RFO condominiums may be risky investments in Philippines

Philippine property prices have risen steadily, with a 6.5% increase in the Residential Real Estate Price Index in Q3 2023. Ready-for-occupancy (RFO) condos are appealing for immediate use, allowing buyers to save on rent and avoid construction delays. RFO units cater to various buyers, including aspiring homeowners and overseas Filipino workers. However, potential buyers should inspect units for defects and consider costs like maintenance and taxes. The rental market remains strong, but investors must be aware of vacancy risks and other expenses. While RFO units offer benefits, they require larger upfront payments and can be harder to sell in a slow market. Diversifying investments beyond real estate is advised for financial stability.