Future-Proof Property Investments: How OFWs Can Buy Smartly in the Pandemic

Before the pandemic, overseas Filipino workers (OFWs) have swamped the real estate market, investing here and there. Some buy properties as a primary residence, while others do it for a passive income source. Although there was a temporary slump in investment activity when the pandemic hit, the OFWs are expected to go back with stronger interest, in fact.

Returning Strong

The renewed demand from Filipinos abroad is one of the trends Franco Soberano, EVP and COO of Cebu Landmasters Inc., anticipate in 2021, mentioning it in the recently concluded Lamudi roundtable discussion On the Horizon: Real Estate Leaders on Market Recovery. On the third track of the virtual event, Joey Bondoc, Senior Research Manager of Colliers International Philippines, said that the OFW remittances bouncing back in June can help prop up the property sector in its pandemic recovery.

Simply put, the outlook proves to be promising with OFW investors returning to the market. What’s more interesting is that although the actual buying activity went on a decline, buyers’ interest remained steadfast and even got better compared to the first half of 2019. Lamudi data for the first half of 2020 shows that pageviews from different parts of the world increased:

• California accounted for 22.89 percent, a slight uptick from 22.59 percent in the same period last year. 
• England contributed 10.21 percent, an increase from 9.57 percent.
• Ontario saw 5.81 percent, up from 5.20 percent last year.

The increase, although seemingly small, is actually a big, positive development, considering that this year has been tough.

If you’re part of the crowd eyeing to invest in property soon, you know well that caution is all the more necessary amid the pandemic and economic uncertainties. By knowing market trends, you can plan your strategy better and land on the best property investment.

Finding the Most Promising Assets

The real estate industry offers a lot of great opportunities, but this also comes with the overwhelming challenge of choosing which to pursue, where to put your hard-earned money. The good news is that experts have already identified property features you should look for. Here are some that were mentioned in the Lamudi roundtable discussion:

• Mixed-use development. The community quarantine measures have restricted travel between municipalities. For this reason, many prefer living in integrated communities now where they wouldn’t have to cross barangays just to get to the supermarket, bank, office, or hospital. If you want your next home or income property to be crisis-ready, it’s worth considering buying in mixed-use developments. In case that’s not possible, go for locations near essential establishments, at the very least.
• Healthy building. You want your next home to have good ventilation, temperature control, and environmental quality overall. If you’ll be using the property as a passive income source, your future tenants will likewise be health-conscious. That’s why aside from the healthy building features mentioned, you should consider the property management services offered by the community. At the most basic, they should have these health standards: temperature checks at the entrance, alcohol stations and social distancing in shared areas, and regular disinfection: If they follow these now, that’s a good indication of an excellent property management team.
• Less crowded neighborhoods and open spaces. With the current social distancing measures, likely to be part of the new normal, less densely populated communities have become more popular. With this, you (or your future tenants) can be safer when going outdoors. Open spaces have likewise become more in demand. If you’ll be buying a property as a primary residence, these areas can give you a safe recreational amenity outside your home. Meanwhile, if you’re using the property as a passive income source, the open spaces can be one huge come-on for tenants.
• Technology-powered properties. Work-from-home will likely be a part of the post-pandemic era. The same is true with distance learning. If another crisis hits, people will rely heavily on online platforms for almost everything, from grocery and food deliveries to social gatherings. With the growing reliance on virtual channels, a property investment supported by high-speed internet connection is more important than ever.

OFWs are one of the most promising market segments leading the demand for properties post-pandemic. If you’re planning to buy a piece of real estate soon, keep in mind how the current crisis presents the need for certain features and amenities. This should help you find the best asset in the market, ready to weather future emergencies.

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Article and Photo originally posted by Lamudi last September 22, 2020.

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