Tips and Guides

Property of the Week: Pre-Selling VS RFO

Licensed Broker Marc Ilagan answers the top three questions when buying a property

Shares

What is the difference between buying units at pre-selling stage and those that are ready for occupancy (RFO)? Learn the answers and other helpful hints before you buy a property.

Featured photos: Nostalji Enclave by Elanvital and Capital Commons.

Read the original article ("Whatever Your Style") in the April 2014 issue of Real Living Magazine. Download your digital copy of Real Living on the Real Living App now! Log on to summitnewsstand.com.ph/real-living for more details.

Take note of these handy hints:

What is the difference between buying units at pre-selling stage and those that are ready for occupancy (RFO)? 

 “The basic difference of pre-selling and Ready-for-Occupancy (RFO) properties are in their current availability to be used for their intended purpose. Pre-selling properties are those that are currently under construction.

These are offered with a payment term that is usually as long as the duration of the construction period of the property. Payments are mostly on installment basis. Ready-for-occupancy properties are those that have already been completely constructed and can immediately be used for their intended purpose upon purchase.” 

What are the pros and cons of getting pre-sold and RFO units?

“There are cost implications because of the difference in availability. Pre-selling properties are generally lower priced and are easier to purchase because of the payment terms offered. The downside is that these properties cannot be used right away, and the turned over units may differ from the original look presented to the buyer. Meanwhile, RFO properties are already complete. This means that what you see is what you get. Because the buyer can use it right away, you can expect that prices are higher.”

How do I earn from buying my pre-sold or RFO unit?

“A purchaser of a property can be an ‘end-user’ or an ‘investor.’ An end-user of a property uses it for his or her own use, while an investor purchases a property without the intention of using it. An investor can either rent it out or sell it for a profit. By renting out a property, the owner gets a steady stream of income as long as there’s a tenant.”

RELATED ARTICLES:

Property of the Week: Affordable Developments

RL Tips: 6 Important Condo Questions to Ask

4 Common Condo Unit Types

For more tips and guides, click here.

Shares

Latest Stories

A Tiny Studio Unit Becomes A Hotel-Style Home

In another makeover marvel by Elle Uy, the decorator transforms a dark studio unit into a chic and airy space

Get the Look of Iza Calzado’s Bedroom

Give your sleeping space an easy, dainty makeover with the right pieces

5 Amazing Closet Cleaning Tips You Can Try

Achieve your dream wardrobe with these handy tricks

How To Vacuum Your Home Properly

Here’s how to avoid all the usual vacuuming mistakes. Plus, learn about a revolutionary new material that will help you bust all that dirt at home.

A Cozy and Modern Family Home in Quezon City

Works of art, beautiful fabrics, and a mix of old and new pieces bring this townhouse to life

5 Things To Never Clean With Baking Soda

This finely milled powder has its downsides, too

There's An Affordable Way To Keep Your Home Smelling Good 24/7

Say no to artificial fragrances with this three-step hack

A KonMari Reality Show Is Coming To Netflix

Will de-cluttering diva Marie Kondo's new show spark joy?

You Only Need P5,000 To Work On These Home Improvement Projects

The best part? These can increase the value of your space, too.

What's Inside The Vatican Walls?

Aside from having one of the largest collections of art in the world, the Vatican holds many other treasures

Meet The Architect Behind This Industrial-Pinoy Home

Inspired by the Bahay Kubo, this architect worked with industrial details and affordable building materials to create an inviting space

Is It Possible to Paint Over Tiles?

No one likes the sight of lackluster tiles. Know what to do with these tips from an interior designer.
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!