When deciding to buy a condo, you have a lot of options around the country, especially in metropolitan areas. They have attractive offers like accessible locations and affordable rates, among many others.
However, most of them are in “pre-selling,” which means that the developers sell the property before completing the project, during construction, or while the condo is still at its planning stage. How can you ensure you’re making the right investment when the property doesn’t exist yet?
Buying a pre-selling condo can be a daunting task since you won’t immediately get to reap the benefits of your investment or live in it if you plan on keeping it. Compared to buying a ready-for-occupancy (RFO) condo, a pre-selling condo involves different factors that you need to keep in mind.
With this, here are our expert condo buying tips to help you make an informed decision when purchasing a pre-selling condo in Cebu.
1. Research about the developer of the project
For a pre-selling unit, doing your research on the reputation of the developer is of utmost importance. By getting to know the developer of your prospective condo, you can learn about their track record.
Does the developer complete their projects? There are several cases in which projects have been left uncompleted because the developer ran out of money. When this happens, it won’t be easy to get your money back.
Aside from checking the developer’s completion history, you can also review the quality of their previous work. Are there any cracks or leaking sewage pipes in the property only after a few years of turnover? Since purchasing a condo is a big investment, remember that you must not compromise quality in return for quick turnover times or low prices.
2. Inspect the timeline of the project
The process of investing in a condo and planning to sell or rent it out starts with identifying your target market. If you’re looking to buy a pre-selling condo to re-sell or rent out, you must make sure that everything is on track within your timeframe. Here, timing is crucial as you can end up with a useless property with no return on investment if the timeline gets messed up.
Analyze real estate market trends and find out when is the most opportune time for your target market. Once you do, you must ensure that the unit is ready when the time comes without any delays.
3. Sit down and strategize your financing options
To purchase a pre-selling luxury condo in Cebu, you must save up a certain amount of money for the down payment and other fees. Usually, down payment prices are approximately 20% of the purchase price. There are additional fees you should consider as well, like reservation fees and taxes.
Nowadays, most developers are not requiring spot downpayment. Instead, they offer friendly or stretched equity schemes just in time for construction to be completed. For example, no spot downpayment could lessen your mortgage as you accomplish payments monthly, but the overall property price is higher than the cash or down payment option.
If you’re applying for a bank loan, you need to make sure that your loan gets approved. To have your loan in the bag, you need to prepare the required documents, including your proof of income, credit history, bank statements, and other financial records. Take the time to figure out and strategize how to fund the pre-selling condo you’re eyeing to ensure the purchase.
4. Be more than familiar with the location
If you’re looking to buy a pre-selling condo to eventually call your home or sell like hot pancakes once you put up the lease, familiarize yourself with the location of the condo development.
Is it near the places you need to get to? How close is it to your workplace? Is the area accessible to public transportation and essential amenities? Is it located in a disaster-prone area? Condo developers use convenience as a primary factor when luring in buyers, so make sure the condo’s location ticks all the boxes.
At the end of the day, location is one of the primary reasons to consider when buying a condo.
5. Parking, parking, parking
Parking spaces are not included when you buy a condo unit. You pay for them separately, and they can be quite expensive. A parking space can cost between half a million pesos and P1.5 million. Parking charges are also one of the fees you should consider when purchasing a condo unit. You can buy them to lease to someone else or rent them for around P3,000 to P10,000 a month.
Before you purchase a pre-selling condo, ask the property developers for their parking space rates. How much is a slot if you buy one? How can you rent a parking space? Which residents are renting out their unused parking slots?
6. Know Cebu’s lifestyle and culture
Like Metro Manila, Cebu has different neighborhoods with various lifestyles and cultures. You can choose locations around Greater Cebu City like Mandaue City, Lapu-Lapu City, Talisay City, and Naga City. Overall, Cebu is a highly urbanized city with low crime rates. Expats tend to stay in Cebu for its hospitable spirit, proximity to the beach, and convenience with malls and shops around the area.
Before getting a condo in Cebu, you must get to know the neighborhood’s lifestyle first. How are the people like? Are there multiple work opportunities around? It’s also helpful to learn how to speak the local language, which is Cebuano or Bisaya.
7. See the future of the property
Many people buy pre-selling condo units and re-sell them. It’s a good way to earn big money in no time. However, it’s only for the short term. You can take advantage of your property by seeing its future and making long-term plans. One way you can do this is by renting out your unit to have a regular monthly income.
You don’t have to stick with your long-term plan forever. It’s best to adapt and keep yourself updated with the changes in the market so that you can earn better. When a city’s job economy is not doing well, you can temporarily lower your rates so you won’t suffer from long periods of vacancy. When an interior design trend is going mainstream, you can furnish the unit with that design in mind to attract renters.
Remaining at the forefront of the real estate game is key to reap the benefits of your pre-selling condo.
Invest in the Best Condo in Cebu
Pre-selling condos are risky investments as you don’t see what you’re buying yet, which is why you must buy from a trusted developer. Mandani Bay in Cebu is one of the most reliable developers in the country. If you’re looking for a world-class waterfront property where your urban lifestyle dreams are within reach, Mandani Bay is the place to be.