Filipinos are now presented with many investment options. Real estate is a popular choice but many wonder if pre-selling condos are a good investment. After all, you won’t be able to see the unit for years. It can even be difficult to check up on it while construction is underway.
You have worked hard for your money, so you don’t want to see it go towards something that never gets finished. On the other hand, it’s vital that your savings is working to earn you even more money. All investment is risky, however. If you’re looking for a sure thing, good luck and let us know if you find it.
If you want an investment that offers both value and potential, pre-selling condos may be for you. They are usually significantly cheaper than purchasing completed units and you will enjoy appreciation on it sooner thanks to soaring land prices around Metro Manila. In many cases, it is better to buy now than waiting for a project you like to be finished.
That being said, pre-selling condos do carry greater risk than already completed units. Here are a few of those risks and what you can do to avoid them.
Condo isn’t completed or completed late
The most daunting concern a person has about investing in pre-selling condos is that it won’t be completed. This is the worst-case scenario since it means you will end up spending years in the courts fighting with the developer to get your investment back. Another worry is possible setbacks in construction which can delay rental returns.
How to avoid this: Don’t buy from developers who haven’t demonstrated past success in completing developments. Instead, choose only reputable homebuilders who have large portfolios. For example, Filinvest and Anchor Land are two of the country’s most decorated firms with a track record of completing projects on time.
They also send out regular updates on how the project is progressing, usually with photos and other information. This provides you with peace of mind about investing in a pre-selling condo unit.
Pre-selling condo won’t look the way it does in the pictures
Many people thinking about buying a pre-selling condo utilize sales materials and marketing photos to get an idea of what the condo they are buying will look like. However, these are simply photos and what you see here may not be what you get when the project is finished.
How to avoid this: There is no way of truly knowing how a project will look when it is finished. But there are a couple of things you can do to help inform your decision. The first is to go online and look for photos of condos already completed by the developer. While artist renderings can deceive, seeing the real deal will give you a better idea of the quality the firm delivers.
Secondly, you can always schedule to see a unit for sale at one of the developer’s already finished condos. While the layout may be different, chances are the unit size will be similar. Investigate how it looks and then compare it with marketing brochures on hand that are likely to include graphic renderings. You’ll be able to see how close the developer comes to matching it.
You won’t get the unit you want
While units in pre-selling condos are almost always available on a first-come, first-serve basis, this doesn’t mean you will get the one you want. Some potential buyers, who may not have the info they need to make a decision, feel pressured into purchasing a more expensive unit. This is especially true for pre-selling periods where a limited number of units are available for extremely attractive promo prices are advertised. Once these are gone, the sales team then tries to promote units at more expensive prices.
How to avoid this: If you know the project you’re interested in, you can always check it out on Dot Property Philippines or other property portals. Each condo has its own page where you can see the units currently for sale and what the asking price is. You can then enquire for that unit directly. When the seller contacts you, they will respond with information about that specific unit.
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