Flipping pre-selling condo investments is a great alternative source of income other than renting out your properties. However, note that renovating and then selling your homes for profit is neither a get-rich-quick strategy nor does it guarantee success every time. But for those with the foresight and patience, flipping homes can be highly profitable. 

Flipping homes means buying a house, making the necessary repairs and refurbishments, and then selling it at a profit. It takes a good understanding of the market, a keen eye for properties, and enough money to front the costs. In particular, sellers who flip pre-selling condominiums can earn a tidy profit. 

Why Flip Pre-Selling Condo Units Specifically?  

Two factors play into the attractiveness of condominium units. The first one is location. In high-density areas where many people tend to live, condominiums are fast becoming the de facto type of residence. Due to demand, city centers, business districts, and commercial areas command high property prices. Workers would always prefer living near their place of work. Families tend to gravitate to cities with good schools and hospitals. Businesspeople and traders want proximity to the markets they serve. Developers love building condominiums because they provide housing opportunities to more people than any other project. When considering flipping condo units, always consider the location first. This also means looking into market conditions and checking if the properties in the area historically rise in value continuously. 

The other factor is the pre-selling condo unit’s price. A pre-selling condo in the Philippines is at least 30% cheaper than a ready-for-occupancy (RFO) unit. Investors who manage to snag condo units located in high-demand areas can generate a great ROI upon completion and launch. But there lies the rub: buying a pre-selling condo does not guarantee that property prices will continue to rise in the area. Even worse, if the developer cannot sell enough units to earn a profit or break even, they might cancel or abandon the project.  

This is where knowledge of the local property market comes into play. The savvy investor will always make sure to take enough time to learn about the market, the property, the developer, and the location. If all signs point to healthy growth over the next few years, then buying a condo from a reputable developer can pay off big upon turnover. 

The Costs of Refurbishing a Pre-selling Condo

Of course, flipping the pre-selling condo requires the owner to make some significant improvements. Flipping a bare unit might attract buyers who want first dibs on the condo. However, you might miss out on additional profits from making your unit truly ready for occupancy. Being brand-new, you won’t need to undertake any major repairs on your condo. However, you might want to consider adding a few extra features or improving the interiors.  

Investors who bought pre-selling condo units on installment might choose to live there while paying off the housing loan. Most pay off their mortgage before considering flipping their condo. In this case, repairs and renovations are in order if they expect to generate a great return on their investment.  

When sprucing up your condo unit before putting it up for sale, consider the following tips: 

Consider Your Target Market

When enhancing your bare unit, try to envision your target market. Do you have a two- or three-bedroom unit that’s perfect for a small family? Or, do you have a one-bedroom unit suited for couples or a studio for single transients? Your design choices should anticipate what your target market might require. This might include a workspace for remote workers, a more functional kitchen for the family, or minimalist interiors for the solo thinker. 

Plan First, Execute Later

Planning first allows you to keep the renovation and refurbishment work consistent with the design. Buyers looking to move in immediately will prefer a unit that features a harmonious aesthetic compared to one that looks like a work in progress. It also pays to know what modifications are allowed by the condo association before you start with any work. Planning for an extra bathroom when there are no provisions for additional pipes can be a nightmare. In addition, it’s cheaper to execute a design when you’ve prepared the materials beforehand. Plus, frequent trips to the hardware can add considerably to your costs and can take up your time. 

Stick to Your Budget

Finally, keep track of the money you’re spending on renovations. Remember that to profit from flipping your pre-selling condo, you’ll need to recoup not just your unit purchase but also your renovation expenses. Current market rates will dictate the selling price for your condo, so you can’t automatically adjust your selling price upward just because you spent more money. 

Should I Sell Now or Wait for Prices to Go Up?

The key to success in flipping pre-selling condo units and other property types is to buy low and sell high. This is the reason why a condo’s pre-selling price is very attractive for investors who plan to flip in the future. It’s hard to resist the allure of a pre-selling condo if it can potentially rise by 30% in value during the three- or four-year construction period. Of course, other sellers will likely appear at the same time. Your best bet in flipping your unit is to make it stand out via improvements. 

More importantly, sellers should avoid holding out for a better price when flipping their condo units.  The more owners wait for that maximum profit, the more they spend in terms of property taxes, utilities, insurance, and association dues. It shouldn’t take more than three or four months between refurbishing your condo and putting it on the market. Anything longer is an invitation for additional spending or for market conditions to change. 

Pre-selling Condo Investment Opportunities in the Philippines 

Investors looking for a great place to put their money should look into the current Philippine property market. According to global property consultant Knight Frank, Manila is currently the hottest luxury property market thanks to a 26.3% rise in value over the past year. It beat out former topnotchers Dubai and Bahamas, who both managed to generate only 15% in growth.

With a healthy economy and an ongoing infrastructure-building frenzy, Manila is poised to solve its perennial traffic woes and provide unprecedented mobility for millions of residents. Retail activity in malls and commercial centers has returned to pre-pandemic levels, while offices have gone into “business as usual” mode. As a result, pre-selling condo units in business districts such as Makati, Bonifacio Global City, Ortigas, and the Bay Area remain in high demand.   

Ohmyhome is Your Gateway to Pre-selling Condo Investment Opportunities

If you’d rather spend a productive session looking for the best pre-selling condo investments in the Philippines, then Ohmyhome is the site for you. As the premier tech property platform, our listing covers thousands of properties shared by over 200 of the Philippines’ best developers. 

In addition, the Ohmyhome team of licensed real estate professionals and top-notch customer service staff can help you with everything from finding your dream home, selling your existing properties, securing the best financing deals, and navigating Philippine property laws.

Joining Ohmyhome is simple and easy enough. All you need for a remarkable home buying experience is to sign up for a new account! So sign up and get access to the best properties the Philippines has to offer.