Weighing What's Best to Acquire: RFO or NRFO?

Investment, whether small or big, is still an investment. But as a person who values practicality in choosing where to invest, a house and lot will always be a good pick. There is no wrong decision; through its accumulating market value, a greater return will occur as time passes. This asset will surely provide many benefits to the owner when it can be monetized or become profitable when used for a business like housing rentals. 

However, there are so many factors that we need to consider upon buying, dealing with the diversity of every different individual offers, promos, locations, house provisions, etc. are being considered by a company to meet the needs and standards of the buyers. Research and deep understanding are essential. This move is to measure the usefulness of the housing investment. Before determining what we want to buy, we ponder one go-between is whether the unit is ready for occupancy or non-ready for occupancy. Let us dig deeper into these two benefits to know which unit is good to invest in.

Advantages of Ready for Occupancy Properties

Ready for occupancy or RFO units refers to the houses available for move-in and can accommodate the homeowners anytime they want. It is beneficial to the buyer, ideal for real estate investors and aspiring property owners.

1. Units are fully constructed. 

One of the advantages that we can assess from ready for occupancy units is you can already see the finished project. It is ready for turnover and is already entirely constructed and well developed. You will not wait for years before getting into the unit, or you will not worry if the developer will fulfill the promised turnover date.

2. Easily visualize your interior design.

If the RFO unit you chose to avail is bare-type house units, you can already think of the interior designs you want to apply immediately after the turnover. You can visualize decorations and use your imagination in designing your future home.

If you want to change areas on the house, you already know what you are working with, making the planning process easier.

3. The property is ready for inspection.

Since it is built because you get to see and experience the unit right there, during the site tripping, you can check the unit's actual size, features, cuts, view from the window, if sunlight is okay, and even the quality of the materials and the work itself.

By your scheduled tripping, you can evaluate if the unit abides according to what you have imagined your house will look like. You can choose which aligns your preferences, ideals, budget, and other things you consider upon purchasing. You also decided which unit you want to take. Moving in as soon as payments and paperwork are settled is possible. It is one of the best advantages we could attain once we decide to buy an RFO unit. This is ideal for families or buyers that are planning to settle in their perspective areas.

4. Get the best deals and significant discounts.

The seller or developer might also offer move-in promos where you can avail yourself discounts for an RFO unit, especially if it's a rush sale. 

Payment options for RFO units are flexible. Also, you can move in right away, pay it every month until the entire amount has been paid off in your comfort.

5. Access to subdivision amenities.

Nowadays, one of the selling points of a house or unit in a subdivision is its amenities. The more amenities are there, the better the quality, and it's guaranteed to get a huge demand from the market.

What's great about an RFO unit is that you get to enjoy your private space while also having access to the amenities in your vicinity. This includes a guarded entrance, parks and playground, covered basketball courts, gazebo, and many more.

6. Income-generating investment.

It is a ready-made investment. A residential property you purchased may earn in various ways—resell it for a higher price or lease it out short-term or long-term. But, renting it out is one of the quickest ways to earn. All you need to do is furnish the unit with the appropriate furniture, appliances, and a few pieces of décor here and there. After that, you list it online, publicize it, and prepare to cater to people who want to have a staycation.

Moreover, if an RFO unit is located in a prime real estate area, there's a big chance that its value will appreciate the minute you have acquired it. 

Considering the things mentioned above about the advantages of ready for occupancy units, higher cost, and giving a specific amount of down payment will make the purchase worth it, especially if you aim to move into the unit right away.

Advantages of Pre-selling Properties 

On the other hand, non-ready for occupancy units or pre-selling properties are those that are not built yet. This is the difference between the ready for occupancy, the property's availability. It's still either under construction or being planned. 

1. Pre-selling units offer lower selling prices.

Non-ready for occupancy units is typically cheaper and not too expensive compared to an RFO unit. Even down payments for houses on pre-sale houses are payable in two to three years' time. You can get the best deals since it is offered at a lower cost and usually with discounts.

2. No need to make a one-time large amount down payment.

This is why buying a house at the pre-selling stage is ideal for buyers who are not in a hurry to move into a new home or those who wish to make a down payment in installment terms.

These include young professionals planning their future and OFWs who wish to gain permanent residence when they return to the country.

3. More innumerable options for the specific location. 

It allows you to choose a unit location to your liking. You may pick a house near the entrance or amenities like the playground or gazebo, one that offers a great view or the one facing where the sun rises.

4. Higher return on investment than with RFO units.

Investors have a higher benefit from buying pre-selling properties and then selling or leasing them later. So, if you plan to go big in real estate investing, it makes better sense to buy a pre-selling house. The market value of a house property increases from pre-selling to completion. That means you'll make a profit when you buy at pre-selling and then sell it when it's completed. The value of the property obtained during the pre-selling stages rises over time after it is built. And if the location of your houses becomes more developed, its value will further increase.

Moreover, aside from the stated advantages above, here are the questions that you can consider before deciding what to buy:

1. What is the status of construction?

2. How much does it cost?

3. How long is the move-in period?

4. What are the payment terms?

5. Which unit can I choose?

And when you finally have answers to these questions, that's the perfect time to determine what property to purchase. 

Regardless of your choice, both are still a good investment, and both will provide a lifelong benefit for you. It will just take some time to have this, but when you can avail because regrets will only occur once you let the opportunity pass through your hands. Claim it as yours, and it will be yours. It is not wrong to expand, enhance, or explore the talent that God has given us, the skill of making a good investment in this lifetime. Deep understanding is just really needed to weigh up the best property to acquire.