When looking for a new home, it's common for a potential buyer to go to a certain spot to check out and learn more about a property they are interested in. But as they keep looking, they are more likely to find different kinds of offers for the available homes, such as "ready to move in," "pre-selling," and/or "a lot only." Most people buy a ready-to-live-in property because they want to move in as soon as possible. But what makes a pre-selling property in the Philippines a good investment? Pre-selling Properties in the Philippines It's no secret that pre-selling homes in the Philippines is becoming increasingly popular, and it's also no secret that the below-market pricing of these properties is what draws a large number of investors. Pre-selling units are those that have already been purchased on the market before they have ever been made available to the general public. That could indicate that the property in question does not yet exist or that it is still in the process of being built. Either a showroom full of model units or brochures with floor plans will be made available to you at this time. Off-the-plan properties are another word that can be used to refer to pre-selling in the context of the real estate market. The pre-selling stage is typical for both condominiums and single-family homes. Benefits of Investing in Pre-Selling Properties Low prices and big discounts When compared to ready-for-occupancy units, the prices of pre-selling properties like condominiums, for example, come out to be significantly lower. Because of the lower starting price, the units are 30 to 50 percent more affordable than the finished one. In addition, developers will usually provide more flexible payment options for pre-selling units as well as a reduction on down payments ranging from 5 to 10 percent for their pre-selling projects. In addition to that, there will be special offers and discounts available for clients who make a complete payment transaction. Read Also: Pre-Selling Vs. Ready For Occupancy: Which house and lot Suits You Better? A Wise Investment One of the characteristics of real estate, and particularly pre-sells properties, is that the value of the property tends to rise over the course of time. Pre-selling condominiums or houses and lots have acquired such a significant amount of value since the development's completion that the buyer can benefit from selling it on the secondary market — particularly if the property is located in a desirable area and was developed by a trustworthy developer. It can be rented once construction is complete If the prospective buyer is interested in buying a property but has no plans to live in it, they have the option of having the house or unit rented out after it is completed and ready for occupancy. As a result of this, the property that was formerly in the process of pre-selling is now a stable source of income. If the buyer's intention is to have the property totally rented out, then the purchase of a pre-selling property is still the best choice. This is because the buyer will have the opportunity to select the type of unit or house and lot that their prospective tenants will find desirable and fulfilling. Selecting from numerous alternatives Once a buyer has decided to go through with the purchase of a property from a particular development, they will be able to select their ideal unit or property during the pre-selling stages of the development. Buyers have unlimited freedom of choice on the floor level on which they would want to live, the units that face in the most favorable direction, the house type that is up to their standards, and the location at which they should put up their newly purchased home. Aside from being able to enjoy the high-quality amenities that are provided, having the opportunity to choose also includes being able to select an area or property located near the swimming pool or playgrounds if there are any young children in the family. Has plenty of time to save up enough money Prospective buyers of homes can get the time they need to get their finances in order by investing in pre-selling properties. After you have put down an initial deposit to reserve the property you want, you can start putting money away for the future payments while you are waiting for the construction to be finished.
Still, buying homes that have already been sold is a great way for people who are new to the real estate market to get started. You would typically only be required to make a deposit of ten percent of the total price, and the remaining amount would be paid in installments once the construction was finished, which might take anywhere from a year to more than two years. Although, purchasing a pre-selling property in the Philippines is a smart investment; however, there are several factors to consider before investing in pre-selling properties. What You Need to Know Before Buying a Presale Property Learn as much as you can about the developer's background. You came across a great advertisement online, registered on the project's website, and now you have a strong sense that you have successfully found a new location that you can call your own. Find out as much as you can about the development's builders before you begin to dream about having dinner with your family in the dining room of your new home.
Consider the following questions: Does the developer have a history and a good reputation? How long have they been in operation as a business, to be exact? Have they already constructed homes of this type (detached, condos, or townhomes), and are they experienced in doing so? Do they have a solid reputation when it comes to the quality and timeliness of their deliveries? You may also look for reviews written by customers who have done business with the company in the past, and you could even go to some of the structures they've built or construction sites they've worked on to get an idea of how the company operates. Consider the entire development and environment When evaluating this new property, take into consideration not just the home itself but also everything else that the structure and the surrounding area have to offer. Find out more about its amenities (if they exist) and how or if they will fit your lifestyle. After all, there is no point in paying fees to maintain a pool if swimming is not something you enjoy doing. You may learn everything there is to know about the location of your new neighborhood by driving around and walking around it. Find out how easy it is to go to the general services, schools, public transportation, and highways, as well as any other necessities that you will require now or in the future. Find the Ideal Real Estate Agent It is essential to choose a real estate agent that has a great deal of expertise working with presale transactions in the neighborhood that you are interested in investing in a pre- selling properties. Just as much effort as you put into finding the appropriate development built by the right developer, you should put into finding the ideal real estate agent. They should be well-informed and prepared to share their perspectives on the advantages and disadvantages of various local developments and builders. You should hire a good presales Realtor because they will be able to provide you with industry-specific knowledge and guidance that will remove any uncertainties and give you the assurance you need to purchase the property of your dreams. Inquire about all you need to know in advance. Don't be in a rush when purchasing; instead, take your time and relax. Make sure you ask the right questions and come prepared with sufficient details and information regarding the pre sell property. Before you buy a property, it is highly recommended that you check out the neighborhood first. Also Read: Things to Consider Before Buying Pre Selling House and Lot The Cost and Risks of Pre-sell Properties The Cost Although they can cost more than the average home, presales are often less expensive than fully customized homes. While having the option to customize a presale home is undoubtedly beneficial, it's important to understand how late-process upgrade and change orders can impact labor costs and schedule delays. The following are a few examples to think about while discussing presales costs.
· You make the decision to go from quartz to marble for your kitchen countertops. You will be charged the difference after the interior designer figures out how much more expensive marble is than quartz.
· If you choose brushed nickel for your guest bathroom faucets but the pre-planned scheme called for gold or brass, you will be given a credit for the price difference between the two materials.
· You make the decision to have the kitchen painted a slightly different color than the one you had originally chosen. There is no difference in your cost to make that modification because the choice of color won't have an impact on the price of labor or supplies.
The Risk
When it comes to risk, buying a presale home is only risky if you buy from a building you can't trust. So, it's important to start by picking the developer you can trust. Review that builder carefully to protect yourself from problems in the future. Ask an experienced real estate professional who they trust to make a good home, and talk to a previous buyer to find out how they liked the developer.
You can also find out a lot about the developer's reliability by looking at the warranties they offer. If their rules protect you after you get the keys, you're in good shape. Read More: The Pros and Cons of Investing in Affordable House and Lot Pre Selling Property Why should you buy a pre-sale property? Properties that are sold during the pre-selling phase are easier to acquire than those that are not, since the prices are lower and the payment arrangements are more flexible. The purchase price of the property will not be influenced in any way by fluctuations in the costs of commodities like cement and gasoline that occur throughout the construction process. In the case of pre-selling condominium units, down payments may also be spread out over a period of two to three years. Those who are looking to buy a home but do not have enough money saved up for a big down payment might find it helpful to buy a property before it even hits the market. People who are interested in buying pre-sold properties include individuals who are interested in real estate investing, young professionals who are planning their careers, and people who are seeking a place to settle down with their own families. When compared to ready-to-occupy homes, pre-selling properties offer investors the opportunity to generate a return on investment that is both bigger and better than what they could achieve with ready-to-occupancy properties. As a homebuyer or real estate investor, it's smart to always be careful when making deals by constantly checking to make sure everything is going as planned, no lack thereof. They should always be aware that any deal that has a lot of good things about it also has some bad things about it. So, one way to be a smart and careful buyer is to be very careful when working with the home developer. You can do these things by going to the property's developing site every now and then, reading the contract carefully before signing it, or, even better, having a lawyer look over the contract before you sign it. If the buyer is still hesitant about making investments in pre-selling properties but would rather not miss out on the benefits that come with it, he or she can still do so by only buying from reliable real estate developers who have a history of providing excellent and high-quality properties on time. You may want to check out: Bria’s Affordable Pre-selling and RFO House and Lot in the Philippines In conclusion, Buyers of pre-sold property have the opportunity to benefit from lower interest rates in addition to favorable payment terms. Anyone who buys a property before it is finished will probably gain more value for their money in the long run. It is important to keep in mind that the value of real estate tends to increase over time; hence, purchasing a pre-sale property will almost certainly result in a profit. Smart investing maximizes your earnings. BRIA Homes offers excellent projects in key areas. BRIA Homes, a leading Philippine home developer, will deliver affordable house-and-lot packages and condominium apartments to Filipino families! Visit Bria Homes website for more. Written by: Darlene F. Semera
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