When searching for properties online, we often encounter the terms RFO and Pre-selling. For a new property seeker, this may be confusing. Along with other complicated-sounding terminologies like PDC, amortizations, lumpsum, etc., these two are the most common and first terms you’ll encounter in online listings. Here’s a simple comparison to help you understand better.
What are RFO units?
RFO or ready-for-occupancy units are what the name itself suggests. These are ready-made condominium units that are available for occupancy upon completion of a process. This often includes paying a reservation fee, down payment, and additional requirements that your developer may require from you. Once all of these are settled, you’ll immediately be able to move in.
What are Pre-selling units?
Pre-selling units, on the other hand, are sold before their completion. Therefore, developers may start selling these units as early as the construction phase or during the planning stages.
What is the difference between RFO and Pre-selling?
The main difference between the two is the time they allow for a homeowner to occupy the unit. As stated previously, RFO units are for those looking to move in immediately, while Pre-selling units are for people who are not in a hurry and would like to purchase one for future use or investment purposes.
Benefits of investing in a pre-selling home
There are pros and cons of investing in both, but we’ll discuss how beneficial it is for you to purchase a pre-selling condo unit in this article.
1. Property value appreciation and potential income source
One of the significant reasons people invest in a pre-selling unit is because of its value’s potential to increase over time. When this happens, investors can sell their units at a higher amount.
By the time the development is already up for turnover, your unit’s value has increased by then.
If you’re planning to purchase a pre-selling unit as an investment, you can use it as a potential source of income by renting it out or list it for Airbnb purposes.
Meanwhile, property value appreciation is affected by several factors, including its neighboring infrastructure projects and the area’s thriving businesses.
The more accessible the development is to the metro’s key cities, establishments, and transit options, the higher its value gets. Take the Central Business Districts of BGC, Ortigas, and Makati as examples. As a result, properties around these major CBDs are on a pricier side than those located on the other side of the city.
2. Pre-selling units are more affordable than RFO units
Because these units are sold during their early stages, developers offer them at a much lower price compared to RFO units. During the construction phase, developers like Empire East offer promos where aspiring investors can avail of a unit at a discounted price.
Empire East’s extended Home Opportunity Alert Promo gives homebuyers a chance to purchase a unit at its pre-selling development like Empire East Highland City in Felix Avenue at Pasig-Cainta for as low as P9,000 monthly!
Under this promo, you can also reserve a unit at 5% off on Empire East’s other pre-selling developments like The Paddington Place in Mandaluyong and Mango Tree Residences in San Juan. You’ll get never get these deals often in RFO units, so investing in a pre-selling development is a bang for your bucks.
3. Better unit options
When a property is sold during its pre-selling stage, you have better options for the unit’s location, size, design, etc. Since it’s still in its early construction stage, there are more choices when it comes to unit layouts that you can choose from.
If you buy an RFO unit, on the other hand, you may be choosing from limited inventory based on what is still available.
Homebuyers who reserve a pre-selling unit usually go after the ones with an amazing view, ideal size, and the perfect layout that suits their needs and preferences. This is also one way of ensuring that the unit will be desirable for future renters if they decide to rent it out.
While both have their perks, investing in pre-selling units gives you more options and investment opportunities in the future. If you’re looking for one, feel free to browse through Empire East’s social media accounts and inquire about the unit of your choice! Take this as a sign to reserve a unit at a discounted price until May 31, 2022 only! Send a message to inquiry@empire-east.com or call 8810-3333 to know more.
Empire East Highland City
The Paddington Place
Mango Tree Residences
Kasara Urban Resort Residences
Covent Garden
The Rochester
Pioneer Woodlands
Little Baguio Terraces
San Lorenzo Place
