by: RJ Armas
We’re going to talk about the difference between preselling properties and ready-for-occupancy properties.
Preselling or more properly called pre-development properties is a property that you are buying while it is still under construction. The idea is you are under contract with the developer who promises to deliver the property at the end of the construction period, while ready-for-occupancy properties are properties that are already ready for move-in. So, if you pay the downpayment and apply for bank financing, you can already use the property.
1. PRICE
In terms of price naman preselling properties are usually cheaper than ready-for-occupancy properties. The reason is that the property is still not in existence and still cannot be used by you. So, the developer is selling it to you at discounted price. While in ready for occupancy properties naman, you pay for the full price. That is the reason why it is cheaper to buy preselling properties than ready-for-occupancy properties.
2. PAYMENT SCHEME
In terms of payment scheme, preselling properties gives you the chance to pay it on a staggard basis. So, the computation is usually the developer is dividing the downpayment into how many months they would be able to finish the property.
So, for example, if the property has a downpayment of
1 million and you divide it into 24 months the property would be built in that period.
So, you have 1 million divided over 24 months which is your downpayment, while in ready occupancy units since it is already built you are required to pay the downpayment of around 15 to 20 percent of the total price.
3. PROPERTY VIEWING
In terms of looking at the property while you’re buying it, when you’re buying a preselling property, you have to make sure that you understand the architectural perspective because this is where you will base how you will look at the unit kasi hindi pa siya na eexist. So, it is better if you understand the architectural perspective and the floor plan, not only on the building but also the unit so you have a better buying decision.
For ready-for-occupancy units naman you don’t have this problem because the actual unit is already there so you can take a video if you can’t come to the place to see. It is better if you can visit it yourself or have someone to visit and take pictures, so there is no problem in looking at the actual unit of ready-for-occupancy properties.
4. OWNERSHIP
In terms of ownership of the title, preselling development usually doesn’t have a title yet and the developer is processing it with the registry of deeds. You just have to wait, but the title is usually already with the developer before the construction period is over. While the title for ready-for-occupancy units usually sometimes is already with the first buyers, if the unit has already been sold. If the unit hasn’t been sold, yet usually the title is still with the developer also.
So, which one is better? Preselling properties or ready-for-occupancy properties?