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What makes RFOs a great buy

By: - Reporter / @amyremoINQ
/ 05:37 AM July 15, 2017

RFO units are ready for use and the owner can physically move in immediately.

The growing popularity of the so-called ready-for-occupancy units in recent years is not entirely surprising.

Despite the fact that one has to pay a premium for an RFO unit compared to one bought during pre-selling, there are still clear advantages of buying a unit that one can readily use.

From the point of view of the property developers, the logic behind selling RFO units is to provide a more attractive offering to customers—a move seen to help reduce their respective inventory. For the buyers and investors, it’s being able to know exactly what you will get out of your buck.


As Prof. Enrique Soriano, executive director at W+B Advisory and program director for real estate at the Ateneo Graduate School of Business, had put it: In buying an RFO unit, you are “effectively buying a tangible asset wherein you can immediately enjoy the fruits of your hard earned money.”

So why should you go for an RFO unit?

Buyers or investors, according to Soriano, will have several opportunities for utilization, as an RFO unit can be immediately used as a residence.

For some, an RFO unit can be used as a half way house for workers or students given the metro’s perennial traffic, gridlock and flooding, especially during the rainy season.

The resale value can also be higher. Some would choose to “flip it after a year hoping that the purchase and the subsequent resale can translate to a better value,” Soriano said.

Soriano added that if the project is located in a central business district, a buyer of an RFO unit will have a huge opportunity to renting it out to expatriates and transients. For others, Airbnb (an online marketplace and hospitality service) offers an alternative passive income stream.

End users also stand to benefit from buying an RFO unit. Here are some of those advantages according to Soriano:

There’s no longer a downtime or long wait to occupy the unit or house. Units are ready for use and the owner can physically move in immediately.


An occupancy permit and a transfer certificate title, when fully paid, can now be verified and processed.

It increases your net worth and credit worthiness.

You can visually assess the quality of the unit as opposed to a pre-selling unit wherein you will have to rely heavily on the broker, the collaterals and the proven track record of the developer.

Should there be defects, it can immediately be rectified by way of a series of punch listing requests.

There are some guarantees prescribed when some defects are seen or experienced right after the buyer moves in.

When paying for the RFO unit, you can be assured that you are paying for the actual cost, including the attendant taxes and monthly dues allocated for building maintenance.

Currently, there are a number of property developers that offer RFO unit, one of which is Avida Land Corp.

“We, at Avida, ensure that we are a brand that gives utmost value to our customers through our developments that contribute to their quality of life. Our projects are strategically located in city centers and key areas that will take less time for travel to and from work or school, hence, our customers have more personal time with their loved ones or to pursue their passions and hobbies. It is conveniently located near establishments and landmarks where our residents can easily access if they need to, without the hassle of traveling too far,” explained Avida marketing head Tess Tatco.

“With an RFO unit in Avida, one can immediately enjoy all of these conveniences with our current offerings that provide different payment options for those who want to move in right away. In terms of investment, our units can be rented out immediately thru the help of our leasing services and the rental income derived from it can be used as payment for the monthly amortizations,” she noted.

Currently, Avida offers RFO units in several projects: Avida Towers New Manila (Quezon City); Avida Towers Sucat (Paranaque); Avida Towers Astrea (Fairview); Avida Towers Centera (Mandaluyong City); Avida Towers Prime Taft (Taft Ave., Pasay City);Avida Towers Altura (Alabang); and Avida Towers Intima (Paco, Manila).

“With these inventories, one can own an RFO unit as low as P13,500 monthly and immediately move in, depending on the payment term,” Tatco added.

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