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How to Choose: PRE-SELLING vs FORECLOSED vs SECONDARY PROPERTIES

When one wants to invest in a Philippine Property, (or any property for that matter), the careful buyer will always find three types of properties to choose from by canvassing around: Pre-selling, Foreclosed, and Secondary Properties.

Given a budget to work with, whether it’s a million-peso figure and/or a monthly budget based on your income, how will you know which of the three suits you best?

Aside from the location of the property itself which of course is crucial to you depending on where you live and work, allow me to give you this chart below so you will know what to expect on each of the three: (All Caps means an ADVANTAGE)


Pre-Selling Foreclosed Secondary
Quality BRAND NEW Usually Plenty of repairs
to be done		 May have minimal or many
repairs
Availability of Use 1 to 5 years, depending on
type of property and developer reputation		 After Repairs (unless it
needs none which is very very rare)		 MOST READY due to minimal
repairs
Price per Sqm Lower than Units Ready for
Use		 LOWEST and CHEAPEST Brand New = Expensive. Older
= Cheaper
Payment Terms BEST – Very flexible
depending on buyer’s capabilities = Either High down and Low
Monthly, or Low Down High Monthly (sometimes even NO DOWN)		 Good = Usually 10 –
20 % down and the rest of the balance in bank loan for Monthly’s
= Low Down, High Monthly’s		 Mostly Cash or Bank Loan
of 50 to 70%, which means Down of 30 – 50% = High Down, Lower
Monthly’s
Best Traits BRAND NEW, BEST TERMS CHEAPEST, can do RENT-TO-OWN READINESS for USE
Worst Traits Have to Wait before using
it		 Tons of Repairs, time needed Sometimes Expensive, rigidness
of Payment Terms

I believe this chart speaks for itself and is very very helpful especially to the newcomers in the Real Estate Philippines Industry. Now you know what you getting into when it comes to real estate investing. Feel free to bookmark this link for your continued reference and give it out to your friends and relatives who are looking for a property, whether for their own use of for investment. Now, if a Philippine Pre-Selling property suits you the best, check my blog’s category of the same name at http://www.realestatephilippinesblog.com/category/pre-selling-condominiums/

If you are looking for a Foreclosed Philippine Property, you can check the banks for their listings by going there at their branches, looking at the newspapers, calling them up, or checking their websites. You can also go to http://foreclosedrealestate.blogspot.com since they specialize in Philippine Foreclosed Properties.

And lastly, if you are looking for a Secondary Property, you may look at the classified ads (especially the Manila Bulletin), check the internet, or ask your Philippine Real Estate Brokers and friends who may have such up for sale.

Happy Property Hunting to all!

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This entry was posted on Sunday, March 22nd, 2009 at 4:21 pm and is filed under Investment Opportunities, TIPS for Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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