The Philippines is enjoying a great surge in the real estate market, and it doesn't look like it's going to be coming down anytime soon. And though far more ideal conditions exist, industry experts agree that real estate in the Philippines is nowhere near a bubble, a condition wherein there is a massive imbalance between levels of supply and demand. A bubble is a valid concern for anyone looking into buying a condominium unit. After all, you'd want to make sure that your real estate investment in the Philippines does pan out the way you want it to. Even if a bubble did exist though, you shouldn't have anything to worry about if you're interested in buying a unit for your use because you won't be unloading the property in the near future and capital growth is but a secondary benefit to you.
Condo living is attractive because of the sheer convenience it offers. For starters, a condominium for sale is normally situated in a central location, so it offers easy access to shops, banks, and other establishments regularly frequented by people. An ideal unit is also close to workplaces, so it takes out long commutes out of the equation. Though living in condos will have you contend with smaller living spaces, the smaller size is also a benefit because this means you have to buy less furniture and you have less cleaning up to do. And given that a number of condominiums for sale offer options to fit a myriad of budgets, many can't help but say "It may be tiny but it's mine." If you're dreaming to say the same and have time to spare, you should consider getting a pre-selling condo.
Pre-selling condos are units sold before the project is completed, while it is under construction, or during the planning stages. To keep things simple, remember that as long as the property is still not finished, what you're looking at is a pre-selling unit. To help you determine whether or not taking advantage of pre-selling condos would be a good fit for you, it is important that you understand as much as you can about pre-selling. Buying a condominium unit is not something so simple after all. It's definitely not cheap, so you're going to want to make sure that you're putting your money in the right place.
The Perks: Reasons that Banish Reservations
If you're one of those who see the future as bright, then you really won't see anything wrong with pre-selling condos. Get involved with a trusted developer and you've got the safety net you'll need to ease any worries you might have.
You pay the lowest price.
Without a physical condo unit just yet, you'll be offered to pay a low price to attract you into making an investment. Pay the down payment in full and you'll even get a discount. Prices will fluctuate as the years pass, but you won't have to worry about that because all of those are just misconceptions about condo living, and what you'll be paying is what has been agreed upon.
You pay the easy way.
Pre-selling condos usually offer more generous payment terms, so it becomes very easy for you to meet your monthly requirements. Say, the good condo unit you're interested in is worth 1.8 million pesos, and the project is set to be finished in three years. With the down payment set for 30% of the amount, you're looking at paying 540,000 pesos. Spread that across the 36 months or three years it would take to finish the project, then you'll only be paying 15,000 a month.
You get to call dibs on the best unit locations.
There are more than enough units to go around in the first six to nine months after a project launches. Get into a pre-selling deal within this period and you'll have your pick of the best unit locations available. Many people want to buy condos but the lack of suitable units usually puts them off, prompting them to turn to leasing a condo instead.
You get faster and better return on your investment.
What you're paying for as down payment will remain the same until the agreed upon date. However, factor in inflation and your 15,000 pesos will not have the same value as 15,000 pesos three years from now. Add the fact that property values will rise so your unit may be valued at 40% more than its original price three years from now. Essentially, this means you'll get more out of your money when you take advantage of pre-selling in a residential condominium.
You can forget about it for now.
Because the property won't be completed anytime soon, you can forget about the worries of moving into your unit. You just have to be mindful of your monthly payments and that's it. You can get on with your days as you normally would and yet your plan to move into a condominium is being carried out, reaping what you sowed in a few years.
The Perils: Woes that Get in the Way
At the heart of the perils that plague pre-selling condos is the uncertainty they bring. Sure, you have a bit more security to lean on when you're dealing with a trusted developer, but you have to admit that you just don't know what's going to happen a few years from now.
You're not assured it will be completed.
Between today and the day the condo you're interested in will be ready for occupancy, what do you think will happen? You have so many things going on in your life, so you can imagine how much more complex the days of a developer could be. Sometimes things just don't go as planned and that can result in a condominium project not realizing fruition.
You don't know when the project will be finished.
Given that you're working with a trusted developer, you have fewer risks to deal with because they have worked out the kinks of building a condominium. And the more experienced a developer is, the more security you can enjoy. At this point, you don't have to worry if the project will pull through, because it will. You're just not sure when that will happen.
You're not guaranteed it will turn out the way it was presented.
Before you take part in pre-selling condos as real estate investment, you'll be given a preview of what the project would look like once it is finished. It's going to look amazing, so you're sold. You can just picture yourself in it, relaxing by the pool and making the most out of living in such a space. You're going to dutifully pay those monthly payments and count down to the day your unit is turned over to you. Fast forward three years, the project is done. But is it everything you thought it would be?
Your plans can change.
You're not sure how your day will turn out tomorrow, much less be sure that you'll still be on track with your plans in the next few years. A lot could happen and sometimes, you have to make some adjustments to your grand plan. Plans change and you might find that yours doesn't involve condo house plans at all. You may be sure about living in a condo right now but future you might not feel the same way.
Better options may come out.
Unless you have truckloads of money at your disposal, it's likely that you'll only be able to afford just one condominium unit at any given time. If you commit to getting a unit via pre-selling, you're effectively denying yourself the right to get another unit should a new project come out because you're already tied to one.
To Pre-sell or Not: That is the Question
At this point, you're probably sold on the idea of living in a condo. There's no need to convince you with any sort of condo buying guide. Your problem has to do more with whether you should take advantage of pre-selling or not. What you have to keep in mind is that anything you do carries risks. Even if the perks of pre-selling aren't absolute, but they are the truth. You will be paying low rates with great payment terms and you're bound to get more value for your money in the long run. If the uncertainty of pre-selling is eating at you, the only way you can negate that is to simply work with a trusted developer. Let their experience work for you. Let their reputation put your worries to rest. Let their expertise build you that home you've always wanted. Pre-selling is a ticket to the future and your path to being a millionaire in Philippines’ real estate industry. Your future. Isn't your future worth the gamble?