As we enter for holiday seasons, the Philippines welcomes back its population who have been working overseas. Known locally as balikbayan, translated literally as repatriate box, the numbers returning increase as this is the time time of year that Filipinos typically take their holiday to come home as families gather together to celebrate Christmas.
Overseas Filipino workers leave the Philippines in order to secure more lucrative earnings. Often working constantly in order to keep savings healthy and to minimise outgoings, the aim to work towards a more prosperous future for their families. As Filipino’s bring back their savings, it is this time of year when this sector of the population need to consider how to invest their hard earned cash.
Buying a plot of land is the most popular asset for a number of reasons. Land provides the ideal place to park money, and as savings grow there is the opportunity to develop on it and increase its value. Typically it experiences a good amount of capital appreciation of between approximately three and five percent.
On top of this, land has flexible characteristics. Owners can rent out their property to generate an income should they not have a need it whether it is a condominium or a house. It is tangible so it provides a place to live for for themselves and their family now or later down the line. Many overseas workers are astute with their investment often buying and selling this land in order to make even more money to then reinvest.
There are numerous savings schemes in place specifically designed for overseas Filipino workers to aid in reaching their ultimate savings goal. Some have installment options to meet the needs of a wide range of workers making investing in property a good choice. Also property is widely understood unlike investing in stock and shares which can be hard to navigate if you are a novice. This is exactly why the saying goes ‘as safe as houses’.