Condo for OFWs

I am just wondering why some OFWs who are offspring of the baby boomers are clamoring for the condominium units.  For one they will just use it as temporary shelter while staying in the Philippines for vacation.  It seems that condominium is slowly beginning to be a status symbol mostly for young OFWs working in the Middle Eastern countries like UAE.  Some studio type units are selling for less than a million to more than 1M.  Word of mouth is the name of the selling game.  If one of their OFW friends gets a unit, others would follow suit.  I won’t opt for pre selling or brand new condo unit even if I would be able to afford it.  Why?  I would prefer a unit foreclosed by bank with a plan to rent it out after acquisition..  The price is way below than the offering of the new condo developers.  Developers priced their units very high that  for OFW to buy them would mean working abroad perhaps for several years if not  for life just to pay for that million peso condo.  Nurses in the Middle East could earn a starting salary of at least 50,000 pesos, but it would not be wise to use these earnings in amortization of high priced condo or other middle and high end housing projects.  On the other hand Engineers salary might range from $3000-$10000 a month, I believe it wont be wise  for them to put all the money in posh housing units.  Nurses in the US could also fetch as high as $5000 dollars a month and my observations is that they seldom invest in housing projects in the Philippines. They would rather have their houses in their hometown renovated.  They have an immigrant status in the US and perhaps they are instead saving to buy for a property there.

 

 So who are the bulk of buyers nowadays in the Philippines?

 

A. For high end condo and Vacation houses, and house and lots in exclusive villages or membership clubs with golf courses.

 

1.  Immigrant Filipino baby boomers from the United States, Canada 

     who wanted to retire in temperate climate like the Philippines.

 

2.  Filipinos who have foreign spouses who would like to have a

     a place to stay while on vacation or to serve as their second home.

 

3.   A few foreigners like Koreans and Japanese.

 

B.  For affordable housing units specifically townhouses

  

 

1. Lots of Filipinos employed locally from the low to mid income level who are borrowing from Pag ibig to finance.  Townhouses are becoming the trend now especially in the southern part of Luzon which is Laguna and Cavite areas.

 

1. OFW investors  who buy not just one but several units for rental business. 

 

C.  Bank Foreclosed Properties.

 

1. Filipino investors who concentrates on  buy and sell, buy, build and sell, flipping, rent to own, rent forever or buy and hold.

 

Investing is not just property appreciation, you can’t eat  appreciation, for me investing is all about return and cash flow.

 

So pick your choice, would you rather invest or plainly spend your hard earned money for the promises of some developers who are just after the growth of their business.  They follow the money.  You should let your money follow you instead.

DREAM HOUSE OR RENTAL PROPERTIES

Being a realtor I have observed that most OFWs prefer to buy and invest in their dream houses. I have a different outlook however with regards to investing the hard earned money of my OFW husband.  We could have afforded to invest in our dream house now.  But hey, we need to stick to the desire of our hearts which is for hubby to work abroad in a very short period of time.  He has been working for so long now and if we will not invest wisely he will be staying for many more years abroad just to be sure we will be having the monthly amortization for the dream house or a brand new SUV.  There is no way we will do that at the moment.  We choose to travel the path to investing in rental properties  instead.    And sooner we expect to reap the fruits of our wise investing decision. And finally the sweetest reward would be for hubby to stay here for good since there is no need to work abroad.

How to find the right Property Investment

A friend who is starting his property investment is very keen on looking for potential good deals in real estate.  He is concentrating on foreclosures though he has yet to get his first investment.  These days a lot of advertisements on auction schedule are lording the front pages of local newspaper like Manila Bulletin.  I say when one will do due diligence in checking all the details of the property that he wanted be it foreclosed or pre selling, the reward would be great. And don’t forget to compute for the ROI (Return on Investment) and the potential of the property.  Look also for places that might become a hot spot in terms of development and appreciation of properties in the area. An FSBO (For Sale by Owner) property is another alternative too.

Housing Foreclosures

A lot of foreclosed properties abound in the newspaper.  Auction managers and banks are advertising the scheduled auction dates in broadsheet.  This is the best time for investors to shop around for the best value deals.  High and mid end properties whose market are mostly OFWs might take a back seat at the moment.  There is an observed slower turn out in sales during the previous months especially for those middle and high-end inventories.  That includes condominiums, townhouses and exclusive properties with golf club membership.  Since the value of the US dollar earnings of OFWs is depreciating, investors might prefer foreclosed properties instead. 

OFW Real Estate Investor

With the appreciating Peso and the continuing dive of the US Dollar, the earnings of the OFW are depreciating too.  What will happen to the first time homebuyers with big mortgage behind them?  A lot of adjustments need to be made to accommodate the decrease in income.  It would also be worthy for a while to delay purchasing that dream house.  Instead of planning to buy that big floor area mansion style home, it would be more prudent to have single family homes or town houses.  Buying rental properties first before finally writing a check for your dream home will be  a better investing option these days.

Philippine Bank Foreclosed Properties.

Foreclosed properties in the Philippines are really cheap and great buys if you hit a best deal.  It is not always the case however. According to some sources bank insiders are doing their own property trading.  Is it like insider trading at the Philippine Stock Exchange?  Apparently the bank personnel are choosing the best foreclosed properties, those with the highest reselling potential (for rent-to –own scheme perhaps) and those, which are in the best locations.   If this is the true scenario, what will be left for the bidding public come auction date?  Is it the most dilapidated units, the most unlivable houses, the least appreciating properties in terms of market value, the ones located in the most undesirable locations?

  I stopped collecting clippings of Bank Auctions at the moment.  I should have looked deeper into pre selling townhouses, duplex, single family units or even row houses.  I have observed that there are units like these that sell like hotcake.  You wont even trade them for a very cheap foreclosed unit which is almost like a skeleton It is advertised in the newspaper as house and lot, and yet upon visit, it seems to be only a dilapidated structure on top of the lot.

Investing in the Philippines

Investing in foreclosures, pre-selling, townhouses or house and lots are very promising ways to grow your nest egg and have a good passive income.  Nowadays many banks in the Philippines are disposing off their non performing assets such as foreclosed properties.  In foreclosures however you need to be very keen with all the details of the property such as current market value, the neighborhood, existing amenities if inside a subdivision, house structures, preferably in good condition and not dilapidated and whether it is occupied or not.  In pre selling subdivisions, investigate the nearby community/neighborhood; look around for the accessibility of the location.  Preferably, near churches, schools, market, hospital, factories, especially if the property is intended for rental. Continuous potable water supply, telephone, DSL and cable lines are a big plus if these utilities are already in place.  Also ask around for any new development that may arise in the future, like new highways, new universities, new hospitals, malls and other commercial establishment that may rise near the place.  It will be good for property appreciation, for tenant/lessee prospects or possible buyers if you want to sell you investment after a few years.

Celina Mansion Borland Development Corporation

Celina Mansion of Borland Development  Corporation is situated in a very strategic place.  The townhouses are the best buy when you like to have a piece of property that could be a goldmine for lessors since this village is surrounded by the biggest companies in the Laguna Technopark.  Just beside it is NIDEC.  One of the biggest electronic companies in the area.  Investing in a unit or two in this village could give the you the best ROI when rental is properly computed, just in case they would like to rent out the property.  The current monthly rental for a unit of the 2 storey townhouse is ranging from 4000 pesos to 6000pesos.  At the moment the units are all sold out and there is no provision for expansion in the subdivision.  

Journey to Financial Abundance

Be a good steward of your resources, time and talent.  Invest properly and enjoy your journey to  abundance.