Why Preselling Condo Homes Are a Better Investment Than Ready for Occupancy UnitsOctober 12, 2023
In the dynamic world of real estate, choosing the right type of property investment can be a daunting task. One of the most significant dilemmas potential buyers face is whether to invest in preselling condo homes or opt for ready-for-occupancy (RFO) units. Both options have their advantages and disadvantages, but in this comprehensive guide, we will delve deep into why preselling condo homes are often the superior choice for savvy investors.
Preselling vs. Ready for Occupancy Units
Before we explore the various reasons why preselling condo homes trump RFO units, let’s briefly clarify the difference between the two.
What are Preselling Condo Homes?
Preselling condo homes are units within a condominium project that are offered for sale before construction is completed. Buyers purchase these properties based on floor plans, architectural designs, and the developer’s reputation.
What are Ready for Occupancy Units?
Ready for occupancy units, as the name suggests, are fully constructed and can be moved into immediately after purchase. These units are usually showcased as a sample of the finished product.
Now, let’s dive into the core reasons why preselling condo homes are a wiser investment choice.
1. Attractive Pricing
One of the most compelling reasons to consider preselling condo homes is the pricing advantage they offer. Developers often provide early bird discounts and flexible payment terms to incentivize buyers to commit before construction completion. This can result in significant cost savings compared to RFO units, which are typically sold at a premium due to their finished state.
Preselling condos allows buyers to lock in a lower price, making it a more affordable option, especially for first-time homebuyers. Moreover, the appreciation potential for preselling units is considerably higher, as they have more room for value appreciation during the construction period.
2. Customization Opportunities
When you invest in a preselling condo, you have the advantage of customizing certain aspects of your future home. Depending on the developer and the stage of construction, you may have the opportunity to choose finishes, fixtures, and even the layout to some extent. This level of personalization is often unavailable for RFO units.
Customization not only allows you to create a space that suits your preferences but also enhances the overall resale value of the property. It’s a win-win situation for investors looking to maximize their returns.
3. Lower Initial Capital Requirements
Preselling condo homes typically require a lower initial capital investment compared to RFO units. This is because developers often offer extended payment terms, making it easier for buyers to manage their finances. For many, this means a more manageable down payment followed by installments over the construction period.
This lower initial capital requirement opens up the real estate market to a broader range of investors who might not have the means to purchase an RFO unit outright. It also allows investors to allocate their resources more efficiently across multiple properties.
4. Potential for High Returns
Preselling condo homes offers a unique advantage in terms of potential returns on investment (ROI). As the property appreciates in value during construction, investors may see substantial gains even before they take possession. This upward trajectory in property value can significantly boost the overall ROI, making preselling condos a lucrative option for those willing to play the long game.
Moreover, by purchasing early in development, you can often secure units with better views or more desirable locations within the condo complex, further increasing the property’s future resale value.
5. Easier Market Entry
For investors looking to enter the real estate market, preselling condo homes provides a less daunting entry point. The lower financial commitment required at the outset and the potential for long-term profits make it a favorable choice for those with limited real estate experience.
Additionally, the longer construction period allows investors more time to plan their finances and exit strategies. This flexibility can be a game-changer for those who want to build a diversified real estate portfolio gradually.
6. Built-In Investment Horizon
Investing in a preselling condo home comes with a built-in investment horizon. Buyers know exactly when construction is expected to be completed, which allows for better financial planning and goal setting. Whether you plan to rent out the property or use it as your primary residence, having a clear timeline can be incredibly beneficial.
7. Developer Reputation
When purchasing a preselling condo, you have the opportunity to research and choose a developer with a solid reputation. Established developers tend to have a track record of delivering quality projects on time. This mitigates the risk associated with property development and increases your confidence in the investment.
One Crown Suites: A Stellar Preselling Condo Project
Now that we’ve explored the myriad benefits of investing in preselling condo homes, it’s essential to highlight a prime example of such a project. One Crown Suites is a prestigious preselling condominium development that perfectly encapsulates the advantages we’ve discussed.
Location and Accessibility: One Crown Suites is strategically located in the heart of the country’s premier city, with easy access to major thoroughfares, public transportation, and essential amenities. Its prime location ensures strong demand from renters and potential buyers.
Developer Credibility: The project is developed by Megaworld Corporation, a renowned name in the real estate industry with a proven track record of delivering quality properties on schedule. Their commitment to excellence is reflected in every aspect of One Crown Suites.
Customization: One Crown Suites offers buyers the opportunity to customize their units to suit their unique tastes and preferences. From choosing finishes to configuring layouts, the project allows for a tailored living experience. This is possible before the actual construction takes place.
Attractive Pricing: Early bird discounts and flexible payment terms make One Crown Suites an attractive investment proposition. Buyers can secure their dream condo at a competitive price while enjoying extended payment options.
Potential for High Returns: With the city’s real estate market on the rise, investing in One Crown Suites presents an excellent opportunity for high returns. As the project progresses, the value of your investment is poised to appreciate significantly.
Strong Community: One Crown Suites is not just a building; it’s a community. Residents can look forward to a host of amenities, including a rooftop garden, fitness center, and communal spaces that foster a sense of belonging.
In the ongoing debate between preselling condo homes and ready-for-occupancy units, the former emerges as the clear winner for investors seeking long-term gains, customization opportunities, and financial flexibility. The advantages of attractive pricing, customization options, lower initial capital requirements, and the potential for high returns make preselling condos a compelling choice.
One Crown Suites, with its prime location, credible developer, customization options, and attractive pricing, stands as a shining example of the tremendous potential preselling condo projects offer. Whether you’re a seasoned real estate investor or a newcomer to the market, One Crown Suites and similar developments provide an excellent opportunity to secure your financial future.
In conclusion, when it comes to real estate investments, the future is bright for those who choose preselling condo homes. By carefully considering your investment goals and exploring projects like One Crown Suites, you can unlock a world of opportunities in the ever-evolving real estate market.
Call Megaworld Manila today for a free consultation at +63 998 565 0912