My Personal Finance Blog

Why buy a house or property in the Philippines?

Most expatriate workers in Saudi Arabia, specifically Filipinos, are baffled by the same question as I have. A large chunk of the market for real estate can be found among the OFW’s in the Middle East and yet it has not been tapped more extensively not because they do not have the resources or the capacity but because the marketing strategy does not fit the present trend among Filipino buyers. Take Juan Cruz for instance. He has been working so hard for his family ever since he landed in Saudi Arabia two years ago. There has been many instances already that he has been offered a house and lot in Cavite but he is reluctant to get one. His primary reason is to save first before buying but, as we all know, that could take years to accomplish and that the prices could be much higher by the time he is ready to buy a property. If you are a real estate agent, what would you do to gain his confidence and understanding?

There are a few pointers that I would like to discuss here but they are, of course just my opinion. There could be other more effective approach.

Investment

I would say that investing in real estate properties is a lifetime savings. All your hard-earned cash under one roof is definitely worth it. I would like to think of it as some sort of bank where all your money is safely kept in it. It is also interesting to note that while the property can and it will appreciate over time, selling it prematurely and at a lower rate might defeat its purpose altogether. Let us go back to Juan, as our example here. Juan purchased a prime property in Tagaytay. Over the course of 10 years he suddenly chose to leave the Philippines for good and have decided to reside somewhere in Canada. He sold his property at half the original price because he departed his hometown rather too hastily and he needed the money badly.

Income

Most homeowners would love to turn their acquired property into some sort of income generating venture. In socialized housing communities, many owners have resorted to small “sari-sari” stores or “carenderias” to augment their daily expenses. Others have set-up internet shops and a whole other different ideas to fit their lifestyle.

Opportunity

It knocks only once. The whole point to this concept is that be ready when it does come. I remember a close friend of mine during my years in Cagayan de Oro who ventured into a very lucrative small business endeavor and came out very successful. When he first conceived the plan, he sold all his properties to come up with a hefty start-up capital.

Health and Well-Being

“Health is wealth” or so they say. A healthy pocket comes with a healthy body, is this true? Not all of it, though, but if we try to think of it in other sense, such as the type of food we eat, the clothes we wear, the bed we sleep on, and the car that we ride on, well it’s probably true. People in the lower socio-economic status tend to be more unhealthy than from those who rank higher and that is a fact.

Future

It is more of a cliché than a fact. We always hear the lines “for a better future” and yet we tend to procrastinate.

Self-Esteem

Now here is a man who has nothing and yet beaming with self-confidence as oppose to someone who has everything and yet suffers from mental degradation. In reality, money does have an influence in our self-worth. Well it is not necessary, but it is definitely important.

Why should I buy a house or property in the Philippines when I am already living in Australia?

Do you believe in this saying: “You have travelled far and wide only to find out that home is where your heart is.”? Sooner or later you will go back to where you belong. More and more Filipinos from abroad are seeking to buy homes and properties in the Philippines as a place to retire, relax and enjoy. It is too expensive to buy in the US, Canada, or Australia. If indeed you have bought a house in, let’s say in Florida, you would eventually sell it to settle in the Philippines. Why? If you sell your house in Miami for 1M Dollars, how much would that be in Pesos? That is an awful lot of retirement money, don’t you think? Besides you love the Philippines, your own native land. This is where your heart is.