Buying condominium is a good idea when the potential ROI “return of investment” is good. Most people think that buying condominium is for the purpose of having a place to live and stay. They forgot to think that condos could be a good source of income if it is located on strategic locations.
The advantage of pre-selling stage is having the price that can be resell with higher value after turn over. The value of it might increase from 5% to 10% and that is huge interest could be better than the bank interest can give. It could increase more as time goes by.
When you should buy condominiums?
You can earn from buying pre-selling condo. – You can grab the opportunity to buy it at low price and resale it on turn over price. Buy more if you can afford because people will always look practical place to live matching with their lifestyle.
If the unit can give more interest or ROI versus Time Deposit. – When the demand increase the value of the unit will also increase. Not like time deposit that you already know what can you get on the next few years.
If it is located in strategic location like business area, schools and easy transportation. – Having one or more units is not a problem when you cannot sell it. You can offer a rental for the people nearby like students, employee and tourist. They prepare to rent a condo if the transportation fare “money” will compensate the rent price. They can also consider the time efficiency if your condo unit is just a walk away and having easy transportation from their destinations.
When you are ready to buy condominium unit now?
Make everything legal; don’t give away your money to the unknown agent. Check and confirm that the agent that you are dealing is accredited and allow handling the transactions. It is always proper to transact on the office and make sure of everything. Most OFW investors had a bad and fraud experience on the agent.
Here is sample computation from R Square Residence pre-selling spot cash.
SPOT-CASH CLIENTS 2015
Floor Area: 20.00 sqm
Price Per sqm.: 99,562.50
Total Contract Price: 1,991,250
Miscellaneous Fees: 119,475.00
Net Total Contract Price: 1,911,600.00
AFTER 3 YEARS or 2018
Floor Area: 20.00sqm
Price Per sqm: 132,550
Total Contract Price: 2,651,000
Miscellaneous Fees: 159,060.00
Net Total Contract Price: 2,730,530.00