When you drive down the street, read the newspaper, or surf over the internet, you will see many advertisements for pre selling condos, ready to occupy condos and as well as rent to own ones. These advertising materials frequently appear irresistible due to their low down payment, flexible payment terms, and convenient location near almost everything you need. These advertisements indicate the project’s status as ready for occupancy or as a pre-sale condo.
RFO stands for Ready For Occupancy. This is a term that refers to a condominium unit that is available for immediate occupancy once the necessary paperwork and payment have been completed. Pre selling condo, on the other hand, refers to the sale of a condominium unit at an extremely early stage of development, prior to the property’s completion, during the property’s construction, or while it is still in the planning stage. In other words, preselling condominiums refers to properties that have not yet been built or are still under construction at the time the condo unit is purchased.
Pre selling condominiums, it is claimed, enables property developers to finance the project’s construction while also allowing potential investors to purchase the property at a discount.
You may be wondering right now about the risks and benefits of investing in a pre-sale or pre selling condo. While it may seem counterintuitive to purchase a condo property that does not yet exist, preselling condos provides investors with a number of advantages.
We’ve compiled a list of the benefits and drawbacks of purchasing a condo property while it’s still in the pre-selling stage in this article.
The Benefits of Buying Pre Selling Condos
1. A more affordable price and more flexible payment terms
Many first-time investors prefer preselling condos due to their lower price, which can be up to 30% less than a ready for occupancy unit. Apart from this, some developers offer additional discounts or flexible and stretched payment terms, with a down payment as low as 10% payable over three years and a lump sum payable via bank or the developer’s in-house financing.
If you’re a real estate investor, pre-sale condos are an excellent investment because their market value will almost certainly increase once they’re completed. Certain individuals purchase pre selling condos and immediately resell them for a profit.
2. The option to select the unit of your choice
With preselling condos, you can definitely select your preferred unit and floor plan. You can opt for a higher elevation for better views, easier access to amenities, and less pedestrian traffic.
Depending on the terms of the pre-sale contract, you may also inspect the unit at each stage of construction and notify the developer of any defects or issues that require attention.
3. The addition of new features and amenities
Pre selling condos feature cutting-edge design, features, and amenities that clients can take advantage of when they want to unwind and relax outside their purchased condo unit. To stay current with modern and digital times, some condominium developers offer smart condos as an added layer of security.
4. Excellent investment opportunity
Investing in a pre-sale condominium entails purchasing a property at today’s price in exchange for future equity. Once the condo is completed and ready for occupancy, you can profit by selling it at the current market price.
Once the condo property is completed, you can also rent it out and earn a steady stream of income. In this case, it makes sense to purchase a pre-sale condo so that you can carefully select the unit that your future tenants will adore.
Suggested Read: Advantages of Buying a Pre Selling Condo in the Philippines
The Dangers of Buying Pre Selling Condos
1. Unannounced changes
Typically, a pre-sale or pre selling condominium contract will specify that the property will be constructed in accordance with the finishes and materials specified. However, the property developer retains the right to modify these guidelines in certain circumstances without jeopardizing the property’s quality.
As a result, you should be aware that these events may occur without your knowledge.
2. Property turnover is slower
Contracts for preselling condominiums typically include delay clauses that allow developers additional time to complete the project.
3. Non-completion of Pre selling Condos
The greater risk associated with investing in a pre selling condo is the developer’s inability to complete the project due to bankruptcy. In this case, you may not be eligible for a deposit refund.
4. Affecting the Housing Market
Due to the promise of property value appreciation, pre selling condos can be an excellent investment. However, there is a very small chance that it will not.
That is why it is critical for you to research current market conditions and rental yields in the area.
Purchasing and investing in a pre-sale condo requires making an informed decision. To avoid the embarrassment of a failed investment, you should always purchase from credible and reputable condominium developers who have a track record of delivering high-quality condominium properties on time. Before you sign any contract, carefully read it and consult with a lawyer to ensure that you understand the clauses. Check your budget and ensure that you can afford the items you intend to purchase and invest in.
If you are a first-time condo investor, you must exercise extreme caution and wisdom in selecting the appropriate property. Conduct a thorough examination of any offer and weigh the benefits against the risks. If you’re still on the fence about investing in pre-sale properties but don’t want to miss out on any of their benefits, choose a reputable real estate developer so you won’t have to worry about the property on which you’re spending your hard-earned money.
Check out Pre selling Condos for Sale in Camella
Camella Homes, the country’s all-time favorite home builder is now offering pre selling condos for sale located across the Philippines. Its newest brand of condos for sale, Camella Manors, offers pre selling, ready for occupancy and rent to own condos in Caloocan, Lipa, Bacolod, Puerto Princesa, Butuan and Davao City.
Meanwhile, if you wish to check out the best pre selling condo offers you may try to check Camella Manors pre-sale properties in Caloocan, Lipa, Bacolod, Butuan, and Davao. Get a good pre selling studio, 1-bedroom or 2-bedroom unit from Camella’s condominium brand, Camella Manors.
If you wish to inquire just fill out the form or simply message directly through this website chat box or through Camella Manors official social media accounts.
Suggested Read: How to Buy a Pre Selling Condo in the Philippines