June 14, 2025 was the last day to avail of the Estate Tax Amnesty under Republic Act No. 11569. Processing our estate tax payment with the Bureau of Internal Revenue (BIR) was by far the most difficult transaction I have ever experienced despite completing all the documentary requirements. Ironically, what was supposed to be a straightforward application facilitated by an acquaintance — for a fee — was only accomplished through the assistance of the kind and efficient employees of the Local Government of Uyugan, Batanes in securing the required supporting documents. I personally prepared the Extrajudicial Settlement of Estate during the pandemic, but securing the certified true copy of the tax declaration, certificate of no improvement, tax clearance, and death and birth certificates of the deceased and heirs took much longer. Special thanks are due to the Local Civil Registrar, Municipal Assessor and Bureau of Treasury Head in Uyugan, who accommodated my online requests profess...
The real estate market in the Philippines is booming, with countless preselling properties available for aspiring homeowners and investors. But for many, the idea of purchasing a home before it's even built can be overwhelming—whether due to financial constraints or a lack of understanding of the pros and cons.
I get it. When my husband and I first bought our first house in Cavite, we weren’t even married yet. At that time, our salaries barely covered our daily needs. But with marriage in mind, we took the risk and made our first real estate investment. Not everyone supported our decision—his family was skeptical because, at that point, there was no guarantee we’d end up together.
Fast forward almost 15 years later, we’re happily married with two kids and three real estate investments—our first house in Cavite, a condo unit in Tagaytay, and a bigger house and lot also in Cavite. Looking back, buying a preselling unit was one of the best financial decisions we ever made. But of course, it wasn’t all smooth sailing. So in this article, I’ll share the advantages and disadvantages of acquiring a preselling property, based on our personal experience.
✨ Advantages of Buying a Preselling Property
1️⃣ Lower Purchase Price & Flexible Payment Terms
One of the biggest perks of preselling properties is that they’re more affordable compared to ready-for-occupancy (RFO) units. Developers offer:
✔ Lower prices than market value
✔ Zero percent interest for monthly equity
✔ Flexible payment terms (some even offer semi-furnished units)
Our experience:
- In 2009, we bought our first house in Cavite for just ₱1.218M. We paid the down payment in 12 months and loaned the remaining balance through Pag-IBIG (30 years). By 2016, we fully paid the loan, and today, the property’s market value is around ₱3M-₱4M.
- In 2017, we bought our condo unit in Tagaytay for ₱1.9M. We paid the equity in cash, reducing the loanable amount. Plus, the first five years of amortization had zero interest! Today, the condo’s value has doubled to ₱4M—and while we're still paying for the amortization, the passive income from our staycation business helps cover the mortgage and utility expenses.
- In 2023, we acquired another house and lot in Cavite, but this time, the price was ₱5M+ due to the ongoing developments in the area. Unlike our first property purchase in 2009, prices had significantly increased. However, since the phase was not yet in full swing, we were still able to choose a prime corner lot—something that’s almost impossible to do with RFO properties.
Buying preselling means you get first dibs on the best locations—whether it’s a house facing east for good sunlight or a high-floor condo unit with a scenic view.
✔ You can choose the best lot, unit, or floor before the area becomes crowded.
✔ Even if it's not beside malls or commercial hubs yet, developers plan for future accessibility (roads, transport hubs, commercial areas).
Our experience:
Our first house wasn’t near big establishments, but it had essential amenities inside the subdivision—a commercial area, school, health center, police substation, and a church. Over the years, the community grew, and property values increased.
For our latest property, we saw how the area was already developing—which explained the higher price. However, because it was still in the early stages of construction, we were still able to choose a desirable corner lot.
3️⃣ Property Value Appreciates Over Time
Preselling units are like stocks—you buy at a lower price, and over time, the value increases significantly. By the time construction is complete, the property may already be worth millions more than what you originally paid for.
✔ Great for long-term investment or resale
✔ Perfect for rental income or staycation business
4️⃣ Peaceful & Less Crowded Environment
Since you're among the first homeowners, you get to enjoy a peaceful community before the place gets too crowded.
✔ Fewer neighbors = quiet environment
✔ You become a pioneer in a growing community
⚠️ Disadvantages of Buying a Preselling Property
1️⃣ The Wait Can Be Long & Uncertain
Unlike RFO units, preselling properties take years before turnover. If you're in urgent need of a home, waiting can be tough.
✔ Construction delays can happen due to weather, permit issues, or developer problems.
Tip: If you're on a tight timeline, consider how long you're willing to wait before committing.
2️⃣ Few Neighbors, Less Community Vibe
If you're a social person, moving into a brand-new subdivision or condo can feel a bit lonely since most units are still unoccupied.
✔ Some areas lack immediate amenities (groceries, public transport, etc.) until more residents move in.
Tip: If you're early, be patient—eventually, more people will move in, and the community will grow.
3️⃣ Homeowners Association (HOA) May Not Be Fully Operational
HOAs take time to establish. In new communities, there might be management issues or delays in services.
✔ Developers may still be in control of subdivision rules.
✔ Maintenance and security may not be fully organized yet.
Tip: Choose a reputable developer with a good track record in managing projects.
4️⃣ Risk of Project Not Pushing Through
This is the biggest fear when buying preselling: What if the developer doesn’t complete the project? Some projects get canceled due to low sales or financial issues.
✔ Do your research—check if the developer has successfully completed previous projects.
Tip: Stick with trusted developers with a solid reputation in real estate.
🏡 Is a Preselling Property Worth It?
Buying a preselling property is a big decision, but it was worth it for us. If you're renting, the monthly rent you’re paying could be the same amount as a mortgage—but with ownership, you're building equity instead of paying for something you don’t own.
✔ If you're a young couple planning to get married, investing in property is way better than splurging on an expensive wedding. Your home will be there for a lifetime—a one-day event won’t.
✔ If you're an investor, preselling units can be highly profitable if you choose the right location and developer.
What about you? Have you considered investing in preselling properties? Let’s discuss in the comments! 👇
#RealEstateInvesting 🏡
#PresellingProperty 📈
#FirstHomeJourney 💙
#SmartInvestment 💰
#PropertyOwnership 🏠
#StaycationBusiness 🌿
#FinancialFreedom 🚀
Comments
Post a Comment