Overseas Filipino workers (OFWs) are considered among the country’s modern heroes. They have immensely contributed to the economic stability of our country. Their efforts in other countries have considerably aided in the reduction of poverty. And they have played a key role in enhancing the nation’s thriving financial system.
Remittances from OFWs have been a significant factor in helping boost our economy. Even during the health crisis, OFWs have found means to send home their hard-earned money. This is despite the challenges posed by the COVID pandemic.
This article will underscore the importance of why investing is beneficial for OFWs. Particularly, the succeeding sections will deal on properties that can provide them comfort and convenience. And this includes access to unlimited and reliable fiber internet.
Who is an OFW?
A person of Filipino descent who lives outside of the Philippines is referred to as an Overseas Filipino. This phrase refers to Filipinos who live overseas permanently or for a brief time for work or study.
Meanwhile, the term “Overseas Filipino Worker” or OFW is used to refer to Filipino migrant workers, who are citizens of the Philippines but are working in another nation for a brief time.
Republic Act 8042, commonly known as the Migrant Workers and Overseas Filipinos Act of 1995, was passed in the 1990s. Then, the term Overseas Filipino Worker (OFW) was coined to refer to Filipino migrant workers. When the Philippine Overseas Employment Administration (POEA) published the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Land-based Overseas Workers, the word was formally approved by the Philippine government.
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How many are OFWs?
The number of Overseas Filipino Workers (OFWs) who worked overseas at any point between April and September 2019 was projected to reach 2.2 million, according to the results of the 2019 Survey on Overseas Filipinos of the Philippine Statistics Authority. During the same year, 96.8 percent of all OFWs were Overseas Contract Workers (OCWs), or those having an established work contract.
The remaining 3.2 percent worked in another country without a contract. However, the overall number of overseas Filipino workers deployed in 2020 decreased as a result of the COVID-19 pandemic. From an estimated 2.16 million OFWs in 2019, only around 550,000 employees left the country in 2020, which was a 75 percent drop.
Why OFWs should invest?
Individuals working abroad should have a mindset that “being an OFW” does not last forever. This is especially true if you are a seaman or a worker on a temporary assignment. As OFWs, you need to think of ways to allocate money with a positive benefit or return in the future. This is important especially since you know how tough it is to make money in the Philippines. As a result, you should make it a priority to invest your hard-earned money.
Investing while you are still an OFW will provide you with financial stability. This will allow you to meet your demands and maintain your lifestyle when you return home. If your work overseas is terminated due to unforeseen circumstances, your investment should provide you with a safety net.
What is the best way to invest in property?
OFWs must be careful to invest their earnings in addition to supporting their families back home. Property investment is an amazing way to grow money. This is beneficial most especially if you’re an overseas Filipino with the means to do so. Investing in real estate is one of the best approaches for OFWs.
For many, this is already a goal as being able to purchase or construct a home is one of the most popular reasons Filipinos choose to live abroad in the first place.
Is property investment good?
If there is anything good that this pandemic has brought in terms of property investment, it’s that many banks and real estate developers have modified their house loan conditions to be competitive in the market and keep up with how COVID-19 has influenced the economy. This is to entice investors to purchase real estate. It meant home financing schemes with longer payment periods and/or cheaper interest rates.
Along with lower interest rates, higher loan amounts have been approved. These allow for the acquisition of larger and more expansive properties. This translates to a more valuable tangible asset for you, as well as increased future appreciation.
Banks and developers who provide in-house financing have added flexible payment alternatives to their home loans to entice more buyers. Cashback incentives and decreased reservation costs have been popular. But these will likely become less common once the pandemic has ended and the economy has stabilized.
Is property investment hard?
While it is sad that the COVID-19 pandemic has caused many people to struggle with their finances, the truth is that it has also caused property owners to raise their pricing in order to both accommodate the changes in purchasers’ budgets and retain their own cash flow.
But some developers also offered lower prices which provided a fantastic opportunity to purchase property in the Philippines for a somewhat higher price than it would have been pre-pandemic. If your finances only enabled you to consider buying a one-bedroom condominium apartment in late 2019 or early 2020, the larger loans and flexible financing available now, together with decreased pricing, may now allow you to buy a unit.
Is real estate investing a good idea in the Philippines?
Real estate is a tangible asset. And the land it sits on is mostly non-renewable, which is one of the reasons why it has endured as an investment and a business.
A property value steadily rises, even if you don’t take many big actions to improve it. Stocks and bonds, on the other hand, are quickly influenced by market circumstances. These, by the way, are continuing to fluctuate unpredictably due to the pandemic.
In terms of utility, purchasing a new home during a pandemic offers you an alternate place to reside. In the event that the community in which you currently live proves to be less than optimal during government-mandated closures or quarantines, you’ve got an option.
Reasons why OFWs should invest in real estate
A real estate investment in the Philippines is often profitable. However, that is not the sole reason to invest in real estate. For starters, real estate investment allows you to have your own home. Aside from this, here are the other reasons:
1. Earn steady income.
For OFWs, there can be various unforeseen occurrences that can quickly deplete your resources. And having an investment that pays out sooner rather than later becomes critical.
Real estate can be a good example of this. A place to live is a basic need, pandemic or not, that you can contribute to and profit from by investing in a rental property. You can start earning rental income as soon as a month after purchasing your property by having renters move in right away and you can continue to make money from those who stay for a long time.
2. Real estate is a tangible asset.
Real estate is a tangible asset that you can invest in. Values may rise and fall over time, and there’s no guarantee that they won’t, but actual goods have value. Should you decide to exit the venture, you still have a piece of property to sell.
It takes a little longer to sell a tangible item since you have to work out an agreement with a buyer and go over all of the regulations. Even so, if everything goes according to plan, you’ll end up with your initial real estate investment and possibly a financial gain.
3. The value of real estate usually appreciates.
If you invest in a home for a long time, it is likely to rise in value. Buildings, including residential properties and commercial buildings, and land usually rise in value, making your investment worth more than you paid for it.
You might also make the residential property appreciate by upgrading or improving it. You can enhance the value of a home faster than natural appreciation happens, providing you a higher return on your investment, whether you buy an inexpensive property and fix it up for a higher selling price or renovate a rental property.
4. It is a good savings strategy for retirement.
Real estate is not a liquid asset to invest in. You’re making a long-term investment in it. You accumulate equity in your property over time. You can sell the property and utilize the proceeds to fund your retirement when you reach or near retirement age.
How to invest in real estate in the Philippines?
Property investments, particularly real estate investing, have several benefits. Here are some tips on how you could make a successful real estate investment or become a good real estate investor in the Philippines.
1. Determine who your target market is.
If you want to invest in real estate, you need to first figure out who your target market is. After all, if your investment property isn’t compatible with its surroundings, you’re less likely to make a profit from it.
If you invest in a more luxurious real estate property in an area where the majority of households are low-income, you will not make much money since the local residents in that area lack the purchasing power to take advantage of your property.
This is why, even if they are under the same property developer, you might get condominium units or residential properties for significantly less in some regions than in others. This is due to the fact that real estate developers usually categorize their projects based on the intended demographic for that area. As a result, individuals, including real estate brokers, can take advantage of the market’s purchasing power, particularly for low- and middle-income households.
2. Examine your financial situation.
Real estate investing is unquestionably expensive, especially if you’re looking for properties in high-traffic areas such as Metro Manila and other central business districts.
Furthermore, different real estate properties will have varying price ranges, so you should be sure you can afford your investment before committing.
For example, you should determine whether you have the finances to cover the down payment on the house. In the Philippines, this is normally roughly 10%-20% of the total contract price.
3. Do research on the state of the country’s real estate market.
Whether you’re buying a tiny item or making real estate investments, thorough research is always required. It pays to do your homework on the current situation of the market if you want to optimize the property value. You may also consult real estate investors or a credible real estate agent to get information on buying and selling properties.
4. Note for signs of growth in the area.
When looking for real estate assets to invest in, location is unquestionably important. When choosing specific places for your investment, you must also analyze signals of development.
These can be good indications and predictors of future growth and development, which can significantly boost the value of properties in the area. News of a new mall ongoing establishment, or other enterprises that people will rush to, are instances of these signs.
Vistaland International offers great property investments for OFWs
Beyond providing quality housing, Vistaland International Marketing Inc., the international marketing division of Vista Land & Lifescapes, Inc., believes that our OFWs all around the world deserve to own their dream house.
Home is truly where the heart is. Thus, Vistaland International makes every effort to provide homes that are well-planned, strategically located, and secure for a wonderful home living experience. Award-winning developers such as Brittany Corporation, Crown Asia, Camella Homes, Lessandra, Lumina Homes, and Bria Homes provide a broad array of houses and lots for sale in the Philippines.
Vistaland has a wide range of condominiums to choose from, from mid-rise to high-rise. It has the dedication to offer more than simply houses to global Filipinos. And its Vista Residences, Inc., COHO by Vistaland, and Camella Manors brands strive to provide high-quality condominiums for sale in the Philippines.
If you are looking for the best properties that will pay off your hard work as an OFW, contact Vistaland International today.
Streamtech, Vistaland International Unite
If OFWs are concerned about having access to high-speed internet while purchasing a home, they need not be. Streamtech powers several of Vista International’s properties.
In today’s world when almost everything is online, it is an expectation that you must also invest in a fast and dependable internet connection. The good news is that Streamtech provides unlimited internet plans that are also affordable and can come with high-quality items and services. The even amazing news is that Streamtech covers some areas of Vista Land’s projects.
With Streamtech, you can push your boundaries and give your family the high-speed internet they deserve. It also offers cable services through Planet Cable, in addition to unlimited fiber internet.