Condominiums are such in demand developments, especially in the metro. One thing that sticks out about condominiums are that they are sold even before they are built. This is known as the pre-selling stage.
Learn about pre-selling condominiums through this article and understand why it is good for you to invest in pre-selling condos nowadays.
What are pre-selling properties?
A pre-selling property is likely something you’ve heard of if you’re interested in investing in condominiums. Purchasing a condo unit during the pre-selling phase is something to consider about if you want to save a lot of money and get excellent profits in the future.
Pre-selling condominiums and real estate are two of the many opportunities that families and individuals can choose to, invest in. Although, some of these opportunities offer a higher financial risk than others because of the nature of their business. Pre-selling condominiums and real estate as an investment opportunity may appeal to people because of the income potential.
Pre-selling is the practice of selling condos that have yet to be built or are still in the early planning stages. It is done to guarantee buyers a spot in a building before it opens for residents. The condo’s use as well as its physical appearance, design, and layout may be a mystery to customers who purchase pre-selling condos.
What are the advantages of buying pre-selling properties and condos?
Low introductory price
The Philippines is one of the few countries where it is cheaper to buy preselling properties compared to buying completed properties. It might appear like a risky approach to some people, but the substantial savings that come with a preselling purchase could prove worthwhile in the future.
When it comes to pre-selling condominiums, since you’re buying a “plan” and not yet a built development, the price is a lot cheaper when compared to those already built developments.
Convenient payment schemes
Pre-selling condo units typically have more lenient payment conditions, making it much simpler for you to satisfy your obligations in monthly payments. Let’s say the project will be completed in three years and the nice condo unit you’re interested in costs 1.8 million pesos. You will need to pay 540,000 pesos if the down payment is set at 30% of the total.
In some cases, developers also offer stretched down payment terms which will make your monthly amortization much more affordable.
Good option of unit layouts
The layout of the units is a very important factor in any condo development. Whichever you need – studio type, one bedroom, two bedroom, etc., is only available with a number of units in a condominium development. Therefore if you buy your unit quite late, you might not end up with the unit layout or floor you want.
Buying a pre-selling condo will give you the advantage of being able to choose a unit that best suits you.
If you’re lucky to buy a condo unit while the developer has yet to start the land developments, it is guaranteed that you will be yielding high returns.
The thing about pre-selling condominium units is that their prices increase significantly as time goes by and construction progresses. This is due to the rising demand for the condominium and the increase in the company’s sales. It is possible for a condominium unit’s price to double its value after the pre-selling, depending on the developer.
High resale value
The building is not yet complete, but you can buy now and make monthly payments until the building is ready for occupancy. This gives you the opportunity to live in one of the first units in a new building that will be finished by a particular date.
You can also sell your units later on if you prefer to move or if you do not want to continue paying for them. In this case, you will have earned a profit from your investment because the price of such units increases as time goes by.
Should you invest in a pre-selling condominium?
If you are looking for a way to make money, investing in a preselling condo is one of the best ways to do it. When you invest in a preselling condo, you are buying into an idea and a plan. The building is being built with your money, and as long as the plan stays on track, your investment will bring you high returns.
Investing in a preselling condo has many benefits as mentioned above. Moreover, getting your hands into the market early with some of the lowest prices possible means that if the building experiences delays or problems with construction, you will not be affected as much because your investment was made so early on.
Another benefit of investing in a preselling condo is that it allows you to pick out what exactly you want in your new home before it even starts being built. This means that when building begins, all details have already been decided upon by both parties—you and the developer—making for an easier transition into your new home once it’s finished being built!
Pre-cautions in buying a pre-selling unit
Despite its wonderful financial advantages, pre-selling properties still have their risks and disadvantages. If you are an inexperienced investor, you may find it difficult to make the decision to purchase a preselling condo. You may also struggle to determine whether or not the investment is worth it for you.
In any type of investment, knowledge is crucial. Make sure to do your due diligence before deciding to choose an investment instrument. When it comes to properties, it is important you partner with a reputable developer who already has a good track record of condominiums already built and maintained to avoid any setbacks in the future.
The most important thing is that you choose a developer who values its customers and respects their time. If you’re looking at preselling condos, be sure not to rush into anything too quickly before doing your research.
When choosing a preselling condo, you should consider not only location but also who’s behind it. A good developer can make all the difference between success and failure for your project!