6 Things OFWs Need to Consider Before Buying a Property in Cavite

Overseas Filipino Workers (OFWs) remain to be a driving force in the residential real estate industry, even after being overtaken by Mainland Chinese expats as top buyers according to Philstar. The Philippines is ranked fourth in Asia-Pacific for real estate investment destination because of the strong remittances coming from OFWs. Their foreign currency income boosts the economy, and acquiring real estate investments in the Philippines becomes of their fastest and safest means to grow their money. At the same time, they are assured of owning a property to stay at during the holidays, when they fly back home.

According to news polls, Cavite is the top 2 of the most preferred locations for OFWs to invest properties in. There are definitely advantages with buying properties in Cavite compared to Metro Manila; however, there are also factors to consider before making the purchase.

Here’s 6 of them:

#1 - THE MARKET AND THE GOVERNMENT

The laws of supply and demand will determine the prices of your properties. When there is a lower vacancy rate, that means that property supplies are low and demand is high, so prices are more likely to be expensive. Furthermore, the government regulates real estate by imposing taxes such as Real Property Tax (RPT). It’s better to purchase in Cavite because the RPT rate is at 1% for provinces or properties outside the National Capital Region (NCR), compared to Metro Manila with 2% of the assessed value of property. For OFWs, this fee is better off paid in full annually, with added discount. This avoids penalties and wasting time and effort having to go back and forth the Treasurer’s Office of the Local Government Unit (LGU).

#2 - LOCATION PERKS

As one of the fastest-growing economies in the world, the Philippines continues to urbanize, prosper in middle-income earners and foster large populations from the new generation. Cavite provides the urban experience outside of the metro, despite being cheaper in property prices than the NCR. According to the Bangko Sentral ng Pilipinas (BSP), when residential property prices increased by 6.8% in the NCR, Areas Outside NCR (AONCR) only rose by 2.2%. We already talked about where to find the best homes for sale in Cavite and showed how accessible each city is and the amenities they have to offer; another important thing to consider when choosing a location is to determine the value of the property you want to purchase in the current market and in the future.

#3 - CHOOSE A PROJECT DEVELOPER

Mainly, OFWs invest in residential real estate such as houses and condominiums. There are plenty of developers who design homes that will fit your needs without breaking the bank. Although these properties are sold through pre-selling, it’s still important to consider the reputation of the developer you want to invest in. Purchasing directly from developers is charged with 10% Capital Gains Tax (CGT) by the Bureau of Internal Revenue. We recommend purchasing developer properties from individuals like a trusted real estate agent, and only get charged with 6% CGT.

#4 - WHAT’S YOUR PURPOSE

Establishing what you plan to do with your property is crucial in how you’re going to maintain it as an OFW. For vacation homes, you can ask a relative to hire a cleaner monthly or to pay monthly association dues on your behalf. But if you decide to be a landlord and rent out your property as an investment, you can hire an agent or a property management company who will help you look for tenants. They can also run errands on your behalf such as paying taxes and dues. If you’re not sure what to do, you can ask a reliable Cavite real estate agent regarding this.

#5 - FINANCING TERMS

Even OFW Homeowners are obligated to pay out their mortgage or housing loans, regardless of whether they’re in the Philippines or not. This can be paid through a bank loan or with the help of the government. Pag-IBIG’s Home Development Mutual Fund (HDMF) is one of the many benefits the government body has to offer. As long as the amount does not exceed Php 6 million, and there is proof of financial capability, Pag-IBIG offers multiple housing loans. With the help of technology, monthly contributions can be paid online conveniently with credit cards (MasterCard or Visa) and other payment portal applications.

#6 - ADVICE FROM AN EXPERT

There’s nothing more valuable than insight from a professional. Especially as Filipinos who’ve been away from the country, hiring an experienced real estate broker who knows the ins-and-outs of Philippine real estate investment at any time, will never be a waste of resources.

As real estate professionals, it is our commitment at Rising Land Realty, Inc. to help you achieve your dream home in Cavite. Wherever you may be in the world right now, we will be here to assist you with all of your real estate investment needs.

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Source: https://www.risinglandrealty.com/6-things-ofws-need-consider-buying-property-cavite