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Home News Articles Pros of Investing in Pre-selling Property

Pros of Investing in Pre-selling Property

May 7, 2021

Pros of Investing in Pre-selling Property

Pros of Investing in Pre-selling Properties

Pre-selling properties are increasing in popularity in the Philippines because of their affordability. Many who are looking to invest in the lucrative real estate market in the Philippines are opting for pre-selling properties rather than ready-for-occupancy units.

What is a pre-selling house?

Pre-selling properties, be it condominium units, townhouses, or a house and lot, are properties that are sold to the market by the developer prior to its completion. This could either mean that the property is in some stage of construction or has not yet even been built. Interested homeowners are made to choose from a selection of model units or even brochures with sample layouts. Almost all developments go through a pre-selling stage.

Pros of pre-selling investment

Pros

  1. Below market value - Developers get to sell pre-selling properties at a low rate because of the absence of a physical unit. Pre-selling units are up to 50% cheaper than ready-for-occupancy units with down payment options as low as 0%. Apart from the low prices and discounts, developers typically also offer flexible payment schemes such as in-house financing and monthly installment plans.
  2. Flexibility - Developers will allow buyers who purchase at the pre-selling phase to have their choice of the unit while those purchasing ready-for-occupancy (RFO) units are left with the units that were not sold during the pre-selling phase. This means buyers get to choose the best location for their homes according to their needs and specifications. This could mean a home closer to a certain amenity such as the multi-purpose hall, one with the best view, or one with the corner lot.
  3. Ideal investment opportunity - Pre-selling homes are an ideal investment opportunity because it gives you the biggest room for profit. Because you buy the property below market value, you get to enjoy the appreciation in property and land value the house and lot will surely get once the project has been completed. We aren’t just talking about the market value of the community or the development. We’re also talking about the market value of the land itself, particularly if you’ve chosen to invest in an up-and-coming area such as Cavite.
  4. Land appreciation – Unlike many other investment vehicles, like bonds and stocks, the land is an investment that will continue to appreciate over time. Buying a house and lot at a pre-selling price means you get to lock in the land value at a lower rate and enjoy the benefits of it once it has fully appreciated. By this time, you can either use the house for yourself, have it rented out, or sell it. At the time of completion, the land and house value have already surely appreciated, so you will not only have gotten a return on your investment, but you will also have gotten a significant profit from it.

For those looking for an affordable pre-selling house for sale in Cavite, talk to us at Micara Estates – Tanza today!