NormRealty: Pre-Selling Condominium Unit in the Philippines

Friday, November 21, 2014

Pre-Selling Condominium Unit in the Philippines - To Buy or Not to Buy

If you are contemplating on buying a property and yet will not occupy it in the next two years or so, your best bet is to buy a pre-selling condo. Developers are constantly rolling out new condominium projects especially in Makati, Parañaque and Taguig. This can be tricky especially for first-time condo buyers. Now, you might be wondering... why will you buy a pre-selling condo in Taguig, for instance?

Ready for occupancy units are always tempting to buy. However, the benefits of buying a condo unit in a building that will soon be constructed has as immense benefits as buying a unit that you can immediately occupy.

LOWER PURCHASE PRICE

While it will take a while for the condo building to be finished, one of the main benefits of buying a unit is the usually lowered prices. For example, a unit that will be sold for Php1.5 million can be made available to you for only Php950,000 or even lower. The only downside is you need to be patient until the construction is over before you can set your foot on your condo unit.

LOWER DOWNPAYMENT

If you are worried about the down payment, don’t worry. Pre-sellers typically offer stretched down payment terms, and the amount is almost always lower than the required monthly amortization. For instance, you can finish paying the down payment for three years compared to the required down payment of occupancy-ready houses that must be paid within a year. So, with a meager amount of down payment, you can own a unit now. The best part is, as an owner, you are protected in case of price increases in the future while taking advantage of the equity since the condominium already appreciates in value by the time the building is finished.

WISE INVESTMENT

Buying pre-selling condo units is most beneficial when you are planning to penetrate the condo rental business. The process will give you higher return opportunities. This is more so because new units tend to be more tempting to tenants. Aside from this, since it is new, owners like you may command a slightly higher rental fee from the tenants. Better yet, you can sell each unit for twice the price that you have initially paid for it. This is particularly true if the condo building is situated in a prime location. Taguig, considering the current rate of economic growth, is one of the prime locations in Metro Manila.

Nonetheless, make sure the condo management will allow renting the units. Condo associations are very strict when it comes to this, fearing that tenants will never have the same high level of interest of protecting the condo building and its properties as the unit owners. A condo building that has more tenants than owners is not a conducive place to live in the long run.

PRIME LOCATION

Going back, location is non-negotiable. The overall architecture of the condo building and the design of each unit may differ from what was originally planned. However, the building will still be built on the designated location, and it will never change. Another good reason to buy a unit is you can choose which floor and unit (e.g. corner units) with the best view. Some developers even allow for slight customization of each unit wherein owners can inspect the building at each stage of development.

With all these, it is critical to buy from a reputable developer. Make sure that it has a solid history of high-quality condo developments in Taguig and elsewhere in Manila. Certainly, the developer must be known to deliver properties on time. Don’t sign any contract unless you understand everything that’s written on it. If something’s not clear to you, consult a lawyer. Don’t buy if you are not financially ready.

Article taken from:
To Buy or Not to Buy a Pre-Selling Condo - That is the Question
by Jenv Corre November 13, 2014Image Credit:
http://www.e-architect.co.uk Bishan Central Singapore

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