Every time I come home from a U.S. trip, or even on a Manila-Cebu or Manila-Dumaguete, I meet a lot of balikbayans at the terminals and in airplanes; and all the time, I can always spot the balikbayans who have made it. Also in the various golf courses, in family and school reunions, balikbayans who have made enough money abroad stand out. I can also discern among my relatives who visits or whom we visit, who of them are " made" and have saved, or have a networth of at least $1 million.
Who are these millionaire balikbayans, and why are they millionaires? They are usually in their 60's to the 70's, which means they left the country 30 to 40 years ago. After working or being in business all these years, they now have a house in the U.S. with the mortgage loan fully paid. This will be a house with a market value of between $500,000 to $800,000. Then he and the wife would have a retirement fund, probably an IRA account, valued at $200,000, and a monthly pension from the SSA and the company, of at least $3,000 a month. They would have other assets, like a condo and cars which could be worth another $100,000 to $300,000. So, all in all, they would have a networth of at least $1,000,000 or P52,000,000.
How did these people become millionaires? Why not the others? For starters, they had a headstart and quite a number of working years. They probably worked hard and long hours, even doing double jobs to pay off their mortgage and still save. They would have no major vices, and had sent their children to school to become independent breadwinners. Hence, they have kept their retirement nest egg intact. They were not lavish in their lifestyle, so there were always savings every month. They probably only owned one credit card each, and did not take annual vacations in the first 20 years. But now, they can spend $5,000 to $10,000 on their annual vacation to Cancun, Hawaii, or the Philippines. Of the 3 million Filipinos in the U.S., 10% to 15% have at least a million dollars networth, so we are looking at 300,000 to 450,000 balikbayans with these dollar net assets.
It is to our country's good fortune that some of these rich balikbayans are now thinking of retiring in the Philippines, or at least investing part of their wealth in this country. They are now the target of all the condominiums , housing developers, and property brokers. A number of them have purchased properties here without letting go of their U.S. homes, and they commute to the U.S.A. every so many months. They are deservedly enjoying the best of both worlds; enjoying the tropical weather in the company of family and friends, at a cost of $2000 a month, very much less than their retirement pension.
Last week, in a survey by Union Bank of Switzerland (UBS), Manila came out as one of the cheapest cities to live, in terms of food, clothing, and shelter. It was 70% cheaper than most U.S. cities. Had they included Cebu City in the survey, it would have shown that it is even cheaper to live in Cebu than in Manila. I have always contended that in the food courts in the Malls in Cebu City, one can have a decent breakfast for $1, with lunch and dinner at $2 each. One can rent a decent house or a condo in Cebu City for $800 a month, hire a maid for $75 a month, and eat all you can in a 3-star restaurant for $6 a person. So for a millionaire balikbayan, living in Cebu is hard to beat! It is the place to be...Cebu is it!