Buying a Ready for Occupancy Unit Advantages
RFO units have several benefits which make them an ideal real estate purchase for investors and aspiring property owners.
RFO or ready-for-occupancy refers to house and lot, condominium or apartment units which are available to move in anytime you want. While pre-selling units seem to be practical due to its lower selling price, RFO units also present a lot of advantages and benefits which makes it more enticing.
You can already see the finished project
RFO units as its term suggests are fully-constructed and developed and are ready for turnover. Unlike in pre-selling units, for RFO, you do not have to wait for years before you can actually get to move into the unit, or if promises will really be fulfilled such as the turnover date.
Since RFO units are already available for move in, what you see is what you get. These are bare, so you get to let your imagination work (decors, furniture and all) and visualize your future home.
2. Ready for inspection
Condo hunting is fun especially if you get to see and experience the unit right there and there. This is also known as tripping. During the visit, you get to inspect the units actual size, its condition, cuts, features, view from the window, and even the quality of the materials and the work itself.
By tripping, you get to evaluate if the unit is according to your standards—aesthetically and practicality. You can even visit all your options and eventually select the one that suits your preferences and budget best. Should you wish to redesign or renovate, you already know what you are working with, therefore making the planning process easier.
3. Move in as soon as payments and paperwork are settled
One of the best advantages of an RFO Unit is the ability to move in as soon as possible. Unlike pre-selling units wherein you will have to wait for years before you get to move in, in an RFO unit, as soon as all the paperwork and requirements are submitted and signed, and payments are already settled, you can immediately move in. This is ideal for relocating families and individual, expats, foreigners, and immigrants.
4. Avail discounts
Pre-selling units are not the only ones who can get the best deals, lower selling price, and discounts. Some real estate companies, brokers and even owners offer discounts and move-in promos for those who will avail an RFO unit, especially if it’s a rush sale.
5. Flexible payment options
Most RFO units offer flexible payment terms including rent-to-own, which is also known as lease-to-buy. That way, you can move in right away, pay it every month until the entire amount has been paid off.
6. Utility services are available
If you are buying an RFO unit which has been previously owned, it probably already has available utilities such as water, electricity, telephone, internet connection and even cable so you won’t have to worry about applications and installations, just changing of the name.
7. Amenities can already be used
Nowadays, one of the selling points of a condominium or an apartment is its amenities. The more amenities there is, and the better the quality, it’s guaranteed to get a huge demand from the market, especially for pre-selling units. Some projects get sold out immediately because of how premium their amenities are.
What’s good in an RFO unit though, is you get to enjoy your private space while getting the privilege to use the amenities in your building. Some of this include a swimming pool, fitness center or gym, function hall, and more.
8. Ready-made investment
Investing in real estate is a good decision especially if it’s a residential property because you get to earn in various ways—sell it or lease it out short-term via Airbnb, or long-term. Renting it out via Airbnb is one of the fastest ways to earn. All you have to do is to furnish the unit with the necessary furniture, appliances, and a little décor here and there. Once you’re done, you list it online, advertise, and prepare to cater to staycationers and tourists.
Also, if an RFO unit is located in a prime real estate area, chances are, it has already appreciated in value the minute you have acquired it. This can be beneficial to you because condominiums or apartments in a prime real estate area have better saleability, which gives you the chance to sell it at prime real estate rates.
Purchasing an RFO unit may cost higher and require a significant amount of down payment, but with all these advantages, it can be a good idea to consider buying one. Especially if you’re aiming to move in immediately.
Sources: My Financial Coach, Eton Properties, and Amaia Land