A Quick Guide: Pre-Sale Condominium or House and Lot

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Looking for and buying the perfect home for your family could be one of your stressful decisions in life. You may already be working on your short term accommodation needs, such as temporary or apartments, but it is eventually time to decide on the kind of house you'd prefer to resid

Looking for and buying the perfect home for your family could be one of your stressful decisions in life. You may already be working on your short term accommodation needs, such as temporary or apartments, but it is eventually time to decide on the kind of house you'd prefer to reside in for the rest of your life or over the long term shops for sale in Islamabad. There are two types: A condominium unit or house and lot. Alongside these choices are the financial and timing requirements that are required. To aid you in narrowing your choices Let these comparisons guide you.


If you would like to be a part of the city life, perhaps a condominium is what you are looking for. While there are some good features that condos provide like amenities or the opportunity to lease or rentable, there are at least, some numeric disadvantages that could pop-up in the near future. The majority of developers sell units at the planning phase of the condominium, which means a unit is more likely to be affordable due to the location. Although that might be appealing to the ear but don't make a decision just yet.


Based on the Global Property Guide, with the Philippine mortgage market not being developed, "most of the houses are sold for cash or pre-sold". In the market for condos, it's a choice between ready-for-occupancy (RFO) units and pre-sales.

Many buyers go for the option of pre-selling due largely to its much cheaper introductory cost which is typically 30% cheaper than a completed product. Furthermore developers offer a discount of 10%-15% or provide flexible payment schemes where the down payment could be as minimal as 10%, and is payable for 3 years with the lump sum paid either through a bank financing, government sponsored loans for home owners (Pag-IBIG) or the developer's in-house financing option.

If you're a real estate investor and are looking to sell condos, pre-selling is an excellent investment because they can appreciate in value at the point they're finished. Given favorable market conditions they can be sold completed units at a price that is twice the price you put down when they were in the pre-selling phase.


A condo unit for sale has terms such as "more or less" and "subject to change without prior notice". If you don't keep track of the construction progress every now and then the terms you have agreed on might not apply anymore when the building is finished. The primary risk with an existing condominium is that the unit that is completed could not be exactly what you envision. Materials may change. Also, there could be modifications in the unit's size or floor plans, finishes, features, or amenities about which you may not be notified. There is a chance that you will be charged for a unit that is in the middle of your expectations and therefore voiding any "promising investment" claim.

Another concern is the time delay in completion and turnover if the developer does not complete on time. Pre-sale contracts have delay clauses which allow the developer to delay delivery for up to one year or more. The most painful issue, however one of the risks is that you could not get a refund for your deposit in case the pre-selling project is not successful or the developer goes bankrupt.

OFWs that plan to buy condos for sale in advance from overseas face the risk of the most. Many have lost deposit and payment due to agents or representatives who profit from their absence and use the complicated paperwork to collect "fees" from them.

House and Lot

If travel or commutes are not a problem for your then maybe purchasing the house and land a few kilometers away from the city is the best deal for you.

buying a property and house can be a meaningful investment in the sense that it could be the future of your family and legacy. The style, the features and the overall appearance of your home is entirely yours to decide. You'll need a trustworthy realtor or company to help you navigate the legalities and arrive at the "win-win" or good deal.


Looking for a reputable real estate agent can help you with the process of purchasing land yourself and choosing a suitable design. They design houses plans to be a good fit for the area with the right sun orientation and driveway positioning.

Most home buyers will sign a land contract with a developer of land and an agreement for building with the builder. There are two ways that a home builder can ease this process for you. The builder could sit and wait for you to settle on the land, later conduct soil and a feature survey, to establish site costs and finalise the contract. Alternatively, the builder can adjust the cost of land in order to create the building contract at the same time the land contract is completed. This strategy isn't necessarily suitable for all new home construction, but it's more efficient since the lender can secure financing to build the house and the land at the same time.

You can save thousands and thousands of dollars. Trustworthy financial institutions or lenders will be able to let you skip some of the costs for both discussed situations. The only thing you have to do is cover the stamp duty on property's worth since the home is still to be constructed, and you can also claim various depreciable assets including the cost of building, the cost of equipment and construction itself.


One risk you could be confronted with is the cost of paying to take someone else's profits. When you purchase any new property, a part of the cost is the developer's profit margin and an amount of the expensive marketing expenses that are associated with selling this kind of property. These hidden 'costs' could represent the equivalent of just a few months of capital gain leaving you behind the eight ball right from day one.

Another issue is the geographical. The majority of homes and land packages are located at the edge of the city and in areas that have an abundant supply of land with weaker economic drivers as well as an absence of infrastructure. Capital growth , therefore, is typically less likely to be found. It is possible that you're facing uncertainty. If you purchase off the plan it is difficult to know how well the finishings will be up to your expectations, or how the surrounding facilities and other properties will look similar to. There is also the uncertainty that the final bank valuation won't stack up.

Logic dictates that when investing you should look for properties that have a large percentage of land value as this is what will drive capital growth. With new property, however, most of the value is in the building itself rather than the land that can limit capital growth as the property diminishes. A 30-year-old house in a decent-sized block within an urban area might not appear quite as glamorous as a brand new property but it'll be a more money in the long term.

When you construct your investment properties, you don't receive any income while it's in the planning stages or under construction. However, you'll have to pay interest on any funds you have borrowed at that point.

Building can sometimes be stressful, with construction delays a regular occurrence. The most surprising thing for first-time builders is the amount of amount that has to be put aside to get the building ready.

Finally, smart investors know that the ability to increase value of a home by making improvements is an essential method to accelerate the wealth creation process. However, this option may rarely be available with new property.


The land and house packages might include attractive inclusions, but many new estates feature smaller lot sizes. Depending the budget you have, you have the choice of choosing different lots offered by the developer. Make sure the block of land you choose will satisfy your requirements in the years to come, particularly if you plan on starting the family.

New estates are generally built in areas that are not within the city's vicinity, where job opportunities and public transport might be scarce. The development may be marketed as being a commutable distance to the urban area. It could take minutes or even hours of driving (or even more in the case of traffic). Are you prepared to endure the long commute to work every day?

Selling for profit might be challenging for a short time when your home and land are part of a new estate. Values of homes in the countryside or away from the city typically rise at a slower pace due to weaker economic drivers and the absence of infrastructure. The developer continues to offer new homes in the neighbourhood at competitive prices, capital growth is much more difficult to obtain.