Back in the days, the thought of buying a real property seemed distant.
However, over time the fast-growing Philippine economy opened vast opportunities, including a condominium boom that enabled anyone who has the acumen for it to start investing in properties.
But that’s just it. Not everyone had the know-how and most were reluctant to buy condos because the idea of spending millions spread over a period of time sounded too risky and cumbersome.
“Of course I started with not having any debts. Secondly I made sure na mayroon na akong (that I have) emergency fund for any eventuality ..halimbawa mawalan ako ng trabaho o merong magkasakit sa pamilya, at least ready ako for that.
Not anymore. Overseas Filipinos around the world, enjoying better disposable income, have started learning the ropes and are now masters of the terrain.
Pinoys in the UAE are among them.
The recent Philippine Property and Investment Exhibition (PPIE) had revealed that indeed there has been a thriving number of Filipinos who have been growing their wealth thru real properties.
Reaping it
“Talagang mahirap lang kami (We were poor). Wala kaming ganyang (We didn’t have) background sa investments sa properties and it was very difficult for the family to accept na magkaruon ng ganitong (to have these kind of) investments,” said Joanne Rico, an overseas Filipino worker in Abu Dhabi and recipient of the 2017 TFT Marketing and Advertising Professional of the Year Award.
Having worked in Qatar for three years before moving to the UAE, Rico had managed to save and was in a position to invest. Today, she has two condos and the income she derives from them is spent on payments for the third.
Rico said there are two pre-requisites to making an investment.
“Of course I started with not having any debts of course, dapat wala kang utang (you shouldn’t have debts). And that’s very important. Secondly I made sure na mayroon na akong (that I have) emergency fund for any..halimbawa mawalan ako ng trabaho o merong magkasakit sa pamilya (say, I suddenly lose my job or someone in the family gets ill), at least ready ako for that. I’m very liquid,” Rico said.
Rico’s first condo was ready for occupancy when she got it. Immediately after paying the 20% turnover fee, she had the place rented out. “I had a constant market so we rented it out so that the premium was actually being paid for by the rentee,” she said.
She did the same thing on her second condo, which she acquired at pre-selling.
“So I have two properties where only a portion of the premium was being paid by us. Then I got my third, which was also acquired at pre-selling. Ang nagsu-sustain naman nun ay yung income nung 2 properties. (What’s sustaining the payments is the income from the two0,” Rico said.
“So, I think that is a wise way to invest. Hindi ikaw lahat yung maglalabas ng pera (You will not be the one covering all expenses.) Somebody else will pay for you,” she said.
Purpose
You don’t buy a condo just because you want people to know you have one, said Ronald Precilla The Filipino Times IT Professional of the Year.
“Isipin mo kung ano ang purpose ng condo mo, kung investment ba, titirahan mo ba sya o gagawin mo ba syang source of passive income o ibebenta mo ba sya later on? (Think of what your purpose is when getting a condo. Is it for investment? Will you live in it? Will you make it a source of passive income? Will you sell it later on?),” said Precilla.
When investing in a condo, Precilla said, you have to look for your initial market when you can make money from. “Hindi porket may condo ka eh tapos nasa kasuluksulukan naman ng Metro Manila..eh di wala ka ring prospective clients. (You may have a condo but it’s in some far flung corners of Metro Manila where you couldn’t get prospective clients) ,” he said.
Precilla has two condos and a townhouse. He has been renting out one of his condos and it’s been making up to Ph35,000 (Dh2,520).
“We have to always think kung paano kita ang mga investments natin (We have to always think how our investments can make money),” said Precilla.
Orphan and rich
Dr. Rex Bacarra, also an OFW was an orphan back home. Growing up with an aching need to be financially independent, he moved to Dubai years back and started plotting his life’s direction.
“I told myseld I want a property because I need a roof over my head but I would need to rent it out because I want to stay in Dubai,” he said.
And so he did, having acquired a condo at a pre-selling price of about Ph950,000 (DH68,500) a few years back and managing to sell it at DH3 million in 2016.
“Now I am on my second condo. The money I pay for it was from what I made from my first. I’m doing the same style and I am planning to the same strategy until such time that I finally decide to settle back to the Philippines,” Dr. Bacarra said.
