Determining the Type of Property OFWs Want to Invest In
When it comes to buying a property, not all residential and commercial properties in the Philippine market are alike. So, when Overseas Filipino Workers (OFWs) are in search of income-generating properties to buy, it’s important to consider all the factors and determine if a property is a good real estate investment.
With that, here are the factors you should consider when investing in real estate and how to choose the right investment for your hard-earned money.
Location
Don’t just consider its location in the present, but also in the future. There’s a high demand for properties in Metro Manila and its neighboring provinces, but you have to look closely at the location and see location-based perks that will have potential tenants flocking to that area.
For example, it’s better to invest in a house that is accessible to public transportation than to buy a house that is much cheaper but is difficult for the everyday person to commute to and from. If your target tenants are everyday professionals, it can be difficult to rent out the latter house.
Nearby Amenities
If you’re planning to rent out to families, is this property in a secure neighborhood near schools and other establishments? Or, if you’re targeting young professionals as tenants, is this property close to business districts or public transportation that can conveniently get them to their place of work?
Consider the nearby amenities in the property you’re planning on investing in. It can be very difficult to profit from your investment when your property does not have the nearby amenities and key areas that entice people to live there.
Future Developments
A good real estate investment might be a property that is set to be close to a developing infrastructure that, in a few years’ time, will make travel to key locations in the area much easier. On top of the national government’s Build, Build, Build Program, many local governments are set to develop infrastructure to make commuting and travel much easier for everyday Filipinos.
For example, the demand for properties within Metro Manila is high, but the prices can make it difficult for many everyday Filipinos to afford. But because of new roads that are in development, houses in neighboring provinces close to the metro are expected to increase in value once these developments are completed.
Affordability
The house you invest in should not only be affordable to OFWs looking to invest, but also affordable to your target renters in such a way that they can afford the rent while you’re still profiting in the long-run. So, if you have a property in mind and are considering the rental fee of that property, do you think your target renters will be able to afford it?
A good rule of thumb is to go online and research the area’s average rent. Then see the expenses of buying the house and consider if you could profit from renting the property within the next five years or so.
Many OFWs see real estate investments as a good source of income for themselves and their families, but it’s important to be smart about choosing which property to invest in. Consider factors like location, price, amenities, and long-term perks before making the decision to invest.