Where do you like to put your hard-earned money? Surely, you have a long list of investment options, which also includes real estate. By real estate, we mean not just your family home but also a property where you can earn additional income. This is a good form of passive income because you get to earn money without exerting too much effort.
“Pero mahal bumili ng lupa.”
“Kaya ba namin bumili ng lupa na pagkakakitaan?”
These are just some of the many concerns echoed by thousands of OFWs when confronted with the idea of investing in real estate. While these may be a cause of concern, these shouldn’t stop you from trying something outside of your comfort zone.
Check out these tips on how to invest in real estate:
Tip No. 1: Invest as early as possible.
If you want to make the most out of your investment, then you need to start as early as possible.
Make the most out of your hard-earned money by setting aside sufficient amount for your real estate investment. Minimize your spending, avoid buying unnecessary items, and prioritize your expenses. Now is the perfect time to establish your Emergency Fund, which you can use for your real estate purchase.
Plus, land value tends to appreciate, so if you don’t buy now, then you might have a hard time buying the same property after five years.
Tip No. 2: Location is key.
What’s the point of having a property you can earn from if it is not located in a prime location?
When it comes to real estate investment, location is everything. Imagine what the area might look like 10 years from now. You also want a location with high foot traffic or near commercial establishments so people will come to you.
Properties located in prime locations may be more expensive than usual, but think of this as an investment for your future.
This leads us to the next tip.
Tip No. 3: Don’t just settle for residential properties.
Real estate is not just for residential purposes. You can also invest in properties that are commercial in use.
Consider getting one if house is no longer an issue. Or, you can get a building, utilize the upper floor as your residential home, and the lower floors will be for business purpose. That’s hitting two birds with one stone.
Tip No. 4: Assign someone who can help you with the buying process.
This is important. As an OFW, you might not be able to process the sale personally since you are overseas.
That being said, you need to assign someone you can trust to transact on your behalf. There is money involved here, so make sure you get someone who is honest and trustworthy. Otherwise, you might end up losing large amount of money, no thanks to your attorney-in-fact.
Tip No. 5: Prepare the necessary fees and documents.
Investing in real estate requires not just time but also money and effort. You will be asked to prepare documents such as Deed of Sale and Special Power of Attorney in case you are unable to do business personally. You also need to prepare your employment documents like Certificate of Employment, employment contract, and valid working visa.
That’s not all. Money is involved when buying real estate. Fees such as Documentary Stamp Tax, Capital Gains Tax, and Transfer Tax are some of the expenses you have to shoulder when buying a real estate property.
In case money is a cause of concern, there are home loans available and offered by banks and government agencies. Take advantage of those so you can start with your real estate venture.