Should Expats Consider Pre-selling Condos?

You probably saw many news articles and heard many good things about the Philippines, a Southeast Asian country made up of more than 7,000 islands. Many American expatriates who decided to stay in the Philippines talk of the country’s welcoming people and comfortable living. Commodity prices are lower, there are many places that you can travel to, and doing business is a breeze.

Although located in the city just several miles away from the capital Manila, Pasig City and Ortigas Center are surprisingly good places where you can live. There are plenty of transportation hubs, near-infinite restaurant choices, and expatriate-friendly communities. As you go on, you might think of permanently movingto Ortigas, but you might get confused in the process. Once you decide to stay in the country, a real estate agent will offer you a pre-selling condoor a ready-for-occupancy (RFO) condo. What should you choose if you decide to move to Ortigas? A pre-selling condo or an RFO one?

Photo by Douglas Bagg on Unsplash

The RFO Condo

RFO condominiums are finished properties that are meant to be either rented out or directly sold to a possible client. Most developers publish condominium rates at a higher cost once these projects are finished. Several of them are also keen to offer RFO rates to American expats due to several reasons. Apart from higher profit and commissions, agents are expected to provide you with RFO condominiums because you will immediately see your money’s worth. Less headache for the agent, and less trouble, disappointment, and regret for you. You’ll quickly see and experience the amenities that come with the property.

Lastly, the payment terms for RFO condominiums are shorter, albeit, higher as compared to pre-selling options.

Pre-selling Condos

Meanwhile, if you want to take your time, you can opt to get a pre-selling condo. In Ortigas alone, hundreds of properties are on pre-selling status. However, you should know that these properties are either already under construction or in the early stages of planning.

In terms of payment, pre-selling condos are more flexible, which means you can pay at longer payment terms and lower amortizations. Published rates are also way more economical than finished RFO projects. Investing in pre-selling condo projects also have risks, but you can minimize these risks by finding a reputable developer. You should find well-known developers in the country, trusted by expats and locals alike.

Additional Condo Options

Apart from pre-selling and RFO condos, Ortigas also hosts numerous properties owned by the government. These properties are also recommended because of lower published rates than RFO properties and slightly higher than pre-selling condos.

Although waiting for the launching of more pre-selling condos is considered a better option, you might want to consider getting one as early as possiblebecause of rising residential rates for condominiums. Several reports already indicate that many developers take advantage of pre-selling schemes. A specific condo in the Makati Central Business District area is estimated to be around 10,400 U.S. dollars per square meter. It won’t be long that such a steep price will reach Ortigas Center.

 

Zara

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