The Philippines is sitting at the top 9 with the highest numbers of emigrants with a number of 5.4 Million. Filipinos are scattered around the world and even building Filipino communities to showcase our culture. This is the main fact that most Filipinos dreamt of working abroad. Because to our community, it means better opportunity, better salary, and a better future. Those who are working abroad are relatively called OFWs or Overseas Filipino Workers, known to be our modern-day heroes. If you are an OFW looking for investments, here are suggestions on where to invest your money.
The main goal of every OFWs is to be free from poverty and to support their family expenditures. Thus, they make sure to earn and save money. For those who are just beginning their journey working abroad, this list is for you to learn and how to manage your savings. What are your investment objectives? What are your best investment vehicle? What are the yields? Why should you invest? Continue reading to answer these questions.
1. Real Estate
Real estate is a form of investment that is everyone’s top choice but with the high value of estates today, some take a while in achieving this. But fear not for real estate’s value does not easily depreciate. There are 4 types of real estate; Land, Residential, Commercial, and Industrial. The land is the best option among the four because the value of land does not depreciate and continues to grow as the community in the area grows.
The more prosperous the city/state, the more the value of the land appreciates that’s why real estate is one of the best investments for OFWs.
The residential is more on personal need as everyone needs a house to live in. But you may acquire more residential units and have them for lease. A win-win solution for you. You have them as a form of investment that provides you a monthly passive income. At Bria Homes, they offer affordable house and lots, and condominiums with an installment plan from Pag Ibig and Banks like Security Bank that suits your budget. A commercial is for businesses. This is more costly than a residential but the yield rate is higher.
Commercial spaces are typically used as an office, food branch/stall, grocery stall, and a lot more. A space leased for commercial use goes up to five times compared to a residential rate. An industrial is also used for businesses but compared to a commercial, its main function is to serve warehouses and factories. This means that bigger and wider spaces are used for industrial. Of course, you have to account for the monthly maintenance of the real estate. Normal expenditures for real estate are cleaning and repairs. These are the four types of real estate you may invest in.
In the stock market, you may choose a business you wish to buy shares of stocks. Doing so will make you a stockholder but the yield for this type of investment is risky.
Your proceeds which are called “dividends” would only be available if the business did well and dividends will be declared upon the discretion of the board of directors, who are the top decision-makers of the said business. Thus, it is critical to choose among thousands of businesses whom to invest in. It is crucial that you need to likely search, investigate, and know the status of the business before buying stocks. Stocks is also one of the recommended investments for OFWs. Just make sure that your online stockbroker is accredited by the Philippine Stock Exchange like Metro Securities Brokerage Corporation.
3. Mutual Fund
Mutual funds are the easiest type of investment as it requires minimal attention. It is an investment made to a firm that will handle what you have invested in them and your account will be handled by a financial advisor. Mutual funds investing The firm has the sole discretion where to invest your money and all you have to do is to check your investment from time to time. But this kind of investment doesn’t give you a high guarantee of proceeds.
Just like equity fund, unit investment trust fund, retail treasury bonds, the stock market, and mutual fund investments yield will depend on the flow of the business and the current market. This is commonly for long term-investment.
4. Variable Universal Life (VUL) Insurance
Commonly known as VUL, it is a type of insurance with investment. Not only do they offer a range of benefits from critical illness to handicaps. They also offer a lump sum withdrawal upon maturity of your policy after 20 years. For the investment area, your preferred firm will make the decision where to invest and the value will also depend on the current market.
This is a type of investment that requires minimal attention and monthly charges. So if you are just starting and still afraid of the risk, you may start with this. As an OFW looking for investments, you should imagine earning while your life is insured.
A business is the most recommended investment for OFWs. Not only that the business is under your name but all the benefits that come along with it are yours alone. Running a business is a tedious task. It requires your full attention and requires different kinds of fields (accounting, marketing, managerial, and human resources).
You may start small upon launching your first business and gradually work higher. The risk of running a business is quite high especially around this time of the pandemic. But with determination and proper planning, you can start today.
You may choose different types of business. You may opt for the following: service, merchandising, and manufacturing. The service industry is a business that provides services to its clients such as restaurants, parlors, and laundry stations.
The merchandising industry is a business that buys goods and sells them with a mark-up such as a sari-sari store and hardware. The manufacturing industry is a business that turns raw materials into finished goods. A good example of this industry is a textile company.
Sitting at the most trending investment today is cryptocurrency. Cryptocurrency is a digital currency that you can use as a medium of exchange, but currently, countries that have adopted this are the U.S and El Salvador.
There are three ways to earn in cryptocurrency.
The first one is trading in which you buy a cryptocurrency at a low price and sell it at a high price. The yield will depend on the current market but the risk accompanied is also huge. Since cryptocurrencies are known to have rapid changes in value.
The second way to earn is to buy new or low-value coins and hold them for a period of 1 to 3 years and see the growth. The yield can be more than 100 times but the risk is also huge. The value of the coins may decline so be sure to fully equip yourself before investing.
The third way is to invest in a game where they use cryptocurrency as a medium of rewards. Trending games are axie infinity and plants vs. undead. Axie infinity’s initial investment amounts to almost 100,000 pesos now which only started at 20,000. Plants vs. undead initial investment is now at 5,000 pesos.
Initial investments in these games are necessary before you could play them. The rewards you could get from these games are cryptocurrencies that you can use in-game and withdraw the value in your wallet. There are various cryptocurrency wallets that you can download via AppStore.
These are the top investment options for OFWs. Sitting at the most recommend is a house and lot which you can use to earn passive income. You can work every day and earn additional income every month from it. If you are looking for an affordable house and lot, you can check out Bria homes. They offer a variety of house styles in different parts of the Philippines. You can choose among your preferred area, your preferred house style, and your preferred payment methods. The second is condominiums. You can acquire pre-selling units offered by Bria Homes and lease the units. Many Filipinos now prefer to live in a condominium because of geographic location as most condominiums are located in Metro Manila.
A piece of advice. Be sure to fully equip yourself with knowledge and facts before investing. Weight your options and your current status. Investing is a huge step for everyone interested in earning. While the promise of investing is good, the risk it accompanies is also a factor we must consider. Ask yourself. Can I take the risk? Can I wait for a period of time? Can I afford a living after investing? If your answer is yes, then start learning and start investing!