Here's why it cost you, not to buy from us.
Understanding the Filipino Real estate market for single buyers :
It maybe the first time you are planning to buy your own condominium and as any new home buyer would, you must be asking yourself several questions!
You are right to have a time of reflexion before jumping on any kind of unit without thinking twice as sometimes your investment can turn sour..
Resale market, or pre-owned unit start to be more and more familiar to buyers as they can still avail the unit they desire in a specific development cheaper than from the developers inventory. Buying from an investor/buyer who acquired the unit previously can make you save lots of money, but i come at a price, which not everybody can afford.
Buyers who buy early launching benefit from the cheapest price that the developer will ever offer as there is still a long way to go before the turn over of the units (approx.4 years). Let's get an example of some units in Shore Residences by SMDC located in MOA area.
Couple years back, 1BR unit was being sold from SMDC for only for 3M php. Today for this exact same unit, SMDC would sell it at 6M+ php but you can also find those units for resale from investors/buyers for 5M php. Over 1,000,000 php saved for 1BR unit is not so bad you'll tell me. Yes, that is true, but how much is the investor asking you to Cash Out? (Cash out is the equity spent on the property + appreciation value that investor seem right to ask).
In this particular case, the cash out asked is an average of 2,000,000 php. Out of this 2M php, there is :
- 300K of Transfer of Rights (TOR)
- 700K of equity paid by the investors
- 1M appreciation value
Here is why it cost you not to buy from us! (part 1)
We always try to partner with developers who gives us nice enough discount for us to offer our buyer at least 15% Off on the Total Contract Price (TCP) for non cash term payments.
The fees we ask our buyers to "cash out" to us to avail these big discounts that even cash buyer would dream of is only 300K to 400K php ALL IN. These few hundred thousand represent for the major developers their fee of Transfer of Rights only.
Now, it is true that there is a slight chance to find cheaper units than us on the resale market. But for 2M cash out..!
With 2M php cash invested here in the Philippines into pre-selling condominiums you could easily create yourself a return of 100% for the next 3 years (see the example shown above). Which would turn your 2M into 4M php.
From this perspective, buying a slight cheaper unit on the resale market actually cost you money as you are using your principal capital to purchase one unit only.
I personally wish for you, dear buyers and investors to make the right decisions when purchasing your first property as well as asking to sales representative accurate informations for you to optimize your hard earned money!
Stay tuned for the second part of " Why it cost you, not to buy from us!"
Very best regards,