Many people purchase a house as soon as they can afford one to meet their necessities and, in some cases, to realize long-held fantasies. However, your long-term financial capability is one of the aspects to consider when purchasing a property. Most pre-sale houses are not fully finished and transferred over after years of payments, and your financial situation may alter over time. Pre-selling is ideal if you are confident in the payment period you have chosen and feel you will be able to make it until the turn over date.
If you are concerned about your financial ability in a few years, you may either pay a higher price for an RFO unit now or make a backup plan for the future. In any case, deciding between all of the advantages and disadvantages listed here is difficult, but everyone has a unique combination of demands and skills, which is why thoroughly examining the criteria described above is critical to determining which home you should truly take advantage of right now.
The Good
Low-cost initial offer
Due to the fact that the project or property is still being launched to the market, its initial costs may be low and cheap. This is an excellent method to begin an investment since by the time the property is completed, the prices will have skyrocketed, and the returns on your investment will be enormous. Pre-sale condos are generally 30% less expensive than RFO condos, with down payments as low as 10%. You may even be eligible for a 10% to 15% discount if you pay in full.
Payment terms are more flexible and payment choices are more diverse
When you purchase a pre-sale property, it will take years for the property to be sold. As a consequence, not only are you getting the best deal on the home, but you can also spread out your payments over several years. Purchasing a pre-selling unit is less expensive than purchasing an RFO unit. The cost of the property is usually paid in monthly installments, and the payment term might be as lengthy as the building time. Down payments for pre-sale condo units are due in two to three years.
Bigger Variety of Units
Since the project is still in its early phases, you'll have a lot of possibilities. You may select the level of unit you want in a condominium complex, as well as whether you want your house to face the main road, the subdivision's center, or the early sun. Aside from that, once the project is handed over to you, you can expect state-of-the-art structures and facilities. You might choose a condo that is close to facilities like a parking lot or a swimming pool, or one that has a wonderful view. Choose a unit at the farthest end of the floor if you want peace and quiet. If you have a senior in the household, an apartment near the elevator may be preferable.
More Return on Investment Potential
Buying a pre-sale condo makes more sense if you're interested in real estate investing. From pre-sale until completion, the market value of a condo unit rises. That means you'll make money if you buy a condo during pre-sale and then sell it after it's finished, especially if it's in a great location and was constructed by a reputable developer like DMCI Homes.
The Not So Good
No physical building or groundbreaking
Despite all of the advantages of purchasing a pre-sale property, there are still some aspects that may not meet your expectations. You can't view what the property you're buying looks like in real life since pre-selling homes aren't yet built, unlike RFO flats. All of the images you've seen thus far are renderings of your home from the architect's perspective, not its real look. As a result, for many homeowners, the true adventure begins until they see genuine progress on their purchase.
Waiting time is longer.
You'll have to wait until the property is ready to sell or rent out (if you're purchasing it as an investment) because it's currently being built. If you intend to live there, you'll need to make arrangements for your living quarters while your condo is being built. Waiting might take anything from three and five years.
Delays in turnover
The condo turnover may be delayed or the project may not be finished due to developer financial constraints. Choose a reputed condo developer with a track record of completing buildings on time to prevent such dangers. While homebuyers are typically given a target completion date, there are several circumstances that might cause these dates to change. Many house buyers are hesitant to purchase a pre-sale property because of some of these issues. However, depending on the project and its creator, completion times often range from one to four years.
Changes in Financial Capabilities Upon Completion
Many people purchase a house as soon as they can afford one to meet their necessities and, in some cases, to realize long-held fantasies. However, your long-term financial capability is one of the aspects to consider when purchasing a property. Most pre-sale houses are not fully finished and transferred over after years of payments, and your financial situation may alter over time. Pre-selling is ideal if you are confident in the payment period you have chosen and feel you will be able to make it until the turn over date.
Is A Pre-Selling Unit For You?
Due to their reduced cost and more flexible payment arrangements, condo units offered during the pre-selling period are easier to acquire. Any price increases in commodities such as cement and petrol during construction will have no impact on the condo buying price. This is why purchasing a condo before it goes on the market is great for purchasers who don't have a hefty down payment. Young professionals planning their careers and OFWs looking for a permanent home when they return to the nation are among those who are interested. Investors can earn a better return on investment by purchasing pre-sale properties and then selling or leasing them later than they can with RFO units.