Pre-selling, or off-the-plan properties as it is more commonly known in the West, are pieces of real estate—either condominiums, commercial lots or office space buildings —that are being sold by a real estate developer in advance before their actual completion.
While it may seem unconventional to an investor to buy a property that does not yet exist (save for actual site where the property will be built and a blueprint), pre-sold properties afford buyers and investors many advantages, such as discounted prices and the first pick of the best locations and/or units. We put together a list of benefits of buying properties while they are still in its pre-selling stage.
PRE-SELLING PROPERTIES ARE CHEAPER: In the absence of the physical unit, pre-selling properties are normally sold at a cut-rate price of 30–50 percent off compared to the price of a finished unit. Aside from its affordable introductory price, many property developers offer flexible payment schemes and even discounted down-payment price for their pre-selling projects. These same developers also offer in-house financing in the event that the investor or buyer fails to qualify for a bank housing loan.
BEST UNIT OPTION FOR BUYERS: When buying a ready-for-occupancy (RFO) property, more often than not, the buyer is usually left to choose from the less desirable units or locations. In buying pre-selling properties, buyers are granted a privilege to choose their ideal lot or unit location at an early phase, usually during the project launching stage. When buying a condominium unit during the project’s pre-selling stage, the buyer is given the opportunity to pick the best unit, such as those facing the best direction and located on the perfect floor, or even one of the best units that are normally reserved for repeat customers. Some condo units are just highly sought-after either because they offer great views or they come at the right size that are highly attractive to future renters.
STEADY SOURCE OF INCOME: Speaking of renters, once the property is completely done and is now ready for occupancy, the buyer can opt to rent it out, and through this, the buyer earns a steady cash flow. If buying a condo property to have it rented out after completion, it makes sense to buy a pre-selling one, especially during the project’s earliest stage, as it affords buyers the first pick of units—those that will be loved by future tenants. Alternatively, the buyer can also make more from his or her property by selling it once completed, by which time the property has increased its value.
EXCEPTIONAL INVESTMENT: The value of real estate, especially well-located ones, appreciates over time. This is true for pre-selling properties. At the time of their completion, the value of pre-selling condos or house and lots have increased considerably, that the buyer can earn a profit by selling them in the secondary market. A condo unit or commercial lot located in a prime location available for a lower price this year may be sold double or triple of its price in the next two or three years from now.
SUGGESTION BEFORE ON BUYING A COMMERCIAL LOT: As a smart buyer, you must be vigilant that any offer that comes with great advantages also carries some risks. One of the most drawbacks of buying a pre-selling property is that there is a chance that the developer you signed up with might back out from the contract and may not be able to deliver the unit at all. If you are unsure of investing to pre-sold properties but does not also want to miss its perks, make sure to buy only from reputable real estate developers, those who have a good track record with delivering quality properties on time all the time.
SET YOUR SIGHT TO A GRAND TOWNSHIP: In Iloilo City, one of the country's bustling economic powerhouse metropolises in the Philippines is taking the center stage as an attractive location for investments and infrastructure developments. Megaworld, the country's leading real estate giant established the 72-hectare Iloilo Business Park in Mandurriao District to showcase a complete lifestyle and investment township. This is where upscale residential condominium towers with unique themes can be seen rising rapidly and units are being sold in its pre-selling stage. The residential towers that will highlight high-end lifestyle and amenities are One Madison Place, Lafayette Park Square, The Palladium and Saint Honore. The commercial district of the township is pre-selling commercial lots which is going to be a part of the 9.2-hectare Boutique Hotel and Commercial District. BPO buildings in the township offered more operation sites and offices for BPO companies. The commercial areas of the township is the Festive Walk Parade and Mall, where upscale dining bistros, retails shops, souvenir stores, boutiques, cafes and other exciting destinations will soon attract more visitors and tourists.
Visit Iloilo Business Park to answer your lifestyle vision and investment plans. Call (033) 330-3464 or check us online at www.iloilobusinesspark.ph.
