Pros and Cons of Investing in a “pasalo Unit” Vs. Buying Directly from a Developer

In the Philippine real estate market, you may come across the term “Pasalo unit”, a pre-owned property whose original buyer is transferring the balance of their payments and ownership rights to you. At first glance, this might seem like a great shortcut to owning a home or investment property. However, before deciding between a Pasalo arrangement and buying directly from a developer like Suntrust, it’s important to weigh the pros and cons of each option.

What Is a “Pasalo Unit”?

A Pasalo unit is typically a condominium or house-and-lot where the first buyer has already paid a portion of the total cost. Instead of finishing their payments, they “pass on” or transfer their rights to another buyer, who continues the payments either directly to the seller or the developer. This setup can sometimes be cheaper upfront, but it also comes with unique risks.

Pros of Investing in a Pasalo Unit

1. Lower Initial Cost

You may be able to acquire the property at a slightly lower price compared to the current market value. Sellers are often motivated to transfer ownership quickly, which could mean a discount.

1. Faster Move-In

If the unit is already built, you could potentially move in sooner compared to waiting for a pre-selling property to be completed.

1. Existing Improvements

Some Pasalo units may already have interior upgrades, furnishings, or other modifications done by the first owner.

Cons of Investing in a Pasalo Unit

While the potential savings can be tempting, there are notable drawbacks:

1. Unclear Legal Standing

Not all Pasalo arrangements are officially recognized or processed by the developer. Without proper documentation, you risk future disputes over ownership.

1. Possible Hidden Costs

Unpaid dues, penalties, or association fees from the previous owner could be passed on to you. This can quickly offset any perceived savings.

1. Outdated Designs or Wear and Tear

Unlike new Suntrust properties that feature modern layouts and fresh finishes, a Pasalo unit may require repairs, repainting, or renovations.

1. Limited Financing Options

Banks and financing institutions are often more cautious about lending for second-hand properties, especially if the documentation isn’t complete.

Advantages of Buying Directly from a Developer Like Suntrust

Purchasing straight from a trusted developer such as Suntrust offers clear, long-term benefits:

1. Guaranteed Legitimacy

Buying directly ensures your ownership is recognized and protected by the developer, with all contracts and titles processed properly.

1. Flexible Payment Terms

Suntrust Properties, Inc. offers various financing options — from in-house terms to bank financing — making it easier to manage your investment.

1. Brand-New Units

You get a property that’s fresh from construction, free from prior wear and tear, and built to the latest design standards.

1. Developer Support

From reservation to turnover, you benefit from the after-sales service and maintenance support that Suntrust provides.

1. Prime Locations and Amenities

Many Suntrust properties are strategically located near business hubs, schools, and shopping centers, while also offering amenities such as swimming pools, clubhouses, and landscaped gardens.

Making the Right Choice

While a Pasalo unit might appear cheaper upfront, the potential legal and maintenance risks can make it a more complicated investment. On the other hand, buying directly from a reputable developer like Suntrust provides peace of mind, transparent transactions, and the assurance of a brand-new property built to modern standards.



Whether you’re looking for a stylish condominium in the city or a serene house-and-lot in a suburban community, Suntrust Properties, Inc. offers a wide range of developments to match your lifestyle and investment goals. With clear documentation, flexible payment options, and professional customer service, investing in a Suntrust property is a secure step toward your dream home or a profitable real estate portfolio.

In real estate, what you save today shouldn’t compromise what you own tomorrow. For stability, value, and confidence in your investment, buying directly from trusted developers like Suntrust remains a smart, future-proof choice.