6 Things to Consider Before Buying a Pre-Selling Property
So, you have now decided to invest in a property. You look for a home that is affordable, accessible, and accommodating; a place where your dreams and reality converge. Nowadays, people prefer pre-selling condo units because of cheaper prices in flexible payment schemes, location options, and better return on investments. However, we encourage you to observe caution before you jump into the bandwagon.
Here are 6 things to consider before buying a pre-selling property:
Prepare Your Wallet
Pre-selling properties are sold before completion and there is no physical condo unit yet. Hence, the introductory price is cheap. Units can be about 30% cheaper. Developers use this practice to finance the construction using the money of the investors. However, you should know your capacity to pay before signing the contract. See if your income would suffice. Do the math before making any commitment.
Choose the Trusted
Buy from reputable developers. Consider their number of completed projects, their history of delivering quality properties on time, and their years in operation. See the trend they have set in the industry. Only do business with them if they do business ethically. Verify if they are licensed to sell pre-selling properties and if the project is registered on Housing and Land Use Regulatory Board, a government agency that manages the real estate industry in the Philippines.
Get Help from the Pros
Consult a good lawyer for guidance. Before you sign any contract, familiarize yourself with the legal jargon. Doing so will help you further understand what you are getting into. Hire a licensed and registered broker to assist you in the purchasing process.
Do Not Be in Haste
A delay in the completion and turnover of a property is inevitable as developers might not be able to deliver on time due to unforeseen circumstances. Delay clauses allowing them to be late for a year or more are included in the pre-sale contracts. Make sure you are not in a hurry to move in.
Do not hesitate to ask questions you deem necessary. Know all the details of the project and observe the neighborhood it belongs to if it would fit your lifestyle. Consider accessibility and convenience.
Long Term Goals
Tomorrow is a brand new day and the truth is that plans and perspectives change. It is best to be always on track. Keep up with your goals. Sure a lot could happen; no one knows what lies ahead. If you think investing in a pre-selling property is just one of your usual whims, then stop. Be convinced that you actually need (yes, not want) it. You have truckloads of money at your disposal, you say? Oh, well, just make sure you won’t have regrets in the future.
Prudence results to peace of mind. Keep your desires in check and apply diligence before investing in a pre-selling property.
What are you most cautious about when buying a pre-selling property? Share it with us in the comments section.