Investing in real estate is probably the safest bet and purchasing a condo for sale in the Philippines may be an excellent place to start. If, on the other hand, you are a first-time property buyer who is unsure whether a house or a condo is the better investment, this article will examine the disadvantages and benefits of purchasing a condo for sale in the Philippines.
Advantages of Buying a Condo for sale in the Philippines
1. Less Expensive Than a House and Lot
Condominiums are typically less expensive than single-family homes and vacant land in the same area, particularly in prime locations. Of course, there are exceptions: upscale condominiums in business districts, particularly in Metro Manila.
The median list price of houses in Metro Manila is PHP 30 million, more than double the median list price of condos in the metro (PHP 4.9 million).
Houses are more expensive than condos due to their larger footprints. If you examine prices per square meter (sqm), you will notice that they are lower for houses than for condos. In Metro Manila, the median list price per square meter for houses is PHP 107,553, while condos cost PHP 152,013 per square meter.
Suggested Read: Ultimate Reasons to Buy Properties Outside Metro Manila
2. Appropriate Locations
If you live in a condominium, you’re only a few minutes’ walk or drive away from malls, supermarkets, convenience stores, restaurants, laundromats, transportation hubs, and hospitals.
Certain businesses are located on the ground floor of condominium buildings. When condo residents need to purchase something, they simply take the elevator down.
Commercial establishments may also be accessible to homeowners living in newer and more developed subdivisions. Condo owners, on the other hand, have easier access to a wider variety of options within the neighborhood.
Due to the proximity of condos to business districts, working professionals do not have to travel far to reach their places of employment. Living in a condo close to work allows for significant savings in terms of time and money spent on commuting.
3. Selection of Amenities
Pools, sports facilities (such as basketball, tennis, and badminton courts), gyms, lounge areas, function halls, and playgrounds are all included in condominium properties.
Although gated subdivisions provide similar amenities in their clubhouses, they lack the reception areas found in condos. In condominium complexes, receptionists provide concierge services, which include verifying visitors, assisting residents during emergencies, and accepting deliveries on their behalf.
Suggested Read: Why Resort-themed Condos are the Best Homes
4. High Security in a Condo for Sale in the Philippines
Condo for sale in the Philippines, on average, have a higher level of security than subdivisions. Condo communities feature 24-hour security and CCTV cameras, as well as smoke detectors and fire sprinklers in each unit and hallway.
While subdivisions typically have roving guards (and some exclusive villages also have CCTVs), maintaining strict security in larger subdivisions is more difficult than in smaller condo complexes.
5. Easy and less Maintenance
Condo living requires less maintenance than owning a house and land. There is no need to worry about lawn maintenance, leaf removal from the roof, or gutter cleaning.
Residents of condominiums are only responsible for maintaining the interior of their unit. The condominium administrator is responsible for the upkeep of the condominium’s public and outdoor areas.
Disadvantages of Buying a Condo for sale in the Philippines
1. Condo fees are prohibitively expensive
Because of the high monthly association dues, a condo eventually costs more to own than a house. These fees are collected from condo residents and are used to cover the operation and maintenance costs of the entire condominium complex.
Monthly condo dues in Metro Manila range between PHP 1,000 and PHP 8,000, depending on the unit’s size, location, and developer.
Condo owners continue to pay their monthly dues – which are subject to increase – long after they have repaid their unit’s mortgage.
The penalty for not paying the association dues on time adds to the financial burden. Late payments are subject to a maximum of 4% interest per month.
In addition to monthly dues, condominium owners must pay membership and parking fees. Real property tax (RPT) on the unit, as well as the condo owner’s share of RPT on shared areas and the land on which the condominium is built, must be paid quarterly or annually.
2. Internal Space Is Limited
Prepare to live in a small space in a condo — as little as 18 square meters for a studio unit. In the Philippines, condominiums have an average floor area of less than 50 sqm.
In comparison to those who live in larger homes and lots, condo dwellers lack their own exterior space. Rather than that, they coexist with other residents in shared outdoor facilities and common areas.
3. Less Freedom in a Condo for Sale in the Philippines
Extensions are not permitted in condominium communities due to the risk of compromising the structural integrity of the building. Due to the extremely limited space available in condominiums, there is no way to add a room for your growing family.
Condominium owners, on the other hand, may renovate within their unit’s confines. However, residents must obtain approval from the property management office before beginning any home repair or improvement.
That is just one of the numerous constraints associated with condominium living. Additionally, condominium residents are expected to adhere to a variety of house rules. For instance, access to common areas and facilities is restricted. Certain condominiums prohibit pets, while others restrict the number and type of pets permitted in each unit.
4. Absence of tranquility and discretion
If you value solitude and tranquillity, a condo may not be the right property to purchase.
Each condo dweller has neighbors on the top, bottom, and sides of the unit. Nobody is immune to noise of all kinds. All condo communities have them, from noisy children and crying babies to partying neighbors, loud footsteps, and chattering.
Additionally, because people walk down the halls daily, you cannot leave your doors open to let some fresh air in.
Should you Buy a Condo for sale in the Philippines?
The correct choice is determined by what you value most in a home and which one will provide you with a higher standard of living.
Whether you decide to purchase a condo for sale in the Philippines or not, financing your dream condo is now more affordable than ever, thanks to the abundance of housing loan options available in the Philippines. However, just as choosing between a condo and a house can be daunting for first-time homebuyers, selecting from a diverse array of financing options can be equally so. Weigh your options carefully to ensure that you make the best decision and investment.
Suggested Read: Is Buying Pre Selling Condo the Better Option?