Real estate is one of the most popular investment opportunities for many people. Those who are unfamiliar with stocks, businesses, and other more difficult money-making prospects can readily purchase real estate properties such as condominiums and affordable houses and lots, providing they have the necessary financial resources. However, selecting the ideal real estate investment option can be emotionally exhausting due to the abundance of options accessible. Fortunately, most options can be divided into three categories: pre-sale property, ready for occupancy (RFO), and lot-only.
Among these categories, first-time homebuyers and real estate investors lean on RFO or ready for occupancy house and lot. The most appealing aspect of having an RFO, aside from it being sale ready, is that you may pack your belongings and move in as soon as all of the paperwork is completed. There are no rumors or surprises because, as a buyer, you have complete access to the property and can check it before making a final decision. At most, a few weeks are required to finish all of the documentation. You don’t have to worry about how long the construction will take because an RFO is already finished.
If you’re an enterprising type, you can recoup your “losses” by renting out your RFO property. If the location of your RFO is highly sought after like in business locations such as Metro Manila, Alabang, Cavite, and Laguna, you may request an advance payment before allowing the renter to move in. Furthermore, owning an RFO increases your chances of having a tenant knock on your door right away.
Ready for occupancy house and lot also provides a getaway from violent communities because most of them are situated inside a place with several services and 24-hour roving security. RFOs are regarded as a blessing for families seeking to flee dangerous communities. Aside from security, most RFOs are located in master-planned communities with swimming pool and other amenities for family enjoyment and bonding. To acquire access to these RFO assets, you must meet the fundamental financial conditions.
Advantages of Owning RFO House and Lot
RFO residences have already been constructed, allowing prospective buyers to see the property firsthand. Interested purchasers can view the size of the unit, bedrooms, quality or details, and amenities for themselves. They can also have a look at the amenities that are offered to them as a possible owner. Some RFO homes in gated developments and townships have their own parks, community centers, churches, schools, restaurants, and other amenities. Buyers can assess the project as a whole to determine if it is a good fit for their families or the perfect home they are looking for.
Showrooms for potential home buyers are typically provided by real estate developers who provide pre-selling residences. Buyers will be able to visualize how much space they have because showcase units are completely equipped.
Investing for the Future
RFO house and lot, as well as apartments, can be viewed at any time, which decreases the danger of fraud when purchased directly from the developers. Buyers can schedule an inspection with a real estate agent before deciding to purchase the property. This protects customers from dangerous investments while also ensuring future rewards.
Finished and ready for occupancy
RFO residences enable buyers to move in as soon as possible. Buyers only need to fill in the necessary payments and documentation to move into their new house and lot that is ready for occupation. This is a benefit that pre-sale residences do not have. Pre-selling homes often have longer turnover times, requiring buyers to wait months, if not years, before moving in.
Relief for First-time home buyers
Property developers in the Philippines are increasingly focusing on selling fully-furnished RFO houses and lots. This is a relief for first-time home purchasers because they won’t have to worry about buying furniture and other property furnishings. Furthermore, there is no need to pay interior designers, which allows purchasers to keep investment costs low. In addition, by purchasing an RFO property, you save the hassles of building, such as arranging with engineers, architects, and foremen.
Rent-to-own a ready for occupancy house or unit
Many property developers provide property buyers with the option of participating in rent-to-own plans, in which they can utilize their monthly rent to purchase the flats after a few years. Because these properties are available on a lease with the opportunity to purchase, they are also very appealing to end-users who do not want to pay a large down payment. However, keep in mind that if you do not wish to purchase the home at the end of your renting term, your rent will not be reimbursed.
Safe Community for your family
RFO house and lots located in gated communities provide a getaway from violent communities.
One advantage of RFOs is that they provide a getaway from violent communities because most of them are situated inside a place with several services and 24-hour roving security. RFOs are regarded as a blessing for families seeking to flee dangerous communities. To acquire access to these RFO assets, you must meet the fundamental financial conditions.
Disadvantages of Owning RFO House and Lot
Price is higher compared to when the house and lot are in the pre-selling stage
RFO prices are greater than they were during pre-selling. Price increases can range from 30 to 40%, depending on how many units remain unsold, the location, and how popular the units are.
Limited Choice of unit or location of house and lot
You have a limited selection of units. Unsold units are ones that are considered poor luck in feng shui or have specific drawbacks, such as being near a perimeter wall or a flooded region. This isn’t always the case, but don’t expect to receive first dibs. Those units are long gone.
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