Developer Units vs Resale Properties in the Philippines: Which Is A Better Investment?

Best Option Between Pre-Selling Units and Resale Properties in the Philippines

If you’re currently deciding where to invest and is torn between developer and resale units, understanding the pros and cons of each option is the key. You may want to consider the payment terms, capital appreciation, and required down payment. There are many other important things to weigh in when it comes to the best property to invest in, so continue reading to know more about them.

Pre-Selling vs Resale Units - Pros & Cons

Many Filipinos jump right into the property market without considering the weight of their options. In a developer unit, it could take longer before you can actually move into your new home. So it really depends on how soon you want to use the unit and how much you can pay monthly. But wait, there’s more to consider including the following:

• Legal Documents – If you’re buying a developer unit, check the License to Sell. This document means the developer follow the law and can provide you with a clean title, permit, and other legal requirements. For resale properties, you should go to the Registry of Deeds to get a Certified True Copy of the title to ensure you are buying from a legit seller. Double check the Tax Declaration and other documents for tampering. Also, you need to hire a professional for the geodetic survey to make sure the lot measurement is accurate.
      
  
• Property Condition – For pre-selling units, you get a brand new house, while in resale units you need to check the unit for renovation or any repairs. You may need to hire a structural engineer to evaluate the integrity of the foundation.
      
  
• Price and Payment Terms – With a developer, the price is fixed and may be higher, but they offer flexible pay terms. Developers usually offer bank financing and some discounts during special seasons. The beauty of buying from developers is that their units are accredited by major banks and are 90% loanable. For resale, you can negotiate with the price, but most of the time, the terms are spot cash. If bank loan is applicable, only 70% of the appraised value is available. Also, there are appraisal fees and bank charges that you need to pay separately.
      
  
• Turnover – In the pre-selling stage, turnover of developer units may take longer or experience delays. Even RFO units sometimes take two to  three months before you can use it. For resale properties, you can immediately use it once you’re fully paid.

Final Thoughts

Now you know which suits you best between a developer unit and a resale property in the Philippines. Either options, both have pros and cons that will help you determine which one is the perfect investment depending on your capital, long-term goals, and needs. Check out REALS.PH for the best property listings including Baguio City real properties, and feel free to let our licensed real estate agents guide you in making an informed buying decision.