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RFO vs. Preselling: What should you choose?

When it comes to buying a property, you’re likely to encounter two types of home offerings: Ready for Occupancy (RFO) and pre-selling. Each has its own set of perks and drawbacks, and the best choice will depend on your specific needs, lifestyle, and purchasing capability. Let’s break down the key differences to help you make a sound decision.  

What is RFO?

RFO, or Ready for Occupancy, refers to properties that are fully constructed and readily available for move-in. This means you can physically inspect the unit, assess its quality, and picture your future living space. 

3 Pros of RFO:

  • Immediate Occupancy: With an RFO condo, you can begin renovations, start interior designing, or move in the next day. It’s ideal for families looking for their next home.
  • Rental Income: For investors, there’s faster ROI when renting out your unit. Rental businesses may see immediate returns within the first year of purchasing an RFO unit.
  • Lower Financial Risks: RFO properties have lesser unexpected costs such as construction and turnover delays because the actual unit is ready for occupancy. You’re more likely to avoid construction delays or changes in market conditions.

3 Cons of RFO:

  • Higher Price: RFO units are typically more expensive than pre-selling units due to the added costs of construction and completion.
  • Limited Units Left: Real estate companies may offer pre-selling units alongside project construction, which means that RFO properties may be older than those who bought units at pre-selling. 
  • Restricted Renovations: An RFO unit may hinder your creativity when it comes to renovating or expanding your living space since most RFO units are sold on an as is where is basis. 

What is Pre-Selling?

Pre-selling involves purchasing a property once the real estate company gets it’s license to sell. You’ll be buying based on architectural blueprints, virtual walkthroughs, and model units. You can gauge the quality of the pre-selling units based on the previous housing or condominium projects of the developer, too.

3 Pros of Pre-Selling:

  • Affordability: Pre-selling condominium projects have lower monthly amortization stretched out in 12 to 36 months, offering various financing options.
  • More unit choices: You have a wider range of unit layouts to choose from, including floor plans, sizes, and views. 
  • Potential for Appreciation: Pre-selling projects in central areas tend to sell out due to high demand and resell for a higher value.

3 Cons of Pre-Selling:

  • Longer Wait Time: You’ll have to wait for the construction to be finished before you can move in. 
  • Uncertainty: Turnover of units may be delayed for multiple reasons such as weather conditions, bank approval, renovation approval, and more.
  • Risk of Developer’s Issues: It’s crucial to choose a reputable developer with a proven track record to minimize risks.

Which is Right for You?

The decision between RFO and preselling ultimately depends on your individual needs and priorities. Consider the following factors:

  • Timeframe: If you need immediate occupancy, RFO is the better choice. If you’re willing to wait, preselling can offer more flexibility and potential savings.
  • Budget: RFO units are typically more expensive, while pre selling units offer more affordable options.
  • Risk Tolerance: If you’re comfortable with some uncertainty and potential delays, preselling can be a good investment. If you prefer certainty and immediate possession, RFO is the way to go.
  • Location: Consider the location of the property and its potential for future appreciation.
  • Developer’s Reputation: Research the developer’s track record and reputation to ensure they deliver on their promises.

By carefully considering these factors, you can make an informed decision that best suits your needs and financial goals.

To make the most of 2024, end it by moving into a new home in Quezon City.

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Commonwealth by Century offers stunning amenities and a quiet atmosphere to suit a growing family or a single worker looking for respite in the fast-paced city. 

For the latest promos and offers, talk to a sales executive today. You can also schedule a site visit for our RFO units at Commonwealth by Century at www.century-properties.com

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