05/12/2013
The benefits of BUYING A PRE-SELLING CONDO UNIT
Cheaper prices, flexible payment schemes, promising investment
According to the Global Property Guide, with the Philippine mortgage market relatively underdeveloped, “most of the houses are sold for cash or pre-sold”. In the condo market, it’s a toss between ready-for-occupancy (RFO) units and pre-selling ones.
Many buyers go for the pre-selling option, due largely to its much lower introductory price, which can be 30% cheaper than a finished unit. On top of that, developers throw in a 10%-15% discount or offer flexible payment schemes where the down payment can be as low as 10% payable for 3 years, with the lump sum to be paid either through a bank financing, government sponsored home loan (Pag-IBIG), or the developer’s in-house financing options.
If you are a real estate investor, pre-selling condos are a promising investment since their market value can increase by the time they are finished. Given favorable market conditions, you can resell the finished units for twice the price you put down when they were in the pre-selling stage.
Better options, new features
You may also have more options when buying a condo in a pre-selling stage. You get to choose your preferred unit location and floor plan, not to mention the better views, easier access to amenities, and lesser foot traffic. Depending on the pre-sale contract, you can also inspect your unit at the end of every construction phase and inform the developer of the unit’s defects or of any adjustments you may want. Pre-selling condos give you the time and opportunity to customize your condo unit according to your preferences.
In terms of condo development, pre-selling condos usually offer something new, if not the latest, in terms of design, features, or amenities. Whether this might be a state-of-the-art waste management system, resort-style amenities, or eco-friendly materials and construction, new features are not only appealing but also necessary if the changes they bring matter to you.
