residential.
Tendency of Property Value to Appreciate Over Time
The Philippine Statistics Authority noted that the total OFWs remittances reached more than 210 billion pesos. That’s just within the months of April to September 2019. Imagine if much of those remittances are used to finance lucrative ventures.
While most of the remittances are money, there’s also over 7 billion pesos of remittances in kind. These form part of balikbayan contents. Imported gadgets, clothes, shoes, bags, toiletries, and food products are among the popular presents for loved ones left in the country.
As investments, expensive gadgets can depreciate greatly in just one year. Those branded clothes and footwear have lower resale value overtime, too. Luxury bags may be sold at a higher price, but they require maintenance. Unfortunately, not all major fashion houses have local branches where you may get luxury bags serviced.
Some OFWs go after jewelry. This is one of the ideal OFW investments as the value of gold tends to appreciate. You can pawn or sell your gold in the future. However, it may not be worth getting jewelry which main materials aren’t gold.
Then there are those who choose real estate. Property value is more likely to increase than to decrease. There’ll be dips but they tend to be occasional. An affordable house and lot presents a great investment opportunity as you may resell it at a higher price in the future.
A Low-Risk Investment
During the pandemic, many OFWs, especially in the tourism industry, were sent home. Then, several workers who were bound overseas were banned from doing so. Even those with stable jobs overseas struggled. These make OFW investments even more essential.
Compared to other types of investment, a real estate investment is less likely to be affected by a variety of crises. Notice the trends on the market during the covid-19 pandemic alone. While there’s a lower demand for house and lots for sale, there’s a growing interest towards rental properties.
Unlike cryptocurrencies, properties won’t get affected by hacking issues. Unlike stocks, issues surrounding companies won’t influence the value of your real estate property. There may be times when the property value will dip, but as space is scare, you can expect the value to recover.
Your Own Home
While you can opt to stay abroad, you know in your heart that there’s no place like home. However, you might have outgrown your childhood home or even your hometown. Or, you may have been renting for years so you want to get your own house, whether it’s for your retirement or vacation.
By investing wisely, you can get closer to achieving your financial goals for yourself and for your family. If financial stability is your main reason for working overseas, you may reunite with your loved ones and reap the rewards sooner. In case it’s for career advancement, having such investment assures you of a potential source of income in case you go in between jobs.
Tips on Investing in Real Estate
Real estate properties give different amounts of returns. After all, they also differ in size and location. Below are tips to help you decide which properties are ideal for leasing.
1. Mind the location.
Location is the topmost consideration if you’re getting an affordable house and lot to rent out. If you’re a prospective tenant, where will you look for rental properties? It’s where you work or operate your business, right?
When looking for a house and lot for sale in the Philippines for OFWs, you should expand your options to places other than your hometown. Check out provinces and cities where there’s a significant economic boom. You can also consider those that have always been known for being one of the richest provinces and cities. Examples include Cebu, Iloilo and Laguna. For cities, there’s Quezon City.
2. Consider the payment schemes and methods.
With a bank or Pag-IBIG housing loan, you don’t have to wait for years before you can acquire a property. However, you may be wondering if there’s a better way to pay your monthly dues than to send the money to your relatives. The answer is it depends to the developer.
Some allows online payments or remittances but some don’t. With Lessandra, you can pay online. Aside from your debit or credit accounts, you can also use your e-wallets. You can even automate your payments. Traditional payment methods are still available though.
With such options, you’re less likely to miss out on payment. Your relatives will be less tempted to touch the remittance for their personal expenses, too.
3. Don’t hesitate to ask for proofs from whoever you transact with.
If you can’t go home right now—whether it’s due to the pandemic or not--, you don’t have to wait before you can invest in real estate. You can make your transaction online and by sending pertinent documents to your most trusted loved ones. Then, they will forward those papers to your chosen seller.
Thanks to videocalls, you can now communicate with an agent or broker. Your relatives don’t have to serve as a bridge.
Before you send any personal document, pertinent data or money, you should first do a background check with the person you’re transacting with. Ask for his or her professional profiles and some previous clients.
It’s also helpful to search about the current modus of scammers especially those that are into real estate. This way, you’ll know which ones to avoid.
4. Narrow your search to properties from reliable developers.
A house and lot ceases to provide a good investment opportunity if it is poorly constructed. Instead of ROI, you’ll get additional source of expenses.
Since you won’t be there in the construction of the house or a condominium building, it is best to limit your hunt to properties from reputable developers like Lessandra. With us, you can get an affordable yet stylish and sturdy home.
5. Understand the different real estate properties available for you.
There are different types of real estate properties that you can purchase. For rental properties, house and lots and condo units are the top choices. You may also go for a Pag-IBIG housing loan if you’re going to purchase a condo unit.
Keep in mind that houses come in various designs, too. You can get either a single-detached or a single-attached. You may choose a townhouse or a duplex as well.
For condominiums, the sizes, locations and views differ. You need to ponder over the density, too. Obviously, the taller condominium buildings tend to house more people. If you’re going to spend retirement years in your unit, make sure it’s on the lower floors for easier access.
While now is the ideal time to buy a house and lot for sale in the Philippines for OFWs, you may choose a preselling property for the meantime. Preselling properties are those that are yet to be finished. Even condo units are sold before completion. If you want to purchase at a lower price, you should consider these properties.
For an OFW investment opportunity, explore what Lessandra has in store for you—from preselling to RFO properties. When it comes to location, you won’t be disappointed as we have offers in various regions in the Philippines. Whether you prefer somewhere in metropolitan areas or in the suburbs, there are options available for you.
Lessandra is an affordable house and lot developer offering maaliwalas home spaces nationwide. To know more about affordable properties in Lessandra, visit the Lessandra House Listings. To find out how to buy a house and lot in the Philippines, go to Lessandra Guides and FAQs.