Every first will always be a special event that you will remember. Learn how to make the right choice with your first real estate investment with this guide.
One of the opportunities first-time and experienced investors consider when looking to invest in properties is condominium units. Besides having a sense of security and less maintenance to worry about, the purchase price of a condo is comparatively lower than a house and lot. This shows that condo investing, particularly pre-selling condos, is a good start for investors.
If you’re interested in condo investing, then you would have probably heard of pre-selling condos. For those who want to save big and earn great returns in the future, getting a condo unit during its pre-selling stage is worth thinking about.
What is a pre-selling condo?
Pre-selling condo units, as the “pre-selling” 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 you’re 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 prefer—essentially, you get first dibs on the best units available.
For example, being one of the first owners lets you choose a unit on the topmost floor or near the swimming pool so you can enjoy premium amenities. For those who are into Feng Shui, you have the opportunity to put your money on a unit that faces the most auspicious direction.
3. It’s 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 it’s easier for investors to meet the monthly requirements.
It’s a win-win offer for buyers and the developer—this allows the developer to get more funding to complete the construction. In addition, buyers can purchase suitable units at an excellent price and pay them the easy way.
5. You can see significant ROI as the unit gets turned over
Pre-selling properties increase in value year after year. For example, let’s 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, it’s essential to consider the property’s 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 don’t 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 payments—you don’t 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. If you’re looking to invest in promising developments in prime locations, you can explore units at Mandani Bay for condos for sale in Cebu. The residential towers are positioned to become a center for vibrant living and urban lifestyle outside Metro Manila.
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