Where Do OFWs Plan to Invest Over the Next 12 Months?
by Sharon Jones
If you plan to buy a house ‘n’ lot for sale in Cavite, it’s better to make a decision soon to avoid competition from overseas Filipino workers (OFWs) in the U.A.E and the Gulf.
Residential properties in the province may sell within a shorter period of time over the next 12 months, due to the increasing interest among OFWs. A survey showed that they chose Cavite among their top real investment destinations in the near future. Manila ranked on top of the list based on the responses from more than half of the 10,000 respondents.
Real estate investments have been a popular choice among OFWs, but many of them remain clueless on where and how to spend their money. Ask yourself why you want to make an investment in the first place. Do you want to buy a house for your family or as a vacation home? If you plan to rent it out, are you aware of the prevailing rental yields in your chosen market?
Potential investors need to answer these questions when they intend to dabble in the real estate sector. Your lifestyle will also dictate your chosen property. As an example, many OFWs still prefer to buy houses and lots instead of condominium units.
Avoid becoming a victim of fraudulent investment schemes by doing your due diligence on the property’s seller. You can easily judge a real estate developer’s track record when they have been in the business for several years. OFWs have less risk exposure when they transact with reputable and well-known developers.
Some people might decide to buy a house from a private owner, but this carries more risk on the buyer’s part. Find a trustworthy property broker who can connect you with legitimate sellers. Brokers can also confirm the validity of ownership. There have been cases of two unrelated people whose names appear on a house and lot title.
Legal and Tax Matters
Once you decide to buy a property, you should have an updated copy of the real estate tax receipts. Don’t overlook any unpaid taxes because you will be liable to settle those once you acquire ownership. If you don’t have the time and money to travel back to the Philippines, you can choose an attorney-in-fact (AIF) among family members. Your spouse, adult children or trusted relative can serve this purpose.
An AIF will be responsible for negotiations, due diligence and unit inspection among other things. You need to visit the Philippine consulate in your current country of residence and authenticate certain documents to grant the AIF with a Special Power of Attorney. OFWs usually have at least 30 days to complete this process.
While real estate investments can be lucrative, it requires a lot of time and effort to avoid wasting hard-earned money. Manila may offer a higher chance of investment returns, although the initial investment entails a high price. Choose properties in nearby provinces such as Cavite where homes are more reasonably priced yet offer almost the same growth potential.