Maximizing Returns: Investing in RFO Properties for the Holiday Season
Ready-for-occupancy (RFO) properties are residential units that are fully constructed and available for immediate move-in. RFO homes could be a house and lot or a condominium property.
Unlike pre-selling properties, which are sold before or during construction, most RFO units provide prospective buyers the chance to see the actual property they are investing in. This eliminates the uncertainty of purchasing from brochures or plans and allows buyers to inspect the quality of the unit before they invest.
In the Philippines, RFO units have become increasingly popular, particularly in many urban centers with good location, like Metro Manila, Makati City, and Pasay City. Developers such as Camella, Vista Land, and SM Development Corporation (SMDC) offer a range of RFO condo units that are fully furnished, strategically located, and equipped with amenities like swimming pools, gyms, and lounges, ensuring an ideal lifestyle for residents.
If you’re an investor looking to make the most out of your real estate ventures, investing in a ready-for-occupancy (RFO) condo or house during the holiday season can provide great opportunities for maximizing returns. Here’s why and how you should approach this investment.
Why investing in RFO properties is ideal for the holiday season
The second half of the year, specifically the holidays, is often a prime time for real estate investments like home buying. Many factors contribute to the season’s favorable market conditions, making it an ideal time for purchasing a ready-for-occupancy (RFO) property.
1. Attractive Discounts and Promotions
Real estate developers often offer special holiday discounts, flexible payment terms, and even waived fees during the festive period. These promotions can help investors save significant money on the down payment and overall costs.
Whether you are looking at centrally located Fame Residences and Vista 309 in Katipunan or resort-style Lush Residences, the holiday season provides better deals compared to other times of the year.
2. Immediate Move-In and Rent-Out
Unlike pre-selling condos, which you may have to wait years for, RFO condos are ready for immediate occupancy. This means you can start generating passive income right away by renting out the unit to potential tenants.
With the upcoming rental season in full swing due to the influx of expatriates, tourists, and overseas Filipino workers (OFWs) coming home for the holidays, there’s a higher chance of finding tenants for an RFO condo during this period.
3. Favorable Market Trends
Economic indicators like increased spending during the Christmas season and the demand for housing from both local buyers and overseas Filipinos contribute to the market’s vibrancy during the holidays. The increase in activities like SMDC Date Night or events at SMX Convention Center creates more visibility for real estate developments, attracting potential buyers and tenants alike.
How to Invest in an RFO Property During the Holidays
To make the most of your investment, it’s essential to approach the purchase of RFO units strategically. Here are some practical tips to maximize returns when investing in ready-for-occupancy properties during the holiday season:
1. Prioritize Location
Location is crucial in any real estate investment, particularly for a condo or house, and RFO units are no different. Look for condominiums and homes that offer unparalleled convenience, such as those within walking distance from business districts, schools, and transportation hubs.
Camella RFO units, for example, are known for being centrally located, making them attractive to prospective tenants looking for a well-connected home. You can find a Camella house or condo in the most strategic locations in the metro and outside of it.
To follow, SMDC is also a good example with Vine Residences, which is strategically located near key business districts in Novaliches, providing an advantage for investors seeking properties with high rental demand.
2. Take Advantage of Flexible Payment Options
One of the benefits of buying during the holiday season is the flexible payment and deals that developers offer for RFO units.
These might include deferred payments, lower interest rates, or extended monthly payments (tip: pre-selling condos and homes also have similar payment advantages). These flexible terms can ease the burden on your finances and allow you to invest without straining your budget.
Additionally, flexible payment plans make it possible for first-time investors to enter the real estate market without needing a large upfront downpayment toward an RFO condo unit, for instance. This is particularly useful for those with limited liquidity but who want to get a foothold in the real estate investment scene.
3. Evaluate the Potential for Rental Income
To ensure you’re making a good investment, analyze the potential rental income you can generate from the RFO unit. RFO condos in high-demand areas like Makati and Pasay are ideal for short-term rentals, particularly for tourists and expats during the holiday and summer season.
Take the time to research market rates in the area to get a clear idea of how much money you can charge for rent. For example, a condo that offers services such as fitness centers, a swimming pool, and other amenities tends to attract more tenants and can command higher rental prices.
4. Inspect the Actual Property
Since RFO units are already fully constructed, you have the opportunity to inspect the property before making a purchase unlike, pre-selling ones. This is a huge advantage over pre-selling units, as you can immediately assess the quality of the build, the condition of the unit, and the surrounding environment.
Make sure to evaluate the amenities, layout, and overall condition of the property. Pay close attention to other factors such as access to public transportation, nearby schools, and commercial areas. These are key considerations that will impact your ability to rent out the unit or resell it in the future.
5. Consider the Long-Term Growth Potential
Investing in RFO condos and houses can provide both immediate and long-term financial benefits. The key to maximizing returns is to choose properties in emerging markets or areas that are likely to appreciate in value over time.
In Metro Manila, for instance, certain areas are undergoing significant development, which could lead to higher property values in the coming years. If you purchase now, you may see your property’s value grow, giving you the option to sell it later at a higher price or continue earning passive income from rent.
6. Stay Updated on Market Trends
Real estate is a dynamic market, and trends can shift based on economic indicators, market trends, and consumer preferences. Keeping an eye on these trends will help you make informed decisions about your investments.
Follow local real estate news and attend property events like SMDC Date Night or SMX Convention Center showcases to stay updated on the latest developments. Engaging with a SMDC property specialist can also give you insider knowledge on upcoming projects and the best deals available.
7. Factor in Property Management
If you’re buying RFO units with the intention of renting them out, you may want to consider hiring a property management company. This can help streamline the process of finding tenants, collecting rent, and maintaining the unit.
This enhances the customer experience for your tenants and gives you ample time on less tedious tasks. Especially during the busy holiday season, having a professional manage your property can save you time and ensure that everything runs smoothly.
Get Your RFO Dream Home in Camella
Purchasing a RFO condo unit or house is a milestone for every bright-eyed Filipino family. Investing in RFO units during the holiday season offers numerous benefits, from immediate rental income to attractive payment options.
Plus, there’s no better time than the holidays to do it. If you’re looking for RFO units, Camella’s got you covered.
From condo units to different types of homes and lots, Camella guarantees that you make the most of your money. Camella developments have excellent facilities like community spaces, fitness centers, basketball courts, and a clubhouse. Alternatively, Camella also offers a host of pre-selling units if you want more time before you dive into buying your dream home.
By prioritizing location, inspecting the RFO unit carefully, and staying updated on market trends, you can make a good investment that delivers both short-term and long-term returns.
Celebrate Life’s Milestones in Camella!
House and Lot & Condominium for Sale in the Philippines
