Returning to the homeland is a dream that many overseas Filipino workers (OFWs) have. Despite the rapidly growing Philippine economy, the country’s number and quality of jobs are still unattractive enough to convince some of our modern-day heroes to go back and stay.
Fortunately, average OFWs can grow their wealth in real estate, which might allow them to retire early. There are countless ways to gain a foothold in the Philippines’ property market and turn a profit, but these ideas are worth considering the most:
Buying a Vacant Lot
Buying a lot in Clark pays in the long run. This option is ideal when you already own the primary residence where your family lives.
A vacant parcel of land in a hot market promises a generous return due to potentially excellent capital appreciation. In the case of Clark, the government’s plan to market it as the new commercial center will make its land values rise steadily.
The ownership of empty land can involve little stress. It requires minimal maintenance, is not at risk of being stolen or damaged, and it offers flexibility for future development projects.
A vacant lot isn’t going to provide regular income, though. In fact, you’ll only make money when you sell it or build a rental property on it. Nevertheless, it’s a safe and reliable way to grow your wealth passively over time.
Investing in a Rental Property
If you want to have an additional source of regular income, buy a house or a condo and rent it out to tenants. As local economies grow, such as those of Cavite and Laguna, the number of renters increases, too.
Being a landlord can be challenging because one must be available around the clock. But since you can’t manage your rental property yourself, you need someone capable of handling the responsibilities of a landlord. You need a reliable family member who is intelligent about identifying high-quality tenants and can handle costs associated with this venture, like periodic maintenance or tax.
When managed properly, a rental property can provide a lifelong stream of income. Also, capital appreciation makes the land beneath it even more valuable at resale.
Engaging in a Rent-to-own Business
This endeavor involves renting a property to a tenant who intends to buy it eventually. Rent-to-own properties are appealing to buyers who lack an adequate deposit to purchase a house or a condo immediately.
The beauty of this scheme is that it allows you to collect slightly rent because some of it pays toward your tenant’s down payment for the property. Your tenant has to purchase on the agreed-on date, or else you can you can find a different buyer.
If your tenant decides not to move forward, you are not liable to reimburse the paid portion of the down payment. The money acts as your reward for taking your property off the market during the rental period.
The key to the success of any real estate venture is choosing the perfect location. Don’t just settle for what’s convenient; be open to investing in promising faraway areas for as long as you can manage it properly.