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4 – Ready For Occupancy (RFO) or Pre-selling?
Monday, October 18, 2010
Now, it is time for you to define your needs further. Would you be needing a house urgently or could you wait a little more?
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| Some houses in the village are already built, and some are still under construction |
If you urgently need a place to stay there is the Ready for Occupancy Option (RFO) which gives you a chance to move in right after you pay a certain amount.
If you are the type who wants to have a house for investment purposes or for future plans, you could consider having a house at pre-selling stage. This option is cheaper than the first one since you have to wait for the house to be built which also gives the developer ample time to construct paid houses. You have to constantly check the construction stage though, since the developer would promise a scheduled turn-over for these houses based on your first equity payment date.
In my case, I chose to purchase a house at pre-selling. Here are some of my considerations:
1- No need to pay a huge amount of down payment, since I have the option to pay the equity for 12 months installment. This makes payment not too heavy in the pocket.
2- Have time to save money for house embellishments. Examples: gate, tiles for the flooring, balcony, garden.
3- Think of a nice interior for my own space and canvass for furniture.
4- Prepare myself well for moving in. Like thinking of a business to start with or looking for a new job near my new house.
5- Research on what I need to have a good turn-over for the house.
Forgive me for being such a control freak hihi. I am just very particular on these stuffs since this is going to be my first house. I hope I can share these traits with you so we can all have a smooth purchase. :-)
2 comments:
haha, thanks for this article. actually, i was a bit depressed this past few days kasi we were supposed to get a house, my mom paid P15000 for the reservation fee and ready to give P2 Million pesos for the house that is still to be built. However, the following day my mom decided again to quit the contract!! Grrr... She said that 6 months construction is too long then it would be risky daw to give the amount to the company even without seeing the house! Duhhh... I thought ma OKAY na ako after having a vacation in Jakarta pero haaayyy still depressed when I came back to Davao and see the beautiful lot.
Since you have the budget there is no way for you to be depressed :-) Lighten up :-)
I have chosen pre-selling house since I have studied my budget and admittedly can't give spot cash. So, I just looked for a trusted agent and developer, and I also did my homework of chit-chatting with the current settlers in the area. This is to make sure of the turn-over process.
Maybe, paying for a pre-selling house in cash doesn't seem like a good idea for your mom, and if I were in her shoes, so do i. ;-) It is still safe to have installment equity payment for pre-selling houses.
Your mom has one specific requirement, and that is -- tangible assurance. Since she has the budget, all she has to do is just make sure the documents for a built house are clean, (check it with the local office).
Just an opinion, thank you for appreciating. It feels good :-D
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