04/05/2024
PRE-SELLING CONDOS: WHAT DOES IT MEAN AND WHY INVEST IN ONE
What is a pre-selling condo?
Pre-selling condo units, as the โpre-sellingโ meaning implies, are properties put on sale or marketed during the planning stage or while the building is still under construction. Simply put, as long as the project has yet to be completed, potential buyers are looking at the pre-selling introductory rate of the units.
While people may think purchasing a property without seeing how the building and unit look is unorthodox, there are many advantages to buying a condo at its pre-selling phase.
1. It offers lower rates
Because the building has yet to be completed and no physical units are available, pre-selling properties are sold at an introductory price of 30% to 50%off compared to a ready-for-occupancy (RFO) unit.
With pre-selling properties, you can buy low and sell them high in the future to generate maximum profit. So if youโre thinking about when to invest in a condo unit for the best price, the answer is during its pre-selling period.
2. You have more units to choose from
Purchasing a condo unit with the absence of physical units gives buyers the privilege to select their ideal unit location. You can choose the floor you desire and the unit that faces the direction you preferโessentially, you get first dibs on the best units available.
3. Itโs a steady stream of income
If your goal is for the property to earn passive income over the years, a condo unit can give a steady source of income once construction is finished. Buyers can make money by renting out the property. When you manage to choose a good unit in a prime location of the building during the pre-selling stage, future tenants will be lining up for the listing.
4. There are flexible payment options
Apart from its affordable cut-rate price, property developers also provide flexible payment options and reduced down payment costs for pre-selling units as a way to further attract potential buyers. Pre-selling condos typically offer more generous payment schemes, so itโs easier for investors to meet the monthly requirements
5. You can see significant ROI as the unit gets turned over
Pre-selling properties increase in value year after year. For example, letโs say you bought a pre-selling condo in a strategic location at Php 5 million within the first quarter of the year. By the next quarter, the units are set to see a price increase by 10%. This means you can generate large profits by the time the building is completed and the RFO units are sold at a much higher price.
As a buyer or investor, itโs essential to consider the propertyโs location as it will determine your return on investment. Getting a pre-selling unit in or around central business districts, educational institutions, commercial establishments, and other prime locations is your best bet for quick and high profits.
6. After the purchase, you can forget about it
Since the project will take more time to complete, you donโt have to worry about moving into the unit or furnishing it. Once you buy and sign the contract, all you have to do for the meantime is be conscious of your monthly paymentsโyou donโt have to think about furniture shopping, styling and decorating, or anything else.
Moreover, this gives you ample time to save up for furniture pieces and interior design that you envision for the unit.
The Bottom Line
With pre-selling condo units, buyers get to take advantage of cheaper rates with excellent payment terms. Anyone who purchases a unit before it is completed is bound to get more value for their money long-term. Remember that real estate appreciates as time passes, so a pre-sell condo unit is an absolute gain for earning more than what you paid for.
Make the most of your hard-earned money by investing smartly.
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If youโre looking to invest in promising developments in prime locations, you can us directly to this page.
