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 Taguig Condo With Cool Storage Features And Vintage Accents

This 80sqm unit has everything that its owners need: light and airy spaces, an interesting mix of furniture, and nifty storage tricks

8 Celebrities Who Are Also Amazing Artists

From John Lloyd Cruz to Ian Veneracion, these famous faces put a new spin to being creative

Katrina Halili’s House in El Nido, Palawan

Found inside her own farm, the tranquil sanctuary features spacious rooms and an incomparable view of the lush outdoors

10 Designer-Approved Coffee Tables

Sisters Cynthia and Ivy Almario, first ladies of Philippine interior design, discuss their favorite coffee tables.

These High-End Villages Have Tripled Average Land Prices in the Last 6 Years

Do you live in one?

The Ultimate Quiapo Bargain Shopping Guide

Ready to go on a Quiapo adventure? From Ilalim ng Tulay to Plaza Miranda, you are bound to spot a budget home find. Read on for our list of stores and buyers tips.

The New Holiday Balikbayan Guest Solution: Airbnbs

They will surely feel right at home!

Your P2,000 Budget Can Afford A Mini Makeover

Turn sad corners and uninspired nooks into spaces that wow

18 No-Fail Building Materials For Your Home

These designer-recommended products would make your home last a lifetime, saving you money in the long run

You'll Love These Pieces That Combine Style and Function

An elegant blend of design and style, these picks make a great addition to any room.

All The Breathtaking Design Details At The ASEAN Summit

In photos: Pinoy design and Asian elements took center stage, from the arrival area to the closing ceremonies

This Is How To Choose The Best Products For Your Home

Top tip: seek professional advice!
Load More Stories

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