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Pre selling Condo: Is it Worth the Investment?

When you drive around the streets, read newspapers, or search the internet, you can see various advertisement on condominiums for sale. These advertising materials often seem irresistible because of their low down payment, stretched payment terms, and promising location that is in close proximity to almost everything you need. Indicated in these ads is the project status which is either ready for occupancy or preselling condo.

The meaning of RFO is Ready For Occupancy. This refers to a condo unit where you can move in anytime as long as you have completed the paperwork and settled the required payment. Preselling condo, on the other hand, refers to a condo unit being sold at the very early stage of development, before its completion, during construction of the property or while it is still in the planning stage. In other words, preselling condo means that the property is not yet built or it is still under construction when the time the condo unit is purchased.

Preselling condos are said to allow property developers to finance the construction of the project and enables potential investors to purchase the property at affordable prices.

You might be asking yourself right now about the potential risks and the advantages of investing in a preselling condo. While it may seem unconventional to buy a condo property that does not exist yet, preselling condos offer investors with various benefits.

In this article, we have put together a list of advantages and potential risks of buying a condo property while it is still in its preselling stage.

The Advantages

1. Cheaper price and flexible payment terms

A lot of first-time investors opt for a preselling condo because of its lower price which can be more or less than 30% cheaper than a ready for occupancy unit. Aside from this, there are also developers who give additional discount or offer flexible and stretched payment terms where the down payment can be as low as 10% payable for 3 years, with lump sum to be paid either by bank or the developer’s in-house financing.

If you are a real estate investor, preselling condos are a great investment because their market value will surely increase by the time they are completed. Some people buy preselling condos and resell them as soon as finished, for a higher price.

2. Freedom to choose your desired unit

You can definitely choose your preferred unit and floor plan with preselling condos. You can go for the better views, easier access to amenities, and lesser foot traffic.

Depending on the pre-sale contract, you can also inspect the unit at every end of the construction phase and inform the developer of any defects or issues that need to be addressed.

3. New features and amenities

Preselling condos offer the newest and the latest design, features and amenities that the clients can enjoy should they want to relax and unwind outside their purchased condo unit. To keep up with the modern and digital times, some condo developers offer smart condos as added security feature.

4.       Excellent investment option

Investing in a preselling condo is purchasing a property at today’s price for tomorrow’s equity. Once the condo is completely finished and ready to be occupied, you can earn a profit by selling the condo unit at the current market price.

Once the condo property is completed, you can also rent it out and through this, you can be able to earn a steady flow of income. In this case, it makes sense to buy a preselling condo so you can carefully pick out the unit that will be loved by your future tenants.

The Risks

1. Changes with no prior notice

A preselling condo contract will usually specify that the property will be constructed according to the finishes and materials described. However, the property develop still has the right to alter these in certain circumstances without compromising the quality.

With this, you should be aware that these things can happen which you may not be notified.

2. Delay in Property turnover

Preselling condo contracts usually have delay clauses for delayed turnovers giving the developers extra time to deliver the project.

3. Failure of completion

The bigger risk that you can have in investing in a preselling condo is the failure of the developer to complete the project due to bankruptcy. In this case, you may not be able to get a refund for your deposit.

4. Falling Property Market

Preselling condos can be an excellent investment because of the promise of property value appreciation. But there is also a very low risk that it will not.

That is why it is important for you to study the existing market conditions and be knowledgeable of the rental yields within the area.


Buying and investing in a preselling condo needs an informed decision. In order to avoid the trouble of having a failed investment, you should always remember to buy and invest in credible and reputable condo developers who have proven track record in delivering quality condominium properties on time. Read any contract carefully and consult a lawyer to guide you in understanding the clauses before you even sign it. Check on your budget and make sure that you can afford what you are planning to buy and invest on.

If you are a first-time condo investor, you must be very vigilant and wise in choosing the right property for you. Carefully check any offer and weigh the benefits over risks. In case you are still not sure of investing in preselling properties, but also do not want to miss out on any of its perks, choose a reputable real estate developer so you would not have to worry on the property you would spend your hard-earned money on.

If you are looking to buy a condominium unit to invest in, Vista Residences, the condominium development arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. offers ready for occupancy and preselling condominium projects that are strategically within inner city areas, in close proximity to developed business districts and prestigious schools.

For more information on Vista Residences’ condominium projects, email us at [email protected] or follow @VistaResidencesOfficial on Facebook, or contact the Marketing office at 0999 886 4262 / 0917 582 5167.