Welcome home: OFWs and Philippine real estate
In 2022, almost 800,000 Filipinos made the pilgrimage abroad, leaving behind all they’ve known to support their families. (FILE PHOTO)
I was at the edge of the city, heading to the airport in a cab to catch a red-eye flight to Hong Kong. I could barely keep my eyes open, when the cab driver—an elderly man—asked a question: “Anak, saan ka pupunta?”
“Trabaho po sa Hong Kong,” I hastily replied, desperate to cut short the conversation, so I can catch a few winks. To my dismay, he bombarded me with more questions about my family, welfare, and career. I respectfully managed his curiosity, bearing in mind he was a senior—probably twice my age.
We finally arrived at the airport, but not without a parting word from my curious friend as he drove off: “Anak, magipon ka…Galingan mo sa Hong Kong.” It was then that I realized Manong was once an overseas Filipino worker (OFW), and he had mistaken me for one.
He was genuinely a good Samaritan, offering me sound advice.
In 2022, almost 800,000 Filipinos made the pilgrimage abroad, leaving behind all they’ve known to support their families. Most of them yearn for the Philippines, and they invest in properties here—laying the groundwork for them to become balikbayans.
Still, finding and buying the right property is not a straight line for many of them, and there are several considerations to be made before they invest.
Virtual viewing or actual viewing?
For obvious reasons, OFW buyers can’t always view and examine the properties they want to buy in the Philippines. While many real estate developers have virtual showrooms to help prospects have a better “feel” for the properties, this can also lead to buyer’s remorse.
Ironically, in this virtual world we live in, nothing compares to an old-fashioned site viewing.
(HTTPS://WWW.MINNESOTAFIRSTTIMEHOMEBUYER.COM)
Consider the currency for your purchase
The OFW buyer also needs to consider the fluctuating forex to manage funding for monthly allocations. It is advantageous to have foreign-denominated contracts to protect the interests of the buyer, but developers will have their own perspective in this situation as well.
Authenticating your contract
The consularization of Philippine contracts, like the contract to sell or the deed of absolute sale, can pose challenges for buyers too. There are some countries that do not have a consular office, making it much more difficult to secure purchase requirements—which are also needed to avail of promos and discounts.
How to settle monthly payments
It is a common practice for OFWs to send remittances to relatives at home, relying on them to settle monthly payments. Unfortunately, these informal arrangements often lead to family feuds and heartache—with accountability lost in the wind. There are now far better options that offer more convenience and less risk.
Is there a balloon payment?
This is where a trusted broker comes in handy. Oftentimes, cancellations happen when buyers are not given a full understanding of the monthly amortizations under bank financing, particularly at the end of the term. As sellers, it is our responsibility to ensure transparency and understanding in every stage of the transaction.
No escrow in the Philippines
In other countries, escrow is required from developers to ensure project completion. This is not the case in the Philippines. We’ve all heard of stories of buyers, who religiously paid their obligations—only to find out that the development is delayed or worse, can no longer be completed.
All the more reason to consider only well-established real estate developers, with proven track records.
Nobility in duty
I can only imagine the challenges that our Bagong Bayanis face every day, as they seek better opportunities abroad to chart greener pastures for their families at home. I believe real estate is a tool they can use to ensure that their sacrifices bear fruit.
I consider being a seller for OFW buyers as a great privilege. In some small way, I get to help our kababayans find the right properties to invest in—paving the way for their eventual return home.
If I could only meet Manong from the cab again, I’d thank him for giving me the gift of perspective. His advice to me on that fateful day is the same advice I pass on to all my clients: save and invest.
The author is the Director of the Project Selling team at Leechiu Property Consultants, Inc. It is advantageous to have foreign-denominated contracts to protect the interests of the buyer, but developers will have their own perspective in this situation as well Ironically, in this virtual world we live in, nothing compares to an old-fashioned site viewing.
