Condo for Sale or House and lot for Sale that are “Ready for occupancy” or RFO’s are projects that already been built and turned over. Once you purchased, you can already move in and live in the property that you have bought. These are usually brand new units that are left overs of the pre-selling phase that have not been sold, but usually more expensive because of the growth in prices in the market.
What are an Advantages of buying RFO (Ready-for-occupancy) condo or house and lot?
Ready to be occupied, no waiting, and you can already see the finished product.
In real estate Business , it is reasonable when buyer or investor want to see the unit first before deciding to purchase a certain property. This is the best safe thing to consider , most especially because there are a few developers that sometimes overpromise and their showroom units do not give the accurate deliverable.
What are the Disadvantages and risks?
Higher cost (compared to pre-sold condos), Less time to save for the payment.
You might think that a property that you can already see and move in is a good choice, however, these units are usually more expensive and you would not get good promotional discounts from developers if you opt to buy from their ready to occupy inventory. These will also offer very short payment terms 3 to 5 moths the most, some developers they require full down payment (from 20-30%) upfront for the purchase.
What are the advantages of buying Pre-selling condos or House and lot?
Most Home buyers & Investors choose pre-selling option for a very reason of its lower introductory price, which can be (more or less) 30% to 40% cheaper than a finished unit. Developers offers very flexible payment schemes where the down payment can be as low as 10% to 20% spread over up to 4yrs.
If you are a real estate investor, pre-selling condos or house and lot are a promising investment since their market value can increase by the time they are finished. Given favorable market conditions, you can resell the finished units for q higher price than you put down when they were in the pre-selling stage.
Better options, new features
Home buyers and investors have better options when buying a condo or house and lot in a pre-selling stage. buyers has great chance to choose preferred unit location and floor plan, not to mention the better views, easier access to amenities, and lesser foot traffic.
What are the disadvantages?
The number one risk with pre-selling Development is that the turnover or finished product may not be what you have in mind. There may be some minimal changes in unit sizes, floor plan, finishing, features, or amenities and provisions.
Another disadvantages will be the delay in completion and turnover of the project. If the developer may not deliver on time. Pre-sale contracts have delay clauses that allow the developer to be late for up to a year or more.
As Property Investment Specialist, we advise that if you are planning for your future investment or wants to purchase your dream homes, you must contact the best Realtor in town. For more investment tips please feel free to send us your email and we love to work you with you.