It is widely understood that overseas Filipino workers (OFWs) want to give their families in the Philippines a decent place to live. The home buying process can be overwhelming while you are away from your family. Due to the different time zones and misunderstandings, they would always have problem talking with real estate agents in the Philippines while working abroad. Filipinos working abroad are frequently willing to make sacrifices in order to provide a better and more comfortable life for their families. More savings translates into a larger budget for purchasing and maintaining real estate.
Tips on buying a property for OFWs
Know the location
Knowing the location and the type of property to buy—a lot, condo unit, townhouse, or single-detached house—is crucial. The location should be in an established prime area, an emerging neighborhood, or an area that has the potential to become a "it" location in the future.
OFWs should thoroughly research any potential locations because the provinces that surround Metro Manila, like Rizal, Bulacan, Laguna, and Cavite, are improving quickly thanks to new infrastructure initiatives, roads, and expressways. After a while, some even grow into cities. There are several condominium in Metro Manila that you can check out. Laureano di Trevi Towers in Makati might be good for you. For those who lead busy lives, whether they are involved in work, school, or leisure activities, this Makati condo offers the ideal fusion of comfort and style. With cutting-edge features like a fully-stocked fitness gym, a chic function room, and a swimming Pool.
In Metro Manila, Quezon City is the largest and most populous city. The area of the city that is most densely populated is home to a variety of cultures and ethnic groups, as well as a thriving business district. A pre-selling project called Hawthorne Heights is located along Katipunan Avenue. It offers studio units as well as one-bedroom units that are ideal for families, young professionals, and students.
These are the factors that will provide information on pricing as well as how much an OFW can afford and is willing to spend.
Choose a reliable real estate agent or developer
Finding a trustworthy developer or builder has certainly become more difficult given the level of competition among Philippine real estate developers. There are dishonest real estate broker and sellers who are determined to rob OFWs of their hard-earned money, OFWs should take the time and make it a point to do some research.
When selecting a real estate developer, the background, financial stability, company profile, track record, deadline for project completion, quality check, and appropriate paperwork for turnover should be taken into account:
Prepare your budget
Undoubtedly, one of the most important factors to take into account when purchasing a house and lot is your allocated budget. Consider how the cost and initial outlay will affect your financial situation over the long term. You are allowed to do as much research as is necessary to determine which price ranges fit your spending limit. The kind of home and land you choose to buy will probably depend on this.
Therefore, you must take into account your monthly mortgage payments, real estate taxes, association dues, and property insurance.
Choose a trusted representative
A reliable and competent representative is required because OFWs who live and work abroad find it difficult or time-consuming to process all the paperwork and documents required to deal with any real estate investment.
The designated person will be given a Special Power of Attorney (SPA) so they can act and conduct business on behalf of the OFW. In SPAs, the OFW may appoint any trusted representative who is of legal age as Attorney-in-Fact and to execute documents, provided that the chosen representative complies with all legal requirements.
Expect expenses and other taxes
Everyone who plans to buy real estate, including OFWs, should be aware that there will be a ton of paperwork and documentation. Capital gains tax, creditable withholding tax (if applicable), documentary stamps tax, transfer tax, registration fees, and notarial fees are just a few of the costs that both buyers and sellers will be responsible for.
What are the requirements when buying a property as an OFW?
It is important to know all the documents needed when buying a property.
1. SPA or Special Power of Attorney
A Consularized SPA is a Special Power of Attorney that has been executed and signed at the Philippine Embassy of the nation where the requesting OFW resides, allowing a member of their entire immediate family (children, spouses, parents, or grandparents) to represent them in the Philippines and obtain documents on their behalf. Its unique authority is limited to document preparation, processing, and signing and does not include the ability to sell the OFW's property.
The OFW must get the following things ready in order to process this legal document:
- Copies of first and last pages of the Philippine passport
- A valid government-issued ID's from the Philippines (in the absence of a passport, though some countries require both an ID and a passport)
- Personal appearance
- Two witnesses, each of whom must be of legal age and be prepared to personally appear at the Embassy during the execution of the SPA.
- Notary fee, which varies by country
Complete the registration or reservation process with the real estate agent of your choice and SPA. To avoid confusion and issues between real estate companies as well, we advise working exclusively with one real estate agent from the beginning.
- Reservation Fee
- Buyers Information Sheet (should be under your name)
- Authorization Letter from you for your assigned SPA
- Your two valid Government Issued IDs’s with three specimen signatures
- SPA’s two valid Government Issued ID’s with three specimen signature
- Proof of Income for atleast 3 months
- Certificate of Employment and Compensation
This is a formal record that attests to the person's work history, present position, and pay. When the employment contract cannot be retrieved for some reason, employers of both locally employed Filipinos and overseas Filipino workers may prepare this certificate (in English only and signed by authorized personnel such as the HR manager) to confirm their employment.
2. Post-dated checks for down payment
The needs of some developers might be different. Your attorney-in-fact has the authority to open a checking account in your name if you don't have one. You can ask your representative for a checking account if you already have a local savings account.
Why OFW's should invest in real estate property?
Over time, the value of real estate property changes, typically for the better. One of the biggest advantages of starting a real estate investment in the Philippines may be advantageous. A simple way to profit from real estate is to hold off on selling your property until it has increased in value before doing so.
Real estate acquisition and ownership are unquestionably difficult tasks, especially when one considers the fact that the money involved was earned with effort.
Any OFW who has made such sacrifices should ensure that the goal they have saved for will be worthwhile. At the end of the day, regardless of where in the world they have traveled, OFWs always return to their home country for their family members.
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