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Overseas Filipino Workers (OFWs) have always been a vital source of remittances for the economy. Data from the Bangko Sentral ng Pilipinas showed that 2023 saw an all-time record high of 37.2billion dollars in remittances, up by 3 percent from 36.1 billion dollars in 2022.
The robust increase in remittances is good news, and fuels real estate investments. If you are one of our hard working overseas workers looking to make a sound investment in property, here are five OFW investment opportunities to consider.
Rental Yields
One of the most ideal real estate investments you can make is a condominium unit. Depending on the unit type, a condominium can attract a range of lessees and bring in rental income. The smallest and most attainable unit is a studio. Target renters for this may include solo dwellers, whether they are executives or even students. One-bedroom to two-bedroom units will appeal to couples and young families. Finally, three-bedroom spaces are the most feasible choice for larger households.
Whichever investment you choose, the passive income you earn from your rental is a valuable addition to your current income at work. And when you purchase from a reputable developer, you can expect the value of your property to rise significantly over the years, which in turn will command higher rental rates.
The Family Home
According to the Family Code, the family home, otherwise known as the principal residence, is the dwelling of a single individual or married couple, together with their family. Whether you choose a condominium unit or a lot on which to build a house, your principal residence, like other forms of real estate, is expected to increase in value over time.
And this rise in value can be attributed to several factors, such as the location of the property (is it within a business district or economic zone), the surrounding infrastructure, as well as the reputation of the developer.
Over time, should you decide to liquidate your property for whatever reason (downsizing is one common example among empty nesters whose grown children have moved out), your family home will have then commanded a much higher price, allowing you to enjoy a healthy profit from your initial investment. On the other hand, if you wish to keep your property, you may opt to lease your home and earn rental income.
The Residential Lot
Meanwhile, a vacant lot is another OFW investment opportunity worth considering. Vacant lots give you the flexibility and creative freedom to build the type of home you want. A single detached home is a common choice, but you may opt for a duplex.
The beauty of having a vacant lot is having full control over the design of the structure you intend to build, should you decide to add extensions in the future, you have greater freedom to do so as the entire lot is your domain.
The Commercial Lot
Investing in a commercial lot provides another opportunity to earn rental income from corporate lessees. And just like a vacant residential lot, the commercial lot is a blank canvas for developing office spaces and retail spaces that can be rented out to a host of businesses. Even parking lots can be considered for your commercial lot.
Looking to partner with a developer? You can explore a joint venture. Under Philippine Law, the joint venture (JV) is an “association of persons or companies” undertaking a joint commercial enterprise, sharing assets as well as risks. As the owner of a plot of land, your lot serves as the asset you contribute to the JV.
The Vacation Home
Finally, the vacation home can serve several uses for OFWs and their families. For balikbayans, a beachside home provides a much needed respite for say, city life. Upon retirement, you also have the option to relocate from say your principal residence to your vacation home. And much like a residential condominium, vacation homes can also be a source of income. During months when you are out of the country, your property can be leased out to local tourists and international travelers alike.
Invest smartly with Rockwell Land
With several OFW investment opportunities to add to your existing portfolio, it is always a smart move to bring the same level of discernment to purchasing real estate as you would other types of investments.
Find your next residential condo at a Rockwell community and experience the signature Rockwell Lifestyle with its distinct safety, security, and exclusivity, from the world-class designs of Carlos Ott at the Proscenium at Rockwell to the generous-sized units of The Manansala and The BenCab at Rockwell at Nepo Center, the first Rockwell Center outside of Metro Manila.
Looking to build your own home? Nara Residences Lots offers 110 lots measuring up to 400 square meters, in addition to condominium units. Across Luzon, Terreno South in Batangas offers investors curated lots set against the backdrop of tree-lined, wide open spaces.
If you wish to enter into developing business and commercial spaces for lease, Rockwell Center Bacolod offers 21 commercial lots ranging in size from 1,500 to a generous 2,000 square meters. Within Rockwell’s first mixed-use community in Bacolod is Bel-Air Residential Lots, offering expansive lots to investors and end users.
Finally, if you are in the market for a vacation home, consider Rockwell’s beachfront development in Cebu, Aruga Resort and Residences-Mactan.
Find the Rockwell community that best suits your investment needs. Look into our extensive portfolio of residential condominium units and commercial properties in key locations across the country. Contact Rockwell Land today to learn more.