Are you a current Overseas Filipino Worker looking for opportunities to grow your savings before returning to the country? Enduring the loneliness and distance away from your families in order to look for greener pastures abroad is a tough and brave sacrifice many Filipinos face. Unfortunately, even after years of hustling, many OFWs go home empty-handed, or find themselves quickly using up all of their hard-earned bank balance, simply because they do not know where to put their money. However, it's important to know that no one is ever too late to learn about financial literacy.
Despite the arduous property hunting and paperwork (even more exacerbated due to travel restrictions brought upon by the pandemic), investing in real estate remains unparalleled in being the best investment option for OFWs because of the stable and convenient nature of finding and managing it. A survey of 10,000 Filipino expats conducted by the New Perspective Media Group presents that property is the most preferred investment of 55% of the respondents — and if you have already set your mind to start your home buying journey, list down this guide in going about the process.
Finding the "Why?"
Determining the reason why you, as an OFW, want or need to invest in real estate will serve not only as your drive to persist, but also as a guiding force in navigating the complex home buying processes. This question will also lead you to further questions, such as what type of property suits you the most, how much are you willing to spend on a property, who will benefit from your purchase, where do you want the property to be located at, and what nearby establishments are your priority.
Explore and Narrow Down Properties
After making the most of your freedom to explore properties, you will eventually need to shortlist your top choices and settle on the best option based on different factors you prioritize the most. Property management technologies, such as the end-to-end communication platform to connect buyers to property developers enable OFWs from another country to discuss their plans with property agents or brokers, and even have online open houses.
Research Home Loans and Financial Institutions
OFWs currently living abroad are eligible to apply for home loans from financial institutions. Unless you can afford to secure the payment upfront, you might want to rely on a financial institution to fund your initial payments. The go-to home loans by OFWs include government-backed institutions such as the Social Security System (SSS), Home Development Mutual Fund (Pag-IBIG Fund), and other reputable private lenders.
Prepare Required Documents
The transaction proper is a relatively speedy process as you only get delayed because of the slow paperwork acquisition in the country. Some documents may also require certified or notarized translations. If you want your title transfer to run smoothly, generally, you ought to make sure to secure (or ask your trusted representative to get accomplish it for you via Special Power of Attorney (SPA)) of the following before returning:
- Photocopy of Valid Government ID’s (passport, driver’s licenses, etc.)
- Proof of income and employment (Income Tax Returns, Certificate of Employment, etc.)
- Tax Identification Number (TIN)
- Copy of billing or utility bills
- Other additional requirements required by your desired financial institution to apply for home loan
Sustain Succeeding Payments
After acquiring your new property, home loan payments are transferred on a monthly basis, although this may vary depending on your payment terms. The challenge now is planning out how to budget the money, and how the succeeding payments installments will be sustained after dropping the hefty down payment amount. A convenient way for you to avoid this hassle is by setting up post-dated checks, and other scheduled automated payment. This also prevents you from incurring late fees and costs associated with overseas transactions.
Similar to starting your own family and raising your children, investing in real estate takes time, commitment, and a lot of money. You will definitely sow what you reap. The Enta website is a perfect platform for you to explore resources and possibilities, such as buying tips and how-to guides.
If you would like to know more about your real estate investment options, you may reach out to us via [email protected] or +63 956 502 7725. You can also connect with us on our social media pages: Facebook, Instagram, and LinkedIn.