Investing in a new home, whether it’s a condo or house and lot, is a great commitment, especially if you’re deciding on paying off the purchase through banks loans or PAGIBIG house plans, which can stretch for a minimum five years to 30 years. If you’re considering paying it in cash, it’s still a significant amount that needs some serious consideration.
So the question of whether a condo or a house and lot is a better investment relies entirely on your investment needs and purposes.
Condos are a highly popular investment choice for the in-city young professionals as most condos are located within urban centers that are closer to business districts and are accessible to main transportation systems such as the MRT, LRT and bus lines. Condos are also more convenient for the city lifestyle as they are usually a short trip or walk away from malls and supermarket. Condos also offer the added benefits of shared facilities like gyms, restaurants, pools and other venues for recreation. This is the perfect home for yuppies, young couples and small families.
The drawbacks, however, include smaller living space, shared maintenance dues with other homeowners, and limited leeway to renovate your unit. All condo owners must comply with the rules and regulations that have been set and agreed upon by the entire condo population. Also, while you do own the unit space, you do not own the land.
Another serious consideration is that condos typically have a 50-year lifespan before intensive renovation or demolition is required.
House & Lot
Investing in a house and lot is also a good consideration. The advantage of owning a home in a residential community is that you can claim ownership of the land and have more control over the construction and renovations of the home. Most house and lots are deemed a greater investment (especially in the urban areas where property is more expensive) as they offer more space, more storage and provide more privacy since you don’t share the same crowded space with neighbors as in condos. In select communities, you can also enjoy recreational benefits such as gyms, swimming pools and the like.
However, with bigger space comes higher expenses – for renovation and maintenance, as well as utility bills and association dues.
Considering these, which is the better investment? And again, it all depends on what you intend to do with the property. If you’re purchasing in order to reside in it as a homeowner, you have to consider the space needed for your family, the budget and ability to pay off the purchase. Most would opt for a house and lot especially if you are looking for property that will last a lifetime and which can be passed down to family.
If you’re purchasing to rent out and to earn passive income, condos are the preferred choice as they’re more affordable to renters and are located in more accessible points in the city.