Pre-Selling Condos: A Relief for First Time Home Buyers

Renowned for its economic and political versatility, Manila is a popular destination for its historical, business and cultural landmarks.

The real estate development in Manila reflects a lucrative blend of properties that promote ‘ready for occupancy’ (RFO) condos for sale in Manila and also pre-selling condo units.

It makes logistic sense to buy homes not more than half an hour commute from your work areas. This is reflective of Manila’s growing business potential in offering good jobs which further translates into good lifestyle manoeuvres.

Although property prices in the business districts are steeper than the suburbs, the premium attached to condos for sale in Manila offer a profitable re-sale value in later years.

‘Off-The-Plan’ Condominiums

Being a first time buyer in Manila might pose a price challenge. But, the unique opportunity of pre-selling condo units, offered by realtors in Manila can be a breather.

Pre-selling condominiums are home units that are sold either during the construction or the pre-planning phases. Such incomplete condo units for sale are also referred to as ‘off-the-plan’ or ‘pre-constructional’ units.

It is an attractive proposition if you are keen on buying properties a little less than the market price or, are a first-time buyer with little or no choice for real estate investment.

Pre-selling homes are also a boon for those looking at ‘buy- for-rental initiatives’ and can pre-sell potential tenants in advance for appropriate rentals in the future.

It is a challenge to buy and sell such properties as the risks involved are hidden and needs to be well understood.

Pros and Cons of ‘Pre-Constructional’ Condos

The Pros:

• Extended Down Payment Schemes: Realtors are able to offer generous extended down payment intervals for attracting customers in the pre-constructional phase. Such offers are a good deal for first-time buyers with fund crunch. Sometimes these are available at 30 % lower than the prevailing market rates.

• Price Protection from Market Volatility: Investing during the ‘off-the-plan’ stages helps to protect buyer from volatile price hikes in the real estate market. This could get translated into earnings on equity as and when property price appreciates.

The cons:

The risks involved are multi-fold and therefore check on the following before you invest in pre-built units.

• Seek reputed builders and look for their triple ‘A’ certification.

• Verify if the realtor is legally licensed to sell the ‘pre-constructional’ project and locate its listings under the Housing and Land Use Regulatory Board (HLURB).

• Employ a licensed real estate agent for guiding you through the sale process.

• Deploy a trusted lawyer in case you run into a legal mess; especially with paperwork even before you sign the contract.

‘Tiger City’ of Mandaluyong Beckons Housing Options

Seeking opportunities in the banking sector in Philippines is a good enough nudge to look out for investment and housing options in and around the City of Mandaluyong.

With a strong historical lineage resting on the popular folklore of ‘Luyong’s’ love for ‘Manda’, the Barangay chieftain’s daughter; adds a romantic allure to the city’s fame.

Mandaluyong is centrally located around Metro Manila and shares strategic boundaries with the Capital city of Manila to the West. This makes the city accessible to the commercial and business districts in the Philippines metropolis and also links Pasig and Quezon City on its eastern borders.

The ‘Tiger City’ of Mandaluyong is also tagged as the ‘Shopping Capital’ of Philippines which also shares favourable boundaries with San Juan City to the north and the southern city of Makati.

Operations in the pharmaceutical sector via Unilab, the Ortigas Centre, headquarters of the Asian Development Bank and the San Miguel Corporation – the Banco De Oro makes Mandaluyong a favourable destination for work-related opportunities.

Acquiring one of the much touted condos for sale in Mandaluyong is therefore a dream investment for buyers. Naturally, the buying trend translates to profitable promotion for sellers in high rise constructions such as the sheridan towers, Mandaluyong.

Triple ‘A’ Property Developer or Not?

Without doubt, Mandaluyong, an industrially and commercially viable city has many takers in the buyer’s market and so also in the property selling domains.

Selecting appropriate property developers in Mandaluyong therefore calls for sound checks on credentials of developers to ascertain their Triple ‘A’ quality codes and construction liabilities.

Reality Checks on Realtors

• Look beyond landscaping and lifestyle amenities in condos for sale in Mandaluyong. Instead seek real-estate benefits in quality, location of the property and long term investment possibilities of your chosen apartment.

• Check for warranty policies of property developer specially those related to long-term maintenance and repairs of infrastructure and amenities.

• Ideally, ensure your realtor has Triple ‘A’ certification which adheres to a strict quality program to sustain the worth of the property for long-term living or selling purposes.

• Check on ‘field-test’ warranties of all condos in various building blocks within gated communities.

• Understand the proprietary 102-point inspection due by real estate developers in Philippines for design definition, construction and turnover of the property.

• Check if the developer adheres to the two-pronged national standards and industry practices.

• Also ask your developer if they run specific tests for in-process property inspection and other regulatory set of tests for testing and commissioning of the project.

The official launch of Sheridan Towers, Mandaluyong on March 1, 2013, adds yet another home project to the city - promising lifestyles beyond shelter and recreation.