7 in 10 Filipinos Living in the UAE Are Looking to Buy Property According to Reports

7 in 10 Filipinos living in the UAE are looking to buy property according to New Perspective Media polls, the Philippine Property and Investment Exhibition reports. There are almost 700,000 Filipinos in the UAE, nearly half a million of which live in Dubai. Let’s look at the reasons so many Filipinos in the United Arab Emirates are considering buying homes in Dubai or back home in the Philippines. We’ll also look at their property buying patterns and impact on the real estate market.

The Statistics

According to a 2016 survey, 78% of Filipinos living in the UAE are planning on buying real estate in the Philippines or UAE in the next two years. Their planned purchases range from houses, to condos (flats) or land. This rate is much higher than the 43% who said they were thinking of buying real estate in a 2014 New Perspective Media survey. Those who planned on simply investing in property doubled from 22% to 46% over the same time period.

Buying Patterns

Many Filipinos want to buy real estate as an investment as compared to paying rent each month, while others see buying a property as an investment in itself. Manila’s residential real estate prices are growing the fastest rate in the Asia-Pacific region (not including Vancouver’s ultra-hot real estate market).

The eleven million Filipino expats sent $26 billion back home in 2013, accounting for about 10% of the nation’s GDP. This money is being used by their families to improve their lifestyles, including buying and building new homes in the Philippines. The Filipinos who want to buy real estate in the Philippines are eager to do so as soon as possible to lock in the prices as well as profit from the fast rise in real estate prices.

Filipino’s preferred real estate purchases depend on where they want to buy. Most state they want to buy a house in a gated community, a piece of land in the suburbs where they can build a home of their dreams, or a flat in the city center. Of those who want to buy real estate in the Philippines, 60% want to buy a house on a lot, 30% want to buy a condo, and 10% want to invest in a lot.

Buying land in the suburbs is seen as a way to protect one’s money, since the land will likely appreciate but can be sold to someone else if the owner needs to buy a flat instead.

Impact on the Real Estate Market

Dubai is unusual in allowing expats to buy land and real estate, instead of remaining renters. Filipinos account for about a fifth of the population of Dubai. When the majority of this population decides to buy homes and invest in real estate, it increases the prices of villas for sale and raw land on which homes could be later built. Filipinos are also investing in real estate in Dubai because interest rates are as low as 4% while personal loans are readily available.

Filipino expats buying real estate in the Philippines have enjoyed high wages in a tax-free environment, which is why 13% of those surveyed had a preference for high-end properties costing more than PhP5 million. This is driving up Philippines real estate prices and accounts for why the nation is one of the top ten fastest growing luxury markets on the planet. Most surveyed, though, had a PhP2 million price ceiling.

Many Filipino expats were also considering buying rental real estate to rent out to others in the Philippines, since the nation’s 7.53% rental yield is one of the highest in the world.

Conclusion

Filipino investments in real estate in the UAE and the Philippines are driving up real estate prices. In both locations, they are buying up flats in the city center, homes on lots in the suburbs or land that they can easily sell or build a home upon depending on future circumstances. Those buying homes back in the Philippines are sometimes doing so for investment purposes due to the high rate of return, while others are buying homes now because they don’t think they will be able to afford homes after several more years of inflation.

Ang buhay OFW nga naman......

Mahirap ang buhay ng isang OFW na mahiwalay sa pamilya sa mahabang panahon para mabigyan ng kunting kaginhawaan ang naiwang pamilya sa Pinas. Sa hirap ba naman ng buhay ngayon kailangan mo pang makipagsapalaran sa ibang bansa para matugunan ang mga pangangailangan ng pamilya. Madaling sabihin pero ang proseso at pag aayos ng mga papeles ay matagal. Pag minalas pa ay maloloko ka pa ng agency na pinag aplayan mo. Madami sa atin ang magsasangla ng lupa o bahay o di kaya mangungutang sa kamaganak  para sa placement fee.

Pero hindi ibig sabihin na nasa ibang bansa ka na ay puro pasarap na lang ang buhay. May mga kasong mababa ang sahod o iba ang trabaho sa pinirmahang kontrata sa Pinas. Nandyan din ang problema sa accomodation, problema sa mabangis na amo, OTy (thank you na OT) at mahabang oras ng trabaho na walang restday. Hindi maiiwasan ang mga kasong rape, nabuntis at pambubogbog at kung ano ano pa.

Dito sa Dubai, dahil sa nangyaring recession, may mga kababayan tayong delay ang sahod, baon sa utang sa credit card at personal loan at minsan pa ay nakakulong dahil sa talbog na tseke. Marami ang tinamaan ng crisis at napauwi na galing sa mga construction at engineering na mga kompanya.

Isa sa matinding kalaban ng isang OFW ay ang pangungulila sa asawa at pamilya. Dahil sa mahal ang overseas call, sulat at voice tape ang pinagpipiyestahan ng mga naiwang pamilya sa Pinas noon. Mabuti na nga ngayon at may YM web chat, skype, friendster, facebook at kung ano anong pang mga paraan na madaling makausap ang pamilya.

Last week naimbitahan ko si Fr. Serge (unang paring pinoy sa St. Michael Church) para mag bless sa bagong apartment na nilipatan namin sa Sharjah. Nabanggit nya sa akin na ang pangunahing problema daw ng mga Pinoy ngayon ay live-in. Kahit may asawa sa Pinas. Mapa babae man o lalake. Kahit binata o dalaga. Oo. Bawal na bawal yan dito sa UAE. Latigo, kulong, deportation at benteng sidekick ng camel ang parusa. (of course joke lang ito!) Yan ay kung mahuli o ma report sa Pulis. Pag hindi tuloy ang ligaya.

Naranasan mo rin bang madaling araw ay nakita mong may miscol ka galing sa Pinas? Syempre kakabahan ka dahil baka may namatay o naaksidente sa pamilya. Yon pala naman ay pinafollow up lang ang buwanan mong sustento dahil katapusan na at tambak na ang mga bayarin. Hindi mo rin naman masabi na minsan delay ang sahod mo. Kaya mapipilitan kang mag cash advance sa credit card.

Sa pagsapit ng mga mahahalang okasyon tulad ng pasko, binyagan, kasalan, piyesta, family reunion, wedding anniversary, fathers day, mothers day, valentines day wala ka. Hindi mo matitikman ang masasarap na pagkain tulad ng crispy balat ng lechon. Tapos magpapadala ng group picture. Lahat sila nakangiti. Ang saya saya nila. Parang hindi ka nila namimiss. At napansin mo ikaw lang ang kulang. Gustuhin mo mang umuwi kahit saglit hindi pwede dahil hindi pa tapos ang kontrata mo.

Hay! Buhay OFW nga naman. Feeling ko minsan hindi ako umaasenso dahil tamang tama lang ang sahod ko sa panggastos sa pamilya. Para ring hindi  nag abroad.

Sa ngayon kasama ko ang asawa ko at dalawa kong anak sa UAE. Aaminin ko minsan kinakabahan din ako dahil mahina ang pasok ng business sa kompanya namin. Baka dumating ang araw na pauwiin ko rin sila. Pero habang nandito pa sila at kasama ko mageenjoy muna kaming mag bonding buong pamilya. 

Pag-IBIG expands mandatory coverage to include OFWs

February 1, 2010


Bigger and better benefits for new members
“Be a Pag-IBIG member and secure a bright future for yourself. Your savings with the Fund earn double and even triple. These savings are guaranteed by the government and earn tax-free dividends. More importantly, as a member you have access to benefits no banks can give such as the lowest interest housing loans, fast salary loans and reliable calamity loans. ”
This was the statement of Jaime A. Fabiaña, chief executive officer of the Home Development Mutual Fund or Pag-IBIG Fund, in his meeting with representatives of Filipino communities in Hong Kong Sunday.
Fabiana met with Hong Kong-based Filipinos to inform them that with the passage of Republic Act No. 9679 (also known as the Home Development Mutual Fund Law of 2009), signed by President Gloria Macapagal Arroyo on 21 July 2009, “Pag-IBIG is now opening its doors to all types of Filipino workers, both from the formal and informal sectors, in the country or overseas”.

Under the universal membership coverage which takes effect beginning January this year, the following are mandatorily covered by the Fund: all employees who are compulsorily covered by the SSS; all employees who are subject to mandatory coverage by the GSIS; uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police, Overseas Filipino Workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad.
Membership of OFWs used to be voluntary under the old Pag-IBIG Overseas Program, with terms of five, 10, 15, and 20 years.
BENEFITS

With the mandatory coverage, OFWs can enjoy the various benefits of being a member which include:

Savings. Members’ contributions are credited to their savings or the total accumulated value that earn dividends and fully guaranteed by the national government. In 2009,

Pag-IBIG declared tax-free dividends amounting to P8.5 billion with a dividend rate of 5%.

“At this dividend rate, an OFW member will generate savings amounting to P40,753 if he contributes P100 monthly for 20 years; P81,507 if he contributes P200; and P203,768 at P500 a month. The bigger the contribution, the bigger the savings,” Fabiana explained.

He assured that Pag-IBIG savings are portable, meaning, “these remain in the name of a member even if he transfers employers, works abroad or becomes self-employed or even unemployed”.
Short Term Loans. OFW-members can also avail of short-term loans that will help address their immediate financial needs such as payment for tuition fees, hospital bills, appliance purchases, minor home repairs, and even for small business capital.

Housing Loan. A member of good standing is eligible to avail of a home financing loan that has an interest rate of as low as 6% to 11.5% payable in 30 years. The maximum loan amount is P3 million. The loan can be used for the purchase of a fully developed lot within a residential area not exceeding 1,000 sq.m., purchase of a residential house and lot, townhouse or condominium unit, construction or completion of a residential unit on a lot owned by the member, home improvement and refinancing of an existing loan.

Fabiana said that in 2009, Pag-IBIG extended a total of P9.6 billion in housing loans to their OFW members which financed 12,233 housing units. “No other financial institution, government or private, has extended this much for OFWs’ housing,” he stressed.

He attributed the 68% increase in housing loan availment of OFWs in 2009 to the housing reforms initiated by Pag-IBIG’s Board Chairman Vice President Noli “Kabayan” De Castro, primarily the low interest rates and long repayment period, which makes it the most affordable home lending program in the country today.

To register for membership and for other inquiries, OFWs can call 724.4244 or visit the Pag-IBIG office located at the 6F, Justine Building, Gil Puyat Avenue, Makati City (beside Land Bank). They can also register through the Pag-IBIG satellite offices at the Philippine Overseas Employment Agency (POEA) and the Ninoy Aquino International Airport (NAIA) or coordinate with the Pag-IBIG information officers who conduct the Pre-Departure Orientation Seminar for OFWs

(source: www.pagibigfund.gov.ph)

What is Pinoy OFW?

An Overseas Filipino is a person of Philippine origin who lives outside of the Philippines. This term applies both to people of Filipino ancestry who are citizens or residents of a different country and to those Filipino citizens abroad on a more temporary status.

Most overseas Filipino migrate to other nations to find employment or support their families in the Philippines. As a result of this migration, many countries have a substantial Filipino community.

Often, these Filipinos are referred to as "Overseas Filipino Workers" or "OFWs". The term "Global Filipino" is another term of more recent vintage but less widely used.

Philippine President Gloria Macapagal-Arroyo recently applied the term "Overseas Filipino Investor" or "OFI" for Filipino expatriates who contribute to the economy through remittances, buying property and creating businesses.