Pre-owned or New? Your Guide to Which Property to Invest In
Nowadays, people put real estate investment as part of their life goals. Nothing beats the satisfaction of working hard and investing one’s hard-earned money into a home that promotes safety, comfort, and warmth for them and their loved ones.
Of course, there is also the thrill of renting out one’s property to earn passive income. In these times when accessibility drives people to live closer to their workplaces and essential amenities, your future purchased properties pave the way for business growth while providing liveable spaces for others.
Before you select whether you want to invest in a brand new or foreclosed property, there are things you should know about these properties and what may entail your investment goals in the future. That said, here are pointers that may help you choose the right property to invest in:
Foreclosed properties might seem “suspicious” real estate investments to consider. Their status often gives the impression that their previous owners didn’t pay their dues or that the property has underlying problems, such as faulty construction fixtures.
Still, foreclosed condo properties for sale also offer perks potential buyers may use to expand their investments and purchase their ideal property. Here are some of those perks:
They Are Often Cheaper
Foreclosed properties are sold below their original market value, which means more savings for investors who want budget-friendlier options. Most foreclosures allow interested buyers to bargain with the seller, who most likely doesn’t want the property to be foreclosed altogether–this means you can negotiate with the seller to price the foreclosure lower than their selling price. If they concede, then you’ll get your foreclosure with your budget.
On the other hand, foreclosed properties are sold as-is, meaning, whatever the condition the property is in, you’ll be buying those as well. Their as-is condition may also indicate that the lender or bank may not reveal their purchase history or actual condition.
They Have a Faster Closing Process
Besides having lower prices, foreclosures also have faster closing processes than brand new or other for-sale properties. Depending on the seller or bank, potential buyers may get their foreclosed house or condo in a month or less. After their purchase, owners will have a ready-made property awaiting remodeling and repairs before becoming a family home or business headquarters.
Foreclosures may have lower prices, but their potential upgrades pave the way for promising returns for buyers’ investments. These properties’ versatility means future owners will have ample spaces to add new interiors, floor expansions, landscaping, and smart features. Owners’ future homes or businesses will look cozier, organized, and more presentable to visitors and customers.
Now let’s say foreclosed properties aren’t available in your chosen neighborhood. Ready-for-occupation (RFO) properties are excellent options you should look into. Here are the advantages of getting RFO units:
They’re Ready for Inspection and Purchase
RFO properties are completed and ready for inspection or purchase. They give you the privilege to explore and buy on the same day. Take advantage of open houses to tour the insides and outsides of your potential properties. You’ll have the chance to check for necessary repairs and changes after you’ve purchased your property.
After you’ve explored the different RFO properties, you’ll have the opportunity to finish the paperwork and transactions on the same day. You’ll have a ready-made home to furnish and occupy as soon as possible.
They Have Flexible Payment Terms
Some RFO properties also have flexible payment terms. You’ll find houses you can rent to own, should you not have the budget to pay the full price right away. You’ll move in, relish in your new home, and fully own it once you’ve completed your monthly dues.
Their Amenities Are Ready for Use
Besides having a place you can occupy right after you purchase it, RFO properties also have amenities ready to use. Let’s say you’ve purchased a condo in Mandaluyong. After you’ve hauled in your furniture sets, decor items, and appliances, you’ll have the freedom to enjoy outdoor facilities such as pools, playgrounds, jogging trails, laundry areas, landscaped gardens, and entertainment rooms.
Preselling units are another option you should consider when buying a home or potential property to invest in. While they aren’t fully built yet, purchasing preselling units is excellent because of these factors:
They Have Lower Prices
Since they aren’t “physically existent” yet, preselling properties have prices 30 to 50 percent off than the prices of finished units. Property developers may also offer you flexible payment terms or discounts on several of their units. Take a look at preselling properties to find the right one for your budget plans without selling an arm or leg.
They Give Buyers the Best Unit Options
Suppose you’re after the cream-of-the-crop property units. In that case, preselling gives you the option to choose the best unit options at an early stage, usually during the launching period of the development. It is best to go for preselling properties, especially if you’re after premier condominium projects. You’ll have the privilege of availing your dream corner, end, or penthouse unit before other investors.
Whether you choose a brand-new, for-sale, or foreclosed property for your next investment, you’ll have real estate futures that will give you promising returns and increased property appeal. Read on these pointers to help you choose the right property to invest in.