Owning a home has been considered as one of the most significant financial milestones an individual can make. Unfortunately, purchasing your first real estate property does not always come cheap. While a worthy endeavor, investing in your first home can potentially be an exorbitant expense depending on the type of property you choose. Luckily, this is not always the case—particularly in the Philippines. We’ll help you determine the things to consider before buying an affordable pre-selling house and lot.
It is no question that the real estate business in the country is booming with relatively low risks. As a result, homeownership is a dream more Filipinos can realize and reach.
That said, individuals can now invest in an affordable pre-selling house and lot.
Homebuyers or individuals who wish to have an investment through a profitable venture such as the price appreciation of real estate, purchasing an affordable pre-selling house and lot is the right choice.
Today, buying pre-selling properties has become rather commonplace in the real estate industry. With a myriad of real estate options, it is easy to see why more and more prospective homeowners are choosing the more reasonably priced option by investing in an affordable pre-selling house and lot.
Apart from being easy on a potential homeowner’s pocket, pre-selling properties are also an excellent investment venture for investors.
Pre-selling properties are typically offered at a lower price point. In this regard, homeowners can spend less, increase their assets, and generate more revenue.
Potential homeowners prefer affordable pre-selling house and lots to units ready for occupancy as the former is cheaper but offers flexible payment schemes.
More importantly, most pre-selling properties give prospective homebuyers a wide array of location options.
As a result, investors can expect better returns on their real estate investments.
However, before you take the plunge and begin your pre-selling property shopping journey, it is recommended and highly encouraged that you exercise caution. That said, below are a few things you should know about pre-selling properties.
What are pre-selling properties?
Simply stated, pre-selling properties are sold when they are still in the early stages of development or under construction.
Typically, these properties are sold during the planning stages, where the only manifestation of the property a buyer can see is the blueprint.
Another name for pre-selling properties is off-plan properties, which can either be townhouses or condominiums.
Things to know about pre-selling properties in the Philippines
It is a fact that real estate properties—wherever located—are expensive. This is especially true for finished units. However, if you wish to pare down your expenses towards owning your own home or investment property, you can do so by purchasing an affordable pre-selling house and lot.
Whether your goal is to buy property for personal use or investment purposes, you might be better off if you considered buying pre-selling properties. Below are just some of the things you ought to know about pre-selling properties.
1) They are more affordable than Ready for Occupany (RFO)
A pivotal factor in real estate is the price. For many, it can even be a deciding factor. Today, many buyers are unaware that they can purchase property that is still at the initial stages of planning or are still under construction. As a result, they miss out on a money-saving opportunity.
That said, many of them would be deterred by the high price points of finished units and would be put off by the idea of buying real estate property until such time that they can save enough.
However, If you are on a tight budget, buying ready-for-occupancy (RFO) properties may not be the best option for you. On the other hand, buying pre-selling properties can give you value for your money at a reduced price.
Pre-selling properties are priced reasonably lower than RFO units because developers want to start selling immediately once the ground-break a project. As a result, these properties are priced at the lowest price possible. It is also worthy to note that as these properties do not exist at the time of purchase, they are inevitably more affordable than RFO properties.
To attract buyers, developers usually offer 30% lower prices than the price of a finished unit. Keep in mind that prices are elastic and can be influenced by various factors such as amenities, location, size, and even the developer’s reputation.
2) Buyers get the best unit option
One of the disadvantages of buying RFO units is that you may not get a property at your desired location. On the other hand, pre-selling properties allow buyers to weigh their options, evaluate them carefully, and select their preferred unit or location.
During the pre-selling stage, you can still choose the unit that suits your needs, taste, and lifestyle. More importantly, you can choose one that has easy access to basic amenities. Depending on the developer, there are also some instances wherein a homebuyer may integrate the designs they want or select the finishing they like.
3) They are a promising investment
Pre-selling properties are promising investments in the real estate industry—especially if they are situated in good locations. Although you might have to wait until completion, pre-selling properties typically give a higher return on investment once finished and ready for use.
Real estate property appreciates over time, and when you are just biding your time waiting for your property’s completion, its value constantly appreciates. For investors, this can be an opportunity for massive profit.
By buying pre-selling property at a lower price point, they can then decide to sell it or rent it out to earn profit from passive cash flow. Investment options are limitless—all you have to do is tap into them.
4) Features flexible payment options
To make it easy for prospective homebuyers to meet the monthly payments, developers of pre-selling properties offer various flexible payment options. Best of all, these payments come with no interest at most times.
To give prospective homebuyers an even better incentive to buy pre-selling properties, most developers provide discounts on the down-payment—depending on the chosen mode of payment. Developers also typically offer in-house financing.
5) Give you enough time to prepare financially
Purchasing pre-selling properties allows prospective home buyers to leverage the time they need to prepare themselves financially. Once you have secured the property you want with an initial deposit, you can then proceed to make use of the waiting period for completion to start saving up for payments.
That said, purchasing pre-selling properties is an excellent avenue for newbies to start entering the property market. More often than not, you would only need to make a 10% deposit and pay the balance in installments once the construction is complete, which can take anywhere from a year or more.
Tips and recommendations when buying pre-selling properties
Like buying any other real estate property, purchasing pre-selling property, has its own set of pros and cons. While the flexible payments and lower prices may seem enticing, know that there are still risks involved in buying pre-selling real estate.
Some of the cons in buying pre-selling property are that there may be a delay in property completion, or you may get a property that is below your expectations. In any case, here are some indispensable tips and recommendations in ensuring that you buy the right pre-selling property.
Always buy from reputable developers
Always make the developer’s reputation the main consideration before committing to buy a pre-selling property from them. Apart from making sure that they have already built a solid reputation in the industry, it is recommended that you determine the number of projects they have completed and the quality of said properties. Most importantly, check if they have the license to sell these pre-selling properties.
Make the necessary inquiries ahead of time
Take all the time you need and do not be in a hurry to buy. Ask the pertinent questions and have enough information and details of the property. Also, it is advised that you visit the site of the property prior to buying.
Check your finances
Although pre-selling properties are typically more affordable, it is still recommended that you check if you have sufficient income to cover and finance the payments.
Consult a broker
Engage the service of a professional and licensed real estate broker to ensure a smooth negotiating and purchasing process. While at that, you need to seek legal advice as well. Before signing any documents or contracts, always consult a reliable lawyer to walk you through the signing of any paperwork to help you understand any legal terms and jargon that may be confusing.
Whatever your purpose may be—whether for business or personal use—investment in pre-selling properties in the Philippines is an excellent way to get started on your homeownership journey. Keep in mind, though, that just like any venture, it comes with its pros and cons.
As a prospective homebuyer, it is your responsibility to weigh your options and determine which choice to make. That said, you should know how to maximize your profit and play your game. Do this by doing your part as well. Study market conditions, explore other options, and always seek expert advice before making a decision.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.