House vs Condo - What Property Should You Get |
Posted: October 27, 2020 |
This year, the Philippine real estate market is expected to soar higher. Developers remain optimistic that the demand for townhouses and condos will be stimulated by a continuous trend in savings and income, particularly in the middle class. On the other hand, as developers compete to get a bigger slice of the pie, homebuyers should expect more affordable prices for homes. It is still a good time for Filipinos to invest in real estate. With many housing loan options provided by banks and financial institutions, payment conditions are becoming more friendly. With homes and condominiums sprouting almost everywhere, options are varied too. The big question that comes to mind is, "Where am I supposed to invest my money?" Will it be in a house or a unit of a condo? Comparing a house and a condo here's the pros and cons to help you decide the most appropriate land, whether for your own use or investment. Pros and Cons of Buying a CondoAdvantages of Buying a Condominium
1. More Affordable Than a House and Lot Condominiums, particularly in prime locations, are generally less costly than houses and lots in the same area. The median list price for houses in Metro Manila is PHP 14.5 million, which is more than double the price list of metro condos (PHP 5.9 million). Since they occupy larger areas, houses cost more than condos. These are lower for houses than for condos if you take a closer look at prices per square meter (sqm). For houses in Metro Manila, the median list price per sqm is PHP 64,894, while condos cost PHP 161,236 per sqm. 2. Convenient Locations Places such as malls, supermarkets, convenience stores, restaurants, laundry shops, transit centers, and hospitals are only a few minutes' walks or drive away if you live in a condominium. Many businesses are situated in condominium buildings on the ground floor. When they need to purchase something, condo dwellers just take the elevator down. Since condos are usually situated near business districts, working professionals do not have to drive far to get to their workplaces. Living in a condo near the office helps to save time and expense on commuting substantially. 3. Wide Range of Amenities
Condo properties, just like SMDC Gold Residences in Paranaque, Metro Manila, offer amenities such as pool, gyms, lounge rooms, function halls, playgrounds, and other leisure facilities such as basketball, tennis, and badminton courts. Receptionists offer concierge services in condo complexes, such as verifying guests, supporting tenants during emergencies, and receiving deliveries on behalf of tenants. 4. Tighter Security Compared with subdivisions, the level of protection in most condominiums is greater. Condo communities have 24-hour surveillance and CCTV cameras, and smoke detectors and fire sprinklers are installed in every unit and hallway. Disadvantages of Buying a Condominium1. High Condo Fees Over time, a condo costs more to buy than a home because of the steep monthly association fees. The operating and maintenance expenses of the entire condo complex cover these fees received from condo owners. Condo owners have to pay their annual fees, which are subject to changes, even after their unit's mortgage has been paid off. The penalty for failing to pay the association's dues on time enhances the financial burden. For late payments, as much as 4 percent interest per month is paid. Condo owners are expected to pay membership fees and parking fees on top of the monthly dues. Real estate tax (RPT) on the unit must be charged per quarter or year, and the share of RPT by the condo owner in common areas and the property where the condominium is constructed. 2. Limited Interior Space
Be prepared to live in a small room, as small as 18 sqm for a studio-type apartment in a condo. On average, there is less than 50 sqm of floor space in condominiums in the Philippines. Condo dwellers do not have their own exterior space, unlike those residing in more spacious houses and lots. Instead, they share with other residents outdoor equipment, and common areas. 3. Less Freedom Extension schemes are not permitted in condo communities because they may impact building integrity. Since condo spaces are very small, there's no way for your growing family to create an extra room. Condo owners can, however, renovate within their unit's boundaries. But residents must receive permission first from the property management office before beginning any home repair or renovation. That's only one of many condo living constraints. Numerous house rules are often required to be observed by condo dwellers. There are restrictions on the usage of common areas and services, for instance. Some condos do not accept pets, and the number and types of pets in each unit are restricted by others that enforce pet policies. Pros and Cons of Buying a HouseAdvantages of Buying a House and Lot
1. Bigger Spaces Getting a larger interior space, plus an outside space of your own is the main benefit of owning a home. Houses have living quarters, kitchens, dining areas, and bedrooms that are more spacious. Homeowners usually have their own garage and space for laundry and dirty kitchens, unlike condo owners. 2. Full and Exclusive Rights to the property You buy a piece of land that is solely yours when you purchase a house and a lot. Conversely, tenants of condominiums share ownership of the land, which is why they do not enjoy as much liberty as homeowners do. A house is simpler than a condo to customize. You are free to change the wall paint at any time as a homeowner or build extra space. You can create a porch, start a garden, or build a small playground in the backyard for your children. 3. Greater Privacy Generally, there are more quiet neighborhoods in subdivisions than in condo areas. Homeowners live well above each other. You're not sharing the same wall, floor, or building with your neighbors in a detached home. You still enjoy greater privacy than condo dwellers, even though you live in a townhouse or duplex. You and your neighbors, despite sharing walls, have a separate room of their own. 4. Good Long-Term Investment A house and lot is an asset of a lifetime that can be passed on from generation to generation. While the building's value decreases, over time, the land where it is installed slowly appreciates. This makes it a better long-term investment to buy a house than a condo, which has a lifetime of just 50 years. Disadvantages of Buying a House and Lot1. More Difficult and Costly to Maintain You have absolute power over your property with a house and a lot of ownership. This also implies that you bear the full responsibility for its maintenance. To oversee your home upkeep's various aspects, you can hire someone else, but this can be costly. 2. Higher Utility Bills
Getting a greater living room comes with a drawback: higher use of energy and water. Homeowners pay higher bills than condo owners because of that. 3. Long Commutes In suburban areas, most of the accessible and affordable houses and lots for sale are located. It takes between two to four hours to drive to and from central business districts, where most individuals work. With the current state of our mass transit system, it will be appropriate for homeowners living outside Metro Manila to endure lengthy, tiring daily commutes. The right option depends on what you enjoy most in a home and which one can offer you a better quality of life. With plenty of housing loan options in the Philippines, finding your dream home is now easier on the budget, whether you purchase a condominium or a house and lot. However, for first-time homebuyers, choosing from a wide variety of financing choices can be overwhelming, like deciding between a condo vs. house. Weigh the choices carefully so you can make the best choice for you. If you are looking for your dream home, you can check out Metro Realty Search today.
Louie is the father behind the travel blog Browseeverywhere.com. He has a background in photography, E-commerce, and writing product reviews online at ConsumerReviews24. Traveling full time with his family was his ultimate past-time. If he’s not typing at his laptop, you can probably find him watching movies.
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